MICCI PENANG ANNUAL LUNCHEON DIALOGUE 2020
SPEECH BY CHIEF MINISTER OF PENANG;
Micci Penang Annual Luncheon Dialogue 2020
Thursday, 19th November 2020
Virtual platform
Distinguished guests
(salutation to be updated)
It is a pleasure to be here this afternoon. Thank you Malaysian International Chamber of Commerce and Industry (MICCI) for organising and inviting me to speak at the Dialogue today.
The outbreak of the COVID-19 pandemic right from the get-go has clouded us with uncertainties and marked a rather gloomy start for 2020. Against such a backdrop, I believe the theme for this year’s dialogue, “Penang’s Economic Recovery Post Covid-19” has adequately encompassed our current position in addressing the repercussions brought about by the pandemic.
Ladies and gentlemen,
Despite the challenging time, Penang managed to garner RM2.02 billion of approved manufacturing investments in the second quarter of 2020. Such inflows bring the total approved manufacturing investments for the first half of 2020 to RM9.12 billion, equivalent to 54% of 2019’s full year figure. Electronics & Electrical, Machinery & Equipment and Scientific & Measuring Equipment sectors remain the State’s focus areas, which collectively contributed 93% of Penang’s total approved manufacturing investments in the first half of 2020.
On top of that, Penang has once again demonstrated its leading role in Malaysia’s FDI. With an approved manufacturing FDI of RM8.42 billion in the first half of 2020, Penang is the top FDI contributor for the nation, accounted for 47% of the nation’s total manufacturing FDI inflows in the said period. Top sources of FDIs into Penang during this period were from Singapore, Switzerland and the US.
Remarkably, we have observed an upward momentum in the presence of MNCs in Penang. Aside from the notable new investments such as Lam Research, Dexcom and UCT, the State is also glad to see an increasing number of existing MNCs which further deepen their roots through expansion in Penang. Their continuous confidence in Penang has definitely reaffirmed the State’s position as a preferred investment destination for high quality, high value-added projects.
I am glad that Penang’s manufacturing sector remains promising, with the ability to cushion the struggling service sector and support our local economy during this pandemic. Despite the obscure global macro environment and the imposition of movement control order (MCO) earlier this year, Penang’s export grew 6% year-on-year for the first nine months of 2020, in contrast to Malaysia’s 3% export drop during the same period. Zooming into the third quarter of 2020, Penang’s export amounted to 33% of Malaysia’s total, and has contributed nearly 58% of the nation’s trade surplus amount, signifying our resilient industrial ecosystem even under such challenging times.
Though we are now in the midst of the COVID-19 pandemic, coupled with the implementation of Conditional MCO, I am confident that Penang can ride out the storm. I would like to reassure the rakyat that safeguarding the well-being of the people is the State government’s continuous priority in these unprecedented times. We understand the imperativeness to stay alert in containing the spread of COVID-19, while simultaneously maintain the needs of businesses and industries. The State agencies, InvestPenang and Penang Development Corporation (PDC), are committed and will ensure continuous liaison with existing and potential investors in exploring the many facets of opportunities under the “new normal”, as well as facilitating on-the-ground project implementations of our investors.
I trust that all enterprises strictly comply with the imposed SOPs. With that in mind, I believe jointly, we would be able to break this chain of infection in Penang and Malaysia.
Ladies and gentleman,
In line with the Penang2030 vision to upgrade the economy and raise household incomes, the State Government will pursue and emphasize on driving the State’s manufacturing hub towards highly-automated, knowledge-based industries thus creating higher-income jobs, better career prospects and satisfaction for the workforce.
The Penang state government, through InvestPenang, will continue to strive our very best to ensure that Penang remains the “Silicon Valley of the East”.
Before I end, I wish to congratulate MICCI for successfully organising today’s dialogue. Best wishes to all of you, thank you and take care.