GEORGE TOWN: Penang has secured RM10.6bil worth of manufacturing investments in the first nine months of 2020.

Penang Chief Minister Chow Kon Yeow said the state attracted RM1.5bil for the manufacturing sector in the July-September period, with a remarkable 73% of the total amount contributed by domestic direct investments.

“Penang’s cumulative manufacturing inflows in Jan-Sep 2020 stood at RM10.6 billion, of which 83% of the amount was contributed by foreign direct investments (FDI), making Penang the second highest contributor in approved manufacturing FDI during the period,” Chow said.

According to data from the Malaysian Investment Development Authority (Mida), Penang notched up 47 projects in the third quarter 2020, which, together with projects approved in the first half of 2020, are expected to generate 9,137 new employment opportunities in the State. In the third quarter of 2020, DDI accounted for RM1.1bil or 73% of Penang’s manufacturing investment inflows, while the remaining 27% or RM401.9mil came from FDI.

“Notably, 83% of the approved manufacturing investment for the nine months was contributed by FDI, making Penang the second highest FDI contributor to Malaysia and representing 22% of the country’s total.

“The DDI in Penang spiked 42% year-on-year and reached RM1.8bil for the nine months with projects from Federal Oats Mills, Iconic Medicare, Straits Orthopaedics, and Vitrox Technologies,” Chow said.

Penang’s total approved manufacturing investments were dominated by its key promoted industries, comprising machinery and equipment, scientific and measuring equipment, and electronics and electrical industries.

“As I have stressed previously, investment inflows would be moderated in the second half of 2020, in light of the challenges arising from the Covid-19 pandemic.

“Having said that, I am pleased to see that Penang’s approved manufacturing investment managed to surpass the RM10bil mark in the first nine months of 2020, capturing 63% of 2019’s full-year amount and way above 2018’s full-year performance of RM5.8bil. I am glad that Penang’s captivating and strong aspects in its ecosystem, continue to render the state as a preferred investment destination for both domestic and foreign investors,” Chow added.