GOING by the growth of Penang’s manufacturing and tourism sectors last year, the state will not be affected by the retrenchments projected this year by an employers group, says Chief Minister Lim Guan Eng.

He said this in response to the Malaysian Employers Federation’s (MEF) recent statement that more than 50,000 workers, mainly in the manufacturing sector, were expected to lose their jobs this year.

MEF executive director Shamsudin Bardan said earlier this week that apart from manufacturing, the  insurance, banking, retail, and construction sectors would see retrenchments this year due to the economic situation.

As of September last year, some 30,700 people had lost their jobs.

“It won’t happen in Penang. We are still short of 20,000 workers,” Lim told a press conference in Penang today.

Workers were still needed in the state’s growing electronics and hospitality sectors, he said, while explaining that jobs lost would be countered by new demands for workers.

“With the pluses and minuses, we will still have a shortage of workers.” 

He said Penang saw “rapid” (pesat) economic development last year and should also see growth this year.

“I expect we can grow by over 6%.

“In the manufacturing sector, we recorded RM9.9 billion worth of investments in the first nine months of 2017. It is double the RM4.3 billion we recorded the year before.

“That is in just the first three quarters. The total investments for all of last year should be even more,” he said

Investments of nearly RM10 billion, 80% of which was due to foreign direct investments, put Penang on top in terms of foreign direct investments in the country. 

Lim said tourism, another main driver of the state’ economy, was doing well after more visitors were recorded last year

Passenger arrivals at the Penang International Airport hit 6.7 million last year, exceeding the airport’s maximum capacity of 6.5 million, he said.

“We will also have more international flights coming to Penang. From next month, we will have direct flights between Doha and Penang by Qatar Airways, the top airline in the world.”

Lim said Penang was also establishing itself as a business events or MICE (meetings, incentives, conventions and exhibitions) destination.

The Penang Convention and Exhibition Bureau (PCEB) has just signed a strategic partnership agreement (SPA) with national carrier Malaysia Airlines to promote the state as a preferred MICE destination.

The higher occupancy rate of hotels was another indicator of boom times. Lim said.

“Even hotels on the mainland reported increased occupancy. The Light Hotel in Seberang Jaya saw a 75% occupancy.” – January 6, 2018.