Penang Secures RM4.9 Bln In Approved Manufacturing Investments In 1Q 2026
BATU KAWAN, June 20 (Bernama) -- Penang secured RM4.9 billion in approved manufacturing investments in the first quarter of 2026 (1Q 2026), ranking second nationwide and reinforcing its position as one of Malaysia's leading industrial and investment destinations.
Chief Minister Chow Kon Yeow said RM3.4 billion, or 70 per cent of the total approved investments, comprised foreign direct investments (FDI), reflecting sustained international confidence in Penang's industrial strengths.
"The electrical & electronics (E&E) and machinery & equipment sectors remained the key growth drivers, accounting for RM3.6 billion or 74 per cent of total approved manufacturing investments.
"On the trade front, Penang continues to be Malaysia's leading export powerhouse. According to the latest Department of Statistics Malaysia (DOSM) figures, Penang remained the nation's top exporting state in 2025, contributing 38.1 per cent of Malaysia's total exports, equivalent to approximately RM610 billion in export value," he said in a speech at the opening ceremony of MKS Instruments Malaysia in Bandar Cassia Technology Park here today.
The ceremony was officiated by Prime Minister Datuk Seri Anwar Ibrahim, and also present were Deputy Minister of Investment, Trade and Industry (MITI) Sim Tze Tzin and MKS president and chief executive officer John T.C Lee.
Chow said the state's export performance was driven largely by electronic integrated circuits and other electrical and electronic products, highlighting the strength and sophistication of Penang's semiconductor ecosystem.
He said Penang also recorded the highest Trade Openness Index in the country at 575.1, reflecting the state's deep integration with global markets and reaffirming its role as a key pillar of Malaysia's industrial, trade and export performance.
"The Penang government via InvestPenang remains proactive not only in attracting investors but also in strengthening our ecosystem through unique value propositions that are aligned with the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS), with strategic focus areas in integrated circuit design, advanced packaging and equipment manufacturing," he added.
Spanning approximately 350,000 square feet on a 17-acre site, the MKS factory is designed to meet the growing global demand for semiconductor manufacturing equipment.
Chow said that with an investment exceeding RM400 million and the creation of more than 1,000 high-value jobs upon completion of all phases, this facility represents a significant milestone in Penang’s continued evolution as a global hub for advanced manufacturing and semiconductor innovation.
"It also reflects the state’s strong value proposition, underpinned by a highly skilled workforce, a mature industrial ecosystem, and infrastructure that supports high-tech industries," he added.
Founded in 1961 and listed on NASDAQ, MKS is a global technology leader providing critical solutions that enable innovation across the semiconductor and advanced manufacturing industries.
Today, MKS technologies support more than 85 per cent of the world’s wafer fabrication equipment applications and more than 70 per cent of the key steps in package substrate and printed circuit board manufacturing.
-- BERNAMA