Penang is acquiring 809 to 1,214 hectares of new industrial land to meet demand for the next five to 10 years, with Central Seberang Perai identified as the state’s next major growth area.
Chief Minister Chow Kon Yeow said the state faces significant land constraints but is strategically positioning itself to support continued semiconductor industry expansion.
“As production investments continue to grow, the key infrastructure challenge is land availability. We are actively acquiring land for industrial development and are expanding beyond Batu Kawan, with Central Seberang Perai identified as a key growth area,” he said at the Malaysia Semiconductor Industry Association (MSIA)-Penang Chief Minister Dialogue 2026 in George Town.
Penang currently hosts more than 350 multinational corporations and over 6,500 manufacturing-related SMEs. The state secured RM22.4 billion in approved manufacturing investments in 2025, ranking third in Malaysia.
The electrical and electronics (E&E) and machinery and equipment sectors drove RM17 billion, or 74%, of the total investment.
Despite competition from Kedah, Johor, Selangor, and Melaka, Chow said Penang remains confident in its appeal. The state has launched the Penang Automation, Test and Equipment Campus and the Penang Silicon Design @5km+ scheme to strengthen its position.
“We need a resilient supply chain. Penang is selective about the investments it attracts. Many years ago, we turned away some investors because they did not add value to our supply chain,” he said.
Chow acknowledged global headwinds facing the semiconductor industry, including geopolitical tensions, trade uncertainties, energy price fluctuations, and supply chain disruptions.
“Amid these uncertainties, I would like to reaffirm the state’s commitment to strengthening our industrial capabilities and enhancing Penang’s position in the global semiconductor value chain,” he said.
MSIA president Datuk Seri Wong Siew Hai also attended the dialogue.
Source: The Star
