Penang sets aside RM4.5m to grow startups, AI adoption and digital economy

GEORGE TOWN, Nov 7 — The Penang government has earmarked RM4.5 million in its 2027 budget to bolster technology startups, hasten digitalisation among SMEs and foster AI usage throughout the state's economy. Chief Minister Chow Kon Yeow revealed this plan, stating that the funding aims to bolster Penang's tech start-up community and facilitate businesses in embracing digital transformation.

"In Penang's Budget 2027, RM4.5 million has been allocated to Digital Penang, which will aid technology startups, promote digitalisation among small and medium enterprises, and harness AI across our economy," he informed during the launch of the AI Future Makers Bootcamp 2026 at SEGi College Penang. Among those present were chairman Lukas J.Tan and SEGi College Penang's head of student experience, Vincent Tung Chin Aun.

Chow emphasized the significance of collaboration between young innovators and seasoned industry professionals, stating that this partnership underscores the importance of intergenerational learning as Penang readies its workforce for technological shifts. He highlighted the state's historical adaptability to industrial transformations, such as the introduction of the first Free Trade Zone in Bayan Lepas in 1972, where workers acquired new skills through on-the-job training and knowledge sharing.

"Penang has always known how to adapt to change. When the world changed, we learned quickly and together. The world is changing again," he remarked, pointing out that AI can now accomplish in an afternoon what once took a week.

Regarding talent development, Chow disclosed that 675 fresh graduates and working professionals had completed chip design training via the Penang Chip Design Academy, with 85% of them finding employment. The Penang Talent Focus Group, established in June under the Penang Workplace initiative, brings together industry players, universities, and human resource practitioners to enhance the alignment of talent with job opportunities.

The Penang Science, Technology, Engineering, and Mathematics (STEM) Blueprint will also introduce AI learning programs to rural schools via mobile initiatives.

Chow urged employers and human resource practitioners to provide young job seekers with opportunities beyond standard qualifications, including through interviews, mentoring, and professional engagement. He also encouraged bootcamp participants to transform their ideas into practical solutions and foster their innovations within Penang.