THE AMCHAM PENANG DIALOGUE LUNCHEON 2023
SPEECH BY THE CHIEF MINISTER OF PENANG YAB TUAN CHOW KON YEOW FOR THE AMCHAM PENANG DIALOGUE LUNCHEON 2023
7 DECEMBER 2023
E&O HOTEL
Good afternoon to you all.
It is my utmost pleasure to be here today and I thank the American Malaysian Chamber of Commerce (AMCHAM) for organising and inviting me to speak in this Dialogue Luncheon. I would also like to take this opportunity to extend my warmest welcome to His Excellency Manu Bhalla, Chargé d’Affaires, ad interim, US Embassy in Malaysia, for being with us today.
As today’s theme, “Today for Tomorrow: Growth from Strong Foundations”, highlights the vitality for us to remember the achievements we enjoy today are built upon the state’s strong ecosystem. Penang has a clear agenda in mind to continue spearheading sustainable growth with firm support from all stakeholders, across sectors and borders.
Ladies & Gentlemen,
For the past 50 years, Penang has transformed itself as one of the leading destinations for trade and investments within Malaysia and beyond. With half of a century of industrial excellence and leadership, Penang today is dubbed as the “Silicon Valley of the East”, attributing most of the segment to the robust electrical and electronics (E&E) and manufacturing ecosystem. To date, Penang is no stranger to the likes of Intel Technologies, Motorola Solutions, Keysight Technologies, Broadcom, Lam Research, and Boston Scientific etc. The odds of Penang being a such was unhinged. Despite being the second smallest state in Malaysia, Penang managed to outperform the other states in Malaysia with 13.1 percent national GDP growth this year. Penang takes pride in fostering and enabling environment that not only strengthens the engagement and advancement of industry players, but also empowers them to embrace the sustainable practices.
As ESG continues to loom and slowly take command of today’s business ecosystem, Penang has witnessed both domestic and international companies committed to environmental stewardship, social inclusivity and ethical governance. For example, Leadership in Energy and Environmental Design (LEED), Responsible Business Alliance (RBA) and Green Building Index (GBI) certifications etc.
With that, it is essential for Multinational Corporations (MNCs) to foster partnership with Small and Medium Enterprises (SMEs) in order to develop and support sustainable growth by incorporating ESG initiatives in their day-to-day business operations and strategy. The benefits of ESG propositions are manifold while an effective ESG strategy can stimulate growth for a company by creating brand identity that is synonymous with sustainability and outstanding corporate citizenship.
Ladies & Gentlemen,
While ESG continues to be at the forefront of today’s business environment, the convergence of technologies is predicted to lead the transformation of the industry in the next decades. Manufacturing and service sectors have been the twin-engine of growth for the state, contributing 95 percent to the overall GDP. With rampant inductions of digitalisation into industries, the digital economy is expected to contribute approximately 23 percent of the country’s GDP and generate over 500,000 jobs by 2025.
To maintain our position as the “Silicon Valley of the East”, we are constantly hinged with understanding potential opportunities and sources to climb up the value chain. Today, Penang commands over 5 percent of the global semiconductor sales, making Penang a key regional hub for technological components, equipments and even medical devices. In line with the New Industrial Master Plan (NIMP) 2030 launched by the Ministry of Investment, Trade and Industry (MITI), Penang continues to expand to high value-added activities of the value chain. Penang’s proposition in the global value chain is no longer restricted to the norms of back-end activities but are now becoming an emerging hub for front-end activities such as Intergrated Circuit (IC) design, Internet of Things (IoT) solutions, and Research and Development (R&D) activities.
Ladies & Gentlemen,
United States of America has always been Penang’s top five investor. From pioneer investors to existing US companies and now to the new additions, Penang is proud to host and assist them in deepening their roots in Penang. Signalling the country’s continued confidence in Penang. Hence, Penang state remains committed in maintaining and strengthening our robust ecosystem to make Penang a conducive and comprehensive investment destination.
Sustaining a dynamic ecosystem equipped with the capacities and capabilities to support the needs of industrial players’ next generation technologies and growth strategies is the utmost priority of the state government. More importantly, we acknowledge that incorporating the 4Ps - Public-Private and People Partnership is crucial in paving the way for Penang to become a high-income economy.
With an excellent track record and more than five decades of industrialisation, I truly believe that Penang has limitless potential. Holding on the tagline for Penang’s 50th anniversary of industrialisation, “50 Years of Excellence and Beyond”, I am looking forward to the beginning of our next journey, where this exciting landscape offers enormous prospect for value creation, hence positioning Penang prominently on the global map.
The past had been remarkable and now in the present, we, together can anticipate a much brighter future. Penang will continue to spearhead the development of a sustainable ecosystem, including the physical and digital infrastructure, workforce, environment and liveability of Penang. With that, I am looking forward to witness this dynamic ecosystem and impressive momentum to continue and sustain the next generation of technologies, innovations, and industrial players.
Before I end, I would like to congratulate AMCHAM for successfully organising today’s dialogue luncheon. Through InvestPenang, the state government remains committed in further strengthening our ties with AMCHAM on investment promotion efforts. Together, we can reach new and greater heights.
Thank you and my best wishes to all.