Penang

GDP at RM116 billion (2023)

• Manufacturing sector occupying 46.5% while services sector covering 48.0%
   

7.4% of national GDP (2023)

• 5^th largest contributor in Malaysia, and top in Northern Region
   

3.3% real GDP growth (2023)

• 5th largest contributor in Malaysia, and top in Northern Region
   

Strong export performance with trade surplus of RM150 billion in 2023

• Export volume for 2023 valued at RM435 billion, backed by strong export-oriented manufacturing industries
   

Top 5 recipients of manufacturing FDI for the past decade

• In 2014-2023, Penang garnered RM195 billion in approved manufacturing FDI which represented 30% of Malaysia’s total

More than 350 MNCs & 4,000 SMEs

• A diverse spectrum of companies across various industry clusters forms a robust network, with SMEs playing a pivotal role in supporting the operations and growth of these MNCs

Established Clusters of Sectors & Supply Chain Ecosystem

• Home to strong and continually expanding industry clusters, with primary focus on sectors such as Electrical and Electronics, Machinery & Equipment and Medical Devices

Thriving Digital Global Business Services (DGBS) & Centre of Excellence (CoE) for MNCs
 

• Malaysia emerges as significant player in offshoring market in Asia Pacific, holding 8% share in the region according to the 2023 Kearney Global Services Location Index
• Penang now emerged as major offshoring hub with built up offices in Bayan Lepas, becoming prime investment destination for DGBS activities, research and development, and technology hub
• Penang now houses over 200 Malaysia Digital status companies

50 Years of Industrial Excellence

• Has a rich industrial legacy spanning over five decades, with its industrial presence heralded in the 1970s
• Accelerated development shaped by the 8 pioneer investors, including Intel, Hewlett Packard (now Agilent Technologies), Robert Bosch, AMD, Osram Opto Semiconductor (formerly Litronix), Renesas (formerly Hitachi), Clarion, and National Semiconductor (which has undergone corporate mergers and acquisitions)

Highly Competitive Cost of Doing Business

• Offers one of the most cost-effective business environments in Asia, with notably affordable utility rates covering electricity and water
• For detailed information on our competitive cost structure, please refer to our Cost of Doing Business

Strong Intellectual Property (IP) Protection & Active IP Creation

• Places a high value on IP protection, supported by a range of policies and regulations that ensure a healthy environment for innovation
• Malaysia is signatory to key international IP treaties, including the World Intellectual Property Organization (WIPO) 1967, the Paris Convention for the Protection of Industrial Property 1883, the Berne Convention for the Protection of Literary and Artistic Works 1886, the Trade-related Aspects of Intellectual Property Rights Agreement, and the Patent Cooperation Treaty 1970

Penang - Silicon Valley of the East

• Contributes over 5% of global semiconductor sales
• Houses 3 of the global top 10 semiconductor leaders
• Asia’s Next Silicon Valley awarded by BBC in 2018

MedTech Hub for Asia

• Houses 6 of the global top 30 medical device companies
• Has the highest concentration of MedTech companies in Malaysia and Southeast Asia