GEORGE TOWN, July 22 — Penang recorded a promising RM7.1 billion in approved manufacturing investments in the first quarter of 2020 (Q1 2020), despite the challenging global economic environment.
Chief Minister Chow Kon Yeow said the amount was equivalent to 42 per cent of Penang’s 2019 full-year approved manufacturing investments that was underpinned by both new investments and reinvestments.
“Based on the Malaysian Investment Development Authority’s latest performance report, Penang successfully garnered 32 manufacturing projects in Q1 2020, which is estimated to create 4,035 jobs in the state,” he told a press conference here today.
He said machinery, scientific and measuring equipment (which includes medical devices), as well as electronics and electrical industries collectively made up about 95 per cent of Penang’s total approved manufacturing investments in January-March 2020.
“Foreign direct investments (FDI) accounted for RM6.8 billion or 96 per cent of Penang’s manufacturing investment inflows in Q1 2020, while the remaining RM321 million were domestic direct investments (DDI).
“Top manufacturing FDIs in Q1 2020 were from Switzerland, the United States and Singapore, and notable investments included projects from Dexcom and LEM International,” he said.
Despite the satisfactory performance in the first quarter, Chow said the state expects the investment inflow for 2020 to be lower than 2019’s all-time-high of RM16.9 billion.
He added that the state government is mindful that the global FDI is expected to decrease until at least 2021, and that public health challenges will persist in the near future.
“Nevertheless, there are still opportunities for Penang, particularly from the global supply chain reconfiguration and the emerging industries that will continue to play important roles in the post-Covid-19 era.
“The state government will remain vigilant in our efforts to attract high-quality, high technology investments, especially in our promoted industries,” he added. — Bernama