PENANG has managed to garner RM1.5 billion of approved manufacturing investments in the third quarter of this year (July to September) despite the restrictions imposed due to the Covid-19 pandemic.
Chief Minister Chow Kon Yeow said that the domestic direct investments (DDI) accounted for RM1.1 billion or 73 % of the investment inflows.
“The remaining RM401.9 million came from foreign direct investments (FDI).
“It is worthy to note that Penang’s approved manufacturing investments for the third quarter of this year were primarily contributed by DDI. This scenario is different from the past where FDI in Penang would be more than its DDI.
“It demonstrates that our robust industrial ecosystem offers a competent platform for local players to participate and thrive,” he told a press conference at his office in Komtar today.
Chow said the inflows from the third quarter brought the state’s total approved manufacturing investments for the first nine months of this year (January to September) to RM10.6 billion.
“Eighty three percent of this amount was contributed by FDI, making Penang the second highest FDI contributor to Malaysia.
“The DDI in Penang rose 42% year-on-year and reached RM1.8 billion for the period of January to September 2020 with eminent projects from Federal Oats Mills, Iconic Medicare, Straits Orthopaedics and ViTrox Technologies,” he said.
Chow added that the state’s total approved manufacturing investments were dominated by its key promoted industries; which were Machinery & Equipment, Scientific & Measuring Equipment, and Electrical and Electronics industries.
He said that the approved projects were expected to generate 9,137 new employment opportunities in Penang.
On the same note, Chow said the repercussions of the pandemic are persisting.
“Penang’s investment performance this year will not be able to match 2019’s all-time-high of RM16.9 billion; given the third wave that we are now experiencing, coupled with the implementation of the conditional movement control order (CMCO),” Chow said.
He conveyed the state’s appreciation to the investors who have put their trust in Penang and thanked the state agencies, InvestPenang and Penang development Corporation (PDC) for their hard work.
“With the strong synergy between the Penang government and Federal agencies, especially Malaysian Investment Development Authority (Mida), and the recent investment incentives announced in the Budget 2021, I am confident that Penang can ride out these uncertain times.
“We will continue to strive to ensure that the state remains as the Silicon Valley of the East,” he added.
Story by Christopher Tan
Pix by Law Suun Ting
Video by Darwina Mohd Daud