PETALING JAYA: Penang’s role in semiconductor manufacturing is likely to be determined next month when the federal government announces a national semiconductor strategic plan, according to Penang chief minister Chow Kon Yeow.
“I understand there are plans for states to specialise in specific sub-sectors, so we do not need to compete with other states but rather view this sector in the context of the nation,” he said today, Bernama reported.
“So, we need to see what is proposed in the semiconductor strategic plan, which is expected to be announced in May, and we will assess the roles assigned to Penang. I believe this state has the most complete ecosystem in Malaysia,” he said.
His remarks come in response to criticism from his predecessor and former finance minister Lim Guan Eng who had questioned why Penang had lost out to Selangor in setting up a multi-million ringgit chip design project.
Lim said on Friday that the state government should find out how it lost out on the opportunity despite the state’s advantage as a regional tech hub.
Meeting with Lim Guan Eng
Chow said today that the state government will arrange a meeting with Lim as well as with Invest Penang and the Penang Development Corporation to hear proposals on setting up an integrated circuit park in the state.
He said the state government is working with the federal government to continue efforts in attracting investments in the semiconductor sector, including the integrated circuit design segment.
He said Penang will also continue with various investments to complete the ecosystem and supply chain, as the semiconductor field is extensive and involves many sub-sectors, such as integrated circuits, or microchips which are used in a variety of devices like computers and smartphones.
Yesterday, three new semiconductor companies from China expressed interest in making a total investment of US$100 million (RM476 million) in the state.
Water tariffs
Chow also spoke on an impending increase in water tariffs. He said the National Water Services Commission (SPAN) has its own mechanism, including a tiered tariff system.
The first tier tariff has not been increased in Penang since 1992, while the second tier has not been adjusted since 2015, even though tariff rates may be raised every three years as allowed by SPAN.
“Sometimes, Penang does not enforce (the three-year tariff increase) or it does not get approval, so when the water tariff does go up, it’s steep. If the review was done every three years, it wouldn’t be as drastic as now. Since it hasn’t gone up for a long time, we have to ‘catch up’,” he said.
Several state assemblymen have suggested solutions to the problem of increasing water tariffs, including raising the tariff in three phases over a year. - FMT
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