Penang's Value Proposition

Track Records in Electronics Industry

The electronics industries first set foot in Penang in the early 1970s and is still growing strong. Today, the pioneer multinational companies are not only still operating in Penang but are continuously expanding and enhancing their operations in Penang. Presently, Penang does not only excel in manufacturing, assembly and test operations but also shines as a design and development hub, especially in hardware design.

The nearly 40 years of track record in electronics industry has also contributed to the development of world class local suppliers with capabilities in automation systems, precision engineering and software development.

Human Capital

Penang has always attributed its labour force as its greatest asset. The educated, English speaking and highly trainable workforce in Penang was the key attraction to foreign direct investments in the early days of industrialisation in Penang.

Today, the workforce from Penang not only manage local operations but also oversee operations of the multinational corporations’ other offshore plants. Additionally, some of the multinational corporations’ key design engineers are Penangites, who own patents.

The availability of the main campus of Universiti Sains Malaysia, which was awarded the APEX (accelerated programme for excellence) status in September 2008; the availability of skills development centres like the Penang Skills Development Centre (PSDC) and the Japan Malaysia Technical Institute (JMTI) as well as another thirty private institutes of higher learning further boost the competency of Penang’s labour force.

Infrastructure

Infrastructure in Penang is of world class standard. Penang is linked via air, sea, road and rail.

The Penang International Airport is the second largest and most busy airport in Malaysia. Each week, 55 cargo flights take off from the Penang International Airport to the rest of the world. As for the passenger terminal, a total of 450,000 visitor arrivals is recorded every year.

Penang has direct air links with Medan, Jakarta Bangkok, Phuket, Koh Samui, Singapore, Taipei, Hong Kong, Canton and Xiamen and via Kuala Lumpur to many parts of the world.

The Penang Port is the third largest container port in Malaysia while a total of 35 cruise liners visit Penang every year. The Penang Port also offers berthing facilities for yachts and other watercrafts.

Penang is linked to the other parts of west-coast Peninsula Malaysia as well as Singapore and Thailand via the North-South Highway and the east-coast of Peninsula Malaysia via the East-West Highway.

The Malaysian Railway links Penang to the north of Peninsula Malaysia and Thailand as well as to the south of Peninsula Malaysia and Singapore.

The industrial parks at Bayan Lepas have the best telecommunication and electrical infrastructure in the State. However, the WiFi@Penang project, which its implementation is on-going is expected to provide a further boost to broadband connectivity to Penang in general.

Economic Strength

The Penang economy recovered from its late 1960s doldrums when export-oriented industrialisation was introduced as a driver for growth. The State’s economy managed to recover from the mid-1980s World Economic Crisis and the 1997-1999 Asian Financial Crisis, achieving fruitful results in growth and prosperity. The State’s economy fares relatively well in the current economic downturn and is expected to turn around soon.

Human capital and excellent infrastructure in Penang are fundamentals for the State’s economic strength. Since the introduction of export-oriented industrialisation, the Penang economy has been predominantly driven by the manufacturing and services sectors. Today, the Penang economy has gone through a paradigm shift from the p-economy to the k-economy, encouraging greater development in higher value added activities.

Supporting Industries

Availability of a strong supply chain is a compelling determining factor for investments, especially foreign direct investments to set up facilities in any location. The local supporting and ancillary industries in Penang have been exposed to near to 40 years of industrialisation process in Penang and thus are well developed and competent, particularly in the areas of precision engineering, automation, software development and packaging.

Leveraging on the experiences with the electronics industry, the local supporting and ancillary industries have also embarked on providing supporting services to the medical devices, aerospace and other higher value added activities.