Credit : Bernama Business's X
GEORGE TOWN, November 7, 2026 – The Penang government has set aside funds in its 2027 state budget to back technology start-ups, speed up digitalisation among small and medium enterprises (SMEs) and widen the use of artificial intelligence (AI) across the state’s economy, Chief Minister Chow Kon Yeow said.
According to Bernama, Chow said the funding will go to the Digital Penang initiative, with the aim of strengthening the state’s technology start-up ecosystem and helping businesses move through digital transformation.
He was speaking when officiating the AI Future Makers Bootcamp 2026 at SEGi College Penang on Saturday.
Start-up community already showing results
Chow said the start-up community supported under the initiative had so far produced 310 companies and created about 1,720 jobs, figures he cited as evidence that the state’s investment in its digital ecosystem was already paying off.
He described the bootcamp as a meeting point between young innovators and experienced industry players, and said that kind of collaboration showed why learning across generations matters as Penang prepares its workforce for a new wave of technological change.
The bootcamp was also attended by its chairman, Lukas J. Tan, and SEGi College Penang head of student experience Vincent Tung Chin Aun, Bernama reported.
Learning fast, together
Chow pointed to the state’s track record in adapting to earlier industrial shifts. He recalled that when the country’s first Free Trade Zone was set up in Bayan Lepas in 1972, workers picked up new skills through on-the-job training and by sharing knowledge with one another.
“Penang knows how to do this. When the world changed, we learned fast, and we learned together. The world is changing again,” he said.
He added that AI can now finish in a single afternoon work that once took a week, underlining how quickly the technology is reshaping the way businesses operate.
Talent pipeline for chips and AI
On talent development, Chow said 675 fresh graduates and working professionals had gone through chip design training at the Penang Chip Design Academy, and 85 per cent of them had found jobs.
He also highlighted the Penang Talent Focus Group, launched in June under the Penang Workplace initiative. The group brings together industry players, universities and human resource practitioners to better match available talent with job openings in the state.
In addition, the Penang Science, Technology, Engineering and Mathematics (STEM) Blueprint will bring AI learning programmes to rural schools through mobile initiatives, extending exposure to the technology beyond the state’s urban centres.
Call to employers
Chow urged employers and human resource practitioners to look beyond conventional qualifications when assessing young job seekers, and to give them a chance through interviews, mentoring and professional engagement.
He also encouraged participants at the bootcamp to turn their ideas into practical solutions and to build their innovations in Penang.
Why it matters
Penang is one of Malaysia’s main electronics and semiconductor manufacturing hubs, with Bayan Lepas home to a large cluster of multinational and local technology firms. The state’s push into AI and chip design reflects a wider effort to move its economy up the value chain, from assembly and testing towards design, software and higher-skilled work.
For SMEs, the emphasis on digitalisation and AI adoption is aimed at helping smaller firms keep pace with larger players, whether by automating routine tasks, improving marketing or managing operations more efficiently. Combined with the start-up support and the talent programmes Chow outlined, the state government is positioning Penang as a place where new technology companies can both start and grow.
The measures form part of Penang’s Budget 2027, and further details on how the Digital Penang initiative will be rolled out are expected as the state moves into the new financial year.
Source : Bernama
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