Penang’s competitive edge lies in its skilled workforce, robust supply chain, top-notch infrastructure and government support, making it a preferred destination for investments.
Robust Ecosystem
More than 350 MNCs & 4,000 SMEs
A diverse spectrum of companies across various industry clusters forms a robust network, with SMEs playing a pivotal role in supporting the operations and growth of these MNCs
Established Clusters of Sectors & Supply Chain Ecosystem
Home to strong and continually expanding industry clusters, with primary focus on sectors such as Electrical and Electronics, Machinery & Equipment and Medical Devices
Thriving Global Business Services (GBS) & Centre of Excellence (CoE) for MNCs
Houses over 200 Malaysia Digital status companies
Provides indispensable support to MNCs, enabling them to efficiently manage regional andglobal operations
3rd Best Place for GBS Companies in the World awarded by AT Kearney Global Location Index in 2021
Competitive Advantage
50 Years of Industrial Excellence
Has a rich industrial legacy spanning over five decades, with its industrial presence heralded in the 1970s
Accelerated development shaped by the 8 pioneer investors, including Intel, Hewlett Packard (now Agilent Technologies), Robert Bosch, AMD, Osram Opto Semiconductor (formerly Litronix), Renesas (formerly Hitachi), Clarion, and National Semiconductor (which has undergone corporate mergers and acquisitions)
Highly Competitive Cost of Doing Business
Offers one of the most cost-effective business environments in Asia, with notably affordable utility rates covering electricity and water
For detailed information on our competitive cost structure, please refer to our Cost of Doing Business
Strong Intellectual Property (IP) Protection & Active IP Creation
Places a high value on IP protection, supported by a range of policies and regulations that ensure a healthy environment for innovation
Malaysia is signatory to key international IP treaties, including the World Intellectual Property Organization (WIPO) 1967, the Paris Convention for the Protection of Industrial Property 1883, the Berne Convention for the Protection of Literary and Artistic Works 1886, the Trade-related Aspects of Intellectual Property Rights Agreement, and the Patent Cooperation Treaty 1970
Penang - Silicon Valley of the East
Contributes over 5% of global semiconductor sales
Houses 3 of the global top 10 semiconductor leaders
Asia’s Next Silicon Valley awarded by BBC in 2018
MedTech Hub for Asia
Houses 6 of the global top 30 medical device companies
Has the highest concentration of MedTech companies in Malaysia and Southeast Asia
Future-Ready Talent
Workforce with Multilingual Proficiency
English, Malay, Chinese, Indian, Japanese, and Korean-efficient talent and population, enabling efficient communication and collaboration on a global scale
Penang is ranked 24th out of 111 countries for English proficiency, according to the EF English Proficiency Index 2022
Diverse Institutions of Learning
Offers a rich educational landscape with over 40 learning institutions spanning various levels of education and focus areas
These include four universities, more than 20 university colleges, and five industrial training institutes, among others
Engagement in STEM Education & Talent Attraction
Actively engaged in STEM (Science, Technology, Engineering and Mathematics) education and talent attraction, supported by key initiatives
The Penang STEM 4.0 Initiative, which encompasses institutions such as the Penang Skills Development Centre (PSDC), Penang Science Cluster (PSC), Penang Math Platform (PMP), Tech Dome Penang, and Penang Digital Library
The Penang Future Foundation, an initiative by the Penang State Government, which awards scholarships to deserving students in STEM & Accounting fields, with the requirement that they become part of Penang’s diverse talent pool upon graduation
The Penang Internship Subsidy Programme, offering wage subsidies to local companies for hiring interns, contributing to workforce development and industry collaboration
Skilled Workforce
Strong educational infrastructure produces a steady stream of highly skilled professionals
Well-educated and adaptable workforce is a significant asset for businesses operating in the region
Sustainable Infrastructure & Accessibility
Road & Train Network
Access to the arterial road network of Peninsular Malaysia via the North-South highway
Penang Island connects seamlessly to the mainland through two key bridges: the Penang Bridge (a 15-minute drive) to the north and central Seberang Perai, and the Sultan Abdul Halim Muadzam Shah Bridge (a 20-minute drive) to the south Seberang Perai
The double-track railway at Butterworth connects Penang to Southern Thailand and Gemas (Negeri Sembilan-Johor border), facilitating both regional and national connectivity
Flight Access
Penang International Airport, the 3rd largest in Malaysia, is set to expand to accommodate 12 million passengers annually
Offers 533 international direct flights weekly to 14 cities across 8 countries, promoting global accessibility
2nd largest cargo hub in Malaysia, with a capacity of handling over 200,000 tons of cargo annually
Seaport Network & Cruise Tourism
5th largest seaport in Malaysia, featuring 26 berths
Berth capacity is at 2.3 million twenty foot equivalents (TEUs) per annum
Busiest harbour in Malaysia for cruise shipping
Internet Connectivity
The 5G network in Penang is expected to cover more than 80% Coverage of Populated Areas (COPA) by 2023
World Class Technology Parks
InvestPenang, in collaboration with Penang Development Corporation, has successfully driven the development of key industrial parks
Bayan Lepas Industrial Park, the nation’s first free-trade zone, paved the way for the establishment of more industrial areas, including Batu Kawan Industrial Park, Penang Science Park, Penang Science Park North, Bukit Minyak Industrial Park, Bukit Tengah Industrial Park, Seberang Jaya Industrial Park, Perai Industrial Park, Mak Mandin Industrial Park, Bandar Cassia Technology Park, Penang Technology Park @ Bertam, among others
Batu Kawan Industrial Park, Penang’s third satellite city, is home to globally renowned corporations such as Bosch, Micron, Dexcom, Lam Research, Boston Scientifics, Smith+Nephew, Western Digital, Honda and Hotayi as well as homegrown establishment such as ViTrox, Inari and UWC
Proven Economic Performance
GDP at RM112 billion (2022)
Manufacturing sector occupying 48.3% while services sector covering 46.7%
7.4% of national GDP (2022)
5th largest contributor in Malaysia, and top in Northern Region
13.1% real GDP growth (2022)
Highest GDP growth in Malaysia
Strong export performance with trade surplus of RM150 billion in 2023
Export volume for 2023 valued at RM435 billion, backed by strong export-oriented manufacturing industries
Top 5 recipients of manufacturing FDI for the past decade
In 2013-2022, Penang garnered RM136 billion in FDI which represented 25% of Malaysia’s total FDI
Liveable & ESG-Centric City
Liveable & ESG-Centric City
George Town, a UNESCO Heritage site since 2008
Penang Hill, a UNESCO biosphere reserve since 2021
Malaysia’s Most Livable City awarded by ECA International
in 2019
The Best Destination to Go awarded by CNN Travel in 2022
Work – Live – Play balanced lifestyle with excellent healthcare, education and housing options
3rd Best Island to Retire On awarded by International Living in 2021
Medical Travel Destination of the Year awarded by International Medical Travel Journal in 2020
A food paradise
Safety & Technological Advancements
Penang is one of the safest cities in Malaysia, leveraging advanced technology like CCTV with facial recognition by IBM, the first of its kind in the country
Penang 2030 vision to improve environmental, financial, and social aspects of urban life with smart city initiatives
Green Initiatives & Sustainability
Penang is a pioneering state in green initiatives, having initiated the “No Free Plastic Bag” campaign in 2011, which inspired nationwide efforts to reduce plastic waste
The adoption of the Penang Green Agenda through 2030 solidifies the state’s commitment to sustainability and green practices
The implementation of Penang Green Industry Programme to reduce water and electricity intensity in the industry
Green Zone
Safe from major natural disasters due to its strategic location in Straits of Malacca