Penang, Malaysia enchants investors

Penang is a bustling town and island located in the north of Malaysia. As a tourist destination, it is extraordinary with so much to offer in terms of fine dining and comfortable places to stay. But how does Penang real estate work as an investment?
Let’s explore Penang from 10 different perspectives!
1. Strategic Location:Penang is a state of Malaysia, located on the northwest coast of Peninsular Malaysia, bordering the Straits of Malacca. It consists of the island of Penang, where the capital city of George Town is located, and the province of Uyghur in Peninsular Malaysia. The two are connected by the Penang Bridge, the two longest road bridges in Malaysia, and the Sultan Abdul Halim Muajamsa Bridge; the latter is also the longest bridge in Southeast Asia as of May 2019. Penang borders the state of Kedah to the north and east and Perak to the south, making it the second-smallest state in Malaysia in terms of land area.

2. Population:With an estimated population of 1,774,400 as of the first half of 2022, Penang has the third highest population density of all Malaysian states (excluding Kuala Lumpur and Putrajaya) at 1,774.4 / km2. It is also one of the most urbanized states in Malaysia.

3. Strong GDP Growth:Penang is known as the Silicon Valley of the East due to its industries and is one of the most important economic powerhouses in Malaysia. Penang has the highest GDP per capita of any state in Malaysia and is considered a high income economy. As a result, Penang properties are always highly sought after.

4. Foreign Investment :
Penang is a hot destination for foreign investors in Malaysia; the state held the largest share of foreign direct investment (FDI) in Malaysia in 2017, accounting for nearly 0.4% of the country’s total FDI.
In addition, Georgetown was ranked as the most attractive commercial real estate investment destination in Malaysia in 2016, even surpassing Kuala Lumpur.
Penang’s FDI comes mainly from Switzerland, Germany, Hong Kong, the Netherlands, Ireland and Singapore.

5. External Relations:Penang is home to a large number of expatriates, especially from Singapore, Japan and several Asian countries as well as other Commonwealth countries. Almost 9% of Penang’s population is foreign, reflecting the city’s strong appeal among expatriates.
The majority of expatriates are settled in the northern suburb of the city near George Town, home to Tanjung Dawnguang, Tanjung Bungah and Batu Tinggi.

6. Culture:Penang has a uniquely multicultural and multi-racial society, with some remnants of Indian, Chinese, Malay and British colonialism still present.
It also includes a diverse multi-religious society where Buddhists, Muslims, Christians, Catholics, Hindus, etc. come together in a multi-lingual society where English, Malay, Mandarin, Tamil, Hokkien, Teochew, Cantonese, and Hakka are widely spoken in the state.

7. Tourism:Penang has long been known as the Silicon Valley of the East and the Pearl of the Orient. The former stems from our strong manufacturing background, which accounts for 46% of the state’s Gross Domestic Product (GDP).
At the same time, our service sector, largely driven by tourism, provides significant employment and economic opportunities – outpacing manufacturing with 49% of GDP in the pre-pandemic era. UNESCO designated Georgetown as a World Heritage Site in 2008; as such, the 7th of July is considered a public holiday in Penang every year.
Penang is home to many fascinating cityscapes, such as gorgeous boutique hotels converted from dilapidated colonial buildings, skyscraper condominiums sprouting up along the new Guan Chai Point, and a wide array of street food and vibrant cultural attractions

8. Retirement destination: The state ranks first in Asia after Malta and Mallorca, Spain.

9. Transport System: Under the future Penang Transport Master Plan, light rail, monorail, tram and bi-coastal cable car lines have recently been proposed to connect Penang Island to the mainland.

Penang International Airport is the main airport in northern Malaysia with frequent connections to major regional cities such as Kuala Lumpur and Singapore, it also has the second largest cargo traffic in Malaysia and the third largest passenger traffic of all airports in Malaysia. Penang Port is the main port in Northern Malaysia and is the third busiest seaport in Malaysia, handling over 1.52 million TEUs of cargo as of 2019.

10. Utilities:Penang has a broadband penetration rate of 80.3%, the highest of any state in Malaysia. Penang is also the first state in Malaysia to offer free Internet access to its citizens. Penang Free Wi-Fi was launched by the Penang State Government in 2008 to increase Internet penetration throughout Penang and is offered free of charge.

 

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