FDI inflow into Penang remains strong, says investment adviser to CM

GEORGE TOWN: Political issues in Malaysia have not reached a stage where they threaten the inflow of foreign direct investments (FDI), said the special investment adviser to the Penang Chief Minister.

According to Datuk Seri Lee Kah Choon, who is also director of Invest Penang Sdn Bhd, Malaysians may be disturbed by emerging political issues or speculations but foreign investors have other aspects to consider.

He said investors prefer to measure on whether the country is business friendly with a thriving talent pool, good infrastructure, intellectual property protection, safety level, among others.

“They have made money in Malaysia and majority of them have chosen to remain for long term,“ Lee told a media briefing on Invest Penang 2020 outlook and a recap of Penang’s performance in attracting record numbers of FDI last year.

He highlighted that Penang has two distinctive advantages – infrastructure and talent pool as well as a responsive government which tries to meet the requirements of all investors.

Lee noted that the state is trying to enlarge its pool of students in science, technology, engineering and mathematics and improving its supply chain by ensuring that the small medium enterprises tailor their business model to the needs of the multinational corporations.

Invest Penang is also moving towards regionalising its role in attracting investments by working closer with its Kedah and Perak counterparts until a belt for medical devices manufacturing has been created spanning the Bayan Lepas Free Industrial Zone to the Kulim Hi-Tech Park and the Taiping Industrial Park.

Last year, Penang saw a positive spillover effect from the trade war as investors preferred the state compared to China due to the uncertainties arising from the trade tensions.

It helped the state to record an FDI flow of close to RM14 billion, the highest since 2008, underpinned by the cyclical effects from the electrical and electronic segment where the FDI flow tends to go up after a lull of about two to three years.

Lee said Penang is no longer a low-cost manufacturing hub but one which is growing in terms of attracting human and investments capital.

For this year, Penang is targeting a conservative figure of RM5 billion in FDI and domestic investments as it is expected to enter a period of consolidation amid the ongoing US-China trade deal.

source https://www.thesundaily.my/business/fdi-inflow-into-penang-remains-strong-says-investment-adviser-to-cm-GD1849888