GEORGE TOWN: Penang recorded one of it highest investments ever for the manufacturing sector with RM8.8 billion approved in the first quarter of the year — up 768% on a year-on-year basis.
It has surpassed last year’s total investments of RM5.8 billion, Penang Chief Minister Chow Kon Yeow revealed in a statement here.
The RM8.8 billion meant that Penang contributed 42% of Malaysia’s total manufacturing foreign direct investment (FDI). The state also received the highest FDI in manufacturing compared to other states.
Chow said that such investments will also translate to 10,073 new job opportunities in Penang.
He spoke of how resilient the state had become despite fears of the looming US-China trade war would have an adverse effect here.
Penang remains a preferred destination for FDI owing to the state’s combination of a robust supply chain, a strong talent pool and established infrastructure.
“Regardless of whether the US and China can strike a deal on the trade agreements, corporations will have to strategise to diversify their manufacturing geographical footprint, to avoid being victims of the two super powers’ trade and technology fight, which could last for years”.
“The global supply chain is set to be reshuffled. Penang has to position itself to ride on the opportunities arising from this structural change”, Chow said.
While Penang could be a preferred investment site in the mid to long term, Chow expressed his concerns if the trade war went on longer.
He said that Penang is also keen to enhance its small and medium enterprises so it can be positioned to tap on the possible opportunities which may arise from a prolonged trade war.
