GEORGE TOWN: Penang is projected to record economic growth of between 4% and 5% this year, driven by the strength of its high-technology manufacturing sector, particularly electrical and electronics (E&E), says Chow Kon Yeow.
The Chief Minister said the anticipated growth was also driven by external trade, which remains the state’s main economic driver.
"Based on official statistics from the Malaysian Investment Development Authority (Mida), Penang continues to maintain its position as one of the country’s leading investment destinations, recording encouraging performance in the manufacturing and services sectors.
"Overall, the total approved investments for Penang amounted to RM63.96bil, with the services sector contributing RM41.22bil while the manufacturing sector recorded RM22.38bil," he said in his winding-up speech at the state assembly sitting on Thursday (May 14).
He said the state’s inflation rate is expected to remain moderate at between 1.5% and 2.5%, in line with current economic developments.
Chow said the state’s economic performance continues to be strengthened by sustained investor confidence in its economic fundamentals, the stability of its industrial ecosystem, and its progressive and competitive development direction.
The achievement reflected strong investor confidence in the state’s ability to continue attracting high-quality investments, particularly in technology-based and high value-added industries, he added.
Chow said the state government would continue strengthening the investment ecosystem and economic competitiveness to ensure Penang remains one of the country’s leading investment hubs.
He cited the proposed Penang International Financial Centre (PIFC) as a strategic priority for the state government, being part of its long-term plan to strengthen the state’s position as a future hub for financial services and high-value economic activities.
He said that after nearly two years of planning, engagement and restructuring efforts involving various stakeholders, the project is now entering a more significant implementation-oriented phase.
He said the state government was confident that this phase would strengthen efforts to position the PIFC as a new economic growth catalyst for Penang.
"The PIFC is a long-term strategy to transform Penang into a hub for financial services, financial technology and high-value economic activities that complements the national financial ecosystem.
"It will also create more investment opportunities, high-income jobs and local talent development for a more sustainable and competitive economic future for Penang," he added.
On leasehold land, he told Izhar Shah Arif Shah (PN-Seberang Jaya) that such land titles in the state currently stand at about 34,000, or below 10% compared to freehold titles.
"Based on records from the state Land and Mines Office (PTG), only 805 leasehold titles have fewer than 10 years remaining," he added.
He said the state government has put in place a comprehensive, fair and welfare-oriented policy for the extension of leasehold tenure for both state and mukim leasehold landowners.
"Under the existing policy, residential and agricultural landowners are eligible for premium discounts of up to 90%, while commercial properties receive up to 80% discounts.
"Industrial landowners are granted discounts ranging between 30% and 75%, subject to conditions and eligibility requirements," he said.
Chow said that where the lease has already expired, applications may still be considered through a re-granting mechanism with premium discounts of up to 80%.
He said that since 2024, a total of 232 applications for lease extension have been received and processed by the state government, reflecting its continued commitment to ensuring leasehold landowners benefit from security of tenure.
He clarified that the issuance of freehold land titles is currently carried out on a limited basis and subject to specific consideration under PTG Circular No. 3/2025, applicable only in cases with strong justification and merit.
