Penang records RM6.7bil in approved manufacturing investments in Q1
GEORGE TOWN: Penang continues to demonstrate its resilience and competitiveness as a leading investment destination, even amid global uncertainties and persistent trade tensions.
In the first quarter of this year (Q1 2025) , the state secured RM6.7 billion in approved manufacturing investments, representing 22 per cent of Malaysia's total and positioning Penang as the second-highest contributor after Sabah.
Chief Minister Chow Kon Yeow said these investments, stemming from 36 approved manufacturing projects, are expected to create 4,577 new job opportunities, further strengthening Penang's position as an economic powerhouse.
He said, significantly, 90 per cent of the total investment, amounting to RM6.1 billion, came from foreign sources, reaffirming Penang's position as a trusted global hub for advanced manufacturing and innovation.
He also said the breakdown further reflected the industrial strengths, with 79 per cent directed to the electrical and electronics (E&E) sector and 15 per cent into machinery and equipment.
He added that the United States led foreign investments with RM2.4 billion, followed by Hong Kong (RM1.3 billion) and Taiwan (RM1.1 billion).
"I remain optimistic about Penang's medium- to long-term investment prospects.
"Although we are currently facing uncertainties related to the United States' tariffs, Invest Penang, the state's investment promotion agency, continues to receive strong interest from global investors, both for new investments and reinvestments in Penang.
"We are currently filtering through these investor enquiries and hope they will yield positive results once due diligence is completed," he told newsmen when announcing the state's approved manufacturing investment for quarter one here today.
In quarter one last year, the state recorded RM1.8 billion in approved manufacturing investments.
For the whole of last year, the state recorded RM17.3 billion in approved manufacturing investments.
Chow said this sustained interest echoed Penang's strong performance in 2024, when Singapore (RM4.0 billion), the United States (RM2.9 billion), and Taiwan (RM2.1 billion) ranked as our top investing economies, underscoring continued trust from the world's leading technology players.
"This upward momentum is the result of Penang's consistent focus on building a resilient, innovation-driven economy.
"Our strategic positioning in the global supply chain is strengthened by the alignment of forward-looking policies, industrial infrastructure, and a highly skilled talent pool.
"While we continue to excel in manufacturing, Penang is now actively advancing into high-value domains such as IC design, advanced packaging, and precision equipment manufacturing, in support of the National Semiconductor Strategy," he added.
At the same time, Chow said the state was nurturing emerging sectors, including medical technology (MedTech) and global business services (GBS), to ensure broader, more sustainable growth.
"As we look ahead, Penang remains firmly committed to unlocking new frontiers of economic opportunity.
"Our priorities are clear: to cultivate innovation, empower our workforce and build a resilient ecosystem that welcomes high-impact, transformative investments.
"Let today's announcement not just be a reflection of past success but a signal of Penang's readiness to lead Malaysia's industrial transformation – boldly, strategically, and collaboratively with all our partners, both local and global," he said.
Meanwhile, Chow said the state expected a clearer picture to only emerge in the second quarter figure following the uncertainty over the tariff announcement.
"The tariff, announced during the first quarter, is expected to have a greater impact in the second quarter or the second half of the year.
"So, it is still too early to determine the full extent of this impact," he said.
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