GEORGE TOWN, Nov 13 — Penang is banking more on its services sector as it continues to expand its Penang IC Design and Digital Park with the construction of a fifth Global Business Services (GBS) building in the pipeline.
Penang Chief Minister Chow Kon Yeow said the services sector in the state has surpassed its manufacturing sector about five years ago.
“The services sector superseded the manufacturing sector as the top GDP contributor in the state and it will remain the top contributor with the growth of digital economy,” he said in his keynote address at the 7th Penang GBS Conference 2025 here this morning.
He said Penang’s GDP stood at RM116 billion last year which makes up seven per cent of the country’s total.
“The services sector contributed to 48 per cent of Penang’s GDP, followed closely by the manufacturing sector at 46.5 per cent,” he said.
He said last year, Penang has also garnered RM14.7 billion of approved investments in the services sector alone, which makes up for 46 per cent of the state’s total approved investments.
“Penang is home to over 90 GBS and shared services companies, employing more than 20,000 skilled professionals, reinforcing its status as a thriving digital hub,” he said.
He said the state is now strategically positioned to expand its digital economy and is ready to embrace growth in AI-based industries.
He said Penang Development Corporation (PDC) has developed a series of modern hybrid office spaces with more than 500,000 sqft dedicated to GBS investors.
This includes GBS@Mayang, GBS@Mahsuri, GBS TechSpace, and GBS By The Sea located within the Penang IC Design and Digital Park.
He said these facilities are fully occupied so the state will be constructing yet another GBS facility.
“Today, I am pleased to announce our latest project, GBS@Technoplex — a state-of-the-art, premium green office development strategically located in Bayan Lepas Technoplex,” he said.
He said the 10-storey structure will be purpose-built for GBS, IC Design, R&D and digital companies.
“Targeted for completion by 2028, subject to achieving 40 per cent pre-let, GBS@Technoplex will expand Penang’s modern hybrid office space to over one million square feet within the Penang IC Design and Digital Park,” he said.
The new GBS building will span over 450,000 sq ft and construction will start once they hit more than 40 per cent of pre-signed tenancy.
“It will be one of the biggest GBS buildings compared to the others in the Penang IC Design and Digital Park,” he said.
He said the site selected is ready for the project and PDC will start calling for tender once they achieve the 40 per cent threshold.
So, far about 20 per cent of pre-signed tenancy was recorded.
Chow also launched the Penang GBS Nodes Map that features over 90 companies across the state.
“This serve as a useful reference for investors, partners and stakeholders to understand Penang’s capabilities,” he said.
