INVESTMENT ANNOUNCEMENT OF ADVANCED MICRO DEVICES GLOBAL SERVICES (M) SDN BHD

SPEECH BY YAB TUAN CHOW KON YEOW

THE CHIEF MINISTER OF PENANG

INVESTMENT ANNOUNCEMENT OF ADVANCED

MICRO DEVICES GLOBAL SERVICES (M) SDN BHD

IN PENANG, MALAYSIA

23 MARCH 2023 | BILIK GERAKAN, KOMTAR

Yang Berbahagia Dato’ Seri Lee Kah Choon

Special Investment Advisor to the Chief Minister of Penang

Yang Berbahagia Dato’ Aziz Bin Bakar

Chief Executive Officer of PDC

Yang Berbahagia Dato’ Loo Lee Lian

Chief Executive Officer of InvestPenang

Dato’ Devinder Kumar

Executive Vice President AMD

AMD Management Team,

Members of the press,

Ladies and gentlemen,

Good afternoon.

I am pleased to be here today for the investment announcement of AMD Global Services in Penang.

Since establishing its first assembly manufacturing facility here in Penang in 1972, AMD Malaysia has now grown to employ over 800 people across two global shared services facilities in Penang and Cyberjaya.

The investment announcement by AMD Global Services today will not only cater for the company’s expansion in an array of existing services provided, such as Finance and HR among others, but also includes lab space to conduct engineering activities.

AMD’s expansion is strategically situated at the upcoming “GBS by the Sea” building, located at Bayan Lepas. Developed by Penang Development Corporation (PDC), “GBS by the Sea” includes a 9-storey office building and a 6-storey multi-level carpark to address the rising demand from GBS, tech and R&D companies. With a total net lettable floor space of approximately 300,000 square feet, the project is slated to be completed by 2024.

With more than half a century of continued investment in Malaysia, AMD has proven to be a strategic partner and advocate for Penang’s strong business environment, resilient semiconductor supply chain, and wealth of world-class talent.

Months before today’s expansion announcement, we have also gathered for the momentous occasion of AMD strategic supplier and partner, TF AMD’s expansion plan in June last year. TF AMD announced a RM2 billion investment through the construction of a new manufacturing facility in Penang.

The strategic expansions of both AMD and TF AMD are strong testimonials for Penang as a sustainable location for business portfolio expansion. Our unique combination of strengths, including the robust industrial ecosystem, skilled workforce and future proof infrastructure, have made us a preferred spot for investors.

Ladies and gentlemen,

Driven by both the manufacturing and service sectors, Penang reaffirmed its status as an economic powerhouse of the country. Penang’s gross domestic product (GDP) recorded the fastest growth among all states in 2021, with a 7% year-on-year increase to RM99 billion. Particularly, manufacturing and service sectors collectively contributed 95% of the state’s total.

While manufacturing continues to dominate the state’s investment performance, we are seeing an increasing momentum from the digital economy industries, for instance the global business services (GBS). Over the past two years (2021 – 2022), Penang has garnered nearly RM10 billion of approved investments in the services sector, accounting for 11% of the state’s total approved investments in the said years.

With the digital economy expected to contribute 23% of the country’s GDP and create over 500,000 jobs by 2025, Penang is well-poised to play a prominent role in the national digitalisation agenda, made possible by its manufacturing excellence, innovation and talent pool availability.

In line with our aspiration, it is equally crucial to ensure that the state’s infrastructure is able to meet the long-term growth of industry players. “GBS by the Sea” is one of the initiatives that attests to the state's commitment to sustaining its excellence.

Ladies and gentlemen,

Penang is pleased to have received much welcomed participation from the industry players, increasing their breadth and depth in the state. The sustained confidence from existing investors like AMD augurs well for the state’s development, enabling us to constantly strive for greater heights.

With InvestPenang and PDC as the facilitators, the State Government is committed to ensure smooth implementation of AMD’s expansion in Penang. We have been working closely with AMD’s local leadership team and we will continue to maintain this long-standing relationship in the years to come.

Once again, my heartiest congratulation and best wishes to you, and I look forward to seeing your expansion project come to fruition.

Thank you.