Penang targets RM2.8 billion push to expand chip clusters
Penang will spend RM2.8 billion over five years to expand its semiconductor, advanced packaging and integrated-circuit design clusters, the state’s investment promotion agency said on Monday.
Source: The Business Times · July 23, 2026 at 5:41 PM · AI-assisted report
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PENANG, 24 JULY 2026 —
Penang will spend RM2.8 billion over five years to expand its semiconductor, advanced packaging and integrated-circuit design clusters, the state’s investment promotion agency said on Monday.
Market Impact
InvestPenang chief executive Loo Lee Lian told The Business Times the state is deliberately avoiding the regional race for multi-billion-ringgit hyperscale data centres and instead doubling down on chips. “These industries offer stronger economic spillovers and align more naturally with the state’s existing ecosystem,” she said.
The plan includes capital grants for anchor investors, workforce training and upgrades at the Bayan Lepas Free Industrial Zone, according to a copy of InvestPenang’s five-year roadmap reviewed by the paper. Earlier this month, the state government earmarked RM1.5 billion in its 2025 budget for technology industrial parks, part of which will fund semiconductor-related infrastructure.
Penang already accounts for about 15% of Malaysia’s chip output, Bank Negara Malaysia data show. Loo said the push is expected to create 12,000 skilled jobs by 2030, up from roughly 8,000 today, though she provided no timeline for the RM2.8 billion allocation.
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