THE Penang government is committed to ensuring the state remains competitive in the semiconductor sector locally and globally.
Chief Minister Chow Kon Yeow (PH-Padang Kota) said the state government has outlined seven strategies to achieve this goal in his reply to an oral question by Lee Khai Loon (PH-Machang Bubuk) during the Penang Legislative Assembly session today.
The seven strategies are as follows:
• Development of Front-End Manufacturing Equipment: The focus is on developing front-end manufacturing equipment, including encouraging research and development (R&D) and design and development (D&D) activities among local companies.
• ESG Orientation: Penang aims to become an ESG (environment, social, and governance) oriented state. ESG is now one of the determining factors in site selection for potential investors in the semiconductor sector. Locations that meet ESG standards now have an advantage in the site selection process.
• Establishment of Industrial Parks: The state government, through the Penang Development Corporation (PDC), has established international-class industrial parks such as the Bandar Cassia Technology Park (BCTP), Batu Kawan Industrial Park 3 (BKIP3), and Penang Science Park South (PSPS), spanning 852 acres. This reflects Penang’s commitment to meeting the evolving needs of local and international investors.
• Hand Holding Programme: The state government has implemented the ‘Hand Holding Programme’ to provide ease of doing business for current and potential investors.
• IC Design and Digital Park: Plans have been announced for an integrated circuit (IC) design and digital park in Bayan Lepas Industrial Park, which offers one million square feet of premium office space for high-impact projects. The project, encompassing 42.5 hectares, consists of two phases. The first phase involves the ongoing construction of two pioneering office buildings, GBS By The Sea and GBS TechSpace, with 350,000sq ft of premium office space at a total cost of RM347 million. The second phase of the park involves the establishment of an additional building named GBS@TechnoPlex, which will cost approximately RM308 million and provide an additional 500,000sq ft of space to the project. The first phase is scheduled to be completed by the fourth quarter of 2024, followed by the second phase by 2027.
• Talent Retention and Development: Various initiatives such as the Future Foundation Scholarship and Penang GBS Industry Academy have been carried out to retain and develop existing talents and attract new talents in the state.
• International Promotion: The state delegation has promoted Penang abroad by holding meetings and discussions with potential investors. The investment mission focuses on countries, including the United States, China, Singapore, and European countries.
In response to another question by Lee, who wanted to know why investors chose Selangor for the Integrated Circuit (IC) Design project, Chow replied that one of the reasons was likely due to the incentive announcement by the Selangor government through the Malaysia Semiconductor Accelerator and IC Design Park (Selangor Hub).
“It is learnt that Selangor also received an RM60 million grant from the Federal fund for this project,” he said.
In response to a supplementary question by Lim Guan Eng (PH-Air Putih) regarding when the state government will apply for a similar grant received by Selangor for the IC Design project, Chow replied that a few packages are currently being discussed and more detailed information about the project will be announced soon.
“At the same time, we have also recently announced the establishment of the Penang Chip Design Academy at the Penang Skills Development Centre (PSDC) building in Bayan Lepas. The objective is to support the state’s plan for the development of an IC Design and Digital Park,” he said.
Story by Riadz Akmal
Pix by Muhamad Amir Irsyad Omar