Economy of Penang

Economy of Penang
	Skyline of George Town's Central Business District
Currency	Malaysian ringgit (MYR)
Statistics
Population	1,740,405 (2020)
GDP	$24.567 billion (nominal; 2023); $89.925 billion (PPP; 2023);
GDP rank	5th out of 15 states in Malaysia (including two federal territories)
GDP growth	3.3% (2023)
GDP per capita	$15,918 (2023)
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);
Inflation (CPI)	2.3% (2023)
Population below poverty line	N/A
Gini coefficient	0.371 (2022)
Human Development Index	0.830 very high (4th) (2022)
Labour force	926,200 (2023); 71.3% employment rate (2023);
Labour force by occupation	Services: 56.5%; Manufacturing: 35.6%; Construction: 6.1%; Agriculture: 1.8%; Mining: 0.04%; (2023); excludes non-residents;
Unemployment	2.2% (2023);
External
Exports	$97.5 billion (2023)
Export goods	Integrated circuitry; Electric and electronic products; Piezoelectric crystals; Scientific equipment; Telecommunications equipment;
Main export partners	China 17.8%; United States 17.0%; Singapore 14.9%; (2023);
Imports	$54.5 billion (2023)
Import goods	Integrated circuitry; Piezoelectric crystals; Electric and electronic products; Electrical apparatus and parts; Measuring apparatus;
Main import partners	China 23.3%; Taiwan 20.6%; Singapore 11.7%; (2023);
FDI stock	$13.1 billion (2023)
Public finances
Government debt	RM41.1 million (2022)
Revenues	RM595.1 million (2022)
Expenses	RM755.0 million (2022)
	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.

^ "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.
^ ^a ^b ^c ^d ^e Cite error: The named reference GDP by state 2024 was invoked but never defined (see the help page).
^ Cite error: The named reference inflation was invoked but never defined (see the help page).
^ ^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.
^ 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.

[2020KF-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.

[GDP_by_state_2024-2] Cite error: The named reference GDP by state 2024 was invoked but never defined (see the help page).

[inflation-3] Cite error: The named reference inflation was invoked but never defined (see the help page).

[dosm2024-4] ^ ^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.

[Mashut-2017-5] 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.

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