GEORGE TOWN: Penang Chief Minister Chow Kon Yeow has underscored the state’s growing integrated circuit (IC) design sector and long-term development projects at the launch of Penang Week at the Malaysia Pavilion during the Osaka World Expo 2025.
He said three Penang-based IC design firms were invited to investment seminars and one-on-one sessions with Japanese investors.
“This goes to show that Penang is not only a hub for manufacturing, but also has strong IC design capabilities.”
The event also saw three memoranda of understanding (MoUs) signed, between the Penang Development Corporation (PDC) and FedEx, PDC and DHL, as well as a renewable energy partnership involving Solar Voltech, Atlantic Blue and Japan’s Shizen International.
The Solar Voltech deal is valued at
RM120 million, while investment amounts for FedEx and DHL are still being finalised.
He also said the agreements are a key step towards finalising commitments for the Penang International Logistics Aeropark, a project to strengthen the role of the state as a regional air cargo and logistics hub.
“PDC is working with Malaysia Airports Holdings Berhad to complete the investment framework, with the project’s gross development cost estimated at
RM800 million.”
He added that FedEx and DHL representatives would visit the Penang International Logistics Park in Batu Kawan on Friday, with discussions now in the final stage.
“We hope these partnerships would strengthen Penang’s role in global supply chains by bringing in best practices and world-class cooperation.”
PDC is leading Penang’s showcase at the Expo, which runs from Sept 22 to 24, supported by InvestPenang and other agencies. Chow added that Penang’s participation at a platform drawing 200,000 weekly visitors and exhibitors from 180 countries reflects the state’s ambition to grow its high-tech industries.
In his opening speech, he highlighted Penang’s long-standing ties with Japan, which began in the 1970s when Hitachi (now Renesas) was among the “Eight Samurais” to establish operations in Malaysia’s first Free Trade Zone in Penang.
“Today, more than 70 Japanese companies operate in the state, alongside about 3,500 Japanese expatriates who have made Penang their home.”
Japanese manufacturing investments in Penang exceeded RM1 billion in 2023, creating over 500 jobs. Trade between Penang and Japan reached RM14 billion in 2024 and RM8.3 billion in the first seven months of this year.
He also cited the Silicon Island project as a centrepiece of future growth.
“Work on Silicon Island is under way and it represents one of the largest technology development zones in the region,” he said, adding that its first phase is expected to draw RM200 billion in investments and create tens of thousands of jobs.
Other projects worth about RM5 billion between 2024 and 2048 have also
been showcased, including The Coast, Penang Linear Waterfront, Batu Kawan Industrial Park 3, Penang International Logistics Aeropark, Medi-City in Batu Kawan and GBS at Technoplex.
Penang Global Tourism is also at the Malaysia Pavilion, promoting Visit Malaysia Year 2026 with local products such as Pak Ali Jeruk and the famous “flying roti canai.” Penang Halal International is highlighting the state’s halal industry.
