GEORGE TOWN, Oct 8 (Bernama) -- Penang attracted RM18.2 billion in foreign direct investment from the United States (US) in the manufacturing sector between 2020 and the first half of 2026, accounting for 38 per cent of total US investment in Malaysia’s manufacturing sector.
Chief Minister Chow Kon Yeow said confidence among US companies in Penang remained strong, with more than 100 US companies currently operating in the state.
“Penang’s strong trade ties with the US were also reflected in Malaysia’s electrical and electronics (E&E) exports to the country, with 87 per cent, worth RM177.7 billion, originating from Penang.
“For every RM10 worth of E&E products exported to the US, close to RM9 comes from Penang; this proves that our industrial ecosystem is not only resilient but also remains the top choice for international investors,” he said during his special address at the American Malaysian Chamber of Commerce (AMCHAM) Penang Dialogue 2026 here today.
Also present were Deputy Investment, Trade and Industry Minister Sim Tze Tzin, US Ambassador to the Republic of Tunisia Bill Barsi and AMCHAM chairman Datuk Timothy Garland.
Chow said Penang is moving beyond being a manufacturing hub toward developing homegrown semiconductor companies that can expand globally, and he urged US companies to collaborate with local firms on technology development.
He said Penang’s industrial strategy would focus on three priorities -- attracting strategic investments that strengthen the ecosystem, enabling local companies to participate in global value chains and developing an artificial intelligence-ready talent pool to drive innovation.
He said that initiatives such as Penang Silicon Design @5K+ and the Malaysia Automated Test Equipment (ATE) Campus in Penang are set to propel local companies from development to commercialisation, transitioning from “Made in Malaysia” to “Made by Malaysia”.
“The ATE Campus initiative, supported by a RM25 million allocation under the 13th Malaysia Plan (13MP), will build an integrated ecosystem to assist local solutions providers in progressing towards first-customer deployment,” he said.
He said infrastructure development, including the Penang Transport Master Plan, the Penang Light Rail Transit (LRT) Mutiara Line and the expansion of Penang International Airport, was also crucial to ensuring smoother movement of people, goods and talent.
Meanwhile, Garland said US companies remain committed to Malaysia, with the country continuing to offer significant opportunities amid an evolving global investment landscape.
He said global companies were no longer choosing investment locations based solely on cost, with factors such as trust, resilience, energy, talent, data and access to technology increasingly shaping investment and expansion decisions.
“The long-standing commercial relationship between the US and Malaysia, particularly in Penang, had demonstrated the strength of partnerships between business and government in creating investment opportunities.
“For more than 50 years, Penang has been where the US commercial relationship has been tested, proven and most importantly deepened and the partnership had grown from the early assembly operations established by US companies in Penang to some of the world’s most advanced manufacturing and high-technology operations,” he added.
-- BERNAMA