Offset sought for Penang’s shrinking manufacturing exports

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Flextronics_PenangPenang, Malaysia’s production hub for semiconductors and computer parts, is making efforts to shift its regional economy partly to construction to offset a decline in electronics sales.

The manufacturing sector growth in Malaysia saw an overall decline to only 0.3 per cent for the first quarter of 2013 as compared to 4.4 per cent for the same period last year, the latest National Financial Report stated. This was mainly due to a decrease in semiconductor sales to China, South Korea, Japan, Taiwan and the US.

Penang is the third largest economy amongst the states of Malaysia after Selangor and Johor. Manufacturing is the most important component of the Penang economy, making up more than 50 per cent of the state’s GDP. The southern part of the island is highly industrialised with high-tech electronics plants operated by Dell, Intel, AMD, Altera, Motorola, Agilent, Renesas, Osram, Plexus Corporation, Bosch and Seagate, among others, in the Bayan Lepas Free Industrial Zone.

Penang Chief Minister Lim Guan Eng said the state government “has to do something” to keep the state’s economy afloat even if this means depending on the construction sector, which saw a steady demand of about 15 per cent throughout 2012.

“Like it or not, we have to depend on the construction sector so we have to be more efficient in our approvals of development plans,” he said at a press conference on August 1.

Penang will also turn to developing its tourism and services sectors which accounts for more than 30 per cent of the state’s GDP, the chief minister added.

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Reading Time: 1 minute

Penang, Malaysia’s production hub for semiconductors and computer parts, is making efforts to shift its regional economy partly to construction to offset a decline in electronics sales.

Reading Time: 1 minute

Flextronics_PenangPenang, Malaysia’s production hub for semiconductors and computer parts, is making efforts to shift its regional economy partly to construction to offset a decline in electronics sales.

The manufacturing sector growth in Malaysia saw an overall decline to only 0.3 per cent for the first quarter of 2013 as compared to 4.4 per cent for the same period last year, the latest National Financial Report stated. This was mainly due to a decrease in semiconductor sales to China, South Korea, Japan, Taiwan and the US.

Penang is the third largest economy amongst the states of Malaysia after Selangor and Johor. Manufacturing is the most important component of the Penang economy, making up more than 50 per cent of the state’s GDP. The southern part of the island is highly industrialised with high-tech electronics plants operated by Dell, Intel, AMD, Altera, Motorola, Agilent, Renesas, Osram, Plexus Corporation, Bosch and Seagate, among others, in the Bayan Lepas Free Industrial Zone.

Penang Chief Minister Lim Guan Eng said the state government “has to do something” to keep the state’s economy afloat even if this means depending on the construction sector, which saw a steady demand of about 15 per cent throughout 2012.

“Like it or not, we have to depend on the construction sector so we have to be more efficient in our approvals of development plans,” he said at a press conference on August 1.

Penang will also turn to developing its tourism and services sectors which accounts for more than 30 per cent of the state’s GDP, the chief minister added.

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