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Penang approves RM10.6bil manufacturing investments in first nine months

Penang approves RM10.6bil manufacturing investments in first nine months

19 Nov 2020

Penang has generated RM10.6 billion of approved manufacturing investments from January till September this year, against the backdrop of numerous restrictions due to the Covid-19 pandemic.

This included RM1.5 billion garnered in the third quarter to September of this year (3Q20).

Of the RM10.6 billion, 83 per cent was contributed by foreign direct investment (FDI), making Penang the second highest FDI contributor to Malaysia and representing 22 per cent of the country’s total.

Announcing this today, Chief Minister Chow Kon Yeow said domestic direct investments (DDI) accounted for RM1.1 billion or 73 per cent of Penang’s manufacturing investment inflows while the remaining 27 per cent or RM401.9 million came from FDI.

He said, according to the latest performance released by the Malaysian Investment Development Authority (MIDA), Penang notched up 47 projects in the third quarter, which, together with projects approved in the first half of this year, were expected to generate 9,137 new employment opportunities.

“Encouragingly, DDI in Penang spiked 42 per cent year-on-year and reached RM1.8 billion for the period of January to September, with eminent projects from Federal Oats Mills, Iconic Medicare, Straits Orthopaedic and Vitrox Technologies.

“I am glad that Penang’s captivating and strong aspects in its ecosystem, continue to render the state as a preferred investment destination for both domestic and foreign investors.

“It is worthy to note that Penang’s approved manufacturing investment for the third quarter of this year was primarily contributed by DDI, demonstrating that our robust industrial ecosystem offered a competent platform for the local players to participate and thrive,” he said.

Chow said, as he had stressed previously, investment inflows would be moderated in the second half of this year, in light of the challenges arising from Covid-19.

“Having said that, I am pleased to see that Penang’s approved manufacturing investment managed to surpass the RM10 billion mark in the first nine months of this year, capturing 63 per cent of 2019’s amount and was above 2018’s full year performance of RM5.8 billion,” he added.

Chow said repercussions of the pandemic still persisted.

He added that given the third wave that the country was experiencing, coupled with the implementation of the Conditional Movement Control Order (CMCO), Penang’s investment performance for this year would not be able to match 2019’s all-time-high of RM16.9 billion.

“However, with strong synergy between the state government and the federal agencies, especially MIDA, and the recent investment incentives announced in the 2021 Budget, I am confident that Penang can ride out these uncertain times.

Source: NST Posted on : 19 November 2020

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