FMM Penang 54th Anniversary Dinner 2023

SPEECH BY THE CHIEF MINISTER OF PENANG YAB TUAN CHOW KON YEOW

FMM Penang 54th Anniversary Dinner 2023

24 August 2023
SPICE CONVENTION CENTRE 

Good evening to all of you.

I would like to thank the Federation of Malaysian Manufacturers Penang, for the invitation to this celebration dinner. On behalf of the Penang state government, allow me to express my heartfelt congratulations to FMM Penang on the Federation’s 54th anniversary.

I would also like to take this opportunity to thank Tuan Yang Terutama Tun Dato' Seri Utama Ahmad Fuzi bin Haji Abdul Razak, Yang di-Pertua Negeri Pulau Pinang, for your presence here this evening which has made this anniversary dinner event much more meaningful.

Today’s dinner theme “Business Way Forward - Resilience, Re-strategise, Rejuvenate and Rejoice", aptly sets the tone for an insightful exchange of ideas among all stakeholders. It is a great honour to be with all of you, distinguished leaders and representatives from the industry, who have come together this evening to reinforce the shared vision of creating a progressive and dynamic industry, capable of driving the momentum towards greater heights.

Tuan Yang Terutama Tun, Ladies and Gentlemen,

Penang’s industrialisation journey started in 1972 with the establishment of Malaysia’s first free trade zone in the Bayan Lepas Industrial Park. Fast forward to today, Penang not only earned a solid reputation as a preferred location for the multinationals, but is also known as an entrepreneurial state, propelling our homegrown companies to scale and thrive.

In 2022, Penang’s GDP recorded the highest year-on-year growth among all states, breaking the RM100 billion threshold with a 13 percent hike to reach RM112 billion. Particularly, the robust growth is led by the manufacturing sector, which climbed 16 percent to RM54 billion, followed by the services sector with an 11 percent jump, reaching RM52 billion.

Being the twin engine of growth for the state, both sectors collectively contributed 95 percent of the state’s total GDP.

In terms of investment performance, the manufacturing sector has always been the largest contributor for the state. In 2022, Penang garnered RM16.3 billion in its total approved investments, of which RM13.7 billion were from the manufacturing industry, represented 84 percent of the state’s total. In January to March 2023, Penang’s approved manufacturing investments amounted to RM3.3 billion and is the second highest contributor among all states.

On the trade front, Penang topped the nation’s list in 2022 with an all-time high export of RM463 billion and generated a commendable trade surplus of RM170 billion. Notably, exports of the Electrical and Electronics (E&E) products represented the largest contribution of the state’s exports, constituting a substantial 74 percent share in the said year.

Tuan Yang Terutama Tun, Ladies and Gentlemen,

The vibrant industry in Penang did not emerge overnight, rather, it represents the culmination of strategic planning and execution, undertaken collaboratively by both the state and the private sector. On this note, the state is pleased to have FMM Penang, for your unwavering support throughout our industrialisation journey.

Moving forward, the secular trends of advanced technology development as well as the growing complexity in the global supply chain open up tremendous opportunities for Penang. Riding on over 50 years of industrial excellence, Penang’s well-developed ecosystem not only enabled us to move up the value chain, but also translated into far-reaching effects on the local economy.

Moreover, Penang takes pride in fostering an enabling environment that not only strengthens the engagement and advancement of industry players, but also empowers them to embrace the sustainability initiative.

With ESG continues to command an increasing priority in today’s business environment, Penang has witnessed a growing number of companies making true commitments to environmental stewardship, social inclusivity and ethical governance.

In parallel to the rapid growth of Penang’s industrial ecosystem, a healthy talent pipeline is equally crucial to meet the heightened industrial demand. Holding on to that, the state has carried out multifaceted initiatives in talent attraction and development.

In particular, I ask for more industry support and partnership for our various STEM initiatives to help cultivate industry-ready talent pool.

More importantly, we acknowledge the importance of public-private partnership in paving the way for Penang towards a high-income economy.

The state, via InvestPenang and other state agencies, remains committed to further strengthen our collaboration with FMM Penang in becoming an integrated voice for the industry, enhancing the ease of doing business in Penang.

We will continue to spearhead the development of a sustainable ecosystem, including the physical and digital infrastructure, workforce, environment and liveability of Penang. With that, I am looking forward to witness the beginning of our next journey, where this exciting landscape offers enormous prospect for value creation, positioning Penang prominently on the global map.    

In closing, allow me to once again record my deep appreciation to Tuan Yang Terutama Tun Dato' Seri Utama Ahmad Fuzi bin Haji Abdul Razak, Yang di-Pertua Negeri Pulau Pinang, for your time to be with us here this evening.

   

My best wishes to all of you.

Thank you.

 

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