Penang recorded a growth of 3.3%, increasing its gross domestic product (GDP) to RM116 billion in 2023 from RM112.3 billion in 2022, said the statistics department.

Chief statistician Uzir Mahidin said Penang had demonstrated strong economic performance in 2023, maintaining its position as the 4th highest contributor to the nation’s GDP at 7.4%.

“The state’s economic growth is driven by the services sector, which expanded by 6%, fuelled by tourism-related subsectors such as wholesale and retail trade, food and beverages, and accommodation.

Penang’s GDP per capita stood at RM72,586 in 2023, an increase from RM69,789 in 2022, he said in a statement.

Uzir said according to the Malaysian Investment Development Authority (Mida), the state attracted the highest approved investments in Malaysia at RM71.9 billion (2022: RM16.3 billion) in 2023, comprising RM61.7 billion in foreign investments and RM10.2 billion in domestic investments.

“The second-largest contributor to Penang’s economy, the manufacturing sector received significant investments at RM63.4 billion, including RM60.1 billion in foreign investments and RM3.3 billion in domestic investments.

This investment boost is expected to stimulate the local economy and create numerous new job opportunities, he said.

With sustainable economic growth and encouraging investment performance, Penang’s labour market continues to strengthen, increasing by 3.4% to 926,200 people (2022: 895,600), and the number of persons employed also rose to 905,600 (2022: 871,000).

The Labor Force Participation Rate (LFPR) increased by 1.2 percentage points from 70.1% to 71.3% in 2023.

At the same time, the unemployment rate improved, decreasing to 2.2% from 2.7% the previous year.

Penang also recorded the highest trade value in Malaysia at RM697.7 billion, with exports and imports valued at RM447.4 billion and RM250.3 billion, respectively.

Uzir said Penang’s main exports were integrated electronic circuits, electrical and electronic (E&E) products, piezoelectric crystals and components, making up 63.3% of the state’s total exports.

“Penang’s primary export destinations in 2023 were China (RM79.7 billion), followed by the US (RM76 billion) and Singapore (RM66.7 billion).

The main imported goods were integrated electronic circuits, piezoelectric crystals and components, and other E&E products, with major sources being China, Taiwan, and Singapore, he said.

Uzir noted that in line with the slower national inflation rate in 2023, Penang’s inflation also eased to 2.2% (2022: 3.2%), with the index points at 131.8 (2022: 128.9).

The increase was driven by the food and beverages group (5%), restaurants and hotels (4.2%), health (2.5%), various goods and services (2.2%), and housing, water, electricity, gas, and other fuels (1.7%).

Source: FMT Online