(Left) Chow (centre), State Finance Officer Datuk Zabidah Safar holding copies of the state budget at the Penang State Assembly Building in George Town, Penang. — ZHAFARAN NASIB/The Star
THE Penang government has applied for a RM60mil allocation from the Federal Government to support development and attract investors under the National Semiconductor Strategy (NSS).
However, Chief Minister Chow Kon Yeow said the state’s investment promotion agency, InvestPenang, had yet to receive a favourable reply.
“The request is modest compared to the billions of ringgit announced under the NSS to attract more investments into the sector,” he said after tabling Penang Budget 2025 during the state assembly sitting at Lebuh Light, George Town.
Chow (PH-Padang Kota) was responding to a supplementary question by Lee Khai Loon (PH-Machang Bubok), who asked about commitments or allocations given to Penang to develop the NSS.
Chow added that federal assistance for semiconductor development will also focus on infrastructure as traffic congestion remains a key constraint for investors seeking reliable mobility.
He thanked the Federal Government for approving the RM3bil Juru-Sungai Dua elevated highway project, which will help alleviate congestion.
Construction for the project is scheduled to begin next year and be completed in 2029.
“We hope Putrajaya will allocate more funds to Penang, given that the state is the biggest semiconductor contributor in the country,” he said.
The NSS was announced by Prime Minister Datuk Seri Anwar Ibrahim during Semicon South-East Asia 2024 in May.
Penang is asking for funds from the Federal Government to draw more investors into its semiconductor industry. — Filepic
Through it, the country aims to attract RM500bil of investments in integrated circuit (IC) design plus advanced packaging and manufacturing equipment for semiconductor chips, as well as to create at least 10 local design and advanced packaging companies with revenues ranging from RM1bil to RM4.7bil.
It also aims to make Malaysia a global hub for semiconductor research and development.
It was reported that the government had planned to allocate RM25bil to the NSS.
On another matter, Chow said Penang is set to earn an additional sum of between RM50mil and RM100mil in annual revenue by increasing land taxes for the first time in 30 years.
He was responding to a question by Lee Boon Heng (PH-Kebun Bunga) on the state’s budget deficit.
Chow said the changes are expected to take effect in January 2026 once approval is obtained from the National Land Council, adding that land-related taxes contribute about 45% of the state’s revenue.
“We have received approval to review the rates that have remained unchanged since 1994.
“The review process by a task force involving the Land and Mines Office and District and Land Office is ongoing.
“It involves 370,000 land ownership records in Penang,” he said.
