Penang’s strategic location, robust economic ecosystem, and ambitious infrastructure developments position it as a rising financial hub and key player in the ASEAN region. At the recent ASEAN Business Advisory Council (ASEAN-BAC) Malaysia Chairmanship 2025 launch, Penang Chief Minister Chow Kon Yeow highlighted the state’s strengths in logistics, trade, and manufacturing, underlining its potential to spearhead regional integration.
As ASEAN-BAC assumes a pivotal role in fostering economic collaboration, Penang’s established maritime and air connectivity bolsters its reputation as a northern gateway to the Straits of Malacca and the South China Sea. These critical sea lanes facilitate seamless trade and investment across ASEAN, contributing to Malaysia’s position as a hub for diverse shipping activities.
Penang’s trade with ASEAN has tripled over the past decade, reaching USD14.7 billion in 2023. The state’s electronics and electrical (E&E) manufacturing sector, with over 400 multinational corporations and thousands of startups, drives this economic dynamism. Penang’s contributions to Malaysia’s semiconductor industry, accounting for 13% of global chip assembly and testing, align with the country’s National Semiconductor Strategy and the New Industrial Master Plan 2030.
In addition to its industrial prowess, Penang is expanding its international airport to cater to the surging air travel demand within ASEAN, projected to reach 653 million passengers annually by 2030. These advancements will enhance connectivity, ease travel, and support regional economic integration.
As Malaysia prepares to chair ASEAN-BAC in 2025, the council’s theme, “Unifying Markets for Shared Prosperity,” reflects a commitment to integration, sustainability, and inclusivity. Penang is primed to host initiatives aligning with these goals, including the potential establishment of a financial center. This hub could attract investments to sectors like technology, tourism, and education, further cementing Penang’s role as a regional economic leader.
With its dynamic economy, strategic initiatives, and unwavering commitment to fostering growth, Penang stands ready to drive ASEAN’s shared prosperity while securing its place as a premier gateway to regional and global markets.
