Penang may well exceed its RM3.8 billion investment target for this year by the end of the month, InvestPenang executive chairperson Lee Kah Choon disclosed today.

The state government’s optimism was driven by keenness from potential foreign and domestic investors, international developments and a favourable investment climate, he said.

Lee believed that Penang investors were drawn to the state due to availability of a highly skilled work force, good infrastructure and international recognition as Malaysia’s ‘Silicon Valley’.

liberal forum privatisation lee kah choon The completion of major infrastructure projects such as the second Penang bridge, monorail, Penang International Airport expansion, upgrading of the Sweetenham Pier, were also factors which boost investors' confidence.

“The economic spin offs from these projects would be a major booster for domestic investors,” said Lee in his maiden press conference after being appointed to helm InvestPenang last month.

Last year, total investments in Penang was RM4.77 billion, comprising RM3.14 billion foreign direct investments and RM1.63 billion domestic investment.

According to Lee, the cornerstone for Penang’s economic growth is still in the manufacturing sector, which forms 42 percent of the state’s gross domestic product.

He said that the vast presence of tertiary education institutions in the state would also be contributing to a large pool of professional and skilled workers.

Suppliers must improve

He felt that such workers would boost the state government’s efforts to transform Penang’s industries from a labour-intensive manufacturing sector to high-end manufacturing, research and development sectors.

“All these are Penang’s advantages to lure both domestic and foreign investors in all sectors, ranging from manufacturing, services, transportation, medical, tourism and even entertainment,” he said.

Lee also called on Penangites to adopt a paradigm shift and look towards the global market which would require them to acquire more knowledge, education and technology to compete globally.

He said that at present, many multinational companies are demanding domestic suppliers to enhance the quality of their goods.

“Penangites, be it businessmen, developers or ordinary laymen, should absorb global outlook in their mindsets. Otherwise we would lag behind others such as China and Vietnam,” he cautioned.

Lee said that the state was on a mission to restore Penang’s former glory as the investment hub of Malaysia, but conceded that it won’t be smooth sailing.

“With tangible, progressive or dynamic policies, we can do it together,” he told reporters at his office in the Penang Skills Development Centre.