Investments into Penang shrink to RM1.3b

From The Edge Malaysia:

Penang recorded inflow of investments of only RM1.3 billion in the January-June period this year, as investors turned cautious about the fallout of the global financial crisis.

This was a stark contrast to the RM10.3 billion recorded for the 12 months in 2008.

InvestinPenang Bhd chairman of the executive committee Datuk Lee Kah Choon said on Sept 1 the plunge in investments had to be viewed in a wider perspective and the flow of investments in other countries.

Lee said there were investors still adopting a wait-and-see attitude as it was unclear if the financial meltdown was finally over.

The 1.3 billion, annualized is roughly 75% decline from last year. It goes to show that the fixed investment portion of investment in Penang is huge and extremely vulnerable to the world recession. The island's economy can't survive on consumption and services alone. It still requires massive investment from individuals. Another down year like this, I imagine asset prices will start to crumble.