More than 60% of initiatives under the Penang Digital Transformation Master Plan have been successfully implemented, at the same time, Penang’s startup ecosystem has reached nearly 60% of its registration target under the Penang2030 vision, signalling growing momentum in entrepreneurship and innovation-driven industries.
State Executive Councillor for Infrastructure, Transport and Digital Zairil Khir Johari said the progress highlights Penang’s commitment to developing a competitive digital economy while positioning the state as a regional hub for innovation, manufacturing and technology.
“Penang continues to strengthen its position as a regional innovation, manufacturing and technology hub through the development of an innovation ecosystem capable of generating high-value economic activities,” he said.
Zairil said the state’s digital economy agenda focuses on innovation, product development, intellectual property creation and the creation of new digital economic opportunities that benefit the people.
Zairil said Penang’s digital transformation progress has been further supported by new investments in integrated circuit (IC) design and advanced semiconductor manufacturing.
He noted that these developments are helping the state move beyond its traditional role as a manufacturing centre towards becoming a leader in engineering, design and innovation.
“The growth of international innovation collaborations is also a positive sign as it brings new ideas, encourages knowledge transfer, develops talent, strengthens capabilities and creates new economic activities,” he said.
According to Zairil, building a strong innovation ecosystem is essential as innovation does not happen in isolation but requires collaboration between industry players, researchers, entrepreneurs and government agencies.
The initiatives are aligned with the Penang Digital Economy Master Plan 2025-2030, which aims for the digital economy to contribute 35% of the state’s gross domestic product (GDP) by 2030.
He said global companies are increasingly looking beyond manufacturing capacity when selecting investment locations, placing greater emphasis on engineering expertise, innovation support, skilled talent, industry collaboration and established supply chains.
“Penang is well positioned to meet these requirements due to its mature industrial ecosystem, experienced engineering workforce, strong academic institutions and supply chain networks built over decades,” he added.
