PENANG - WITH a view to attracting more Singaporean investors to Penang, the state government will soon set up a Penang investment and tourism office in the island republic.

This makes Penang the first state in Malaysia to set up an office overseas.

Chief Minister Lim Guan Eng described the office as a reflection of the growing economic ties between Penang and Singapore.

He was speaking to reporters after welcoming Jetstar's inaugural flight to the state at the Penang International Airport in Penang on Wednesday.

Meanwhile, Mr Lim said there were 42 Singapore-Penang flights weekly, with Singapore Airlines, Malaysia Airlines, Air Asia and Jetstar having seven flights daily each, while SilkAir has 14 flights.

He said the government had given the green light for the carriers to increase their weekly flights to 84, between the two cities.

On a report in a Chinese daily today, quoting MCA leaders as saying that leading United States chip manufacturer Intel Corporation was set to cease its Penang operations within three months, Mr Lim denied the report.

He said the company is here to stay.

Nevertheless, Mr Lim said, he had instructed his staff to check with the company's senior official on whether it was planning to shift its Penang plant. -- BERNAMA