As Penang celebrates its 50th anniversary of industrialisation in 2022, Penang Chief Minister, Chow Kon Yeow said that they have curated a year-long series of events for this celebration.
Penang’s transformation, from a traditional seaport economy into the Silicon Valley of the East, began in 1972 when the establishment of Malaysia’s first free trade zone in the State drew key investments from eight Multinational Corporations (MNCs).
Also known as the “8 Samurai”1 , their arrivals have heralded the development of a robust ecosystem of ancillary industries, cemented Penang’s conducive location for MNCs’ pioneer offshore manufacturing sites and elevated theState’s status as a prominent hub for advanced manufacturing and high value-added upstream activities.
Even more impressive is that for the past two decades, Penang has also nurtured numerous homegrown technopreneurs, founding and building companies that have grown to become internationally renowned in their own right.
True to its reputation as the Silicon Valley of the East, Penang is the most important manufacturing base for electrical and electronic (E&E) products within Malaysia, and is among the most vibrant hubs globally, with an estimated 5% of global semiconductor exports. In 2020, Penang’s exports surpassed the RM300 billion mark to reach a record high of RM310 billion (US$77 billion), out of which, 82% were contributed by E&E and professional, scientific and controlling instruments (including medical devices).
Notably, Penang generated RM110 billion (US$27 billion) of trade surplus in 2020, representing 60% of Malaysia’s total. In 2013 – 2020, Penang’s exports were consistently on a rising trend and achieved a CAGR of 10%, signifying the State’s resilience to navigate through the industry cycles.
“Going forward, we will continue to uphold Penang’s competitive edge and further entrench our position in the upstream activities, with the aspiration of becoming the leading hubs for IC design and front-end equipment manufacturing, while strengthening the existing industry clusters in E&E, back-end Machinery & Equipment and MedTech.
“With Penang’s sustainable ecosystem, I am confident that the State is poised to be on the right trajectory to realize these goals.
“I would like to express my deepest appreciation to all industry players for the continued confidence in Penang, as well as the Federal and State agencies for the concerted efforts in solidifying Penang’s position as a preferred investment location throughout this 50-year industrialization journey.
The state will stay committed to forging ahead with all stakeholders and I look forward to more exciting opportunities in years to come,” said Chow.