Penang eyes record manufacturing investments after RM17.3b secured in first half

GEORGE TOWN, Sept 3 — Penang is optimistic it will surpass last year’s RM22.4 billion in approved manufacturing investments after securing RM17.3 billion in the first half of 2026, with several projects yet to be reflected in the latest figures.

InvestPenang chief executive officer Datuk Seri Loo Lee Lian said the additional projects were not included in figures released by the Malaysian Investment Development Authority (Mida) last week.

“We have a few more projects that haven’t been included in the figure, so once [they are] included, we hope to achieve more than last year,” she said at a press conference with Penang chief minister Chow Kon Yeow in Komtar today.

Chow attributed the outlook partly to the artificial intelligence (AI) supercycle, which he said had benefited Penang and other South-east Asian economies.

“Penang’s RM17.3 billion in approved manufacturing investments from January to June represented a 38 per cent increase from the corresponding period last year,” he said.

The figure accounted for 34 per cent of Malaysia’s total approved manufacturing investments, he said.

Chow said the state had continued to receive enquiries and requests for additional land from existing companies seeking to expand.

Expansion projects made up RM11.9 billion, or 69 per cent, of the total approved investments, while new projects accounted for RM5.4 billion, he said.

“It is not only new foreign direct investment and new domestic direct investment, but expansion of existing operations as well,” he said.

The approved investments cover 177 projects and are expected to create 19,337 jobs.

Foreign direct investment amounted to RM12.8 billion, or 74 per cent of the total, while domestic direct investment reached RM4.5 billion, up 125 per cent year-on-year.

Chow said the figures should encourage small and medium enterprises to pursue opportunities in the state’s large industrial ecosystem and supply chain.

He said the impact of current approved investments would likely be felt over the next 18 to 24 months, after plants are built, equipped, staffed and begin operating.

“Penang has consistently recorded good results over the years,” Chow said.

He added that the state was equally optimistic that the AI boom would continue drawing investments into Malaysia and Penang.