Penang Chief Minister Chow Kon Yeow says land scarcity will not hold the state back from courting semiconductor companies. His administration has started acquiring 809 to 1,214 acres in Seberang Perai Tengah, beyond the established Batu Kawan hub, to cover industrial needs over the next five to 10 years.
“I think we should be able to meet this need for the immediate five years,” Chow told a dialogue with the Malaysian Semiconductor Industry Association (MSIA) on Wednesday.
Water supply remains a critical bottleneck. Chow said the Northern Perak Water Supply Scheme, a project drawing from Sungai Perak, depends on a tariff agreement with Perak. A memorandum was signed in November 2025 and negotiations continue. He hopes construction can begin by the end of this year.
Penang faces stiff competition for chip investment from Kedah, Johor, Selangor and Melaka. The state has lost opportunities in the past because of infrastructure constraints and slow land readiness. In the past three years, the government has pushed ahead with the Penang Automation, Test and Equipment Campus and the Penang Silicon Design @5km scheme to fill gaps in the semiconductor value chain.
Chow said Penang turns away investors who do not add value to the local supply chain. “If we lose that type of investment, we have no regrets,” he said.
MSIA president Wong Siew Hai raised the infrastructure questions during the dialogue.
Source: Free Malaysia Today
