AMCHAM Penang Dialogue 2020
SPEECH BY CHIEF MINISTER OF PENANG
AMCHAM Penang Dialogue 2020
Monday, 26th October 2020
PDC
H.E. Kamala Shirin Lakhdhir,
U.S. Ambassador to Malaysia;
YB Dato’ Haji Abdul Halim bin Haji Hussain
Penang State Exco for Domestic & International Trade, Consumer Affairs & Entrepreneurship Development
Dato’ Seri Lee Kah Choon
Special Investment Advisor to Chief Minister of Penang
Dato’ Loo Lee Lian
CEO of InvestPenang
Ms Siobhan Das,
Chief Executive Officer at American Malaysian Chamber of Commerce (AMCHAM)
Dato Seri Wong Siew Hai
Chairman of the Malaysian American Electronics Industry Committee
Captains of Industry
Ladies and Gentlemen
My warmest greetings to all of you.
It is a great pleasure to be here this afternoon and I would like to thank the American Malaysian Chamber of Commerce (AMCHAM) for organizing and inviting me to speak in today’s Dialogue session. Before I begin, I would also like to extend my heartiest welcome to The Honorable Kamala Shirin Lakhdhir, the U.S. Ambassador to Malaysia, for being here with us today.
AMCHAM’s Penang Dialogue, as we know, is an informative platform for AMCHAM members and key relevant stakeholders, to connect and share industry-related trends and opportunities. Organizing this event in Penang reaffirms the position of the State as the preferred investment location for many US-based Multi-National Companies. I believe today’s theme, “Resetting for Tomorrow: Malaysia’s Opportunity in Global Value Chain” will be instrumental in addressing current agendas that are pertinent in this uncertain time.
The repercussions of the Covid-19 outbreak had upended our daily lives for the past few months. We are in the midst of an unprecedented situation whereby the availability of vaccine is still obscure, and the vast spread of this virus has heavily disrupted the global economy. Adapting to the new normal, doing business is no longer the same as it used to be, hence it is time for us to revise, reconfigure and reset.
Ladies and gentlemen,
The significance of US companies to Penang’s economy is well reflected in the State’s investment inflows. From 2010 to the first half of 2020, Penang has attracted a total of RM25 billion FDI from US companies, which represented 36% of Penang’s total approved manufacturing FDI receipt in the said period.
In fact, the presence of US companies in Penang is gaining momentum. From 2019 to the first half of 2020, Penang has attracted RM10.5 billion of approved manufacturing investments from US companies, capturing 45% of the total FDI in that period with notable new investments from Lam Research, Dexcom and UCT, among others. Apart from these new investments and equally as important, the State is glad to see an increasing number of existing US MNCs that have established strong connections with our domestic economy and further deepening their roots through expansion in Penang.
Looking at Penang’s performance as a whole, for the first half of 2020, Penang has recorded an encouraging investment inflow of RM9.1 billion, out of which 93% were collectively contributed by E&E, Machinery & Equipment, and Scientific & Measuring Equipment. It is also worthy to note that the FDI figure for the first half of 2020 is RM8.4 billion, capturing a 47% share of the nation’s manufacturing FDI over the period, demonstrating Penang’s leading role as the top manufacturing FDI contributor for the nation.
In terms of trade, Penang’s total export constituted about 30% of the national total in 2019 and accounted for 77% of Malaysia’s RM137 billion trade surplus in 2019. Notably, Penang’s export rose to a record of RM27 billion in June 2020, up 20% year-on-year, signifying a strong recovery from the MCO.
Ladies and gentlemen,
The continuous priority of the State Government is to remain vigilant in containing the spread of Covid-19, to ensure the safety and well-being of the people whilst concurrently, balancing it against the needs of businesses and industries. As such, on behalf of the State Government, our State agencies, InvestPenang and Penang Development Corporation (PDC), will continue their relentless efforts to engage with existing and potential investors to explore the various potential opportunities in the “new normal”, as well as to facilitate on-the-ground project implementations of our new investors.
In line with state’s Penang2030 vision to upgrade the economy, the State will continue to attract more technology-intensive projects, that will generate higher quality jobs and, in turn, increase household incomes and boost the overall well-being of our communities. I am pleased to see that with the collective efforts from our business community, we are leading the way towards the realization of the Penang2030 vision and in making Penang as a role model that will inspire the nation, especially in modernizing the country’s manufacturing industry.
I firmly believe that, with the concerted efforts of all, we are able to reset, rebuild and ready ourselves for a stronger and brighter future. With that, I wish this dialogue session every success and, before I end, I wish to congratulate AMCHAM for successfully organizing today’s dialogue session and I thank all speakers and audience who have made time to participate in today’s discussion.
Thank you and stay safe.