Penang’s Investment Performance Report 2024

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1.0 Overview of Penang’s Investment Landscape in 2024

Penang continued to be a significant destination for investments in Malaysia during 2024, maintaining its position among the top states attracting capital, particularly in key manufacturing sectors.

• Total Approved Investments: Penang secured a total of RM32.0 billion in approved investments across all sectors, ranking it as the fifth highest state in Malaysia for investment attraction in 2024 (Based on MIDA’s Malaysia Investment Performance Report 2024, IPR p15).
• Projects Approved: A total of 518 projects were approved for Penang in 2024 across the primary, manufacturing, and services sectors (IPR p120).
• Employment Opportunities: These approved projects are expected to generate 20,433 potential employment opportunities in the state (IPR p120).
• Domestic vs. Foreign Investment:
  • Domestic Investments (DI): RM15,565.4 million (IPR p120).
  • Foreign Investments (FI): RM16,420.9 million (IPR p120).

A comparison with 2023 shows a decrease from RM71,881.9 million total investment, 415 projects, and 20,701 jobs (IPR p120).

2.0 Manufacturing Sector Performance

Penang remains a critical hub for Malaysia’s manufacturing sector, particularly concentrated in advanced industrial activities (IPR p26).

• Total Manufacturing Investments: Approved investments in the manufacturing sector in Penang totalled RM17,313.0 million in 2024 (IPR p127).
• Manufacturing Projects Approved: 182 manufacturing projects were approved for Penang (IPR p127).
• Manufacturing Employment: These projects are estimated to create 16,254 jobs in the manufacturing sector (IPR p127).
• Domestic vs. Foreign Manufacturing Investment:
  • Domestic Investments (DI): RM3,529.0 million (IPR p127).
  • Foreign Investments (FI): RM13,784.0 million (IPR p127).

A comparison with 2023 shows a decrease from RM63,420.6 million total manufacturing investment, 149 projects, and 17,623 jobs (IPR p127).

3.0 Key Industries and Clusters

Penang’s strength lies significantly in the Electrical and Electronics (E&E) and Machinery and Equipment (M&E) sectors.

• E&E Cluster: Penang’s well-established E&E cluster continues to be a major draw, creating spillover effects for neighbouring states like Kedah (IPR p20). The state benefits from the global demand for semiconductors and electronics, driven by technologies like AI, 5G communication, and electric vehicles (IPR p26, IPR p72). Intel Corporation’s significant US$7 billion investment in advanced packaging facilities is located in Penang (IPR p74).
• M&E Cluster (Batu Kawan):
  • The Batu Kawan Industrial Park (BKIP) has transformed into a hub for M&E, attracting global manufacturers such as Boon Siew Honda, VAT Group AG, and Western Digital Corporation (IPR p23).
  • The M&E cluster in Batu Kawan hosts major players including ViTrox, Pentamaster, Walta Engineering, UMS Group, Towa-M, VAT, BBS Automation, Frencken, Sanmina, NationGate, and Greatech Engineering (IPR p64).
  • In 2024, the Batu Kawan M&E cluster specifically attracted RM1.2 billion in total investments across 13 projects, expected to create 695 jobs. Domestic investment accounted for 44.0% (RM517.9 million) and foreign investment for 56.0% (RM657.9 million) (IPR p64).
• Medical Devices: While specific state data isn’t broken down in the main report, Penang is a known hub for medical device manufacturing, a priority sector under NIMP 2030 (IPR p58). The national average Capital Investment Per Employee (CIPE) for Medical Devices was RM0.7 million with a Value-Added contribution of 51.9% (IPR p60).

4.0 NIMP 2030 and Strategic Development

Penang plays a crucial role in achieving the goals of the New Industrial Master Plan (NIMP) 2030.

• Priority Sectors: Penang is central to NIMP 2030’s priority sectors, especially E&E and Medical Devices (IPR p58).
• Economic Clusters: The M&E cluster in Batu Kawan is highlighted as an existing cluster with potential for regional spillover impact (IPR p63, IPR p64). The E&E cluster in Penang is also noted as a key existing cluster that newer developments like Kerian Integrated Green Industrial Park (KIGIP) in Perak aim to complement (IPR p65).
• Industrial Park Development: Budget 2025 includes support for state-focused industrial development, specifically mentioning the development of the Batu Kawan Industrial Park 3 in Pulau Pinang (IPR p109).

5.0 Conclusion

In 2024, Penang attracted significant investments totalling RM32.0 billion (IPR p15), primarily driven by foreign capital in the manufacturing sector (IPR p120, IPR p127). While the total investment value saw a decrease compared to the high base of 2023, the state maintained a strong project pipeline (518 projects) and robust job creation potential (20,433 jobs) (IPR p120). Key clusters in E&E and M&E, particularly in Batu Kawan (IPR p23, IPR p64), continue to anchor its industrial strength, supported by strategic initiatives like the development of BKIP 3 (IPR p109) and its alignment with NIMP 2030 priority sectors (IPR p58).