Land scarcity not a hurdle for Penang to woo chipmakers, says CM

GEORGE TOWN: Land scarcity will not deter Penang from continuing to attract semiconductor players as the state government is actively acquiring land for its industrial needs, says chief minister Chow Kon Yeow.

Chow said the Penang government is focusing on expanding land acquisition beyond Batu Kawan, having already set its sights on Seberang Perai Tengah.

“We have already started our acquisition process in Seberang Perai Tengah for 809 to 1,214 acres of land that will meet the (industrial) needs over the next five to 10 years.

“I think we should be able to meet this need (for land) for the immediate five years,” he said during a dialogue held by the Malaysian Semiconductor Industry Association (MSIA) at the Marriott Hotel here.

Chow was asked by MSIA president Wong Siew Hai about the key infrastructure challenges in Penang as semiconductor investments continue to grow.

The chief minister said water supply was another key challenge but pointed to the Northern Perak Water Supply Scheme (NPWSS) as a key initiative to meet this need.

He said a memorandum for the Sungai Perak water project was signed with the Perak government in November, but negotiations on the details and tariff rates are “always challenging”.

He nonetheless expressed hope that an agreement can be reached soon so that the project can commence by the end of this year.

Competing with other states

Chow also said Penang faces competition in attracting chipmakers, but the state would not lose investors to the likes of Kedah, Johor, Selangor or Melaka.

He admitted that Penang has lost investment opportunities over the years due to infrastructure constraints and land readiness.

Nevertheless, he said his administration has launched various initiatives over the past three years to strengthen Penang’s position amid increased competition from other states, such as the Penang Automation, Test and Equipment Campus and the Penang Silicon Design @5km scheme.

Chow said Penang must build a more resilient supply chain, identify gaps in the value chain and assess which areas to attract investors to.

Therefore, the Penang government is selective about the kind of investment it seeks, he added.

“Many years ago, we turned away some investors because they didn’t add value to our supply chain. They don’t fill the gaps. So I think if we lose that type of investment, we have no regrets.

“I think we are very focused on what we want to attract. So that means we need to be more competitive and attractive (to investors),” said the chief minister.