Saturday, April 27, 2024

Chow wants to meet Guan Eng over ‘missed investment’ remarks

Chow wants to meet Guan Eng over ‘missed investment’ remarks

The Penang CM said the state remains entrenched in its reputation as the "Silicon Valley of the East".

Published on 27 Apr 2024 3:52PM

Penang Chief Minister Chow Kon Yeow said the state remains entrenched in its reputation as the 'Silicon Valley of the East'. – The Vibes file pic, April 27, 2024.

BY Ian McIntyre

PENANG Chief Minister Chow Kon Yeow is keen to meet his predecessor over the state of manufacturing in the state after the latter criticised him for allegedly missing out on investments.

Chow said he can meet Lim Guan Eng, who is his party's chairman over the issue and he would rather it not involve the media.

He said this after outlining that the issue of hi-tech manufacturers relocating out of Penang was far-fetched.

Chow explained that there are more than 10 manufacturers with integrated circuit (IC) design capabilities in Penang.

"We may not have a park but we have factories with capabilities to produce such technology."

Chow said the state remains entrenched in its reputation as the "Silicon Valley of the East," despite fears expressed by others over an exodus of manufacturers from the state to Selangor.

Lim reportedly was quoted as saying that the state was losing out on hi-tech investments, so Chow needs to be proactive in seeking out such high value investors.

Earlier, Chow told a media briefing that three hi-tech China manufacturers - China Wafer Level CSP Co, Ningbo SJ Electronics Co and Wuxi AMTE Inc, were keen to invest up to USD$100 million to expand their operations to Penang.

Their arrival would likely see job creations in the hundreds as well as a platform for more transfer of technology.

The China-based manufacturers in trying to deal with the prolonged tech trade war between USA and China, are lured into Penang through their venture capitalists.

The three China manufacturers were brought in by Tim Chen, the Taiwanese, who is the co-founder and chief executive officer of Blue Chip VC, a venture capitalist.

At the media briefing, Chow was flanked by Chen, Gallizul Capital founder Steven Hsieh and Oriza PE managing partner Yao Hua.

They are now part of a growing number of China or Taiwan - based capitalists - scouring the world to locate suitable partners and sites for their China manufacturer clientele.

Chow said that the three companies were in the last stage of inking a deal to invest in Penang, and they will focus on IC design, wafers, image sensor and advanced packaging.

"Usually, they will deal with MIDA (Malaysian Industrial Development Authority) who will finalise their commitments to invest in the country (Penang)."

He added that the arrival of such firms means they can tap the small medium enterprises, who in turn can grow into large local companies.

He cited an example of a local start-up called Infinite Systems Sdn Bhd, who has become an offshore provider of IC designs to multinationals such as Intel Corporation.

Chen said many of the jobs would also be in the research and development areas. - The Vibes, April 27, 2024.

1 comment:

  1. Thinking Penangites understand that FDI , especially in the high-tech sector , is still the life-blood of Penang 's Jobs...
    And Chow knows that...

    Any suggestion ,fair or unfair, that Penang's competitiveness in pulling FDI is weakening or is being mismanaged is a very sensitive one for Chow as well as DAP.

    As I wrote elsewhere, it's not a Zero Sum game, and we don't have to treat a win by Selangor as a loss for Penang.