Penang’s GDP drops below Malaysia’s average?

A Penang DAP assemblyman raised concerns over the negative impact of the global reduced demand for electrical, electronic and optical products on the state’s gross domestic product (GDP) growth.

The Pulau Tikus assemblyman said the state’s manufacturing sector recorded a negative growth of -0.5 per cent in 2023. Citing data obtained from the Department of Statistics, Penang has dropped from being in the country’s top position in 2022, with 13.3 per cent of GDP growth to fifth place in 2023 with only 3.3 per cent. Penang’s GDP growth in 2023 was lower than the national average of 3.6 per cent.

Source: https://en.wikipedia.org/wiki/Penang

The increase in Penang’s construction sector also reduced the impact of the decline in the manufacturing sector. The construction sector recorded 23.6 per cent growth in 2023 as compared to 7.9 per cent in 2022.

The construction projects that contributed to the sector was the reclamation of Silicon Island which started in September 2023. According to the assemblyman, the project has so far injected RM295 million into the local economy. It has also created 373 jobs for Malaysians, of which about 50 per cent are Bumiputra.

The state’s 2023 GDP per capita was recorded at RM 72,586, behind two federal territories, Kuala Lumpur (RM 131,038) and Labuan (RM 83,596). Diversifying the economy and working with electrical and electronics companies are, at least, two means to further enhance growth. Tourism, urban farming, solar power generation are other areas that may need focus.

And for the record, Penang’s GDP (nominal) of RM115 billion (2023) has been in 5th place over several years.

Reference:

DAP rep rings alarm on world’s shrinking appetite for electrical and electronic goods as Penang GDP drops below Malaysia’s average, Opalyn Mok, Malay Mail, 1 August 2024