Penang's Promise of an International and Intelligent City

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

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。








Posted in Dari Meja Ketua Menteri

Press Statement by Chairman of PBAPP, YAB Lim Guan Eng
in Komtar, George Town, Penang on 20/2/2014


From the information provided by the management of Penang Water Supply Corporation (PBAPP), the Penang State Government informs Penang consumers that PBAPP is ready to face the dry weather. Every year we ensure that the water levels in the dams are at the maximum level at beginning of January. In fact, the dry spell is not an unusual phenomenon as it is an annual occurrence and expects the dry weather to last until April when the inter-monsoon season starts.

The water level at the Air Itam Dam is at 71% capacity and sufficient for 70 days of supply, Mengkuang Dam is at 50.5% capacity and sufficient for 84 days of supply while Teluk Bahang Dam is at 91% capacity which is sufficient for 277 days of supply. There is no need for water rationing now.

Of the three (3) dams, only Air Itam Dam is dropping fast and PBAPP is doing all it can to maintain the reserve capacity to last for another 90 days by bringing in more water from Seberang Perai. However, it cautions the consumers to not waste water for washing cars and gardening or hosing of the house gardens. If no rain falls in the catchment area within 30 days, Air Itam Dam level will reach 40% capacity which will only last for another 43 days. At this critical stage, PBAPP will impose water rationing in the Penang Island to cater for the daily basic needs of the consumers.

Penang consumers are advised to be careful and not to waste water. To avoid water wastage, the PBAPP has imposed a Water Conservation Surcharge (WCS) to penalize consumers who waste water. Unfortunately, Penang records the highest water consumption in the country for 2013 at 299 liters per person per day as compared to the national average of 215.






在这三个水坝当中,只有亚依淡水坝的水位面对急速下降的问题。目前,槟州供水机构正竭尽全力,从威省引进水源,以保持未来90天的储水能力。然而,我们谨此告诫消费者,莫把水源浪费在洗车或以水管在庭院浇花。若在30天内,聚水区尚没有下雨的话,亚依淡水坝的水位将会达到仅有 40%容量,也即是只能够支撑接下来43 天的用水量。到了这关键时刻,槟州供水机构将会在槟岛实施制水,以应付消费者的日常基本需求。

槟州所有消费者受促莫浪费珍贵的水源。为了避免任何的水资源浪费,槟州供水机构经已实施了水源附加费(WCS),以惩罚那些浪费水源的用户。很遗憾的是,槟城依然在2013年,创下全国用水量最高的记录,每日人均用水量高达299 公升,而全国的人均用水量仅为215公升。



Posted in Dari Meja Ketua Menteri

PADA 16 JANUARI 2014 10 AM

Terlebih dahulu saya ingin mengucapkan syabas dan setinggi- tinggi penghargaan kepada jawatankuasa pengelola majlis, Saudara Tan Khai Chong yang bertungkus- lumus untuk memastikan program bantuan sekolah kepada pelajar miskin pada pagi ini dapat dijalankan dengan jayanya.

Bagi pihak Kerajaan Negeri Pakatan Rakyat Pulau Pinang, suka untuk saya mengalu- alukan kehadiran semua ibu- bapa dan pelajar yang hadir pada pagi. Diharap dengan sumbangan yang tidak seberapa ini sedikit sebanyak dapat meringankan beban yang terpaksa ditanggung.

Sebagai sebuah kerajaan yang berjiwa rakyat, barisan kepimpinan Kerajaan Negeri Pakatan Rakyat Pulau Pinang sedaya-upaya untuk membantu rakyat yang memerlukan selagi kami masih berdiri di hadapan tuan- tuan dan puan- puan.

Kerajaan Negeri tidak pernah mengamalkan diskriminasi dari aspek agama, bangsa, jantina dan fahaman politik. Kita bertindak adil dan bantu semua seperti Program Penghargaan Warga Emas, Ibu Tunggal, Orang Kurang Upaya (OKU), Program Anak Emas, Mahasiswa IPTA dan Pelajar Emas Pulau Pinang yang diberikan setiap tahun dan bukannya 5 tahun sekali.

Seramai 550 pelajar yang terdiri daripada pelajar-pelajar sekolah rendah dan sekolah menengah di Parlimen Bagan di bawah peruntukan saya untuk kawasan diraikan pada hari ini.
Di kesempatan ini, saya juga ingin mengucapkan terima kasih kepada Datuk Eadon Ching yang telah menyumbangkan RM20,000 untuk majlis pada hari ini ditambah dengan RM35, 000 di bawah peruntukan saya menjadikan jumlah keseluruhan untuk sumbangan bantuan pelajar miskin adalah sebanyak RM55, 000. Setiap pelajar akan menerima RM100.

22 buah sekolah terlibat termasuk 17 buah sekolah rendah dan 5 buah sekolah menengah. Senarai sekolah seperti berikut:-
Sekolah Rendah:
1)   SK Bagan Tuan Kechil
2)   SK Mak Mandin
3)   SK Bagan Jermal
4)   SJK ( C ) Chung Hwa Pusat
5)   SJK ( C ) Chung Hwa 1
6)   SJK ( C ) Kwang Hwa
7)   SJK ( C ) Mak Mandin
8)   SJK ( T ) Mak Mandin
9)   SK Sungai Nyior
10) SK Convent
11) SJK ( C ) Chung Hwa 2
12) SK St. Mark
13) SK Kuala Perai
14) SK Assumption
15) SK Sungai Puyu
16) SJK ( C ) Li Hwa
17) SK Bagan Ajam

Sekolah Menengah:
1)   SMK Mak Mandin
2)   SMK Bagan Jaya
3)   SMJK Chung Ling Butterworth
4)   SMK Kampung Kastam
5)   SMK Convent
Wang yang diperolehi 100% dari sumber yang halal. Saya yakin bahawa selagi Kerajaan Negeri terus berpegang kepada prinsip perbelanjaan berhemah dan berjimat cermat dalam menguruskan wang awam serta melaksanakan urus tadbir cemerlang berdasarkan CAT (Cekap, Akauntabiliti & Telus), lebih banyak lagi inisiatif program-program kebajikan dan bantuan baru dapat disasarkan bagi memastikan kebajikan rakyat dijaga sepenuhnya agar tidak terpinggir dari arus pembangunan negeri ini.

Sumber kewangan program-program ini adalah datang daripada lebihan bajet setiap tahun dan kejayaan kerajaan PR menjalankan kempen anti-rasuah yang dipuji oleh Transparency International.

Akhir kata, selamat meneruskan pembelajaran kepada para pelajar sekalian. Gunakan bantuan yang tidak seberapa ini untuk tujuan yang berfaedah. Penguasaan pendidikan merupakan senjata utama memerangi kemiskinan. Terima kasih kepada Jabatan Pelajaran Negeri Pulau Pinang kerana sudi memberikan kerjasama untuk program ini.

Semoga tahun 2014 ini memberikan keazaman dan pemangkin semangat kepada semua pelajar untuk terus berjuang bagi mencapai kejayaan dalam pelajaran masing- masing.

Sekian, terima kasih.