Chinese manufacturing investments worth RM1.85 billion secured in the first half of 2025 in Penang, as stated by the chief minister
In the vibrant city of Penang, Malaysia, the bonds between the Southeast Asian state and China continue to strengthen, as evidenced by various collaborations and investments.
Recently, China was identified as Penang's second-largest trading partner, contributing 15.6% of the state's total exports in 2024. This significant partnership has been in place for some time, but it's the new developments that are truly noteworthy.
One such development is the launch of a direct flight route from Chengdu to Penang, facilitating exchanges between the people of the two places. This new connection is expected to foster even closer ties and encourage more collaboration in various sectors.
The chief minister of Penang led a delegation to Shandong, China, where a memorandum of understanding was signed to enhance government-to-government ties and people-to-people exchanges. This agreement is expected to deepen economic and trade cooperation between the four states of Northern Malaysia and China.
During this visit, the Penang delegation engaged with Chinese enterprises in green energy, construction machinery, and logistics, strengthening Penang's sister-state relationship and opening doors to high-impact partnerships.
One such partnership is the RM6.4 billion investment by INV New Material Technology, a Chinese company, in Penang Technology Park, Bertam. This investment is expected to significantly boost Malaysia's electric vehicle (EV) ecosystem. The investment will also generate hundreds of high-skilled jobs, further bolstering Penang's economy.
In addition to these manufacturing investments, educational partnerships have been instrumental in broadening language learning and nurturing cultural understanding. Programmes such as Chinese Government Scholarships and sister-school programmes, including the Wuxi-Penang exchange with SJK (C) Pai Teik, have played a crucial role in this endeavour.
Moreover, Chinese tourist arrivals through Penang International Airport have surged by more than 200% from 2023 to 2024, reaching approximately 120,000. This influx of tourists not only boosts the local economy but also fosters cultural exchange and mutual understanding.
As of now, around 65 Chinese companies are already operating in Penang, contributing to the state's thriving electronics and medical device manufacturing sectors. With the recent investments and collaborations, this number is expected to grow, further cementing Penang's position as a major hub for China-Malaysia economic and cultural exchange.
In the words of the chief minister, "These young people, enriched by travel and study, will carry our cooperation beyond trade statistics into shared innovation and lifelong friendships." Indeed, the future of the China-Penang relationship looks bright, with many opportunities for growth and collaboration ahead.
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