GEORGE TOWN: Penang's gross domestic product growth has been affected by the global reduced demand for electrical, electronic and optical products, a government backbencher said today.
Pulau Tikus assemblyman Joshua Woo Sze Zeng said recent data from the Department of Statistics showed that the state's manufacturing sector recorded a negative 0.5 per cent rate last year.
As a result, the DAP lawmaker said, Penang had dropped from being at the country's top position in 2022, with 13.3 per cent of GDP growth, to the fifth rank in 2023, with 3.3 per cent which was below the national average of 3.6 per cent.
He said the impact from the decline in the manufacturing sector was cushioned by the significant increase in Penang's construction sector that recorded 23.6 per cent growth in 2023 (7.9 per cent in 2022).
"If not for the increased construction activity, Penang's economy would be worse than the recorded 3.3 per cent.
"One of the important contributors to Penang's construction sector is the Silicon Island development that began in September last year. The project has so far injected RM295 million into the local economy, and created 373 jobs for Malaysians, of which about 50 per cent are Bumiputra workforce.
"Economic stimulus such as the Silicon Island has uplifted Penang's GDP when other sectors were affected by global market forces.
"For this reason, Penang's GDP per capita has climbed to the third position last year from fourth in the previous year, even though the manufacturing sector has contracted by 0.5 per cent. The state's 2023 GDP per capita was recorded at RM 72,586, behind two federal territories, Kuala Lumpur (RM 131,038) and Labuan (RM 83,596).
"Without economic stimulus such as Silicon Island, Penang's economic performance would have been severely dragged down by global factors. Therefore, those anti-development groups and opposition parties that protest against the various development initiatives in Penang are a threat to the state's economic growth," he said today.
Woo said when the state government launched the Silicon Island development, the anti-development groups filed a judicial review to cancel the project.
He said when their judicial review was dismissed by the High Court, they expressed intention to appeal against the dismissal.
"Despite these opposition, the Penang government will continue to bring development to the state.
"It is necessary to continue diversifying the economy for Penang to remain resilient against uncontrollable market forces. There is no compromise on Penang's growth," he added.
It was reported in April that reclamation work for the Penang Silicon Island project was progressing smoothly with about six hectares reclaimed since work started last October.