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

George Town, Sept 3 — Penang anticipates surpassing last year's RM22.4 billion in approved manufacturing investments after securing RM17.3 billion in the first half of 2026, with additional projects yet to be accounted for. InvestPenang CEO Datuk Seri Loo Lee Lian revealed that these projects have not been included in the figures released by the Malaysian Investment Development Authority (Mida) last week.

She expressed optimism at a press conference, stating that once incorporated, the total may exceed last year's figure. Penang Chief Minister Chow Kon Yeow credited this growth to the AI supercycle, which has benefited not just Penang but also other Southeast Asian economies. He noted that the 38% increase in approved investments from January to June represented 34% of Malaysia's total, equating to RM11.9 billion (69%) for expansion projects and RM5.4 billion (35%) for new projects.

The approved investments encompass 177 projects, anticipating 19,337 job creation. Foreign direct investment constituted RM12.8 billion (74%) of this total, while domestic direct investment reached RM4.5 billion, marking a 125% year-on-year increase. Chow emphasized that these figures should motivate small and medium enterprises to explore opportunities in Penang's extensive industrial ecosystem and supply chain.

He anticipated the full impact of these investments over the next 18 to 24 months after construction, equipment fitting, staffing, and operational commencement. He reiterated Penang's consistent positive performance and confidence in the ongoing AI boom's continued investment in Malaysia and Penang.