Penang achieved the highest foreign direct investment (FDI) in the country for the manufacturing sector amounting to RM15 billion for 166 projects in 2019, Chief Minister Chow Kon Yeow announced today.
Chow said the total approved investment (domestic and foreign) in the manufacturing sector for Penang was RM16.9 billion.
"Both of these figures are the highest achievements in our state's history to date.
"This shows that foreign investors still have high confidence in the investment ecosystem offered by Penang," said Chow at a press conference in George Town today.
" In fact, as I pointed out, Penang has no real source but we do have a wealth of skills and talents that are often envied and attract investors," he stressed.
"Congratulations and thanks to everyone".
Chow had referred to a report issued by the Malaysian Investment Development Authority (Mida) on Monday.
The report said Malaysia attracted RM207.9 billion worth of approved investments in the manufacturing, services and primary sectors last year, up 1.7 percent compared to 2018.
Mida said domestic direct investment accounted for the bulk of the total approved investments - 60.4 percent or RM125.5 billion.
Foreign direct investment, though only making up 39.6 percent, recorded a 2.9 percent growth to RM82.4 billion.
Chow said the state government will continue to ensure that Penang's economy remains resilient despite the uncertain economic situation caused by the Covid-19 pandemic.
The chief minister said the focus must now shift to the services sector in Penang.
This sector was the largest contributor to Penang's gross domestic product (GDP), accounting for 49 percent, followed by the manufacturing sector at 46 percent.
Part of the expenditure in this sector comes from the tourism industry.
This includes spending on the state's popular street food, recreation, art and culture, medical tourism, meetings, conferences and exhibitions and hotel, villa or homestay accommodations among others.
Chow said the services sector in Penang provided employment to about 300,000 workers.
Almost half of these are involved in the tourism sector.
Chow also cited the Penang Institute's crisis assessment report which stated that 99 percent of businesses in the services sector in Penang was in the small and medium enterprises (SMEs) category.
Chow said the same report also analysed 46 types of SME businesses involving four major sectors namely agriculture, construction, manufacturing and services.
The report found that the services sector was the most affected by the Covid-19 crisis, Chow noted.
Based on the analysis, it was reported that 74.9 percent of SMEs in the arts, entertainment and recreation sub-sectors were microenterprises and the economic risk to this group was extremely high.
"Based on the importance of this sector, as well as the impact of the Covid-19 outbreak on businesses in related sectors, the state government has decided to establish the 'Penang Tourism Normal Normal Working Team' or the 'Tourism Penang Next Normal Taskforce'.
"The team is working to gather the views of key stakeholders in the tourism sector in Penang and formulate strategies to ensure the viability of the sector in the 'Next Normal' situation we face," Chow said.
"The chief minister, myself, will chair this task force while the exco for tourism, arts, culture and heritage, Yeoh Soon Hin will be the deputy chair," added Chow.
"The working secretariat will be at the Penang Global Tourism (PGT) office."
"On April 25, the Penang Tourism Normal Normal Working Team will hold a virtual roundtable meeting with industry leaders for an initial discussion on the sectoral impact they face," Chow further said. - Mkini
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