Positioned at the forefront of the MedTech industry, Penang is swiftly ascending as the new MedTech hub of Asia, owing to its growing exports in professional, scientific, and controlling instruments, including medical devices. This pivotal growth, as detailed by InvestPenang, has seen Penang contribute an impressive 65% on average to Malaysia’s total MedTech exports from 2017 to 2021.
Famed as the Silicon Valley of the East, Penang stands alongside Puerto Rico, Costa Rica, and Ireland as a global MedTech investment hotspot, as expressed by the Special Investment Adviser to the Chief Minister of Penang, Datuk Seri Lee Kah Choon. Kah Choon attributes Penang’s prominence in the industry to its rich pool of trained talents and competent supply chain.
Housing six of the top 30 global medical device companies, Penang has become Southeast Asia’s epicenter for MedTech companies. From 2017 to 2021, the state has attracted RM7 billion in approved manufacturing investments for scientific and measuring equipment, contributing a whopping 70% to the country’s total investments in this sector.
Penang’s allure for high manufacturing investments isn’t just limited to local corporations. Both domestic and foreign corporations, particularly those within the electronics and electrical (E&E) sector, have been keen on investing in this thriving state. Over a 10-year period from 2012 to 2021, Penang secured a total of RM149 billion in approved manufacturing investments, with a record-high RM76 billion achieved in 2021 alone.
Last year, Penang continued to demonstrate its appeal, attracting RM13.7 billion in approved manufacturing investments, which accounted for 16% of the country’s total approved manufacturing investments. This includes significant investment projects by TF AMD, Boston Scientific, Greatech Integration, and Inari Technology.
As we move into 2023, Penang has already shown promising signs, being the second highest contributor among all states with RM3.2 billion recorded in the first quarter, with RM2.3 billion constituted by foreign direct investments (FDI).
An analysis of the export figures reveals Penang as Malaysia’s top exporter. In 2022, Penang accounted for 29.9% of the country’s total exports, translating to a substantial RM463.3 billion. Of this, RM187.8 billion came from its integrated electronic circuits.
Investments in Penang continue to grow, due to the state’s strong manufacturing ecosystem and business-friendly culture, according to Kah Choon. Further contributing to this is Penang’s excellent infrastructure and the continuous expansion of its manufacturing parks to cater to future expansions and investments, as pointed out by the Federation of Malaysian Manufacturers (FMM) Penang chairman Datuk Lee Tiong Li.
Despite a slight slowdown in the semiconductor industry this year, Tiong Li remains optimistic about growth in other sectors such as medical and automotive. Penang’s emphasis on talent development has been instrumental in its success, with local talent development programs like the Penang Future Foundation, Penang Tech Dome, and Penang i4.0 Seed Fund contributing significantly.
Despite the challenges presented by the COVID-19 pandemic in 2019 and 2020, Penang bounced back well, outperforming the country’s gross domestic product (GDP) growth by recording a 13.1%. This, as Caretaker Penang chief minister Chow Kon Yeow suggests, is evidence of the investor’s confidence in the state. This news story is based on an article from malaymail.com.
