The tech haven that’s stimulating Malaysia’s pandemic recovery – Pentamaster
Summary
After years of mediocre subsistence, haplessly watching as China overtook global supply routes to become the dominant producer of electronic and electric components, Penang has now seen an incoming investment. Since then, entire industries have been devastated by the virus, and with China at the center of a supply shortage, equipment manufacturers like Pentamaster Corp Bhd – whose share prices more than doubled last year after sales climbed to an all-time demand high – had been forced to lower its 2020 revenue growth outlook. With Chinese suppliers left out in the lurch, Pentamaster tried to source from other countries like Japan, South Korea, Germany, and Italy to fulfill its uptick in demand– only to find that certain parts were being routed from China, and that these supply chains were in disarray as well. Despite the grim forecast, the buoyancy of Penang’s tech hub has World Bank analysts predicting Malaysia’s economy rebounding to 6.9% in 2021, ahead of Southeast Asian neighbors like Vietnam and the Philippines. Other analysts point to the sizable government stimulus package of nearly US$70 billion (equivalent to about 20% of Malaysia’s GDP) to help boost the local economy, but political uncertainty can be an unknown variable in the coming months.