GEORGE TOWN, Nov 22 — Irregular supply and low water pressure for industrial use in Penang could have affected investors’ confidence, Chief Minister Chow Kon Yeow tod the state legislative assembly today.

He said land scarcity and higher industrial land price in the state were also challenges that the state faced in drawing in foreign investors to the state.

"Challenges such as water supply issues, prices of industrial lands, higher electricity and land costs and assessment rates are making Penang less attractive to investors,” he said.

Chow was replying to Lee Khai Loon (PH–Machang Bubok) who asked about the challenges faced by the state government in making Penang the "Sillicon Valley of the East.”

Chow added that the state’s traffic congestion and shortage of skilled workers were further obstacles.

"Flash floods in areas such as Bayan Lepas, Bayan Baru dan Sungai Ara are also challenges we faced,” he said.

He said the state is also facing fierce competition from Vietnam, Thailand and Indonesia that are also attracting foreign investors to their shores.

"In the digital economy sector, we are still short of grade A offices or MSC Cybercentre buildings that are able to meet investors’ high demands,” he said.

He added that the state is also facing competition from other states and countries in terms of incentives offered by them.

"The state government will continue to work together with the federal government and related agencies to overcome these challenges in making Penang the top choice for local and international investors,” he said.