China firms interested in Penang

Investments expected to grow in light of Sino-US trade war

GEORGE TOWN: Total investment in the state is expected to improve this year in light of the United States-China trade war.

Chief Minister Chow Kon Yeow says there has been an increase in interest from Chinese companies on setting up factories in the state as a result of the trade war.

“This could help boost the softer trade numbers last year.

“Based on data from the Malaysian Investment Development Authority (Mida), the total investment last year was RM5.8bil compared to RM10.8bil in 2017.

“Despite the reduction, Penang on average has managed to garner RM5bil a year in total investment for the past 10 years.

“The total investment between 2008 and 2018 is RM58bil,” he said yesterday during a press conference held to announce the formation of the Penang strategic investment advisory council and the appointment of its members.

“The fluctuation is normal as the state’s major industry, the electrical and electronics sector, goes through a cycle change every three to four years.

“Despite the softer numbers, the electrical and electronics sector and healthcare manufacturers bring in high-value investments to the state.

“Last year was challenging, so we are doubling our efforts to remain relevant as a choice destination for both foreign and domestic investors.

“We expect it to hit above RM5bil this year,” he said.

Chow said the advisory council, which he will be chairing, is to sustain, rejuvenate and further promote investment to ensure the continued growth and vitality of Penang.

“It is also to ensure Penang is a destined choice for tourist and habitat of choice for those desiring sustainable living,” he said.