Investments in Penang dip by half, but CM says numbers 'normal'

Despite data showing investments in Penang falling by nearly 50 percent, the state government is not hitting the panic button just yet.

The Malaysian Investment Development Authority indicated that investments in the state dipped to RM5.8 billion in 2018 from RM10.8 billion the year before. 

Penang Chief Minister Chow Kon Yeow, however, pointed out that investments have averaged at about RM5 billion in the state for the past decade, with total investments from 2008 amounting to "at least RM58 billion."

Describing the situation as "normal," Chow said that the primary industry sector in the state, electrical and electronic manufacturing, goes through "cyclical changes" every three to four years.

FDI push

Regardless, Chow stressed that Penang will not sit on its laurels, and will intensify the search for new investments. 

"There has been increased interest by Chinese companies in setting up factories in Penang as a result of the trade war between US and China.

"This could help boost the softer trade numbers experienced last year," he said at a press conference in Komtar today.

"The electric and electronic and healthcare manufacturing sectors have injected high-value investments to the state from time to time.

“This cycle sometimes brings us RM8 billion, and later RM2 billion to RM3 billion a year," he added.

Chow said that investment figures are expected to hover above the RM5 billion mark in 2019.

The chief minister also announced that a new advisory council, comprising captains of industry and government officials, will spearhead the effort to “rejuvenate and promote investments.”

Led by Chow, the council also three state exco members, InvestPenang director Lee Kah Choon, and InvestPenang CEO Loo Lee Lian.

Industry members on the council include Globetronics Technology Bhd CEO Heng Huck Lee, Texchem Life Sciences’s Yuma Konishi, Boston Scientific’s Dave Mitchell, Plexus Manufacturing’s Lim Jong Yin and Citigroup Transaction Services’ Srinath Sambasivan.

Chow stressed that amid the many challenges facing the global economy last year, Penang will double its efforts to relevant a choice destination for both foreign and domestic investors.  - Mkini