PENANG remains as the highest manufacturing foreign direct investments (FDI) contributor in the country for the first half of 2020 (1H20) with FDI inflows totalling RM8.42 billion.
Chief Minister Chow Kon Yeow said the state’s manufacturing FDI inflow contributed 47% of the nation’s manufacturing FDI for the period.
“Countries with top manufacturing FDI in Penang for the first half of 2020 were Singapore, Switzerland and the United States.
“A notable new project approved during the period was Ultra Clean Holdings; one of the world’s biggest suppliers of critical subsystems for the semiconductor and related manufacturing industries.
“Electrical and electronics, machinery and equipment, and scientific and measuring equipment remain Penang’s main push; collectively contributing 93% of the state’s total approved manufacturing investments from January to June this year,” he told a press conference in Komtar today.
He said that the approved projects are expected to generate 6,971 new job opportunities in Penang.
Chow said based on the latest performance released by the Malaysian Investment Development Authority (Mida), Penang had recorded an investment inflow of RM2.02 billion in manufacturing for the second quarter of this year (2Q20) – up 452% year-on-year.
“The manufacturing FDI for 2Q20 (April to June) accounted for RM1.65 billion, while the remaining RM373 million consisted of manufacturing domestic direct investments (DDI).
“On a year-on-year basis, Penang’s approved manufacturing FDI inflows rose by 600% while DDI went up 186% in 2Q20,” Chow added.
Chow believed that the state’s sustainable environment, vigorous industrial ecosystem and supportive infrastructure are among Penang’s appealing aspects that continue to attract investors.
“It is reassuring to see that despite the outbreak of the Covid-19 pandemic, followed by the imposition of the movement control order (MCO) by the Federal Government throughout the period; investors remain confident in Penang.
“This outcome would not be possible had it not been for the effort and synergy between the Penang and the Federal Government.
“We warmly welcome our investors and express our deepest appreciation to Mida and InvestPenang for their strong collaboration in securing and facilitating investments,” he said.
InvestPenang chief executive officer Datuk Loo Lee Lian said almost 80 to 85% of the approved manufacturing projects are in the process of being implemented.
“One of our biggest challenges is the business travel restriction for business travellers. There are a few companies that are unable to enter, so the projects are still on hold,” she said.
Also present were state Entrepreneurial Development, Trade and Industry Committee chairman Datuk Abdul Halim Hussain, and special investment advisor to the Chief Minister of Penang Datuk Seri Lee Kah Choon.
Story by Christopher Tan
Pix by Alissala Thian
Video by Ahmad Adil Muhamad