GEORGE TOWN, September 21 – The establishment of a Special Financial Zone (SFZ) in Penang can help bring back investments to Penang that have dipped below the top five states for the first half of 2022 and 2023. The Malaysian Investment Development Authority (MIDA) reported that Malaysia attracted a total of RM132.6 billion (US$28.3 billion) in investments from January to June 2023. These investments include investments in the services sector (RM82.4 billion), manufacturing sector (RM44.9 billion), and primary sector (RM5.3 billion).
Covering 2,651 projects and capable of generating 51,853 job opportunities. MIDA reported that the total number of projects approved from investments in the first half of 2023 increased by 34.8 percent compared to the first half of 2022. There is no doubt that the services sector will be a major source of future investments for Malaysia, comprising 62 percent of investments approved by MIDA. The five states that recorded the highest investment amounts include Kuala Lumpur at RM31.7 billion, Selangor at RM29.7 billion, Kedah at RM14.6 billion, Johor at RM14.2 billion, and Sabah at RM9.0 billion.
Penang has dropped out of the top five states with the highest investments for two consecutive years, namely 2022 and 2023, due to a lack of investments in the services sector and a shortage of investments in the manufacturing sector, resulting from a shortage of industrial land in Penang. Kedah has been able to attract high investments due to the availability of ample industrial land and its proximity to Penang. The Special Financial Zone (SFZ) in Penang, as announced by Prime Minister Datuk Seri Anwar Ibrahim for Johor Bahru, can provide a boost to the services sector in Penang and bring back investments to the state.
The Penang State Government and all Penangites, regardless of political affiliation, should join hands to request the Federal Government to approve an SFZ in Penang in the 2024 Budget.
