Penang:The state of Penang has attracted RM18.2 billion in foreign direct investment from the United States in the manufacturing sector from 2020 through the first half of 2026, representing 38% of the total US investment in Malaysia's manufacturing sector.
According to BERNAMA News Agency, Chief Minister Chow Kon Yeow highlighted the strong confidence of US companies in Penang, with over 100 currently operating in the region. He noted the significant role Penang plays in Malaysia's electrical and electronics (E and E) exports to the US, as 87% of these exports, valued at RM177.7 billion, originate from Penang. Chow emphasized that nearly RM9 of every RM10 worth of E and E products exported to the US comes from Penang, underscoring the resilience and preference of the region's industrial ecosystem for international investors.
During a special address at the American Malaysian Chamber of Commerce (AMCHAM) Penang Dialogue 2026, Chow discussed Penang's transition from a manufacturing hub to developing homegrown semiconductor companies with global ambitions. He urged US companies to collaborate with local firms in technology development, focusing on attracting strategic investments, enabling local companies in global value chains, and developing an AI-ready talent pool to drive innovation.
Chow also mentioned initiatives like Penang Silicon Design @5K+ and the Malaysia Automated Test Equipment (ATE) Campus, which aim to propel local companies toward commercialization. The ATE Campus, supported by a RM25 million allocation under the 13th Malaysia Plan, is set to build an integrated ecosystem for local solutions providers.
Infrastructure developments such as the Penang Transport Master Plan, the Penang Light Rail Transit (LRT) Mutiara Line, and the expansion of Penang International Airport are crucial for smoother movement of people, goods, and talent, Chow added.
Meanwhile, AMCHAM chairman Datuk Timothy Garland expressed the commitment of US companies to Malaysia, acknowledging the country's significant opportunities amid the evolving global investment landscape. Garland emphasized that investment decisions are increasingly influenced by factors beyond cost, such as trust, resilience, energy, talent, data, and access to technology. He highlighted the enduring commercial relationship between the US and Malaysia, particularly in Penang, where partnerships have fostered investment opportunities over the past 50 years.