GEORGE TOWN, Aug 27 (Bernama) — Penang continued to assert its position as a preferred investment destination for both new and existing investors, with a recorded RM12.5 billion in approved manufacturing investments in the first half of 2025 (1H2025), representing a 150 per cent year-on-year increase.
InvestPenang said the approved manufacturing foreign direct investment (FDI) inflows amounted to RM10.5 billion from January to June, or 84 per cent of the total, making Penang the top contributor of manufacturing FDI in Malaysia with a 20 per cent share of the nation’s total during the period.
“The United States, China and the Cayman Islands emerged as the top three sources of FDI, collectively contributing 60 per cent of Penang’s total approved manufacturing FDI. On the domestic front, Penang recorded RM2 billion in approved manufacturing investments, representing 16 per cent of the state’s total and marking a 51 per cent year-on-year increase,” it said in a statement.
According to the Malaysian Investment Development Authority (MIDA), Penang ranked as the second-highest contributor of approved manufacturing investments nationwide, accounting for 18 per cent of Malaysia’s total.
InvestPenang said the investment inflows in Penang spanned across 86 projects and are expected to provide 11,116 new job opportunities.
Meanwhile, investment activities were largely concentrated in the state’s promoted sectors, including electrical and electronics (E&E), machinery and equipment (M&E), as well as chemicals and chemical products, which together contributed 92 per cent of total approved inflows in 1H 2025.
The state government agency noted that despite external headwinds, including global tariff uncertainties and evolving trade policies, Penang has remained resilient in attracting global investments.
Chief Minister Chow Kon Yeow said the state has once again punched above its weight, attracting high quality investments that reinforce Penang’s position as a key player in the global value chain despite the current uncertain global environment.
“This achievement reflects the continued confidence of investors in Penang’s capabilities and resilience. The state government extends its deepest appreciation to all investors for their trust in Penang. We would also like to thank MIDA and InvestPenang for their continued collaboration in promoting high-quality and strategic investments that strengthen Penang’s role as a vital node in the global manufacturing value chain,” he added.