THE Penang government will be spending RM34 million on tourism next year, Chief Minister Chow Kon Yeow said.

Penang’s services sector makes up more than half of the state’s economy, taking over from the manufacturing sector. Tourism is a major contributor to the services sector.

“Penang will continue to boost its competitiveness in tourism by improving its tourism and cultural programmes next year,” he said when tabling the state budget today.

Chow said for three years, tourist arrivals have increased, leading to the Penang International Airport now exceeding its capacity of 6.5 passengers.

In 2017, the airport recorded 7.2 million passenger arrivals, a 8.2% increase from the previous year.

“We expect the number to hit 7.8 million this year, which will show that Penang remains to be a popular tourist destination in Asia.”

Chow said the introduction of direct flights, international events and festivals have drawn visitors to Penang.

“To make Penang a destination of choice, we will also focus on developing the state as an e-Sports hub.

“The new Penang e-Sports Festival will be held next year and will be a new attraction,” he said.

Chow also said the upcoming Penang Art District in George Town will boost the state’s art and culture scene.

He also said the state will continue to spend RM3 million on the popular annual George Town Festival next year.

Other tourism and heritage-related expenditures under Budget 2019 include RM7 million to upgrade and improve the North Seafront, and an estimated RM4 million for the East Seafront next to the Swettenham Pier cruise terminal.

The budget for next year is in line with the state’s Penang 2030 vision, with the theme of “family focused, green and smart state that inspires a nation”.

Economy growth

Chow said for 2017, the services sector contributed RM38.3 billion while manufacturing contributed RM34.8 billion to the state’s economy.

“The state is targeting investments to increase in 2018 following a memorandum of understanding inked between Penang and a South Korean electronics firm to be strategic partners.

“For next year, we will continue our focus on both sectors to generate the economy,” he said.

In line with ambitions to further empower locals to grow with the advancing digital world, the state government is launching GBS (Global Business Service) @ By The Sea and GBS PDC.

GBS @ By The Sea in Bayan Lepas, which will be built in two phases, will cost RM200 million. Phase one is expected to be ready in 2020 and to offer 3,000 jobs.

GBS PDC in Bayan Baru will cost RM20 million and will be ready in September next year.

Agricultural growth

The agriculture sector, which grew 2.2% last year, will be given a RM7.31 million allocation.

Chow said starting next year, the state agriculture department will work to boost padi production from 5.8 metric tonnes per hectares to 7 metric tonnes in two years,

He said the state will also work on developing a data base that will help farmers increase their yield, and put in efforts to get more youths involved in the farming sector.

Chow also said Penang, which had contributed RM1.6 billion to the country’s RM3 billion aquaculture revenue, will also work on its potential in the aquaculture sector, such as fish farming that can also be sold as an aquatourism product.

Education, digital libraries and sports

The state meanwhile will spend RM12 million on cash aid for missionary, private Chinese, Tamil and religious schools next year.

To further encourage the learning of STEM (science, technology, engineering and mathematics), the state will also spend RM4.6 million on the Butterworth Digital Library on the mainland. The library is expected to be ready in October next year.

The state is also building the Penang Islamic Digital Library next year at RM5 million. The library is expected to be ready in the third quarter of 2019.

To improve sports, Penang will build an international-class swimming pool with diving platforms in Ampang Jajar next year.

For a cost of RM30 million, the state will also build another world-class sports complex with 12 badminton courts in Sungai Pinang.

Penang will also build the RM7 million Nibong Tebal Arena, which will house nine badminton courts in Bukit Panchor, southern Seberang Prai next March.

The state is also setting aside RM1.5 million next year for the building of futsal courts in all districts. – November 9, 2018.