Penang Boosts Trade Missions as China’s Trensor Invests RM100 Mil in State
InvestPenang, an investment agency for the state, is actively conducting investment and trade missions to foreign countries to reduce the impact of the US tariff hike on state’s economy.
Chief Minister Chow Kon Yeow said the effort was aimed at attracting new investors and seeking new market opportunities including Japan, South Korea, Taiwan, Europe, China and Singapore.
“InvestPenang also participated in various international expos such as SEMICON Southeast Asia, Kumamoto Industrial Revitalisation Expo, World Fujian Convention and Exhibition, World Congress on Innovation and Technology (WCIT) and the like, increasing Penang’s visibility to new markets,” he said.
To improve the state’s position in the semiconductor value chain, Chow said the state government would maintain its commitment to the National Semiconductor Strategy (NSS) guidelines and the Penang Silicon Design @5km+ initiative, which would nurture local champions in integrated circuit (IC) design with a total initiative projected at RM120 million over the next five years.
According to Chow, the state and federal governments had established matching grants to drive the initiative forward and that the collaboration would position Malaysia – particularly Penang – as a leading player in the IC design ecosystem, driving innovation and economic growth.
The state government is also offering an incentive package scheme consisting of subsidies worth up to RM2 million annually for three years to both local and foreign IC design companies based in Malaysia, to help more IC design players to set up and expand their operations.
However, Chow said that the initiative was dependent on funding allocations from the federal government to ensure full implementation of the programme and support for the growth of the industries involved.
He added that Penang is among the states most likely to be affected by the implementation of reciprocal tariffs as US is the second highest country on the list of exports from Penang, making up 17% (RM76 billion) of the state’s total export value in 2023.
“In fact, the country is also Penang’s main trading partner with a trade surplus worth RM57.7 billion last year. Therefore, the implementation of these tariffs may have a serious impact on Penang and other states in Malaysia,” Chow continued.
At the same time, Chinese manufacturer of pressure sensors recently invested RM100 million in the state to build its first manufacturing facility at the Penang Technology Park – a four-storey facility that spans 10,000 square metres and is expected to create 200 skilled jobs, generating over RM200 million in annual sales.
Being China’s leading manufacturers of pressure sensors, Trensor specialises in automotive pressure sensors through its Malaysia-based subsidiary, Trensor Electronics Sdn Bhd that was established in 2024 and focuses on manufacturing pressure sensors, which is a critical component in automotive electronics.
Hence, Chow believes that the investment will strengthen Penang’s electrical and electronics (E&E) industry ecosystem, automotive electronics and high-value manufacturing, saying that the global semiconductor industry remains a key driver of technological advancement, with demand fuelled by innovations in artificial intelligence, 5G, electric vehicles (EVs) and the Internet of Things (IoT).
