Penang: Penang secured RM4.9 billion in approved manufacturing investments in the first quarter of 2026 (1Q 2026), ranking second nationwide and reinforcing its position as one of Malaysia's leading industrial and investment destinations. Chief Minister Chow Kon Yeow highlighted that RM3.4 billion, or 70 percent of the total approved investments, comprised foreign direct investments (FDI), reflecting sustained international confidence in Penang's industrial strengths.
According to BERNAMA News Agency, the electrical and electronics (E and E) and machinery and equipment sectors remained the key growth drivers, accounting for RM3.6 billion or 74 percent of total approved manufacturing investments. On the trade front, Penang continues to be Malaysia's leading export powerhouse. The latest Department of Statistics Malaysia (DOSM) figures indicate that Penang remained the nation's top exporting state in 2025, contributing 38.1 percent of Malaysia's total exports, equivalent to approximately RM610 billion in export value.
The announcement was made during a speech at the opening ceremony of MKS Instruments Malaysia in Bandar Cassia Technology Park, officiated by Prime Minister Datuk Seri Anwar Ibrahim. Also present were Deputy Minister of Investment, Trade and Industry (MITI) Sim Tze Tzin and MKS president and chief executive officer John T.C Lee.
Chow further noted that the state's export performance was largely driven by electronic integrated circuits and other electrical and electronic products, underscoring the strength and sophistication of Penang's semiconductor ecosystem. Penang also recorded the highest Trade Openness Index in the country at 575.1, illustrating the state's deep integration with global markets and reaffirming its role as a key pillar of Malaysia's industrial, trade, and export performance.
The Penang government, through InvestPenang, remains proactive in not only attracting investors but also in strengthening the ecosystem through unique value propositions aligned with the New Industrial Master Plan 2030 (NIMP 2030) and the National Semiconductor Strategy (NSS). The strategic focus areas include integrated circuit design, advanced packaging, and equipment manufacturing.
The MKS factory, spanning approximately 350,000 square feet on a 17-acre site, is designed to meet the growing global demand for semiconductor manufacturing equipment. With an investment exceeding RM400 million and the creation of more than 1,000 high-value jobs upon completion of all phases, this facility represents a significant milestone in Penang's evolution as a global hub for advanced manufacturing and semiconductor innovation. It underscores the state's strong value proposition, supported by a highly skilled workforce, a mature industrial ecosystem, and infrastructure that facilitates high-tech industries.
Founded in 1961 and listed on NASDAQ, MKS is a global technology leader providing critical solutions that enable innovation across the semiconductor and advanced manufacturing industries. MKS technologies currently support more than 85 percent of the world's wafer fabrication equipment applications and over 70 percent of the key steps in package substrate and printed circuit board manufacturing.