Known as the “Silicon Valley of the East” for its strong electronics and electrical (E&E) manufacturing base, Penang is the main economic driver for Northern Malaysia. It recorded the highest gross domestic product (GDP) per capita among the 13 states in Malaysia since 2014. One of the nation’s major trading hubs, Penang is among Malaysia’s top foreign investment destinations.
Penang’s fiscal management remains prudent and conservative. Over a nine-year period between 2010 and 2018, Penang’s fiscal balance remained in surplus, save for only once (2018). As a result, it has managed to accumulate a commendable level of fiscal buffers (end-2018: RM1.97 billion) to safeguard against economic shocks.