More Chinese companies keen on investing in Penang, says CM
29 Jul 2024
Penang has received increasing inquiries from Chinese companies seeking investment opportunities over the past year.
Penang Chief Minister Chow Kon Yeow said this surge reflects growing confidence in the region’s economic potential and business-friendly environment.
“Many Chinese companies are looking to invest in Southeast Asia, including Penang and Malaysia. At the moment, we do not see many successful investments yet, but we have received a lot of inquiries.
“It is possible that companies in China are cautious about bringing their investments outside their home country as it involves capital outflows,” Chow said at a press conference announcing the 2024 Asia Pacific Semiconductor Summit and Expo (APSSE) here on Monday.
The APSSE will take place from Oct 16 to 18 at the Spice Convention Centre.
The event is hosted by the Malaysia Semiconductor Industry Association (MSIA) in strategic partnership with the China Electronic Production Equipment Industry Association (CEPEA) and supported by the Penang government.
Meanwhile, MSIA president Datuk Seri Wong Siew Hai said there may be a surge in inquiries in Penang and Malaysia due to the state’s existing ecosystem.
He said there are many companies in China in technology sub-sectors not present in Malaysia.
“We want companies that can add value to us and strengthen our ecosystem, and China has a lot of such technology sub-sectors that can enhance our ecosystem.
“These sub-sectors include materials, interface, semiconductor and insulation layers. These sub-sectors will be able to fill in the gaps in the local supply chain,” he said.
Wong said Chinese companies are keen on investing in Penang and Malaysia in many ways, including collaborations, co-investing, and even outsourcing.
He said the CEPEA decided to hold the APSSE in Penang after surveying Malaysia, and due to the significant presence of the electrical and electronics, and semiconductor industries in Penang.
He said the conference will be a crucial platform for stakeholders, not only for Penang, but also Malaysia.
“They want to hold it here to broadcast to the world about China’s interests and to show their presence in the Asia-Pacific. We hope that more collaborations will result from it, with a spillover effect into the ecosystem,” he said.
CEPEA branch secretary general Steven Huang agreed that Chinese companies are interested in collaborating and investing in Malaysia and Penang.
He said the CEPEA hopes to promote friendship and mutual collaboration between China and Malaysia as well as with other countries in the Asia-Pacific region in the upcoming APPSE.
“This is the first time that the CEPEA is partnering with the MSIA with the support of the Penang government to hold the two-day international conference,” he added.
Source: Bernama
