For Immediate Release
PRESS RELEASE

Driven by the foreign direct investments (FDI), Penang recorded a promising RM7.1 billion approved manufacturing investments in 1Q2020. There are still opportunities in targeted industries for Penang to seize, amidst the dim global FDI outlook.

Penang, July 22, 2020 – Penang recorded a promising RM7.1 billion of approved manufacturing investments in the first quarter of 2020 (1Q2020), amidst the challenging global macroeconomic environment.  Driven predominantly by foreign direct investments (FDI), the RM7.1 billion performance in 1Q2020 (QoQ: +97.2%, YoY: -19.3%) represents 42% of 2019’s full year approved manufacturing investments.

According to Malaysian Investment Development Authority (MIDA), Penang successfully garnered 32 manufacturing projects in 1Q2020, which is estimated to create 4,035 new job opportunities in the State.

FDI accounted for RM6.8 billion or 96% of Penang’s manufacturing investment inflows in 1Q20, while the remaining RM321 million or 4% were domestic direct investments (DDI). In 1Q20, Penang contributed a majority of 64% share of Malaysia’s total FDI, signifying that Penang plays a critical role in driving Malaysia’s participation in the global supply chain and multinational corporations’ strong confidence in the State as a conducive and sustainable investment location.

Top manufacturing FDI in 1Q2020 were from Switzerland, the United States and Singapore. Remarkable new investments in Penang included projects from DexCom Inc. and LEM Holding SA.

Penang continued to excel in its key promoted industries with Machinery & Equipment, Scientific & Measuring Equipment (which includes medical devices) and Electronics & Electrical industries collectively constituted 95% of Penang’s total approved manufacturing investments in 1Q2020.

In a press conference today, Right Honorable Chow Kon Yeow, the Chief Minister of Penang, said: “The encouraging investment performance in the first quarter of 2020, which exceeded our expectations, was underpinned by both new investments and re-investments. Being a business-friendly state that emphasises sustainability, the Penang State Government strongly believes that fostering long-term relationships with industries are crucial in the economic development of the State.  The existing companies’ technical capabilities and capacity expansion in Penang translate into talent upskilling, better job prospects and prosperity for local residents. The State’s ability to attract new investors is made possible by its resilient ecosystem and comprehensive supply chain, in which every stakeholder in the industry plays a role.”

Chow added: “The State government would like to express our deepest appreciation to all the investors for their confidence in Penang as well as MIDA for working hand-in-hand with InvestPenang in attracting high quality investments into the State.”

Cautiously Optimistic in the second half of 2020

Despite the satisfactory performance in the first quarter and the pipeline of potential strategic investments that MIDA and InvestPenang are working on to secure, the State estimates that 2020’s investment inflow to Penang will be lower than 2019’s all-time-high of RM16.9 billion. The State government is mindful that the global FDI outlook is on a downtrend until at least 2021 and public health challenges will persist in the near future. Having said that, there are still opportunities for Penang, particularly arising from global supply chain reconfiguration and the emerging industries that will continue to play important roles in the post COVID-19 era. The State government will stay vigilant and continue with its efforts in attracting investments from the targeted industries.

Commitment to Ensure Successful Implementation on the Ground

For the approved manufacturing investments, the State government, through InvestPenang, Penang Development Corporation and other relevant agencies, is committed to assist investors and to facilitate project implementations on the ground. Successful implementation of these projects will bring ripple effects on the local economy in terms of supply chain localisation opportunities, uplifting the skillset of the local technical workforce, as well as having significant economic spill-over and multiplier effects.

END 

About InvestPenang

InvestPenang is the Penang State Government’s principal agency for promotion of investment. Its objectives are to develop and sustain Penang’s economy by enhancing and continuously injecting business activities in the State through foreign and local investments, including the spawning of viable new growth centres. To support the realization of its objectives, InvestPenang also runs initiatives like SMART Centre (to assist SMEs), Penang CAT Centre (to assist talents) and @CAT Penang (to assist start-ups).

Learn more about InvestPenang at our website: www.investpenang.gov.my

For media enquiries, please contact:
Yeoh Bit Kun / Lee Siu Ming
bitkun@investpenang.gov.my / siuming@investpenang.gov.my

InvestPenang

Penang Future Foundation (“PFF”) started in 2015 as the Penang State Government’s initiative to aid outstanding and deserving Malaysian youths to pursue tertiary studies in public/private universities in Malaysia. With valuable contribution from the private sector and donors, especially the Penang Turf Club, and recognizing the importance of education and the need to retain local talents, PFF has awarded approximately 500 scholarships over the last 5 years. Selected scholars come from a diverse range of backgrounds and are enrolled in fields of Science, Technology, Engineering, Mathematics, Accountancy and Finance.

Entering its sixth year, this scholarship fund intends to help the Penang State Government achieve our objectives of attracting, building and retaining human talent. Based on the recently released approved investment report for year 2019 by the Malaysian Investment Development Authority (MIDA), Penang has successfully recorded the highest amount of Foreign Direct Investment (FDI) in the country for the manufacturing sector which is RM15 billion. The total amount of approved investment (domestic and foreign) in the manufacturing sector for the state is RM16.9 billion involving 166 projects. These two figures, to date, are Penang’s highest achievement in our state’s history. This is a proven testament of foreign investors’ high confidence towards the investment ecosystem which Penang offers. By materializing the 2019 approved manufacturing investments of RM16.9 billion, it is estimated that 18,886 new job opportunities will be created in Penang, according to MIDA. While Penang has no natural resources, we have a skilled workforce and talents which are often envied and a great pull factor for investors.

In light of the ongoing global Covid-19 pandemic which has financially affected many Malaysian households, the PFF scholarship programme becomes a critical platform that ensures our scholars are not denied of educational opportunities during this challenging time. At the same time, the Penang State Government will continue to work hard in ensuring that our state economy remains resilient in face of the new normal due to this pandemic.

Since its inception in 2015, the availability of a stable and skilled workforce is a key criterion in attracting capital investments. Investors are attracted to locations that have a suitably skilled talent pool, and PFF’s scholarship awards and workforce development initiatives are part of the State Government’s efforts to foster a sustainable and conducive ecosystem that will attract high-quality, strategic investments, in line with the State’s industrial development goals. Since its inception five years ago, PFF has disbursed scholarships to more than 500 scholars and 170 PFF scholars who have graduated from their respective universities have also successfully secured employment with companies of their choice in Penang.

Prospective students may apply to be either a ‘PFF Penang Scholar’ or ‘PFF Mutiara Scholar’. Interested candidates are advised to check the eligibility requirements for each category. Both categories have different eligibility criteria based on, among others, candidates’ financial background and scholastic record. ‘PFF Penang Scholar’ caters for those with CGPA of 3.67 and above whereas ‘PFF Mutiara Scholar’ is available for applicants whose CGPA is between 3.00 to 3.66. Successful applicants will receive benefits that correspond with the scholarship awarded to them. Detailed information on benefits and terms of the scholarship is available at PFF’s website (www.penangfuturefoundation.my).

Application window for PFF Scholarship 2020 will open from 1 June 2020 to 22 June 2020. Interested students are encouraged to keep a lookout for periodic announcements through PFF’s website at www.penangfuturefoundation.my; Buletin Mutiara’s distributed free copies; and social media websites including Facebook and Twitter.

CHOW KON YEOW