PENANG’S APPROVED MANUFACTURING INVESTMENTS FROM JANUARY TO SEPTEMBER 2023
SPEECH BY YAB TUAN CHOW KON YEOW
THE CHIEF MINISTER OF PENANG
PRESS CONFERENCE ON PENANG’S APPROVED MANUFACTURING INVESTMENTS FROM
JANUARY TO SEPTEMBER 2023
11TH DECEMBER 2023 | BILIK GERAKAN, KOMTAR
Good afternoon.
It is with great pride and enthusiasm that I address you today to share the remarkable achievements and milestones of our beloved state. With its rich industrial legacy spanning over five decades, Penang continues to be a beacon for progress and resilience in the face of global challenges.
In the third quarter of 2023, Penang has once again proven its allure to investors, both new and existing, with a staggering investment inflow of RM34.6 billion in manufacturing — an impressive 421% year-on-year increase. This exceptional growth has been primarily driven by foreign direct investments (FDI), which accounted for an impressive RM33.0 billion or 95% 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. Domestic direct investments (DDI) contributed RM1.6 billion, constituting the remaining 5% of our manufacturing investment inflow.
Ladies and gentlemen,
On a broader perspective, I am delighted to share that from January to September 2023, Penang recorded a remarkable total approved investment of RM44.9 billion 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% year-on-year increase. Penang has firmly solidified its position as the leading contributor to the nation's manufacturing FDI, capturing an impressive 42% share during this period. Prominent contributions came from countries such as the Netherlands, the United States, and Singapore, accounting for a substantial 95% share of Penang's approved manufacturing investments.
Despite a -15% 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. Penang proudly claims the highest contributor status among all states, holding a 39% share in Malaysia's approved manufacturing investments during this period. The Malaysian Investment Development Authority (MIDA) estimates that these investments, distributed across 107 projects, will generate approximately 11,121 new job opportunities in our state.
Our success story is intricately woven with the vibrant tapestry of key industries, namely Electrical & Electronics, Machinery & Equipment, and Fabricated Metal Products. These sectors have collectively accounted for a remarkable 98% 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.
On behalf of the State Government, I wish to express our profound gratitude to the investors who have demonstrated unwavering confidence in Penang. Your commitment and trust in our state have been instrumental in achieving these commendable results. I would also like to extend our heartfelt thanks to the Malaysian Investment Development Authority (MIDA) for their collaborative efforts in creating a conducive environment for strategic investments. The partnership between MIDA and InvestPenang has proven fruitful, laying the foundation for Penang's continued success.
As we revel in the glow of these achievements and anticipate the recovery in the global technology cycle in 2024, I am confident that Penang's versatile ecosystem and strong fundamentals will continue to attract investments. Our state stands ready to support the needs of industries for next-generation technologies, innovative products, and long-term growth strategies, all underpinned by our highly-qualified talent pool.
In conclusion, let us collectively celebrate this momentous occasion and look forward to a future where Penang, in line with the Penang2030 vision, continues to shine brightly.
Thank you.