Economy of Penang

Economy of Penang
CurrencyMalaysian ringgit (MYR)
Statistics
PopulationIncrease 1,740,405 (2020)[1]
GDP
GDP rank5th out of 15 states in Malaysia (including two federal territories)
GDP growth
Increase 3.3% (2023)[2]
GDP per capita
Increase $15,918 (2023)[2]
GDP per capita rank
3rd out of 15 states in Malaysia (including two federal territories)
GDP by sector
  • Services: 48.0%
  • Manufacturing: 46.5%
  • Construction: 2.9%
  • Agriculture: 1.9%
  • Mining: 0.1%
  • (2023)[2]
2.3% (2023)[3]
Population below poverty line
N/A
Negative increase 0.371 (2022)[4]
Decrease 0.830 very high (4th) (2022)
Labour force
  • Increase 926,200 (2023)[4]
  • Increase 71.3% employment rate (2023)[4]
Labour force by occupation
  • Services: 56.5%
  • Manufacturing: 35.6%
  • Construction: 6.1%
  • Agriculture: 1.8%
  • Mining: 0.04%
  • (2023)[4]
  • excludes non-residents
Unemployment
  • Positive decrease 2.2% (2023)[4]
External
ExportsDecrease $97.5 billion (2023)[4]
Export goods
Main export partners
ImportsDecrease $54.5 billion (2023)[4]
Import goods
Main import partners
FDI stock
Increase $13.1 billion (2023)[4]
Public finances
RM41.1 million (2022)[5]
RevenuesRM595.1 million (2022)[4]
ExpensesRM755.0 million (2022)[4]
All values, unless otherwise stated, are in US dollars.

The economy of Penang is classified as a high-income economy and is the fifth largest in Malaysia by gross domestic product (GDP). In 2023, Penang contributed 7.6% of Malaysia’s GDP. The state had a GDP per capita of RM72,586 (US$15,918), the third highest in the country after Kuala Lumpur and Labuan, surpassing the World Bank’s threshold for high-income economies.

Despite being the second smallest Malaysian state by land mass, Penang is one of the country's most developed economic powerhouses. It has a tertiary-based economy primarily driven by services and manufacturing. Penang is known as a popular tourist attraction and has also been dubbed the Silicon Valley of the East due to its leading role as a destination for foreign direct investment, attracting hundreds of multinational corporations. Additionally, Penang is the top exporting state in the country.

  1. ^ "Key Findings of Population and Housing Census of Malaysia 2020" (pdf) (in Malay and English). Department of Statistics, Malaysia. ISBN 978-967-2000-85-3.
  2. ^ a b c d e Cite error: The named reference GDP by state 2024 was invoked but never defined (see the help page).
  3. ^ Cite error: The named reference inflation was invoked but never defined (see the help page).
  4. ^ a b c d e f g h i j k l "Laporan Sosioekonomi Negeri Pulau Pinang 2023". Department of Statistics Malaysia (in Malay). August 2024. ISSN 2600-9854.
  5. ^ Opalyn Mok (10 October 2023). "Penang CM Says State Finances Healthy, Smaller Debt to Putrajaya As Shown in A-G's 2022 Report". Malay Mail. Retrieved 5 December 2023.