GEORGE TOWN: While several major investments from China have materialised in the country, more can be done to further attract deals and spur Penang’s economy.
Citing an example, Penang Chinese Chamber of Commerce president Datuk Seri Hong Yeam Wah said the high price of industrial land has posed a challenge for investors planning to set up large facilities here.
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He said industrial land owned by Penang Development Corporation costs “between RM70 and RM80 per sq ft, while it is priced at about RM45 per sq ft in Kulim, Kedah”.
“The current price of industrial land in Penang is almost double that of Kulim. The government needs to overcome this to remain competitive,” he said.
To uphold the land value, Hong said the state needs to leverage its advantages, such as the availability of its seaport and airport, as well as its large pool of talented engineering personnel and extensive industry experience.
“The government may further encourage investors to establish themselves here by easing the permitting, approval and construction processes.
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“If large foreign companies from China need to bring in more foreign skilled labour to support their demand, the government should allow such an initiative and help in their application process,” he said.
In April last year, Prime Minister Datuk Seri Anwar Ibrahim said Malaysia had secured a record RM170bil worth of investments from China with 19 Memoranda of Understanding signed.
He made the announcement during the Malaysia-China Business Summit.
Hong said among the projects was the RM6.4bil investment from battery manufacturer INV New Material Technology, which will establish its first-ever manufacturing plant in Bertam on Penang mainland.
The project, in two phases, is expected to be completed in 2028.
“Penang, with over 50 years of experience in the electrical and electronics industries, would see more investment in the electronic sector.
“Its ecosystem has led to an abundance of skilled manpower such as engineers,” said Hong, formerly the Penang Electrical Association Merchants Association president.
Small and Medium Enterprises Association of Malaysia national president Datuk William Ng said due to the current geopolitical situation, Malaysia continues to benefit from the China Plus One policy, which aims to avoid investing only in China but diversify business into other countries with promising developing economies.
He said Malaysia, with its diverse industries, is seen not only as a geographically strategic production base and market but also as a proven partner with strong delivery capability.
“We are already seeing some of these interests translating into investments, which has helped SMEs in industries ranging from semiconductors and logistics to food manufacturing and business services.
“Some additional measures we can take are to ensure some of these investors deliver on their commitment by using local vendors in their local and global supply chains,” Ng said.
