KUALA LUMPUR, Feb 28 — Penang Chief Minister Chow Kon Yeow said the state government is confident it can still attract foreign direct investment (FDI) amid rising competition from Asean countries.

He said that Penang recorded a positive FDI flow RM10.8 billion in 2017, compared to RM4.3 billion in 2016.

“Admittedly the FDI for 2018 cannot match the year before, but the final figure has yet to be announced by the International Trade and Industry Ministry. However, we are still confident after 50 years Penang has the right ecosystem to attract investors,” Chow told BFM’s Joyce Goh during the Breakfast Grille show.

From January to September last year, the island-state recorded RM3.83 billion in investments, of which RM2.15 was from FDI.

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He said it is common for investors and multinational companies to enter and leave Penang, which is part of the state’s industry experience.

“It would not be fair to compare a city to a country, when comparing Penang’s competition with nations like Vietnam and Myanmar.

“We are a small city, and infrastructure-wise we have to accept there are constraints. Hence why we should encourage investors’ factories to be located at or relocated to Seberang Perai,” Chow said.

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Although Penang will find it difficult to compete with these countries who offer cheap prices for land or sometimes provide it freely to stimulate FDI, he said the state does a good job in looking after its investors.

“Alongside the ecosystem, the readily available talent pool is something to look after as well. Investors quickly starting up after entering is also a factor.

“In a number of instances we have investors who after purchasing land, begin production in their factories within 18 to 24 months. Plus good support from small and medium enterprises also enhances Penang’s attractiveness,” Chow said.