Penang’s Silicon Island to drive RM1.1 trillion GDP by 2050

Published by Audrey Dermawan • 20/11/2025

Penang Chief Minister Chow Kon Yeow says its Silicon Island project aims to draw RM74.7 billion in investments and add RM1.1 trillion to Malaysia’s GDP by 2050, creating over 220,000 jobs. – NSTP pic

GEORGE TOWN: Penang’s ambitious Silicon Island project is set to attract RM74.7 billion in investments and contribute up to RM1.1 trillion to Malaysia’s GDP by 2050.

Chief Minister Chow Kon Yeow said the sprawling development was expected to generate over 220,000 direct and indirect jobs, bolstering the state’s long-term economic resilience.

He said that the project promised substantial fiscal benefits for the state government.

“Penang is expected to receive RM7.1 million in land premiums, not including other payments arising from ownership transfers, while continuing to collect annual land taxes.

“A significant portion of future revenue will come from a land proceeds-sharing arrangement between Silicon Island Development (SID) and the state, projected to generate RM14.2 billion.

“More than just a land reclamation effort, Silicon Island is designed as a long-term strategy to secure Penang’s position as a high-tech industrial hub. The development will expand the state’s existing electrical and electronics (E&E) ecosystem and attract international investors, particularly in the semiconductor and technology sectors,” he said during his winding-up speech at the state legislative assembly sitting today.

Chow said that the heart of the project was a 700-acre Green Tech Park, a low-carbon industrial zone built to global ESG standards.

“Equipped with smart and resilient infrastructure, it will host technology companies of the future and strengthen Penang’s role in the global semiconductor supply chain,” he said.

He added that the Heart of the Island (HOTI) district would serve as a commercial, social, and tourism hub.

Featuring waterfront recreation areas, public spaces, residential units, schools, and business districts, HOTI aims to create a vibrant, liveable community while positioning Penang as a top destination for living, working, and leisure.

Chow also said that Silicon Island supported the state’s public transport initiatives, with land allocated for the Mutiara Line light rail transit (LRT) depot, allowing efficient operations and maintenance without the need for additional land acquisition in existing urban areas.

“Silicon Island is more than a development project — it is the blueprint for Penang’s next economic chapter.

“If realised as planned, this mega-development could redefine the state’s economic landscape and cement its status as Malaysia’s premier high-tech hub,” he said.