PENANG SEED LAUNCH

SPEECH BY YAB TUAN CHOW KON YEOW

THE CHIEF MINISTER OF PENANG

PENANG SEED LAUNCH

12^TH JUNE 2023, PENANG INSTITUTE

Good morning and thank you for joining us.

Today, I am pleased to introduce to you the Penang Strategy for Economic Ecosystem Development, known as Penang SEED.  Penang SEED is a five-year plan that aims to achieve dynamic, equitable, and inclusive prosperity for all Penangites, in line with the Penang2030 theme of upgrading the economy to raise household incomes.

This plan builds upon the work done so far by the State EXCOs and agencies, as well as the deliberations at state-level committees involving experts and stakeholders from Penang, most notably the Penang Socio-Economic Recovery Consultative Council. The strategy outlines specific action plans to address critical economic challenges, with short-term measures to be completed within 2 years and medium-term measures within 5 years.

Penang SEED has been developed based on current policy documents, state policy positions and stakeholder input. In terms of:

• Policy documents; It takes into account national policies such as the Twelfth Malaysia Plan, Industry4WRD and the MOTAC Strategic Plan, as well as State Government policies, including the Penang Green Agenda and the Digital Transformation Master Plan, with Penang2030 as its foundation.
• State policy positions; It incorporates policy discussions from the Penang Socio-Economic Recovery Consultative Council (PSERCC) and InvestPenang’s investment strategies.
• Stakeholder input; It incorporates policy challenges raised by state agencies, industry associations, businesses, companies and individuals; as well as the Penang Regional Industrial Support Measures (PRISM), a set of targeted actions developed at Penang Institute.

Ladies and gentlemen,

Penang is experiencing a robust recovery from the Covid-19 pandemic, resulting in an improved standard of living for Penangites. The labour market has returned to pre-pandemic levels, with the unemployment rate at 2.3% in the last quarter of 2022. Wages have fully recovered, and Penang's GDP per capita has grown by approximately 8% between 2019 and 2021. However, we cannot overlook the growing challenge of inflation, which poses a threat to our progress in raising living standards.

Furthermore, in order to adapt to rapid technological advancements, we must develop cohesive policies that attract talent, digitize businesses, and create high-value jobs for the 21st century. Penang, along with Malaysia as a whole, now plays a significant role in the Chips War that has reshaped global E&E supply chains. Additionally, the global energy transition is driving a shift towards electric vehicles and micro-mobility, which we must embrace.

Accordingly, Penang SEED is intended to catalyse the strategic sectors identified under Theme B of the Penang2030 vision. In doing so, we established strategies for each of the industries:

• In the manufacturing sector, we aim to advance towards high-value manufacturing.
• In the tourism sector, we strive to strengthen competitiveness and sustainability.
• For creative industries and business services, we aim to nurture their growth with enhanced digital capabilities.
• In agriculture, we aim to boost resilience, growth, and productivity.

Cutting across all economic sectors, my administration has identified several policy enablers that will serve as the foundation for success. Strengthening the talent pipeline by investing in our people, enhancing infrastructure resilience to support businesses, and scaling up transportation and logistics services are among the key enablers.

Each of the state agencies has a vital role to play to ensure the success of Penang SEED. For example:

• InvestPenang will navigate the manufacturing and GBS sectors towards high-value activities. This will be achieved by fostering the growth of engineering services, IR4.0 innovations and R&D across both local and established players.
• PDC will ensure the resilience of infrastructure for industrial parks and telecommunications. The agency will help businesses capitalise on Penang’s 5G infrastructure to supercharge their growth and ensure that all Penangites have access to reliable and fast internet across the state.
• Digital Penang will continue to develop the local startup ecosystem, promoting synergy among angel investors, venture capitalists, government entities, and other players in the startup ecosystem. Their focus will be on supporting Penang's digital entrepreneurs and establishing the Creative Digital District in George Town as the hub for digital innovation and talent.
• Penang Global Tourism and Penang Convention & Exhibition Bureau will enhance and diversify tourism products and services, ensuring that Penang remains an attractive and vibrant destination in the region. They will focus on enhancing emerging tourism areas such as medical tourism and hospitality services.
• The local councils will harmonize local planning with the live-work-play lifestyle. To establish Penang as an attractive destination for talent, local councils will implement new initiatives to improve the liveability of our living spaces. This will, in turn, raise the quality of life for all Penangites.

Under Penang SEED, we expect to maintain Penang's current growth trajectory of 3.5% annually from 2023 to 2028. In the most favourable circumstances, we anticipate achieving up to 5.8% annual growth and attracting over RM10 billion in approved manufacturing investments, while employment is estimated to grow by 1.4% from 2023-2028. The recently approved LRT project and conditional approval of Penang Silicon Island will further contribute to Penang’s growth momentum.

Ladies and gentlemen,

Penang’s economic future depends on empowering every Penangite to build collaborative relationships with their communities, the region, and the world. It calls for a revitalised growth agenda that enhances Penang’s resilience while lifting all boats with the rising tide of our economy. Penang SEED is designed to guide and facilitate our journey toward this prosperous and exciting future.

As such, I would like to thank Penang Institute for its efforts in preparing Penang SEED. I am also most grateful to the various state agencies whose invaluable feedback has been essential to this project, particularly InvestPenang, our strategic partner for Penang SEED.

I am confident that Penang SEED will accelerate the state’s economic development, and I invite every Penangite to join us in this endeavour. Together, we can sow the seeds for a prosperous and exciting future for all of us.

With that said, I hereby officially launch the Penang Strategy for Economic Ecosystem Development. Thank you.