THE Penang government is closely collaborating with industries to establish the state or Bayan Lepas as a Silicon Research and Incubation Space, according to Chief Minister Chow Kon Yeow.
Speaking as a guest during a live ‘Naratif Khas’ (Special Narrative) over Radio Television Malaysia (RTM) at RTM Wisma Berita, Angkasapuri in Kuala Lumpur tonight, Chow highlighted that efforts are being made to harness human capital through the recently established Chip Academy Design.
Chow said the academy aims to cultivate talent for the IC Design Park by improving the skill sets of participants undergoing specific courses.
An estimated RM15 million will be allocated to operate this academy, including infrastructure construction and training costs over the next five years.
“Penang, being a semiconductor hub, wants to leverage the efficient ecosystem and collaborate with industries to further develop the semiconductor front-end sector.
“But we’ve limited industrial land, and we also need to consider electricity and water supply for industries. Thus, we focus on ‘promoted industries’ related to semiconductors,” Chow told Sayed Munawar Sayed Mustar, moderator of the ‘Naratif Khas’ on the topic – the Future of Penang: Vision and Aspirations of the Chief Minister.
When asked how he feels about Selangor also being keen on IC and digital development, Chow said he does not see it as a challenge, or a bad challenge, as both will be contributing to the national economic development and bring Malaysia to the next level.
“Penang is undoubtedly the forerunner. There may be about 20 IC design factories in the whole of Malaysia, and 18 of them are based in Penang, whether they are MNCs or local companies listed in Bursa Malaysia.
“Penang started attracting semiconductor factories 53 years ago and we are in a position to receive the spillovers from the disruption of the supply chain following the trade war between the US and China.
“Miti (Ministry of Investment, Trade and Industries) and the Economy Ministry can help other states have their own niche market,” Chow replied.
When asked about the talent shortage, Chow said this is a complicated matter and needs the Federal government’s involvement.
“It depends on the Federal government’s commitment to bring changes in the education sector.
“Now, we see the decline in the number of students taking up STEM (Science, Technology, Engineering and Mathematics) subjects.
“Factories need engineers and because of these constraints, we are losing out on the competitive edge to our neighbouring countries in South East Asia.
“I hope STEM education and talent development will be given serious attention by the Federal Government so that we will not be left behind.
“If we don’t have sufficient human talent, then our efforts to attract investors will not bear fruit,” Chow explained.
He acknowledged that the manufacturing sector did not perform well last year compared to 2022 due to a global slowdown, but he is optimistic that it will pick up in the second half of this year.
During the one-hour interview, Chow also answered questions related to the recent Sungai Bakap by-election, tourism, and traffic congestion.
Story by K.H. Ong
Pix by Yap Lee Ying, Muhamad Amir Irsyad Omar and Alia Siti Khadijah Azhar