PENANG has recorded an investment inflow of RM2.02 bil in manufacturing, up 452% year-on-year, in the second quarter of 2020 (2Q20), which brings the total approved manufacturing investment for the first half of 2020 (1H20) to RM9.12 bil, representing 54% of 2019’s full year approved manufacturing investments, InvestPenang said in press statement today.
Citing Malaysian Investment Development Authority (MIDA), it said Penang has successfully garnered 29 projects in 2Q20.
These projects, together with the approved projects in 1Q20, were expected to generate 6,971 new job opportunities in the State.
According to the statement, foreign direct investments (FDIs) accounted for RM1.65 bil or 82% of the State’s manufacturing investment inflows in 2Q20, while domestic direct investments (DDIs) contributed RM373 mil or 18%.
On a year-on-year (y-o-y) basis, Penang’s approved manufacturing FDI inflows rose 600% while DDIs was up 186% in the same quarter.
InvestPenang highlighted that the State has exemplified its leading role as the top manufacturing FDI contributor for the nation, capturing a 47% share of the nation’s manufacturing FDI for the period.
Penang’s approved manufacturing FDI inflows amounted to RM8.42 bil in 1H20, a drop of 3%
y-o-y.
Singapore, Switzerland and the United States were the countries with top manufacturing FDIs in Penang during the period.
Meanwhile, the State recorded RM694 mil of approved manufacturing DDI inflows representing a 37% y-o-y growth in 1H20.
Electronics & electrical, along with machinery & equipment and scientific & measuring equipment remained the State’s main push.
They collectively contributed 93% of Penang’s total approved manufacturing investments in 1H20.
InvestPenang said the Covid-19 pandemic coupled with the imposition of movement control order by the Malaysian government did not shun investors away from making investment decisions.
It noted that Penang’s sustainable environment, vigorous industrial ecosystem and supportive infrastructure were the State’s appealing aspects that continued to attract investors.
The press statement quoted Penang Chief Minister Chow Kon Yeow as saying in a press conference, “I am truly delighted that Penang has managed to achieve such an encouraging investment figure in manufacturing despite the ambiguity of circumstances surrounding the global arena.”
“This outcome would not be possible had it not for the countless efforts from both State and Federal. From the beginning of 2020, we are at an indefinite situation in regards to the tension between US and China, aside from the imposition of controls and policies to tackle the pandemic outbreak, in particular, the travel restriction policy.
“With all these unintended circumstances the State opines that the performance for the 2020 will not be on par with 2019’s all-time-high of RM16.86 billion. Nonetheless, Penang State’s strong track record, coupled with the positive outlook for selected manufacturing subsectors and the reconfiguration of the global supply chain, Penang is still undeniably well positioned to remain a preferred destination for high quality, high value-added investments,” Chow added.
He also stated that though the near-term global outlook was less promising due to repercussions of the pandemic, state agencies, InvestPenang and Penang Development Corporation (PDC) would help cushion the effects by providing close assistance to smoothen the on-the-ground project implementations.
The State government, he said, would stay vigilant in enhancing a sustainable environment and liveability stature of Penang, all of which would set the State in the right direction to attract high-quality investors in its key promoted industries. – Oct 2, 2022
