Penang Attracts Nearly RM16 Bln Chinese Investment Over Past Decade, RM4.2 Bln In 2025

GEORGE TOWN, Feb 5 (Bernama) -- Penang’s long-standing economic partnership with China continues to play a pivotal role in strengthening the state’s industrial ecosystem, with Chinese investments reaching nearly RM16 billion over the past decade.

Chief Minister Chow Kon Yeow said Penang recorded RM4.2 billion in approved manufacturing investments from China in 2025 alone and more than 80 Chinese companies are currently operating in the state, including major investors such as Guangdong Tianyu Semiconductor and TF-AMD Microelectronics.

He said Penang remains a major contributor to Malaysia-China trade, accounting for RM143 billion of Malaysia’s RM255 billion exports to China from January to November 2025.

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“Most of these exports are in electrical and electronic products, highlighting Penang's role as a key manufacturing and technology hub within global supply chains,” he said at a 2026 Chinese New Year reception hosted by the Consulate General of China in Penang here tonight.

Looking ahead, Chow said Penang, together with the northern region, will continue to welcome strategic investments from China, particularly those that are high-value, future-oriented and that enhance supply chain resilience.

The Chief Minister also noted that improving connectivity between Penang and China would further support investment flows, citing the recent launch of the direct flight from Guangzhou to Penang and the China-Malaysia mutual visa exemption agreement, signed last year.

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Meanwhile, China’s consul-general in Penang Zhou Youbin said the Chinese Consulate General in Penang has continued to actively promote sub-national cooperation between China and Malaysia, particularly across the four northern states, while enhancing mutual understanding and friendship.

He noted that economic and trade cooperation between both sides has continued to deepen, with a growing number of Chinese enterprises investing and operating in northern Malaysia.

“The enterprises of new energy vehicle and lithium battery and the related upstream and downstream enterprises have formed a cluster, bringing a positive effect on building a complete local industrial ecosystem,” he added.

On people-to-people exchanges, he said connectivity between Penang and China has improved significantly, with nearly 70 weekly flights linking Penang to multiple Chinese cities, facilitating greater movement of tourists, business travellers and students.

Zhou added that more than 200,000 Chinese citizens visited Penang via international flights in 2025, alongside an increase in cultural and educational exchanges, which have further strengthened mutual understanding and people-to-people ties between China and northern Malaysia.

— BERNAMA