Building upon its reputation as a hub of industrial excellence, Penang continues to strengthen its position as a preferred investment destination for both new and existing investors. For 2025, the state recorded RM22.4 billion in approved manufacturing investments, representing a 29 percent increase compared to 2024.
In 2025, Penang ranked as the third-highest contributor of approved manufacturing investments nationwide, accounting for 17 percent of Malaysia’s total. These investments span 232 projects and are expected to generate 24,633 new job opportunities.
Approved manufacturing foreign direct investment (FDI) in 2025 amounted to RM15.2 billion, representing 68 percent of Penang’s total approved manufacturing investments. The state also ranked among the top three recipients of manufacturing FDI in Malaysia, contributing 15 percent of the nation’s total. Singapore, the United States, and the People’s Republic of China emerged as the top three sources of FDI, collectively accounting for 57 percent of Penang’s total approved manufacturing FDI.
On the domestic front, Penang recorded RM7.2 billion in approved manufacturing investments, representing 32 percent of the state’s total and more than double the amount recorded in the previous year.
Investment activities were largely concentrated in Penang’s promoted sectors, namely Electrical & Electronics (E&E), Machinery & Equipment (M&E), and Chemicals & Chemical Products, which together accounted for 81 percent of total approved inflows in 2025. Of these, 52 percent were new projects, while the remainder were expansion projects, highlighting Penang’s dual strength in attracting new investors while enabling existing companies to scale their operations.
Amid global uncertainties, including evolving trade dynamics and tariff developments, Penang has continued to demonstrate resilience in sustaining investor interest. With more than five decades of industrial development, supported by a well-established ecosystem, strong supply chains, and a sustainable pipeline of skilled talent, the state remains well positioned to capture emerging opportunities in the global manufacturing landscape.
The Chief Minister of Penang, YAB Tuan Chow Kon Yeow, said, “Penang is encouraged by the strong investment performance recorded in 2025. In the face of global economic uncertainties, the state has continued to attract quality investments that further strengthen our role within the global value chain. This reflects the enduring confidence of investors in Penang’s industrial ecosystem and long-term growth prospects.”
“The State Government remains committed to working closely with its partners to ensure Penang continues to provide a conducive and competitive environment for investment. We sincerely appreciate the continued trust and support from investors, as well as the close collaboration with MIDA and InvestPenang in facilitating strategic investments that contribute to Penang’s sustainable economic growth,” Chow added.