Malaysia's Penang chief says projects to continue

PUTRAJAYA, Malaysia, April 3 (Reuters) - Malaysia's prime minister has assured the opposition-held state of Penang that federal projects will continue in that state despite the change of government there, Penang chief Lim Guan Eng said on Thursday.

Lim made the comment to reporters after his first meeting with Prime Minister Abdullah Ahmad Badawi since the opposition dealt a stunning blow to the ruling coalition in general elections on March 8, winning five states, including Penang. Penang is economically strategic: it is home to Malaysia's electronics industry, which accounts for about 40 percent of total exports, and makes up a large part of a $51 billion federal government plan to develop the country's northern region.

Shares in state-linked commodities to construction group Sime Darby (SIME.KL), which prepared the northern development blueprint, have fallen 20 percent since the election, on concerns that the new Penang government will oppose some projects.

(Reporting by Niluksi Koswanage, editing by Mark Bendeich)