PENANG has reiterated its projected gross domestic product (GDP) growth of 5.4% this year.
Chief Minister Chow Kon Yeow said the state’s economic outlook appeared promising.
“This optimism is driven by the state’s strong manufacturing sector, particularly in electrical and electronics (E&E), which stands to gain from the global resurgence in semiconductor demand.
“The ‘China+1’ strategy continues to enhance Penang’s appeal as a prime destination for multinational corporations looking to diversify their supply chains. This trend is expected to attract greater foreign direct investments (FDIs), further strengthening the state’s economic growth,” he said in his speech during the Malaysia International Chamber of Commerce and Industry (MICCI) x Intellect Worldwide Chinese New Year 2025 Networking Lunch at Jen Hotel Penang today.
Back in 2023, during his special luncheon address at the Penang Future Forward Summit 2023 at G Hotel, Chow mentioned that Penang would strive to meet a projected GDP growth of 5.4% by 2025 as the state recovers from the impact of Covid-19.
While optimistic, Chow emphasised the importance of staying proactive in addressing global economic challenges.
“The state is intensifying efforts to support local startups and small and medium-sized enterprises (SMEs) in the integrated circuit (IC) design sector.
“Initiatives such as Penang Silicon Design @5km+ aim to strengthen the local ecosystem, driving innovation and fostering self-reliance in high-tech industries,” he said.
However, Chow cautioned against potential headwinds, including global trade tensions and shifting economic policies that could impact growth trajectories.
“By leveraging its strategic location, infrastructure, and regional partnerships, Penang is positioning itself to navigate these uncertainties while maintaining economic resilience.
“Additionally, infrastructure projects under the Penang Transport Master Plan (PTMP) are set to further enhance connectivity and sustainability.
“The planned expansion of Penang International Airport (PIA) and the development of the Mutiara LRT Line will improve access to global markets, streamline transportation, and boost workforce productivity,” he added.
Meanwhile, the MICCI plays a pivotal role in driving regional economic integration and bolstering Malaysia’s global trade standing.
With its longstanding commitment to fostering business excellence and facilitating cross-border investments, MICCI remains instrumental in positioning Penang and Malaysia as a premier hub for high-value industries.
Recognising the importance of public-private partnerships (PPPs), Chow emphasised the need for greater collaboration to unlock new opportunities, enhance policy frameworks, and build resilient supply chains.
“These efforts are expected to benefit not only Penang but the entire region, reinforcing Malaysia’s role as a leader in sustainable and inclusive economic growth,” he said.
Intellect Group of IP Companies chief executive officer Solomon Lee invited corporations to join MICCI, highlighting the value of collaboration and growth.
“We became a member of MICCI in 2007, and this marks our first collaboration with the organisation.
“MICCI provides an excellent platform for mutual growth,” he said, extending his best wishes for an afternoon of meaningful interactions and networking.
MICCI Northern branch chairman Datuk Brian Tan welcomed the guests and thanked them for making the event a success.
Collaboration, innovation, and a shared vision will be key in strengthening the state’s competitive edge and ensuring Malaysia remains at the forefront of a dynamic ASEAN economy.
Also present were Chow’s wife Tan Lean Kee, MICCI Northern past chairman and Aspen Group deputy chairman Datuk Seri Nazir Ariff, and MICCI executive director Lee Han Ling.
Story by Christopher Tan
Pix by Siti Nuratikah Rahmat
Video by Law Suun Ting