GEORGE TOWN, May 5 — Penang’s semiconductor sector remains stable and has yet to show any significant impact from the ongoing conflict in the Middle East.

Penang chief minister Chow Kon Yeow said the electrical and electronics (E&E) industry, including semiconductors, continues to record encouraging performance despite global economic disruptions.

He said demand for semiconductor products remains strong, driven by rapid advancements in emerging technologies such as artificial intelligence (AI) and global digitalisation.

“I believe the E&E and semiconductor sector remains robust,” he said in a press conference after witnessing the signing of a memorandum of understanding (MoU) between the Penang Convention and Exhibition Bureau (PCEB) and Marriott International Malaysia here today.

He said the state expect demand to continue to rise.

Earlier, senior political advisor to the Prime Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz reportedly said the effects of the global supply crisis are expected to be felt by Malaysians within the next one to two months.

Chow said current technological developments are a key driver of the sector’s growth, boosting investor confidence to continue investing in the state.

He said although geopolitical conflicts could potentially affect global supply chains, Penang has so far not faced any serious disruptions in industry operations.

“If there is any impact, it may be in logistics, such as slightly higher shipping costs, but overall the sector remains strong,” he said.

He said the state government remains optimistic about the semiconductor industry’s prospects in the medium and long term.

“Penang’s position as a key E&E hub in Malaysia continues to attract multinational companies and foreign investors,” he said.

“With technological shifts such as AI and digital innovation, we see this demand remaining and continuing to grow,” he added.

He said the state government will continue to monitor ongoing developments, including any risks arising from global conflicts that could affect the local economy.

GEORGE TOWN, May 5 — Penang is bidding for over 20 Meetings, Incentives, Conferences and Exhibitions (MICE) that have been relocated due to the conflict in the Middle East.

Penang Convention and Exhibition Bureau (PCEB) chief executive officer G. Ashwin said a majority of MICE events in the Middle East have to be relocated to the Asia Pacific.

“So far, we have shortlisted more than 20 events to bid for and this shortlist may increase as time goes,” he told reporters at a press conference after a memorandum of understanding signing ceremony between PCEB and Marriott International Malaysia to promote the Penang Golf Challenge.

He said there are procedures to follow in bidding for events including looking for a local host in Penang to take the lead in some of these events.

Elaborating, he said among the events they are bidding for are management, finance and medical sectors related conferences.

“The number of participants for these events are more than 1,000 each,” he said.

He added that the events are not only for this year but are spread out to 2027, 2028 and even up to 2032.

“The events we have this year were booked last year or two or three years ago, so the events we book this year could be for the next few years, including one that was confirmed in 2032,” he said.

When asked if there is an estimated percentage of increase in MICE events in Penang, he said they will be able to have a clearer picture by the third quarter of this year.

“So, I would say towards Q3 we will have an indication of the percentage of events being confirmed, but it wouldn’t stop there, it still goes to 2027, 2028, 2029,” he said.

Earlier, in his speech, Penang chief minister Chow Kon Yeow said Penang remains a competitive destination for business events.

He said global uncertainty is creating a shift in how organisers make decisions in terms of business events.

“There is now a stronger push towards destinations that offer value, efficiency and quality experiences at a competitive cost,” he said.

He said Penang is well-positioned as the state offers a strong balance of infrastructure, connectivity and affordability.

“This presents us with an opportunity to attract business events that are actively looking for high-value, budget-conscious destinations without compromising on quality,” he said.

He said this is why Penang is seizing the opportunity to bid for over 20 business events that are seeking to relocate to the Asia Pacific.