Penang Property News: More new factories, more employment and then…
My brother and brother-in-law and their contribution to the Penang economy
Both are in engineering. Both have spent over 20 years in Penang. In other words, they have been spending lots of money there. 🙂 For example, if we say they spend just RM50,000 of their money there, they have already spent RM1,000,000 each within 20 years. Plus economic multiplier effects of 4, means they have contributed nothing less than RM8,000,000 to the Penang economy! Haha.
By the way, the above is a very conservative number because both are now married and have two children each as well. In other words, they and their wife are spending money for their children and this is likely to be even higher. Now imagine thousands of these new engineers migrating to Penang when there are more and more engineering based opportunities. This is happening in Penang as it has captured the most investment flow for the manufacturing sector into Malaysia for Q3 2023. Read on.
Article in nst.com.my Penang has once again proven its allure to investors, both new and existing, with a staggering investment inflow of RM34.6 billion in the manufacturing sector in the third quarter of 2023, an impressive 421 per cent year-on-year (YoY) increase.
This growth is primarily driven by foreign direct investments (FDI), which accounted for an impressive RM33 billion or 95 per cent of Penang’s manufacturing investment inflow during this period.
Chief Minister Chow Kon said, on a broader perspective, Penang recorded a remarkable total approved investment of RM44.9 billion across various sectors, encompassing manufacturing, services, and primary sectors, from January to September 2023.
He said, “Penang has firmly solidified its position as the leading contributor to the nation’s manufacturing FDI, capturing an impressive 42 per cent share during this period. Prominent contributions came from countries such as the Netherlands, United States, and Singapore, accounting for a substantial 95 per cent share of Penang’s approved manufacturing investments.” Do read the article in full with more details here: Article in nst.com.my
Property Market of Penang should be even livelier?
While we can safely assume that most of these people employed will buy a property, it’s harder to predict when they will do so. In fact looking at some of the younger generation, their priority also may not be on buying a property but more on buying experience. Experience with holidaying in a new country. Experience of owning an EV. Experience of pampering oneself as it’s YOLO (you only live once).
So, I think it is very safe to assume, they will spend their money in Penang but perhaps the property market will not suddenly see a super big increase in transactions just because these people have a job yeah. Nevertheless, I am very sure there are enough land in the mainland to continue building homes which many may be buying in the future.
As usual, many Penangites are grouped into ‘islander’ and ‘mainlander’ lah. So, both sides should continue to see an increase in number of property transactions even if buying a home within the island is likely to be higher priced than in the mainland.
All the best my dear Penang. Property market must keep growing yeah. Haha. I still have properties in Penang despite having moved to the Klang Valley for the last 10 years.
Please feel free to share this article too. (links are all below) Thank you!
Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER).
Alternatively, Follow me on Telegram here.
Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles.
