ASEAN Business Advisory Council (ASEAN-BAC) Malaysia held a consultation meeting with the Penang state government and agencies on 8 November 2021 to discuss the state’s efforts in attracting foreign direct investment, how it sees itself within the context of the larger ASEAN region, and its vision for the future of Penang. The session was chaired by ASEAN-BAC Malaysia Chairman Tan Sri Dr Munir Majid, who noted that while Penang is projected to grow at an average rate of 5.4% from 2021 to 2025 under the 12th Malaysia Plan, the real challenge was in ensuring that such growth is achieved in line with Penang’s Vision 2030 for a green
and smart state

He also urged the state to tap into opportunities in the larger ASEAN, Regional Comprehensive Economic Partnership (RCEP), and Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets.

ASEAN-BAC Malaysia Council Member Tan Sri Yong Poh Kon expects this uptrend to continue, “Penang has always been at the forefront in manufacturing especially in the E&E sector with a well-established ecosystem which includes the Penang Skills Development Centre (PSDC), Collaborative Research in Engineering, Science and Technology (CREST), and a supportive state government and state agencies. The state is expected to be one of the first to show quick growth in manufacturing with the opening up of the economy, extending later to the services and hospitality sectors which will need a greater level of support and
attention to recover.”

Fellow ASEAN-BAC Malaysia Council Member Mr Raja Singham concurred, “Penang recorded RM1.1 billion in authorized manufacturing investments for 40 projects in the first quarter of 2021 alone and the state’s manufacturing sector will continue to be a leader in attracting strong foreign direct investments. The 12th Malaysia Plan will also assist in the state’s efforts to upgrade its economic and industrial structure and overcome the challenges brought by the pandemic.”