Malaysia's investment 'sweet spot,' Penang, to open new tech park

State chief wants to foster 'ecosystem for innovation' as supply chains shift

20241202 An aerial view at sunrise time of George Town City

A view of Penang's state capital, George Town: The state has long been known as Malaysia's "Silicon Island." (Getty Images)

NORMAN GOH and HAKIMIE AMRIE, Nikkei staff writers

December 4, 2024 11:35 JST

PENANG, Malaysia -- Long known as a "Silicon Island" for its manufacturing prowess, the northern Malaysian state of Penang is now sharpening its focus in an effort to dominate high-value technology sectors, including semiconductors and medical equipment, as global supply chain shifts create new opportunities.

The local government recently unveiled its Silicon Design @5km+ initiative to position Penang as a global hub for integrated circuit (IC) design and digital innovation. The state hopes to create an ecosystem within a five-kilometer-plus radius of its Bayan Lepas Free Industrial Zone.