SPEECH BY THE CHIEF MINISTER OF PENANG YAB TUAN CHOW KON YEOW FOR THE PIKOM CIO CHAPTER (NORTHERN) LAUNCH DINNER

5 January 2023

E&O Hotel

Yang Berhormat Jagdeep Singh Deo

Timbalan Ketua Menteri II

Yang Berhormat Tuan Zairil Khir Johari

State Executive Councillor for Infrastructure, Transport and Digital

Mr Ong Chin Seong

PIKOM Chairman

Mr Ngoh Chee Hung

PIKOM CIO Chapter Chair

Dato’ SN Lee

Head of Northern PIKOM CIO Chapter

Ladies and Gentlemen

Good evening, Salam Sejahtera and Salam Malaysia MADANI.

First and foremost, let me extend a warm welcome to all the distinguished guests, industry leaders, members of PIKOM, and everyone who has played a role in making this event a reality. Your presence here today speaks volumes about the ever-growing significance of Penang as a thriving hub for innovation and technological advancements.

Penang, with its towering presence hosting over 300 MNCs and 3000 SMEs, continues to stand tall as the economic powerhouse of our nation. The remarkable strides we have taken in attracting foreign direct investment are evident in the latest statistics from the first three quarters of 2023, showcasing a total approved investment of RM44.9 billion across various sectors. Notably, Penang commands a staggering 42 percent share of the nation's manufacturing FDI, solidifying its position as the top contributor in Malaysia.

To fortify our identity as the 'Silicon Valley of the East,' the State Government will continue bolstering our ecosystem, particularly in the realms of electrical and electronic (E&E) manufacturing, Integrated Circuit (IC) Design, medical technology, Digital District, and the new economy. Emphasis will be laid on fostering innovation and technological advancements to propel Penang at the forefront of the global technological landscape.

The World Congress on Innovation and Technology (WCIT 2022 MALAYSIA), hosted by Penang in September 2022, was a testament to our commitment. With over 4,000 participants from 60 countries, WCIT 2022 became a global platform stimulating discussions, driving collaborations, and spearheading transformations through technological adoption, digital innovation, and foreign investment. More than RM46 billion in digital investments were announced, advancing the state and nation further into the global digital innovation arena.

The burgeoning technology sector, contributing RM289 billion or 19.1% to the country's GDP in 2019, is poised for further growth, with projections indicating 22.6% by 2025. According to a report by GlobalData Market Opportunity Forecasts, spending on ICT in Malaysia is set to reach US$25.2 billion by 2023. Accordingly, the State Government is dedicated to providing the necessary support and infrastructure for the technology industry's growth.

Noteworthy initiative includes efforts to expedite the development of new industrial parks such as Bandar Cassia Technology Park, Batu Kawan Industrial Park 2, and East Batu Kawan by the Penang Development Corporation (PDC). These efforts aim to ensure ample industrial land to meet investor demands, with Bandar Cassia Technology Park offering 250 acres of new industrial land. Complementing these endeavours is the establishment of the Penang Technology Park @ Bertam, spanning over 800 acres with a gross development value of RM4.2 billion.

Furthermore, the State Government remains steadfast in its commitment to enhancing the state’s ecosystem through initiatives like the Penang Transport Master Plan (PTMP), focusing on the Light Traffic Transit project (LRT) in Bayan Lepas. We aim to improve traffic flow through public transport mobility initiatives and continues to strive for federal allocations for the construction of an Elevated Expressway or Juru - Sungai Dua Expressway.

Besides that, in recognizing the critical role startups play in our technological landscape, the State Government has also awarded a total of RM5.0 million 'Seed Fund' to 49 local startups to date. This funding, coupled with mentorship programmes and networking opportunities, aims to catalyse innovation and propel these startups toward success in the industry.

Nonetheless, it is crucial to acknowledge that despite our various efforts, the pursuit of excellence is an endeavour that demands collective engagement, necessitating a harmonious collaboration between the public and private sectors. The inauguration of the PIKOM CIO Chapter (Northern) is therefore timely and aligns seamlessly with the thriving technological ecosystem evolving in Penang.

With the launch of the PIKOM CIO Chapter (Northern) today, I hope to witness more forward-thinking initiatives and collaborations that will propel Penang towards embracing digitalization, innovation, and sustainability, in line with the Penang2030 vision of 'A Family-Focused Green and Smart State that Inspires the Nation.'

In conclusion, as we embark on today’s journey, let us reaffirm our commitment to collaboration, innovation, and the shared goal of building a brighter future for Penang. Together, I am confident that we will propel our state to greater heights.

Thank you, and may this new chapter be marked by unprecedented achievements and mutual success.

SPEECH BY THE CHIEF MINISTER OF PENANG YAB TUAN CHOW KON YEOW FOR THE
PIKOM CIO CHAPTER (NORTHERN) LAUNCH DINNER

5 January 2023
E&O Hotel

Yang Berhormat Jagdeep Singh Deo
Timbalan Ketua Menteri II

Yang Berhormat Tuan Zairil Khir Johari
State Executive Councillor for Infrastructure, Transport and Digital

Mr Ong Chin Seong
PIKOM Chairman

Mr Ngoh Chee Hung
PIKOM CIO Chapter Chair

Dato’ SN Lee
Head of Northern PIKOM CIO Chapter

Ladies and Gentlemen

Good evening, Salam Sejahtera and Salam Malaysia MADANI.

First and foremost, let me extend a warm welcome to all the distinguished guests, industry leaders, members of PIKOM, and everyone who has played a role in making this event possible. The presence of each and every one of you here today is a testament to the growing importance of Penang as a hub for innovation and technological advancements.

The latest figures we have which cover the three quarters of 2023 showed our approved manufacturing FDI inflows amounted to RM35.8 billion, which is a six-fold increase for a year-on-year comparison. Penang has once again exemplified our leading role as the top manufacturing FDI contributor in Malaysia by capturing 42 percent of the nation’s manufacturing FDI for the corresponding period. Among the countries with top manufacturing FDI in Penang were the Netherlands, the US and Singapore and they contributed 95 percent towards our approved manufacturing investments.

Despite a slight drop of 15 percent in our domestic direct investment (DDI) for the same period (Jan-Sept 2023), Penang’s RM3.1 billion DDI and approved manufacturing FDI of RM35.8 billion gave us a total of approved manufacturing investment of RM38.9 billion for the first three quarters of 2023. This effectively made Penang the highest contributor among all states in Malaysia with a 39 percent share in the nation’s approved manufacturing investments. According to the Malaysian Investment Development Authority (MIDA), these investment inflows involved 107 projects and are expected to generate 11,121 new job opportunities in Penang.

The Penang state government is happy to note that these approved manufacturing investments are in our key promoted industries namely Electrical & Electronics, Machinery & Equipment and Fabricated Metal Products industries. All in all, these investments accounted for 98 percent of Penang’s total approved manufacturing investments in the first 9 months of 2023 and are a clear indication of our resilient industrial ecosystem which continues to attract approved manufacturing investment inflow of RM38.9 billion with anticipated recovery in the global technology cycle from January to September 2023.

Ladies & Gentlemen,

Hence, the establishment of the PIKOM CIO Chapter Northern branch is a clear reflection of the vibrant technology ecosystem that is taking root in Penang.

As the Chief Minister, I am immensely proud to witness the growth of initiatives like this, which not only fosters collaboration among industry leaders but also contributes significantly to the economic development of our region.

Penangites have always been known for our resilience, adaptability, and industrious spirit. Today, we see these qualities mirrored in the thriving technology sector that continues to evolve within our borders.

The launch of the PIKOM CIO Chapter Northern branch aligns seamlessly with our vision for Penang as a leading player in the global digital landscape. As we embark on this journey together, we are laying the foundation for a technology-driven future that will undoubtedly benefit not only the businesses involved but also the people of Penang.

Ladies & Gentlemen,

In our pursuit of excellence, we must recognize the importance of collaboration between the public and private sectors. The government is committed to providing the necessary support and infrastructure to facilitate the growth of the technology industry.

We are working towards creating an environment that encourages investment, promotes research and development, and ensures that our workforce is equipped with the skills required for the jobs of the future.

The launch of the PIKOM CIO Chapter Northern branch aligns with our broader vision for Penang 2030 – a vision that embraces digitalization, innovation, and sustainability. By coming together through initiatives like this, we are not only enriching our technological landscape but also indirectly contributing to the overall economic prosperity of Penang.

As we embark on this exciting journey with the PIKOM CIO Chapter Northern branch, let us reaffirm our commitment to collaboration, innovation, and the shared goal of building a brighter future for Penang. Together, we will propel our state to greater heights of success and become a beacon for technological innovation in the region.

Thank you, and may this new chapter be marked by unprecedented achievements and mutual success.