Penang eyes record manufacturing investments after RM17.3b secured in first half

George Town, September 3 — Penang anticipates exceeding last year's RM22.4 billion in approved manufacturing investments by the end of 2026, having secured RM17.3 billion in the first half of the year. However, this figure does not include several pending projects, according to InvestPenang executive Datuk Seri Loo Lee Lian. The state's optimism stems from the AI supercycle, which has proven advantageous for Penang and other Southeast Asian economies, claims Penang Chief Minister Chow Kon Yeow.

Chow explained that the RM17.3 billion in approved manufacturing investments between January and June marked a 38% increase from the same period last year, accounting for 34% of Malaysia's total approved manufacturing investments. Expansion projects make up 69% of the investments, totaling RM11.9 billion, while new projects account for the remaining RM5.4 billion.

The approved investments encompass 177 projects, expected to generate 19,337 jobs. Foreign direct investment constitutes 74% of the total, amounting to RM12.8 billion, while domestic direct investment reached RM4.5 billion, a 125% year-on-year increase. Chow emphasized that the state's large industrial ecosystem and supply chain should entice small and medium enterprises to seize opportunities in Penang.

He also noted that the effects of current investments would likely become evident within the next 18 to 24 months following the completion of plant construction, equipment installation, staffing, and commencing operations. Chow expressed confidence that the AI boom would continue to attract investments to Malaysia and Penang.