AS Pakatan Harapan marks its 10th year of Penang rule today, the state government lauded Penang’s success in drawing investments.

Chief Minister Lim Guan Eng said the state recorded a 150% increase in total proposed capital investment last year at RM10.8 billion, compared with RM4.29 billion in 2016.

He said the achievement shows that Penang, despite being the second-smallest state in Malaysia, is punching above its weight, adding that total investment growth nationally was only 6%, growing from RM58.49 billion in 2016 to RM63.58 billion last year.

He said the RM8.5 billion in foreign investment achieved by Penang last year was the best showing in the country.

“Although we are facing a challenging economy, we recorded better economic growth.

“This shows the tremendous confidence that foreign investors have in Penang,” he told a press conference at Komtar today.

Lim said investors have praised Penang for its political stability and good governance, as well as the state government’s ability to resolve issues.

“Investors say we have a strong team that is capable and efficient, and that we focus on talent.

“Penang will continue to grow its human capital, especially in the areas of science, technology, mathematics and engineering.”

He said following the state’s impressive performance last year, it projects RM6 billion in total investments this year.

“Initially, we had targeted RM4 billion, but we believe we can set a higher target.”

He also pointed out Penang’s continued economic growth over the past decade under PH rule.

Investments from 1998 to 2007 totalled RM36.855 billion, and grew 90% to RM70 billion from 2008 to last year.

Potential employment grew 13.5%, from 132,422 (1998 to 2007) to 150,245 (2008 to September last year).

“I want to stress that we look at quality investments, not quantity,” said Lim.

“The investments we get are high-tech and knowledge-intensive. They are value-added industries and those related to Industry 4.0.”

The DAP secretary-general said although there is no problem with factory facilities, the state will work on making sure there are sufficient facilities for the Global Business Services sector.

Lim, who chairs state investment arm Penang Development Corporation and state investment agency investPenang, said the investment numbers speak for themselves.

He said those claiming that factories are closing, investors not coming and workers being retrenched in the state are not telling the truth.

“There are more factories opening than closing. The investment numbers are very strong. On the ground, you don’t hear about unemployment.

“The issue is the rising cost of living, which the state government can do little about. The issue should be addressed by the federal government, but it is not interested in abolishing the goods and services tax. PH will do it if we win Putrajaya.” – March 8, 2018.