THE Penang government has renewed its appeal for Federal Government support through a matching grant of RM60 million to advance its Penang Silicon Design @5km+ initiative.
Chief Minister Chow Kon Yeow stated that the state government is prepared to allocate RM60 million but is seeking an additional RM60 million from the Federal Government, bringing the total funding to RM120 million.
This investment aims to enhance the integrated circuit (IC) design ecosystem, supporting the semiconductor industry’s front and back-end operations over the coming years.
Speaking during the State Legislative Assembly sitting at the State Assembly Building on Light Street today, Chow (PH – Padang Kota) responded to a supplementary question from Gooi Hsiao-Leung (PH – Bukit Tengah).
Gooi’s inquiry followed Prime Minister Datuk Seri Anwar Ibrahim’s announcement of a special RM1 billion allocation under the 2025 Budget to Khazanah Nasional Berhad for investments in Malaysia’s semiconductor industry.
“We hope more attention will be given to Penang, although we have yet to receive an update on our request for the matching grant,” Chow said.
He emphasised Penang’s critical role in Malaysia’s semiconductor ecosystem, noting that over 90% of the 30 companies in the country with IC design components are based in Penang.
While Penang does not have a dedicated IC design centre like Selangor, Chow highlighted the state government’s proactive approach in providing incentives to support start-ups and strengthen the IC design sector.
The Penang Silicon Design @5km+ initiative aligns with the New Industrial Master Plan (NIMP) 2030 and the National Semiconductor Strategy (NSS), aiming to drive innovation and growth in Malaysia’s high-end industries.
The initiative includes key projects such as the Penang Integrated Circuit Design & Digital Park, the Penang Chip Academy, and the Silicon Research and Incubation Space, all designed to solidify Penang’s position as a leader in the semiconductor field.
Chow expressed hope that Penang would benefit significantly from the 2025 National Budget.
He stressed that the state is well-positioned to contribute to Malaysia’s economic growth through initiatives such as quality investment incentives, increased allocations for the semiconductor industry, efforts to strengthen supply chain resilience, the development of relevant ecosystems, and the expansion of a skilled talent pool.
Story by Kevin Vimal
Pix by Darwina Mohd Daud