InvestPenang remains resolute in its commitment to enhancing the ease of doing business in Penang, says its chief executive officer Datuk Loo Lee Lian.
Her comments came in the wake of Penang establishing itself as the top state in the country with approved investments of RM71.9 billion in 2023.
Penang was followed by Kuala Lumpur (RM58.3 billion), Selangor (RM55.3 billion), Johor (RM43.1 billion) and Kedah (RM28.7 billion).
“Improving the ease of doing business in Penang will remain our utmost priority. We will continue to seek and attract strategic high-quality projects and elevate our local companies’ participation in the global value chain while identifying opportunities in the current geopolitical and supply chain divergence environment,” Loo told Buletin Mutiara in an interview.
“InvestPenang would like to thank the Malaysian Investment Development Authority (Mida) and relevant Federal and state agencies for their concerted efforts in enabling these strategic investments into Penang.
“We would also like to express our gratitude to all our investors for placing confidence and choosing Penang as their investment destination.”
Penang Development Corporation (PDC), established by the state in 1969 to spearhead socio-economic growth, create employment opportunities, and develop industrial parks, townships and affordable housing, takes pride in the state’s achievement too.
According to its chief executive officer Datuk Aziz Bakar, Penang’s top position underscores investors’ confidence in the state and the industrial parks developed by PDC.
“PDC will continue to improve the quality of PDC’s industrial parks, especially Batu Kawan Industrial Park 3 (BKIP 3) and Batu Kawan Technology Park (BCTP) with the ‘Infra Ready Concept’.
“PDC plays an important role in providing physical infrastructure and logistics facilities to create a comprehensive yet conducive ecosystem that enhances connectivity and meets industry needs. This includes initiatives such as global business service hub or Global Business Services (GBS), Workers Village and Logistics Hub.
“PDC remains dedicated to driving the industrial sector through ongoing collaborations with various parties, aiming to strengthen the competitiveness of Penang and the country in general,” Aziz said.
Muhd Ghaddaffi Sardar, the Malaysian Investment Development Authority (Mida) Penang director, shared that the concerted efforts of various quarters have yielded positive results.
He said Penang contributed RM71.9 billion from the RM329.4 billion investment approved in Malaysia covering the primary, manufacturing and services sectors for the year 2023. It increased significantly from the investment approved in 2022 amounting to RM16.3 billion. Of that amount, RM61.7 billion came from FDI while DDI contributed as much as RM 10.2 billion, creating 20,701 job opportunities involving 415 approved projects.
Muhd Ghaddaffi added that the manufacturing sector continues to be the largest contributor, amounting to RM63.4 billion, championed by the Electrical & Electronics industry (86.2%), Chemicals & Chemical Products (5.4%) and followed by other industries.
“This success highlights the effectiveness of investment promotion strategies, the attractiveness of Penang as an investment destination and the collaborative efforts that have propelled the state to the forefront of Malaysia’s investment landscape.
“This accomplishment underscores Penang’s robust economic ecosystem, business-friendly environment and proactive approach to fostering growth. It reflects positively on our commitment to innovation and providing a conducive platform for businesses to thrive. Additionally, it signals confidence from investors in the region’s potential and showcases our dedication to sustainable economic development,” Muhd Ghaddaffi said.
During the Malaysian Investment Development Authority (Mida) Annual Media Investment Conference 2024 in Kuala Lumpur yesterday, Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz projected a minimum growth of 8% to 10% growth in approved investments for Malaysia in 2024.
He highlighted that Bank Negara has forecasted gross development product (GDP) growth to be between 4% and 5%.
Tengku Zafrul pointed out that Malaysia achieved a significant increase in approved investments, totalling RM329.4 billion across manufacturing, services and primary sectors in 2023. This marked a robust 23% year-on-year growth from RM267.7 billion in 2022.
Foreign investments (FI) recorded a value of RM188.4 bil, equivalent to a 15.3% increase, while domestic investments (DI) grew 31.5% to RM141.1bil, reflecting domestic investors’ restored confidence.
Of total approved investments in 2023, FI contributed 57.2% with DI comprising the remaining 42.8%.
Tengku Zafrul further detailed the top five sources of FI, with Singapore leading at RM43.7 billion, the Netherlands (RM35.5bil), the United States (RM21.5bil), Cayman Islands (RM17.5bil) and China (RM14.5bil).
Story by K.H. Ong
Pix by Law Suun Ting