Penang remains magnet for American investors

 

US Embassy chargé d’affaires Manu Bhalla during a recent visit to American medical devices company Boston Scientific in Batu Kawan, Penang. (US Embassy pic)

GEORGE TOWN: Penang’s allure for American investors remains strong as the state offers a fertile ground for business growth, backed by robust infrastructure and a talented workforce, said US envoy Manu Bhalla.

The US Embassy chargé d’affaires in Kuala Lumpur said American companies have played a critical role in generating high-value, high-paying jobs over the decades in Penang.

Mida and InvestPenang data show that US investments in Penang in the manufacturing sector hit over US$6 billion (RM28.2 bilion) cumulatively from 2008 to June this year.

Bhalla said American investments not only stimulate economic growth but also provide long-term job security for local employees.

“It is heartening to see that American companies are investing in Penang, creating more jobs. Most of these plants in Penang are run by Malaysians, by a Malaysian workforce,” he told FMT in an interview here.

“There are hardly any expats if at all. So, you can have a 4,000-employee facility in Penang, and there might be one or two expats, and the rest are Malaysian employees running that high-tech operation.

“I think this helps US-Malaysia economic ties, and it’s also helping Penang and Malaysian economic development.”

He said American businesses here are committed to skills development and workforce training even as investments in the electronics and electrical (E&E) sector are seeing an uptick.

“The private sector is making substantial efforts to support their business interests by investing in workforce development. The US government stands ready to collaborate with Malaysian agencies to further enhance skills development,” he said.

With its robust E&E industry, Penang is responsible for more than 5% of the world’s sales of computer chips. The state contributes between 56% and 60% of the country’s E&E exports over the past four years.

In 2022, Penang reached its all-time high of RM452 billion in total exports and recorded a trade surplus of RM126 billion, representing 49% of the country’s total, according to InvestPenang. - FMT