GEORGE TOWN: Penang recorded RM17.3bil in approved manufacturing investments in the first half of 2026, up 38% from the corresponding period last year and putting the state on track to surpass its 2025 record of RM22.4bil.
Chief Minister Chow Kon Yeow said Penang was the country's top contributor of approved manufacturing investments from January to June, accounting for 34% of Malaysia's total.
"Penang has emerged as the top contributor of approved manufacturing investments in Malaysia in the first half of 2026, securing RM17.3bil according to the Malaysian Investment Development Authority (Mida).
"The figure accounts for 34% of Malaysia’s total approved manufacturing investments.
"From January to June, Penang’s approved manufacturing Foreign Direct Investment (FDI) amounted to RM12.8bil, representing 74% of the state’s total approved manufacturing investments.
"Penang is the top contributor of manufacturing FDI in Malaysia, accounting for 39% of the nation’s total manufacturing FDI during the period," Chow told a press conference on Thursday (Sept 3).
He said Hong Kong, Singapore, China and the United States were among the top investors, collectively accounting for 77% of Penang's approved manufacturing FDI.
"On the domestic front, Penang recorded RM4.5bil in approved manufacturing Domestic Direct Investment (DDI), marking a significant 125% year-on-year increase, which reflects continued growth and investment by local companies.
"Expansion projects made up RM11.9bil (69%) of the total approved investments, while new projects accounted for RM5.4bil (31%).
“It is not only new foreign direct investment and new domestic direct investment but expansion of existing operations as well.
"This shows the investors’ confidence in Penang as a destination not only to establish new operations but also to expand their existing footprint," he said.
Chow said the approved investments involved 177 projects and were expected to create 19,337 jobs.
He expressed confidence that Penang could surpass its 2025 investment figure, with the artificial intelligence (AI) supercycle providing further impetus.
"This has benefited Penang and other Southeast Asian economies.
"A significant portion of the approved investments positions Penang to capture the AI wave, strengthening the state’s capabilities across the AI value chain and enabling it to seize emerging opportunities in the rapidly evolving global AI economy," he said.
Chow said Penang's strong investment performance in the first half of the year, despite geopolitical tensions and global economic uncertainties, reflected the strength and resilience of the state's established industrial ecosystem.
InvestPenang chief executive officer Datuk Seri Loo Lee Lian said the agency was optimistic that Penang would surpass last year's figure, as several projects had yet to be reflected in the latest Mida data.
"The additional projects were not included in the figures released by Mida.
"We have a few more projects and once they are included, we hope to achieve more than last year,” she said.
