Penang Government seeking
RM 60 million for semiconductor sector
- The Penang government has applied for a RM60 million allocation from the Federal Government to support development under the National Semiconductor Strategy (NSS).
- Federal support for Penang includes a RM3 billion Juru-Sungai Dua elevated highway project to address traffic congestion and attract investors.
- The NSS aims to attract RM500 billion in semiconductor investments and establish Malaysia as a global R&D hub, focusing on IC design and advanced packaging.
- Penang plans to increase land taxes for the first time in 30 years, potentially generating RM50-100 million in annual revenue from 2026.
The Penang government has applied for a RM60mil allocation from the Federal Government to support development and attract investors under the National Semiconductor Strategy (NSS).
However, Chief Minister Chow Kon Yeow said the state’s investment promotion agency, InvestPenang, had yet to receive a favorable reply.
“The request is modest compared to the billions of ringgit announced under the NSS to attract more investments into the sector,” he said after tabling Penang Budget 2025 during the state assembly sitting at Lebuh Light, George Town.
Chow (PH-Padang Kota) was responding to a supplementary question by Lee Khai Loon (PH-Machang Bubok), who asked about commitments or allocations given to Penang to develop the NSS.
Chow added that federal assistance for semiconductor development will also focus on infrastructure as traffic congestion remains a key constraint for investors seeking reliable mobility.
He thanked the Federal Government for approving the RM3bil Juru-Sungai Dua elevated highway project, which will help alleviate congestion.
Construction for the project is scheduled to begin next year and be completed in 2029.
“We hope Putrajaya will allocate more funds to Penang, given that the state is the biggest semiconductor contributor in the country,” he said.
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