Penang has reaffirmed its status as Malaysia’s “Export Engine”, contributing nearly 45% of total national exports as it heads into the second quarter of 2026 on what Chief Minister Chow Kon Yeow describes as a very strong footing.

Chow said the state’s performance is underpinned by RM22.4 billion in approved manufacturing investments last year, which are expected to create 24,633 new jobs, with a policy focus on ensuring Penangites become key players rather than mere observers in high‑value industries.

Chow’s remarks was part his Labour Day 2026 message, where he outlined the state’s commitments to workers and the broader economy.

Penang’s unemployment rate has stabilised at 2.7%, reflecting a dynamic labour market, but warned that the real challenge this year is a skills revolution driven by artificial intelligence and the green‑economy transition.

To meet that challenge, Penang is banking on two flagship projects: the Silicon Island development via Green Tech Park as a future‑jobs hub, and the Mutiara Line LRT, now entering a critical construction phase.

The state is also planning RM15 million in TVET and STEM investments to equip the next generation with a globally recognised skills passport, with Chow urging employers to treat mental health and work‑life balance as investments rather than costs.