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Penang Seeks Simpler Import Procedures For Specialised Lab Equipment

BATU KAWAN, Oct 29 (Bernama) -- Penang hopes the federal government will consider reviewing and simplifying import procedures for specialised laboratory equipment to reduce uncertainty over equipment classification, tax exemptions and approval timelines.

This is particularly important for the semiconductor, electrical and electronics (E&E) and research and development (R&D) sectors.

Chief Minister Chow Kon Yeow said clearer and more consistent procedures were essential to ensure companies had timely access to critical equipment at reasonable costs, enabling them to strengthen productivity and technological capabilities.

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He said companies currently faced uncertainty over equipment classification, eligibility for import duty and sales tax exemptions, required documentation and approval periods, increasing compliance costs and complicating project planning.

"We have listened to the industry on a pressing matter. Companies in the E&E, semiconductor and R&D sectors have raised one issue with us again and again. They need an easier way to bring in specialised laboratory equipment and clearer rules on the taxes involved.

“The aim is not to avoid tax. It is to make the rules clear, efficient and consistent,” he said at the opening ceremony of Estek Automation Sdn Bhd’s new manufacturing plant here today.

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Chow said modern laboratory equipment was vital for semiconductor testing, design validation, quality inspection, materials analysis and the development of new products and processes.

He said Malaysia’s E&E exports reached RM648 billion in 2025, with Penang contributing RM437 billion, or 68 per cent, according to Malaysia External Trade Statistics.

Approved manufacturing investments in the national E&E sector totalled RM28.5 billion, of which Penang secured RM11.3 billion, or 40 per cent.

Meanwhile, he said Penang recorded RM17.3 billion in approved manufacturing investments in the first half of 2026, accounting for 34 per cent of the national total. Of this amount, RM4.5 billion, or 26 per cent, came from domestic direct investment, representing a 125 per cent year-on-year increase.

He said the figures reflected growing confidence among Malaysian companies in Penang’s industrial ecosystem and their willingness to invest in technology, capacity and capabilities to support future growth.

He also highlighted the Malaysia Automated Test Equipment (ATE) Campus in Penang, which aims to establish an integrated ecosystem to accelerate the co-development, qualification and scaling of locally developed ATE solutions.

The campus received RM25 million in federal funding from the Ministry of Economy under the 13th Malaysia Plan, with the funding announced at KL20@Penang last month, while the state government allocated about 4.05 hectares of land for the project earlier this year.

He added that InvestPenang was working with the campus steering committee and the Penang Skills Development Centre to develop a shared laboratory equipped with advanced tools, testing equipment and software facilities to support local ATE technology development.

-- BERNAMA