GEORGE TOWN: Penang needs to diversify its economic sectors to reduce the risk of heavy dependence on the electrical and electronics (E&E) industry, especially amid global market uncertainty and increasingly unpredictable technology cycles.
Datuk Seri Reezal Merican Naina Merican (BN-Bertam), who is also Malaysian External Trade Development Corporation chairman, said that although the E&E sector remains the backbone of the state’s economy, over-reliance on this industry could expose Penang to risks from softer global demand, technological disruptions, and changing investment priorities.
He said Penang contributed RM503.11 billion or 70.6% of Malaysia’s E&E exports in 2025, and the sector accounted for 82.3% of Penang’s total goods exports, providing more than 200,000 job opportunities.
