GEORGE TOWN: Penang recorded RM22.4 billion in approved manufacturing investments in 2025, a 29% increase from 2024, chief minister Chow Kon Yeow said.
In a statement, Chow said the state ranked third nationwide in approved manufacturing investments, accounting for 17% of Malaysia’s total. The investments span 232 projects and are expected to generate 24,633 new jobs.
Foreign direct investment (FDI) made up the bulk of the total, amounting to RM15.2 billion, or 68% of Penang’s approved manufacturing investments.
“The state also ranked among the top three recipients of manufacturing FDI in Malaysia, contributing 15% of the national total,” Chow said.
He added that Singapore, the US and China were the top three sources of FDI, together accounting for 57% of Penang’s approved manufacturing FDI.
Penang also recorded RM7.2 billion in domestic direct investment (DDI), representing 32% of the state’s total approved manufacturing investments and more than double the amount recorded the previous year.
Chow said most investments were concentrated in sectors promoted by the state, including electrical and electronics (E&E), machinery and equipment, and chemicals and chemical products.
These sectors accounted for 81% of total approved manufacturing investments in 2025, with 52% coming from new projects and the remainder from expansion projects.
Chow said the strong investment performance was recorded despite global uncertainties stemming from shifting trade dynamics and US tariff pressures.
“This reflects investors’ continued confidence in Penang’s industrial ecosystem and long-term growth prospects. The state government will continue working closely with partners to ensure Penang remains a competitive and conducive investment destination,” he said.
