Editing Penang (section)

=== Manufacturing ===
[[File:Bayan Lepas Free Industrial Zone 2023.jpg|thumb|[[Bayan Lepas Free Industrial Zone]], known as the ''Silicon Valley of the East'', was the first designated [[free-trade zone]] in post-independence Malaysia and is now a major electronics manufacturing hub.<ref name="Parker-2018" /><ref>{{Cite news |date=10 September 2014 |title=Innoplex to Attract World-Class Industrial Players |url=https://www.buletinmutiara.com/innoplex-to-attract-world-class-industrial-players/ |access-date=6 December 2023 |work=Buletin Mutiara }}</ref>]]In the early years following Malaya's independence, Penang's industrialisation efforts were limited to [[Import substitution industrialization|import substitution]].<ref name="Athukorala-2012">{{Cite journal |last=Athukorala |first=Prema-chandra |title=Growing with Global Production Sharing: The Tale of Penang Export Hub, Malaysia |url=https://www.nottingham.ac.uk/gep/documents/conferences/2012/malaysia-conference/prema-chandra-athukorala.pdf |journal=[[Australian National University]] }}</ref> This was when [[George Town, Penang|George Town]] still enjoyed its free port status.<ref name="Goh-2014" /> The first industrial estates were built in the 1960s at [[Mak Mandin]] and [[Perai]] during the tenure of Penang's first [[Chief Minister of Penang|Chief Minister]] [[Wong Pow Nee]].<ref>{{Cite journal |last=Chin |first=Yee Whah |date=Jul 2006 |title=Penang Small and Medium Enterprises: Struggle, Accommodation and Challenges |url=https://journalarticle.ukm.my/4294/2/akademika65%5B02%5D.pdf |journal=[[Universiti Sains Malaysia]] }}</ref>

However, the revocation of George Town's free port status and the fall of Wong's administration in 1969 marked a turning point in Penang's economic fortunes.<ref name="Goh-2014" /><ref name="Athukorala-2012" /> Wong's successor, [[Lim Chong Eu]], initiated a massive transformation of Penang's economy.<ref name="Athukorala-2012" /> The [[Bayan Lepas Free Industrial Zone]] (Bayan Lepas FIZ) in [[George Town, Penang|George Town]] was established in 1972, followed by the [[Perai Free Industrial Zone]] (Perai FIZ) in 1980.<ref name="Athukorala-2012" /><ref name="Nijkamp">{{Cite book |last=Peter Nijkamp |first=Amitrajeet A. Batabyal |title=Regional Growth and Sustainable Development in Asia |publisher=Springer |year=2016 |isbn=978-3-319-27589-5 |page=245 }}</ref> The zones played a critical role in reviving Penang's economy and driving the state's economic growth in the late 20th century.<ref name="Ooi-2009" /><ref name="Ooi-2010" /> The [[Government of Penang|Penang state government]] has since embarked on building newer industrial parks within [[Seberang Perai]] where land is more readily available, such as at [[Seberang Jaya]], [[Bukit Minyak]] and [[Batu Kawan]].<ref name="MIDA-2021">{{Cite web |date=18 November 2021 |title=Creating the Silicon Valley of the East 2.0 |url=https://www.mida.gov.my/mida-news/creating-the-silicon-valley-of-the-east-2-0/ |access-date=6 December 2023 |website=[[Malaysian Investment Development Authority]] |language=en-US}}</ref><ref>{{Cite web |last=Vaghefi |first=Negin |date=5 July 2022 |title=Penang's Industrial Parks Surge in Global Prominence |url=https://penangmonthly.com/article/20700/penangs-industrial-parks-surge-in-global-prominence-1 |access-date=6 December 2023 |website=Penang Monthly |language=en }}</ref><ref>{{Cite news |date=3 July 1992 |title=Hot on Singapore's heels |url=https://eresources.nlb.gov.sg/newspapers/digitised/article/biztimes19920703-1.2.30.3?qt=province,%20wellesley,%20seberang,%20perai&q=province%20wellesley%20seberang%20perai |access-date=2 February 2024 |work=[[The Business Times (Singapore)|The Business Times]] |pages=11 |via=[[National Library Board]] }}</ref>

Penang's manufacturing sector attracted US$13.1 billion of [[foreign direct investment]]s (FDI) in 2023, accounting for almost 47% of Malaysia's total that year.<ref>{{Cite journal |title=Manufacturing Projects Approved by State, January-December 2023 / January-December 2022 |url=https://www.mida.gov.my/wp-content/uploads/2024/02/Manufacturing-Projects-Approved-by-State-January-December-2023-.pdf |journal=[[Malaysian Investment Development Authority]] }}</ref> Among the hundreds of MNCs with manufacturing operations in Penang are [[Technology company|technology firms]] such as [[AMD]], [[Bosch (company)|Bosch]], [[Broadcom]], [[Dell]], [[HP Inc.]], [[Intel]], [[Motorola]], [[Osram Opto Semiconductors GmbH|Osram]] and [[Renesas Electronics|Renesas]].<ref name="MIDA-20212">{{Cite web |date=18 November 2021 |title=Creating the Silicon Valley of the East 2.0 |url=https://www.mida.gov.my/mida-news/creating-the-silicon-valley-of-the-east-2-0/ |access-date=6 December 2023 |website=[[Malaysian Investment Development Authority]] |language=en-US}}</ref><ref>{{Cite news |date=17 December 2022 |title=E&E: 50 Years in Malaysia |url=https://cdn.thestar.com.my/Content/StarPicks/Issues/1F28AC3A-CE75-4B42-8F97-6F3F162AAFB7.pdf |access-date=25 Feb 2025 |work=[[The Star (Malaysia)|The Star]]}}</ref> According to [[Financial Times]] in 2024, Penang is well-positioned to benefit from the ongoing [[China–United States trade war]], as restrictions push businesses to adopt the [[China Plus One]] strategy.<ref>{{Cite news |last=Ruehl |first=Mercedes |date=11 March 2024 |title=Malaysia: The Surprise Winner from US-China Chip Wars |url=https://www.ft.com/content/4e0017e8-fb48-4d48-8410-968e3de687bf |access-date=15 March 2024 |work=[[Financial Times]] }}</ref><ref>{{Cite news |last1=Melissa Goh |last2=Abu Baker |first2=Jalelah |date=16 September 2024 |title=What Penang is doing to reclaim its title as the Silicon Valley of the East |url=https://www.channelnewsasia.com/asia/penang-semiconductor-industry-ambitions-investment-intel-4608556 |access-date=16 September 2024 |work=[[CNA (TV network)|Channel NewsAsia]]}}</ref>