A Sound Education System With Emphasis On STEM Teaching Of Science, Technology, English and Maths Is Our Lifeboat To The Future

Posted in Dari Meja Ketua Menteri

Opening Speech by Penang Chief Minister Lim Guan Eng In Wawasan Open University On The Nishimura Lecture Organised By The Penang Institute On 17 March 2014.

A Sound Education System With Emphasis On STEM Teaching Of Science, Technology, English and Maths Is Our Lifeboat To The Future.

A very good afternoon I bid to all of you. It is my pleasure to welcome the esteemed Professor Kiyohiko Nishimura, former Deputy Governor of the Bank of Japan and Dean of the Faculty of Economics, University of Tokyo, to Penang. He will be delivering a very important lecture that touches on the lessons from the recent financial crises and its relevance to the future of our region.

Economic uncertainty
The significance of this lecture cannot be over-emphasised, given the looming clouds of economic uncertainties. These uncertainties come from different directions and I shall delve into three main themes.

Firstly, the tapering of quantitative easing by the Fed has commenced, though the pace of tapering may change subject to the robustness of US economic recovery. As we all know, quantitative easing has been an important factor in Asia in the last few years as it allowed extra liquidity to flow into this region. The question is, what will happen when capital leaves? Certainly, there is bound to be an impact on Malaysia.

We are already seeing some effects of the tapering, as our foreign reserves have begun to shrink, which basically means that we are experiencing capital outflow. Whilst the ringgit’s weakening value has seen a rise in exports, it also means that the price of imported goods will increase, thus causing inflation. In these trying times, such an effect will further aggravate cost of living problems for low and middle-income households. Another problem associated with higher inflation is also the risk of increasing interest rates, which may be an added burden to our already high personal household debt problem, which currently stands at 83% to GDP.

Secondly, the Chinese economy is undergoing a period of rebalancing. With slower economic growth expected, its implications are serious considering that China is one of Malaysia’s largest trading partner. Already, there is some re-evaluation of China’s demand potential, especially after China suffered its first onshore bond default following the failure of Shanghai Chaori Solar Energy Science & Technology Co to make an interest payment.

Thirdly, global debt has soared by RMUS$30 trillion or more than 40% from US$70 trillion in mid-2007 to USD100 trillion in mid-2013 according to the Bank for International Settlements. This is due to the fact that governments in crisis suppressing interest rates and borrowing heavily in an attempt to generate growth to pull their economies out of recession. Private companies have taken advantage of record low interest rates by borrowing predominantly to fund share buybacks. The sharp increase in debt puts these countries’ financial security at risk, especially when interest rates begin to increase.

The more relevant question for us, is how do these three uncertainties relate to Penang?

Preparing Penang For The Future.
As I said earlier, external shocks will bear significant impact on Malaysia and Penang, being that our economy is still largely dependent on export-oriented manufacturing. Whilst it is impossible for anyone to predict the financial markets, it is important to remember two things:
1. A rising tide lifts all boats; and
2. Only when the tide recedes do you discover who is swimming naked.

As a responsible government in Penang, we believe in being prepared. For when the day comes that the tide turns, we do not want to be caught naked but instead be the best equipped amongst our peers. In other words, I am talking about strengthening our financial position.

Since taking over in 2008, the Penang state government established a budget-based administration and governance based on the principles of CAT (Competency, Accountability and Transparency). Through the implementation of open competitive tenders for all public procurements and tenders, requiring all state elected representatives to make public declaration of assets and full disclosure of government contracts signed with the private sector, making CAT governance of competency accountability and transparency our core values.

Thus Penang have been able to record budget surpluses every year without increasing any rates, increase our state assets by 50% from RM800 million to RM1.2 billion, rescue a local government(Seberang Perai Municipal Council) from bankruptcy within only one year and more importantly reduce our state debts by 95%. These achievements have been corroborated by Transparency International as well as the annual Auditor-General’s reports.

More importantly, the practice of good and clean governance in Penang has helped us become the top foreign direct investment (FDI) state in Malaysia for the period of 2010 to August 2013, with investments amounting to RM19.7 billion or nearly 20% of Malaysia’s total FDI of RM103 billion. Thus, we have demonstrated that good and clean governance can not only help us save money, but also secure the confidence of investors.

As we move forward, the government is upgrading from a budget-based administration that plugs leakages and cuts waste or inefficiencies to an outcome-based administration which stresses on positive impact and difference to the stakeholders that generates economic growth (pro-growth), creates employment opportunities (pro-jobs) and foster equitable justice (pro-poor).

Penang believes that economic growth alone is not enough if income inequality is not reduced through equitable distribution of wealth. 40 years after Arthur Okun’s book of “Equality and Efficiency:The Big Tradeoff”,International Monetary Fund’s economists have concluded that reducing inequality accelerates not reduces economic growth not in occasional spurts but sustained growth.

Hence, Penang is not only the first state in Malaysian history to wipe out corruption but also the first state to wipe out poverty. Adopting the unconditional cash transfer or UCT model of topping up all families whose monthly household incomes are below the poverty line of RM790 per month, Penang has managed to free itself from absolute poverty. Now, we are focusing on reducing relative poverty through cash aid and providing affordable home ownership by building 20,000 affordable housing units throughout the state in addition to another 20,000 units more from the private sector supply.

Penang has relied on the twin economic engines tourism whether medical, education or recreation in nature and manufacturing in electrical and electronic sectors, automation, medical devices and aerospace. However, the key to future economic success is not an over-reliance on one sector but to seek convergence of not only the manufacturing sector but also both the services and government sector.

Penang is investing in the shared services sector through a RM 3.3 billion Business Process Outsourcing and Information Technology Outsourcing(BPO-ITO) hub that will see the creation of tens of thousands of high-paying and knowledge-intensive jobs. Already, global financial services firm Citibank has opened their Global Citigroup Transaction Services centre here, employing more than 1,000 local employees with an annual volume of 20 million transactions worth USD5.8 trillion.

In addition to Citigroup, other companies that have set up their shared services here include Wilmar, Air Asia, HIS, Atmel, Toll Forwarding and Jurong Shipyard. In total, the IT-BPO Hub will comprise of 74 acres of IT-BPO Park in Bayan Lepas, a planned development of 7 acres BPO Prime in Bayan Baru for ICT companies and a 100,000 sqft Creation Animation Triggers (CAT) in the George Town heritage enclave.

In pursuit of our goal to become an international and intelligent city, we have taken the important steps of institutionalising the fundamentals of rule of law, good and clean governance, as well as integrity in leadership. Following on from that, we have established outcome-based administration that focuses on creating a rising tide that lifts all boats.

While these initiatives have strengthened our financial position and built resilience, we have also taken steps to ensure we stay ahead of the game in manufacturing and services, in order to ensure Penang is best prepared in the eventuality of an economic tidal change.

Education is our lifeboat to the future. Not only can it reduce inequality, it can provide mobility and opportunity to all. Only a sound education foundation can provide ladders of opportunity and escalators to mobility. Penang state government is adopting a 3-prong approach towards strengthening our education system:-
•Giving annual funding to existing half-funded vernacular and religious schools;
•Building Learning centers that focus of STEM teaching of science, technology, English and Mathematics; and
•Attracting world class universities as well as adopting the German vocational school system within multi-national corporations.
These are huge challenges and success is yet uncertain. But we must be willing to try and invest in education. For only when we boldly invest in the future then can we win the future.

For this reason, it is important not to rest on our laurels. Therefore, lectures such as this one today are important as the insight from an insider such as Professor Nishimura will undoubtedly prove to be invaluable to all of us, whether as government, corporations or individuals in Penang and Malaysia.

Thank you.

-- CN Version --
















除了花旗集团,其他来到槟城设立资源共享服务的公司,还包括了丰益国际、亚航、HIS, Atmel, Toll Forwarding 以及 Jurong Shipyard。槟城资讯工艺商务流程外包中心将分为三个部分,即于占地74英亩地 的峇六拜 IT-BPO、峇央峇鲁BPO Prime(占地7英亩), 及乔治市古迹区10万平方尺的创意动画区(CAT)




. 制度化拨款予半津贴和宗教学校;





Ground-breaking Artsy Sketches by Kim Jung Gi with 100 artists

Posted in Dari Meja Ketua Menteri

Speech By The Right Honourable YAB Lim Guan Eng15 March 2014
Event: Ground-breaking Artsy Sketches by Kim Jung Gi with 100 artists

Warmest greetings, everyone! First of all, I would like to thank The One Academy Penang for this invitation to this memorable event. It is a pleasure to welcome all of you on behalf of the Penang Government.
We are delighted and honoured to have this opportunity to welcome back the return of Mr. Kim Jung Gi to Penang and for his second visit our Penang Island
Today, I am very glad that I can witness his talents live here at Gurney Plaza. The 1st record created by Mr. Kim with The One Academy Penang students artwork sketch is 130 feet long and width of 2.5 feet.  Titled “I.Penang” “爱。槟城”, which took them about 3 hours to complete. It’s amazing to witness our local young talents collaborating with a world renowned artist. 
And I witness the signing of Memorandum of Understanding (MOU) between The One Academy Penang & Mr. Kim Jung Gi as the formation of partnership in publishing the first scenery sketch book by Mr. Kim showcasing Penang Island as the theme of the book.
As we all know, Georgetown is a famous World Heritage Site in the country. We have a vibrant showcase of street art and mural paintings. Now that Mr. Kim is here in Penang, he will also help to generate the beauty of our rich culture & history into his next sketch collections. I believe that Penang’s attractive tourism spots will flourish with his great imagination in his next masterpiece.
The One Academy Penang is recognized by professional industries and is highly recommended by prominent industry players. Students from The One Academy have a great opportunity to meet and learn from world’s best and local animators from master classes and talk series hosted by this famous institute.
Within a short duration of 4 years, The One Academy Penang has successfully recruited over 500 students and graduates can easily transfer into their partners’ degree programmes overseas including UK, the USA, Australia, New Zealand and China. With this, I am confident that we would see The One Academy Penang graduates all over the world in the years to come.
Last but not least, I wish each one of you a very fruitful and productive day ahead of learning and communicating with Mr. Kim. And of course, we look forward to The One Academy Penang to organize more such events in Penang. Thank you.

Penang's Promise

Posted in Dari Meja Ketua Menteri

Briefing by the Rt. Hon. Lim Guan Eng, Chief Minister of Penang on "Penang's Promise of an International and Intelligent City", at E&O Hotel on 13rd March 2014

Thank you for inviting me to this briefing. I am glad that the MDBC has once again taken the proactive steps to work with the state government to have this briefing at the most happening state in Malaysia.

Being one of the top three tourist destinations in Malaysia, Penang is also among the top foreign direct investment (FDI) state in Malaysia for the period of 2010 to August 2013 amounting to RM19.7 billion or nearly 20% of Malaysia’s total FDI of RM103 billion.

Livability of a city determines the success of attracting talents into the state. ECA International selected Penang as the most livable city in Malaysia. Penang is not only the national champion but also the world champion when Lonely Planet listed Penang as the No.1 food destination of the world.  Penang as an international and intelligent city is leveraged on building a liveable city that attracts human talent and formulates people-centric policies that upgrades Penang to a developed, sustainable and inclusive economy without poverty. Naturally this is focused on three key areas of growing the economy that is inclusive, establishing centres of excellence in our core competencies and improving liveability.
Penang has been able to not only foster a supply chain ecosystem of high-quality and efficient supply services but also embed ourselves in the global production network. With the foundation of the advanced manufacturing clusters, the Government aims to restore economic dynamism to Penang. We promote innovation in science and technology. The state, known as the Silicon Valley of Malaysia for being the dynamic and advanced manufacturing cluster with manufacturing making up 48 per cent of the state’s GDP. To sustain growth, Penang is now also attracting high growth E&E sectors of medical devices and aerospace to set-up production base.

In reviewing our past successes, Malaysia and Penang’s economy has shifted from extraction in the 1960s to industrialisation, from the export of raw commodities to manufacturing. In other words, Penang’s economy was factor-driven by relying on basic commodities before being efficiency-driven by relying on manufacturing. To win the future, Penang needs to be not only efficiency-driven but also innovation-driven in manufacturing, services and even the public sector.

 The key to future economic success is not an over-reliance on one sector but to seek convergence of not only the manufacturing sector but also both the services and government sector. Services sector includes not only tourism, medical treatment and education but shared services, IT and BPO such as finance, accounting and data processing.

 In seeking convergence, the government plays an important role as an enabler between manufacturing and services sector. Government must also invest and innovate. The government must invest in infrastructure, people, incentives and subsidies. The government must also innovate with new policies that stresses on:-

•        liberalisation of the existing rules and to reduce red-tape,
•        divestment from non-core businesses or accept that the “business of government is to stay out of business”,
•        permit free and fair competition; and
•        encourage human capital formation where human talent is now the new oil of the global economy.

 In seeking convergence, what we need to do is to ensure a partnership of equals between the 3 sectors of manufacturing, services and government. In other words, a partnership with capital, labour, innovators with the government as an enabler. Penang’s future prosperity depends on whether we can achieve convergence and thus our manufacturing, services and government sectors can be both efficiency-driven and innovation-driven.

 In addition to the array of manufacturing and industrial jobs, services are an even bigger creator of wide ranging employment through an extensive range of office functions in the IT-BPO services. This hub will help corporations in the state to take advantage of a globally accepted business and operating model, which allows business to focus on core competencies.

 Developing the state’s talented young people to move up the value chain is also a priority of the State Government, including the key area of ICT. We shall at the same time encourage infrastructure development, especially in education by attracting world-class educational institutions not just at the university-level but also vocational level, and thus generate employment opportunities for our youths.

 We are helping to build the capacity of the state as it moves toward a knowledge economy by maximizing local content, adding value through integrated industrial parks, and promoting economic diversification and entrepreneurship. In light of the demographic realities, this comprehensive framework offers a winning formula to create high-paying jobs.

 Importance of Outsourcing To Economy and Employment

Globally, the outsourcing market is worth US$ 458 billion, and is expected to grow at Compounded Annual Growth Rate (CAGR) of 6.4%; it is projected to reach US$ 625 billion by 2017. Banking, financial services and insurance, telecom and manufacturing are the major contributors to the outsourcing industry; Information Technology Outsourcing (ITO) (63%) and Business Process Outsourcing (BPO) (33%) are the main contribution to the total outsourcing market.

 Malaysia, together with India and China, have been on the top three positions in the AT Kearney’s annual Global Services Location Index (GSLI) since 2003. Penang was picked by KPMG Exploring Global Frontiers Report on the New Emerging Destinations in 2009 as one of the 31 emerging cities for IT-BPO operations.

 The fastest growing sector in the BPO industry in Malaysia is in banking, financial services and insurance with 30% of the market share followed by manufacturing (27%), Oil and Gas (22%), and others such as retail, logistics, government and telecom. (Source : Value Note Research 2013).  The outsourcing sector in Malaysia is expected to expand at an average rate of 15% in next three years in terms of revenue.

 BPO services include customer operations, data processing, back office administration, accounting, technical support, transcription, software development, IT consultancy and disaster recovery services. I am informed that the outsourcing industry has created about 50,000 new jobs as at June 2013. MDeC targets the creation of at least 85,000 jobs by 2017 for Malaysia.

 Penang received numerous Shared Service Organisation(SSO) investments made in the past two years from giants such as Citigroup, the USD 17 billion food-edible giant Wilmar, the world’s largest solar company First Solar and Air Asia. Citigroup employs more than 1,000 local employees to run their largest regional trade and cash processing centre for the transaction services business with an annual volume of 20 million transactions worth USD 5.8 trillion!

 In addition, there is continuous expansion of existing SSO companies such as IHS, Atmel, Toll Forwarding and Jurong Shipyard. Invariably nearly 100% of the highly-paid workforce are Malaysians. Currently, this sector is employing over 7,000 persons in Penang. SSO can easily be expanded to IT-BPO. These unexpected successes have caused Penang to run out of Grade A office space. That is why this IT-BPO Hub is so important for Penang and Malaysia.
Multi-National corporations or MNCs in Penang do not merely manufacture world renowned products, they are also operating global SSO centres such as Intel, AMD, Jabil, Dell, Motorola, National Instruments, B. Braun, Mattel, Agilent Technologies, Seagate and many more. There is growing knowledge-intensity production in innovation-intensive areas and growing interest in the service sector in the industrial clusters. Penang State Government has identified the potential of IT-BPO and will provide special support as an effort to upgrade the economy.

The RM3.3 Billion IT-BPO Hub Comprises 3 Components

This RM3.3 Billion IT-BPO Hub is directed towards diversifying the state’s economy and enable the growth of a viable employment sector. The IT-BPO Hub comprises 3 components of 74 acres of IT-BPO Park in Bayan Lepas; a planned development of 7 acres BPO Prime in Bayan Baru; and a 100,000 square feet Creative Animation Triggers(CAT) in the George Town heritage enclave.

The Penang State Government is targeting the build-out of approximately 2.4 million square feet of high-grade office towers with integrated development of services apartments/SOHO, ancillary commercial with class ‘A’ amenities and facilities space. For the first time in Malaysia, a World Top 100 university will also be sited here.

 The Creative Multimedia industry is making its mark as one of the most sought-after industries in the world, with prospects ranging from post production, visual / special effect studio, publishing, animation, computer games, interactive content, mobile content, applications, and also interactive media. In another words, the Creative Multimedia industry acts as glue that bonds technology and arts together in harmony.

 Penang has the potential to become an animation cluster for Malaysia in the future. Here in Penang we have universities, colleges and academies that train creative multimedia talents. Our talents are also very deep in creativity in areas such as arts, 2D and 3D animation and animation touches, not just illustration and artistry.
 To incubate this emerging knowledge cluster, the George Town Heritage Enclave has been identified as the centre of creative multimedia development with a totaol of 100,000 sq feet office space known as Creative Animation Triggers (CAT). The Penang State Government intends to rent the renowned Yeap Chor Ee heritage building as well as dedicating a land area of 723 sq.m within the George Town World Heritage enclave to develop the Creative Animation Triggers (CAT).

 30,000 New High-Paying Jobs.

The RM 3.3 billion IT-BPO Hub brings a unique business model to Penang by leveraging on our manufacturing strengths, and is set to become a rich training ground for building new capabilities, skills and careers. The IT- BPO hub project will be a veritable economic change-maker that can generate up to 30,000 high paying, knowledge-intensive and high-value jobs for Malaysians. As the IT-BPO requires basically talented Malaysians and nearly no foreign workers, we need to develop and grow the services sector to make this a success.

Penang has recorded impressive growth in tourism with our promotion of George Town as a UNESCO World Heritage Site,the organization of various Festivals in music, arts and culture and the creation of a Bohemian art district within the heritage enclave with wall paintings and steel sculptures. Penang International Airport recorded a 15% increase with 5.5 million arrivals in 2013 compared to 4.8 million in 2012. Penang recorded the top three tourist arrival and receipts with RM8.58 billion in 2012.

Medical Tourism: Medical tourism is becoming more common in Malaysia, especially Penang to become a Medical City Penang. Malaysia is ranked fifth in the world for medical tourism destination in terms of reasonable cost with high quality medical services. Penang has seen a steady growth of 15 per cent . We are proud to see Penang contributing two-third of the RM250 million from medical tourism nationwide.
Making Penang cleaner, greener, safer and healthier will be crucial towards realizing our vision is to transform Penang into an international and intelligent city. To ensure that our economies are dynamic, resilient and capable of adapting to the volatile global environment, we must also be mindful of the need for solid fundamentals especially good governance, integrity in leadership and rule of law. In Penang, by adopting CAT governance of competency, accountability and transparency, there is both stability and prosperity. Only then can Penang achieve the trinity of choice as the habitat of choice for residents, the destination of choice for tourists and the location of choice for investors in setting up business.

-- CN Version --

槟城州首席部长于2014年3月13日在伊恩奥酒店举行的“槟城的承诺 - 国际智慧型城市”汇报会的讲词部份重点翻译。





• 松绑原有的规则,减少官僚作业
• 舍弃非核心事业或必须承认“政府对经商需要做的事,就是别亲自经商”
• 免费参与及公平竞争
• 鼓励增加人力资本,如今人才已经成全球经济的“新石油”





马来西亚与印度及中国,从2003年开始,一直都被列为AT  Kearney的全球服务位置指数(GSLI)前三名。槟城在2009年毕马威的“探讨全球崛起之前线城市年度报告”中,被遴选为31个外包中心(Outsourcing hubs)之一。

马来西亚增长最快的业务流程外包行业是银行、金融服务及保险,占30%,其余的包括制造业(27%)、石油及天然气(22%) ,以及其它包括零售、物流、政府及电讯。外包领域在收入方面估计将在未来三年内平均扩展15%。


过去两年,多个顶尖企业到来槟进行共享服务及外包模式(SSO)。顶尖大企业还包括亚洲航空将其资讯科技、采购及人力资源共享中心从曼谷迁移到槟城。营业额450亿美元的全球食品业巨人丰益国际也在槟城设立资源共享服务中心、世界最大的太阳能公司First Solar及亚航。花旗集团也刚在槟城设立他们最新的金融服务外包公司,聘请了超过1000名本地员工作为营运每年2000万笔交易量,共5.8兆美元交易额的最大区域贸易及现金交易中心!
开拓共享服务及外包模式的公司还包括IHS, Atmel, Toll Forwarding 及Jurong Shipyard。近乎100%高薪职员是马来西亚人。最近,这个领域在槟城聘请了近7000名员工。服务共享组织可以轻易地扩展成为IT-BPO。我没有预料到槟城的商业服务领域反映热烈,导致A级办公室缺乏。因为这个IT-BPO中心对槟城和马来西亚如此重要。

槟城的跨国企业不再只是生产世界级的产品,它们也在进行世界级的共享服务及外包中心比如 : Intel, AMD, Jabil, Dell, Motorola, National Instruments, B. Braun, Mattel, Agilent Technologies, Seagate 等等。在创新领域内,越来越多知识密集的产品,工业区内,越来多服务领域的需要。槟城政府已经鉴定IT-BPO的潜能,并将继续提供特别辅助,以提升经济。


这个33亿令吉的IT-BPO中心将促进槟州经济多元化并增加就业机会。这个中心包含三个部分,即峇六拜74英亩的IT-BPO;峇央峇鲁7英亩的BPO Prime, 以及乔治市古迹区10万平方尺的创意动画区(CAT)



槟城有潜能成为马来西亚另一个动画区。我们有大学、学院及学术机构来栽培创意动画的人才。我们的人才不只在图画及艺技方面有创意,在艺术、2D及3D动画 、animation touches方面也创意无限。