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Penang records RM34.6 bln 3Q investment inflows in manufacturing sector

Penang records RM34.6 bln 3Q investment inflows in manufacturing sector

11 Dec 2023

Penang has again proven its allure to both new and existing investors 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 increase.

Chief Minister Chow Kon Yeow said this exceptional growth has been primarily driven by foreign direct investments (FDI), which accounted for an impressive RM33.0 billion or 95 per cent of Penang’s manufacturing investment inflow during this period.

“This substantial influx of FDI underscores the resolute confidence international investors place in Penang’s potential and the lucrative opportunities it presents.

“Equally deserving of acknowledgment are our domestic investors, whose steadfast support has played a pivotal role in fostering our flourishing industrial landscape,” he told a press conference here today.

He said domestic direct investments (DDI) contributed RM1.6 billion, constituting the remaining 5 per cent of manufacturing investment inflow.

Chow said Penang also recorded a remarkable total approved investment of RM44.9 billion within January to September 2023 through across various sectors, encompassing manufacturing, services and primary sectors.

“Notably, the approved manufacturing FDI inflows stood at an astounding RM35.8 billion, signifying an impressive 634 per cent year-on-year 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,” he said, adding that prominent contributions came from countries such as the Netherlands, the United States and Singapore, accounting for 95 per cent share of Penang’s approved manufacturing investments.

He added that despite a 15 per cent year-on-year decrease in domestic direct investments (DDI) at RM3.1 billion, the total approved manufacturing investments for the first three quarters of 2023 stand at an impressive RM38.9 billion, making Penang the highest contributor among all states, with 39 percent share in Malaysia’s approved manufacturing investments in the said period.

Meanwhile, Chow said according to the Malaysian Investment Development Authority (MIDA), the investments flows involved 107 projects and are expected to generate 11,121 new job opportunities in the state which were primarily driven by its key industries, namely electrical and electronics, machinery and equipment and fabricated metal products industries.

“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,” Chow said, while thanking MIDA and InvestPenang for their efforts in creating a conducive environment for strategic investments.

Chow is confident that Penang’s versatile ecosystem and strong fundamentals will continue to attract investments and are ready to support the needs of industries for next-generation technologies, innovative products and long-term growth strategies, all underpinned by its highly-qualified talent pool.

Source: Bernama