Penang Eyes Becoming Leading ASEAN Semiconductor Design Hub By 2040
GEORGE TOWN, Aug 16 (Bernama) -- Penang plans to shift from its current dominance in assembly and testing activities towards high-value upstream activities such as chip design, system architecture and prototype development, in a bid to become a leading semiconductor design hub in ASEAN by 2040.
The Draft Penang State Structure Plan 2040 (RSNPP 2040) (Review) released by the Penang State Town and Country Planning Department (PLANMalaysia Penang) said that research and development capacity, innovation and technology commercialisation will also be strengthened to increase the added value of state’s semiconductor industry.
“Among the agencies identified to play a role in implementing this agenda are InvestPenang and the Malaysian Investment Development Authority, in addition to collaboration with the Northern Corridor Implementation Authority, Penang Skills Development Centre, Penang STEM, Perda-Tech and Talent Corporation Malaysia (TalentCorp),” the draft said.
Based on the indicators outlined in the draft, the state’s target gross domestic product growth is set at 4.7 per cent per annum by 2030 and 4.6 per cent per annum by 2040, compared with an annual growth rate of 5.0 per cent recorded in 2025.
For the manufacturing sector, annual growth of 4.4 per cent is targeted for both 2030 and 2040, compared with the 5.9 per cent growth achieved in 2025.
The state government will also be focusing on developing local micro, small and medium enterprises (MSMEs) into highly capable technology vendors within the semiconductor value chain through technological upgrading, automation, industry-standard certification and global compliance.
“The establishment of supply-chain integration mechanisms between multinational companies and local MSMEs is aimed at increasing local content, technology transfer and value-chain participation at the state economic level,” according to the RSNPP 2040 draft, which is currently open for public inspection and feedback until Sept 9, 2026.
Besides semiconductors, Penang is also targeting the transformation of its medical-device industry towards innovation by strengthening the existing medical-device cluster and encouraging the production of high-technology products, advanced automation and engineering integration across the industry’s value chain.
According to the RSNPP 2040 draft, greater emphasis will be given to certification capabilities and market approvals in order to enhance export access, global competitiveness and the added value of the state’s medical-device industry.
In an effort to diversify the economy, the state government is also proposing to expand high-value services and the digital economy through the development of a Central Business District (CBD) for activities such as information technology, data and analytics, artificial intelligence, finance, digital engineering, and global business services (GBS) supporting regional and global operations.
The draft also stated that smart logistics services, trade facilitation and industrial support services will be strengthened to boost the export efficiency and resilience of the state’s supply chains.
The Draft RSNPP 2040 (Review), prepared to replace the RSNPP 2030 which is nearing its expiry, is the state’s strategic planning document outlining the comprehensive direction for physical, economic, social and environmental development for the planning period up to 2040.
The RSNPP 2030 achieved a high implementation rate of 99.3 per cent, demonstrating the effectiveness in implementing the development policies and strategies that had been formulated.
-- BERNAMA
