Penang CM: Plan to stimulate state’s economy post-Covid-19 ready

GEORGE TOWN: Penang has come up with a plan to stimulate its economy once health authorities have contained the Covid-19 pandemic.

Chief Minister Chow Kon Yeow said in view of the emerging climate of possible retrenchments and a slowdown in business activities, there would be a renewed emphasis on migrating and integrating the economy towards digitalisation.

He noted the pandemic can be the right catalyst towards a greater shift to the online realm, adding there are five areas that will drive the state’s post-Covid-19 industrialisation and services sectors.

The five areas are digitalisation, medical devices, electrical and electronics (E&E), global shared services and re-positioning Penang in the global supply chain.

“Penang is aiming for a new thinking framework, which has actually begun in recent years,” said Chow in his daily social media briefing here.

The state had previously announced the establishment of a Digital Free Trade Zone, which should be up by next year, as part of efforts to move the state up the manufacturing value chain by becoming entrenched in Industrial Revolution 4.0.

Chow wants the state to woo more investors and convince existing ones to expand the medical equipment sector in view of a pressing global need for personal protection equipment to fight the highly communicable virus.

He also wants the E&E subsector, which powers the state’s manufacturing sector, to produce more connectivity devices for telecommunications, medical devices and other tech gadgets.

Penang will also tap into the global shared services by creating a highly efficient, but low cost system, to attract multinational companies to set up their support network bases here.

Penang has over 60 shared services companies, who have generated 12,000 high value jobs in the supporting services.

Chow also disclosed its investment arm, InvestPenang Sdn Bhd, has been entrusted to lead a task force to reposition the state in the global supply chain by developing new strategies to woo investors.

He expressed confidence the state will be able to provide employment opportunities as InvestPenang estimated about 13,000 new jobs were created from new investments which came in last year.

At the same time, the state recorded a historic high of RM13.3 billion worth of foreign direct investments, but this year the forecast is expected to be mediocre due to global disruptions the virus has caused.

According to Chow, reforming the economy is part of a three prolonged outlook, known as the Penang Next Normal strategy. The other branches of focus under the strategy are institutional and social reforms.

source https://www.thesundaily.my/business/penang-cm-plan-to-stimulate-state-s-economy-post-covid-19-ready-YL2278188