Media statement by Joshua Woo Sze Zeng (State Assemblyman for Pulau Tikus, Penang), dated August 1, 2024.
Recent data from the Department of Statistics show that Penang’s GDP growth has been affected by the global reduced demand for electrical, electronic & optical products. The state’s manufacturing sector recorded -0.5% rate in 2023.
As a result, Penang has dropped from being the country’s top position in 2022, with 13.3% of GDP growth, to the fifth rank in 2023, with 3.3%, even below the national average of 3.6%.
The impact from the decline in manufacturing sector was cushioned by the significant increase in Penang’s construction sector that recorded 23.6% growth in 2023 (7.9% in 2022). If not for the increased construction activity, Penang’s economy would be worse than the recorded 3.3%.
One of the important contributors to Penang’s construction sector is the Silicon Island development that began in September 2023.
The project has so far injected RM 295 million into the local economy, and created 373 jobs for Malaysians, of which about 50% are Bumiputra workforce. Economic stimulus such as the Silicon Island has uplifted Penang’s GDP when other sectors were affected by global market forces.
For this reason, Penang’s GDP per capita has climbed to the third position in 2023 from the fourth in the previous year, even though the manufacturing sector has contracted by 0.5%. The state’s 2023 GDP per capita was recorded at RM 72,586, behind two federal territories, Kuala Lumpur (RM 131,038) and Labuan (RM 83,596)
Without economic stimulus such as the Silicon Island, Penang’s economic performance would have been severely dragged down by global factors.
Therefore, those anti-development groups and opposition parties that protest against the various development initiatives in Penang are a threat to the state’s economic growth.
While the State Government launched the Silicon Island development, the anti-development groups filed judicial review to cancel the project. When their judicial review was dismissed by High Court, they expressed intention to appeal against the dismissal.
Despite these opposition, the Penang State Government will continue to bring development to the state. It is necessary to continue diversifying the economy for Penang to remain resilient against uncontrollable market forces. There is no compromise on Penang’s growth.