PENANG’S success in attracting multinational corporations (MNCs) has been underpinned by a strong ecosystem of local suppliers.
State youth, sports and health committee chairman Daniel Gooi Zi Sen said about 3,000 local micro, small and medium enterprises (MSMEs) support the operations of some 350 MNCs, helping them remain globally competitive.
“It is vital to strengthen the competitiveness of MSMEs through digitalisation, artificial intelligence (AI) adoption and stronger governance, as major investments in Penang cannot succeed without a robust local business ecosystem.
“MSMEs are the backbone of our manufacturing, services and innovation sectors. Enhancing their productivity and digital capabilities will further reinforce Penang’s position as a leading manufacturing and innovation hub,” he said at the opening of CTOS SME Biz Day Penang 2026.
Gooi said Penang’s economy grew 4.8% in 2024, contributing RM121.5bil to Malaysia’s gross domestic product (GDP), while retaining its position as the country’s top exporting state with RM494.9bil in exports.
To help businesses grow, the Madani Government had channelled RM540mil in financing to more than 4,400 companies in Penang, while the nationwide PowerUp10K programme aimed to disburse RM15bil in financing to MSMEs this year, Gooi said.
He added that the upcoming Economic Census 2026 would map nearly 100,000 business establishments in Penang, including informal and digital-first enterprises.
This will provide more comprehensive data for future policy planning and funding decisions.
Gooi also called for closer collaboration between the public and private sectors as building a resilient MSME ecosystem could not be achieved by the government alone.
He said organisations such as CTOS Digital played an important role by providing trusted business information and financial insights that help companies make better decisions while promoting greater transparency and good governance.
About 2,000 entrepreneurs, corporate leaders, financial institutions, technology providers and representatives from government agencies attended the event at Setia SPICE Convention Centre in Bayan Lepas.
CTOS Digital Bhd group chief executive officer Ankur Sehgal said Malaysian MSMEs continued to be the engine of the nation’s economy, contributing more than RM650bil, or nearly 40% of GDP, while employing more than eight million people, almost half of the country’s workforce.
“The sector expanded by close to 6% in 2024, outperforming Malaysia’s overall GDP growth of 5%, and now accounts for 97% of all business establishments nationwide,” he said.
Sehgal said Malaysian MSMEs were also becoming increasingly export-driven, with exports rising by more than 30% to almost RM200bil in 2024, largely fuelled by rapid growth in the services sector.
“These are not merely statistics. They represent millions of entrepreneurs taking risks, creating jobs, driving innovation and supporting communities across the country,” he said.
He described Penang as a gateway connecting Malaysian businesses to regional and global markets.
Its world-renowned manufacturing and electronics ecosystem was supported by thousands of local MSMEs across manufacturing, logistics, technology, professional services, retail and tourism, Sehgal added.
