At RM8.8b, Penang's investment pull highest among states
Penang has once again finished ahead of other states in recording approved investments worth RM8.8 billion for the first quarter of the year, Chief Minister Chow Kon Yeow announced today.
Chow said the figure was up 768 percent year-on-year, and has surpassed the RM5.8 billion recorded in 2018...
Penang has once again finished ahead of other states in recording approved investments worth RM8.8 billion for the first quarter of the year, Chief Minister Chow Kon Yeow announced today.
Chow said the figure was up 768 percent year-on-year and had surpassed the RM5.8 billion recorded in 2018.
"Penang contributed 42 percent of Malaysia’s total FDI during the period, and its total approved investment of RM8.8 billion is the highest among the states," he told a press conference in George Town today.
Chow said Penang remained a favourable investment destination amid the intensified trade dispute between the US and China, that has caused uncertainty in the global economic outlook.
He cited figures released by Mida which stated that Penang successfully garnered 41 projects amounting to RM8.85 billion, representing 35 percent of Malaysia's total approved investments.
Penang's first quarter total approved investments are expected to create 10,073 new job opportunities in the state, Chow added.
"Penang is the key contributor to Malaysia’s FDI," he said. "In 1Q19, Penang attracted RM8.47 billion of manufacturing representing 42 percent of Malaysia’s total manufacturing FDI.
"Remarkable investments in Penang include projects from Micron Technology, Jabil Circuit, among others," he said.
Chow said the optimal combination of a robust supply chain, talent pool, infrastructure, and support services make it a preferred destination for investors.
He added that the current global trade tensions created macro uncertainties, but also gave rise to opportunity.
"Regardless of whether the US and China can strike a deal on the trade agreements, corporations will have to strategise to diversify their manufacturing geographical footprint, to avoid being a victim of the two superpowers' trade and technology fight, which could last for years.
"The global supply chain is set to be reshuffled. Penang has to position itself to ride on the opportunities arising from this structural change," he said.
Chow said is still "cautiously optimistic" about the near-term outlook, even if the situation has degenerated since a truce was called in the US-China trade war in the first quarter of the year.
US President Donald Trump has threatened to slap tariffs on another US$300 billion (RM1.25 trillion) of Chinese exports to the US.
This, Chow said, makes the speculated meeting between Trump and China's leader Xi Jinping later this month at the G20 summit crucial.
"The superb first quarter investment figure may not repeat itself in the second or third quarter, but Penang’s investment outlook is on the right track over the medium to longer term.
“Through InvestPenang, the state government will continue to focus on bringing in high-quality investments that could create high-value jobs and suit the state’s industry profile," he assured.
InvestPenang is the state's investment arm, which has said it would monitor and provide opportunities by working closely with both multinational and local companies to face future challenges.
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