GEORGE TOWN: Penang has once again proven its allure to investors, both new and existing, with a staggering investment inflow of RM34.6 billion in the manufacturing sector in the third quarter of 2023, an impressive 421 per cent year-on-year (YoY) increase.
This growth is primarily driven by foreign direct investments (FDI), which accounted for an impressive RM33 billion or 95 per cent of Penang's manufacturing investment inflow during this period.
This substantial influx of FDI underscores international investors' resolute confidence in Penang's potential and the lucrative opportunities it presents.
The state's domestic investors, whose steadfast support has played a pivotal role in fostering the flourishing industrial landscape, are equally deserving of acknowledgement.
Domestic direct investments (DDI) contributed RM1.6 billion, constituting the remaining 5 per cent of the state's manufacturing investment inflow.
Chief Minister Chow Kon said, on a broader perspective, Penang recorded a remarkable total approved investment of RM44.9 billion across various sectors, encompassing manufacturing, services, and primary sectors, from January to September 2023.
He said the approved manufacturing FDI inflows stood at an astounding RM35.8 billion, signifying an impressive 634 per cent YoY increase.
"Penang has firmly solidified its position as the leading contributor to the nation's manufacturing FDI, capturing an impressive 42 per cent share during this period.
"Prominent contributions came from countries such as the Netherlands, United States, and Singapore, accounting for a substantial 95 per cent share of Penang's approved manufacturing investments.
On behalf of the state government, I express our gratitude to the investors who have demonstrated unwavering confidence in Penang.
"Your commitment and trust in our state have been instrumental in achieving these commendable results," he told newsmen at his office in Komtar here today.
Elaborating, Chow said that despite a 15 per cent YoY decrease in DDI at RM3.1 billion, the total approved manufacturing investments for the first three quarters of 2023 stood at an impressive RM38.9 billion.
"Penang proudly claims the highest contributor status among all states, holding a 39 per cent share in Malaysia's approved manufacturing investments during this period.
"The Malaysian Investment Development Authority (MIDA) estimates that these investments, distributed across 107 projects, will generate approximately 11,121 new job opportunities in our state.
"Our success story is intricately woven with the vibrant tapestry of key industries, namely electrical and electronics, machinery and equipment, and fabricated metal products.
"These sectors have collectively accounted for a remarkable 98 per cent of Penang's total approved manufacturing investments in the first nine months of 2023, underscoring our pivotal role in driving Malaysia's participation in the global supply chain," he added.
Meanwhile, Chow said Penang recorded RM165.5 billion in investment between 2018 and September this year, almost double the figure recorded in the previous 10 years, at more than RM70 billion.
He also said that infrastructure upgrading projects were being carried out to ensure Penang remained competitive with investors.
"This is important for Penang to be the investment powerhouse in this country," he said.