AGREEMENT SIGNING CEREMONY FOR JICA PARTNERSHIP PROGRAMME

Posted in Dari Meja Ketua Menteri

SPEECH BY Y.A.B. TUAN LIM GUAN ENG,
CHIEF MINISTER OF PENANG
AGREEMENT SIGNING CEREMONY FOR JICA PARTNERSHIP PROGRAMME ON 18/3/2014

1. Thank you for joining us today to witness the agreement signing ceremony of the JICA Partnership Programme that will officially launch an international initiative to reduce non-revenue water, or NRW, in Malaysia.

2. As some of you are aware, NRW represents water loss in the water supply industry.  The reduction of NRW is important because less water loss means more water availability for consumers.  As such, the reduction of NRW is important to all of us because we always need to have enough water for use at home and at work in the future.

3. Specifically, NRW refers to water loss in the water supply process.  It is commonly calculated as the difference, in percentage, of treated water that is produced and supply that is actually billed to consumers.  For example: if a water supply operator produces 100 million liters of treated water from its treatment plant but bills consumers for only 80 million liters, the NRW would be 20%.

4. That 20% water loss may be caused by underground leaks, burst pipes, water theft or even water used for fire fighting.  Whatever the causes may be, NRW represents loss for a water supply operator.  More importantly, it also represents loss of water, a precious resource for daily life.
5. As such, NRW percentage is regarded worldwide as key performance indicator in the water supply industry.  To put it simply, a water supply operator with a low NRW percentage is generally regarded to be an efficient water supply operator.

6. In 2012, Perbadanan Bekalan Air Pulau Pinang Sdn Bhd, or PBAPP, recorded a NRW percentage of 17.6% for Penang, as compared to the national average of 36.4%, as reported in the Malaysia Water Industry Guide 2013.  In short, Penang’s NRW percentage was less than half of the national average.  It was, in fact, the lowest amongst all the states in Malaysia.

7. As Chairman of the PBAPP Board, I would also like to mention that since PBAPP was incorporated in 1999, Penang’s NRW percentage has consistently been the lowest in Malaysia.  In other words, for 14 consecutive years from 1999 to 2012, PBAPP has proved itself to be the most efficient water supply operator in Malaysia, in terms of NRW management.

8. Accordingly, on 21 November 2013, PBAPP received the inaugural “Water Supply Operator of the Year” and “Efficiency Award” from the Ministry of Energy, Green Technology and Water, or KeTTHA.  It is good to know that the Federal Government acknowledges our good results in water supply management in Penang.  That said, there is always room for further improvement.


9. This year, in 2014, we have been chosen by the Japan International Cooperation Agency, or JICA, to serve as the lead organisation for the implementation of the JICA Partnership Programme on “NRW (Non-Revenue Water) Reduction Technology Training and Capacity Building in Malaysia”. 

10. The aim of this project is for PBAPP to acquire the latest Japanese technology in NRW management to further reduce water loss in Penang.   Moreover, a team of PBAPP engineers and technicians will be trained to serve as NRW lecturers.  Once this team is ready, this PBAPP team will then provide NRW reduction training for other water supply operators throughout the country, with endorsement from KeTTHA.

12. The duration of the project is from 1 January 2014 – 30 November 2016.  Its key elements include:
 Development of a “training field” for leakage prevention and pipe laying training activities in Penang;
 Acquisition of relevant NRW management equipment;
 Drafting an operational manual for the usage of the field and the equipment;
 Technical workshops by visiting Japanese engineers in Penang;
 Technical training for selected PBAPP personnel in Japan;
 Specialised lecturer training for selected PBAPP engineers and technicians, including the preparation of training materials; and
 Workshops for KeTTHA and other water utilities at least once a year, as well as practical training for the staff of other water utilities by PBAPP trainers.
13. To facilitate this project, JICA will provide a partnership grant of RM1.6 million for expenses, while PBAPP will allocate the land for the “training field” and appoint a team of lecturer trainees.  PBAPP will also provide the training facilities at the Penang Water Services Academy (PWSA), an industry-specific academy established by the PBA Holdings Group in Penang.
 
14. JICA has appointed Tokyo Suido Services, or TSS, to work directly with PBAPP on this project.  For the record, TSS has helped Tokyo to achieve 3.3% NRW.  In this context, we welcome the challenge to work with these Japanese experts to further reduce water loss for Penang, as well as for other states throughout Malaysia.

15. On behalf of the PBAPP Board, I would like to thank JICA for making the right choice in selecting PBAPP and Penang to lead this project.  I thank TSS for agreeing to work with us, and I would also like to record my sincere appreciation to KeTTHA for its endorsement.  I can assure you that PBAPP, on its part, will provide its 100% commitment to realise the project objectives.

16. In closing, allow me to reiterate that the JICA Partnership Programme on “NRW (Non-Revenue Water) Reduction Technology Training and Capacity Building in Malaysia” is an international initiative for the benefit all water operators in Malaysia.  The groundwork begins in Penang and its benefits will be shared with all the other states.

17. With this in mind, I would like congratulate JICA, TSS and PBAPP for signing the agreement to facilitate this programme today.  The Penang State Government wishes you all the best in making it a success. 

 Thank You.


 

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.

Conclusion
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 --

槟州首席部长林冠英于2014年3月17日在槟城研究院主办的开放大学主题演讲上发表演讲,重点如下:

一个注重科学、科技、英文和数学(STEM)的良好的教育制度是我们迈向未来的救生艇。
经济不确定
首先,联邦政府已经开始逐步削减量化宽松,虽然它的步伐可能随着美国经济复苏而有所改变。而我们也知道,量化宽松货币政策是亚洲过去几年的重要因素,它允许额外的流动资金进入这个区域,问题是:当这些资本离开时会发生什么事情?肯定的,它也必定影响马来西亚。
我们已经看到削减购债规模的影响,我们的外国储备金也在减少,基本上就是说我们经历着资本外流,而疲弱的马币虽可见到出口的上升,但这也意味着入口商品的价格将会上升,进而导致通货膨胀。这种时候,中低收入家庭的生活成本上涨问题将会扩大。另一个伴随通膨而来的风险是利息上调,对我们原有的高额家庭负债可能形成额外的负担,目前它占国内生产总值83%。
其二,中国经济在进行“再平衡”。随着经济成长放缓,它的影响力是很严重的,尤其当中国是马来西亚最大的贸易伙伴国。还有,业界也重估中国需求的潜能,特别中国上海超日太阳能科技股份有限公司债务违约,成为中国国内首宗债务违约。
其三,根据国际清算银行(BIS),全球债务已经从2007年中的70兆美元,上升30兆美元或40%至2013年中的100兆美元。这是因为政府在危机中压低利息及大量借贷,以刺激成长脱离经济衰退。私人公司已经乘低利息时大量借贷用于股票回购。债务上升让这些国家的金融安全受威胁,特别当利息开始上升。
与我们有关的问题是,这三个不确定性如何影响槟城?

为槟城未来做准备

如较早前所说,外来的震荡将严重影响马来西亚及槟城,因为我们的经济仍然极大的依赖出口导向的制造业。然而,任何人要预测金融市场是不可能的,最重要的是记住这两点:

1.水涨船高,涨潮的时候船自高

2.但只有退潮时你才看得到是谁在裸泳。

作为负责任的槟州政府,我们相信要做好万全准备。一旦潮起潮落变换之际,我们不想被人看到在没有准备之下裸泳,相反是要让我们的同侪们穿着最好的装备迎战。我说着的就是强化我们的金融地位。

自2008年执政,槟城州政府开始预算型管理,以能干、公信、透明的方针施政。透过在各公共设施实行公开竞标、要求州内民选代表必须向公众公布财产、公开政府与私人界签署的合约,让能干、公信、透明成为我们的核心价值。


槟城有能力在不涨任何税务之下,每年为预算制造盈余,让我们州资产增加50%,从8亿令吉增至12亿令吉,而且,只用了1年时间成功营救威省市政局免于破产,最重要的是把州债务减少95%。这些成就都得到了国际透明组织及国家稽查报告的赞许。

更重要的是,槟城的良好及廉洁施政协助我们在2010年至2013年8月成为全国外资最高的州属,共获得197亿令吉,占了马来西亚1030亿令吉外资的20%。因此,我们所标榜的良好及廉洁政府不只为我们省钱,但是也为投资者带来信心。

在我们前进之际,州政府已经从修补疏漏、减少浪费的预算型管理,提升到成果型管理,为槟城各造带来不同于之前正面影响,那就是“三有政策”:制造经济成长(有成长)、制造就业机会(有工作)及提倡社会平等正义(有济贫)。

槟州相信,若财富无法获得公平的分配,即便经济成长再强劲也于事无补。在美国著名经济学家阿瑟•奥肯出版《平等与效率——重大抉择》的40年后,国际货币基金组织内的经济学家做出总结,即减少财富分配不均,将能让一国的经济永续成长。

职是之故,槟州不仅是全马第一个消除贪腐的州属,同时也是第一个消除贫穷的州属。在槟州,任何家庭收入低于贫穷线即每月790令吉以下者,将能自动获得补贴,以便可以脱离贫穷。现在,我们进一步把重点放在解决相对贫穷的群体上,方法包括提供援助金、提供2万间可负担房屋,外加私人界的2万间等。

槟州一向依赖双经济引擎,其一为旅游业,涵盖医疗、教育或自然休闲类旅游;其二是制造业,包括电子与电气、自动化、医疗器材以及航太领域。但,我们的未来不能过度侧重单一领域,反之,应寻求突破与整合,把触角伸到制造业上以外的服务及政府领域上。

槟州透过投资33亿令吉的“槟城资讯工艺商务流程外包中心”建设资源共享服务中心,将能创造出上万个高收入以及知识密集型的工作机会。目前,花旗银行也已经来到槟城开设他们全球性的交易服务中心,并聘请了超过1千名的在地员工。这平台每年处理2千万宗交易,相等于5.8兆美元。

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)


结论
为实现成为一个国际智慧型城市的目标,我们采取了重要步骤,让我们的法治丶良好廉政,及廉洁领袖成为我们的基础制度。随后,我们制定成果型管理,专注于制造能撑起全部船只的涨潮。

虽然以上措施已加强了我们的财务状况并具有弹性,但为了确保槟州在应对经济潮汐变化上充分准备,我们也采取步骤确保制造业和服务业继续领先。

教育是我们未来救生艇。良好的教育基础不仅能够减少不平等,同时它可以提供社会流动及机会。

槟州正采取3项步骤,三管齐下来加强我们的教育体系:-
. 制度化拨款予半津贴和宗教学校;
.建立学习中心,专注在科技和英数STEM教学上;
.吸引世界顶尖大学,其中通过跨国企业采纳德国职业学校系统。

这些都是巨大的挑战,成功与否尚不确定。在教育领域上,我们必须愿意尝试和敢于投资。因为,只有当我们大胆地勇于投资未来,我们才能赢得未来。

因此,我们不能再固步自封。无论对于槟州或联邦政府丶企业和个人领域,今日的演讲非常重要,就如Nishimura教授深入的专研,无疑地向我们证明这是无价的。

谢谢。


 

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.
CLOSING
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。

要实现国际智慧型城市的承诺,槟城就得更清洁、绿化、安全及健康,而这些都得建立在法治、良政及廉洁领导的基础上。

槟城不只是大马国内首三名最多游客游览的地点,也是外资投资额名列前茅的州属,2010年至2013年8月槟城共获得了197亿令吉的外资,或是占了大马总投资额1030亿令吉的20%。

惟有宜居才能成功吸引人才来槟城,因此ECA国际才选择槟城为全马最宜居的城市,《孤独星球》把槟城选为全世界第一的美食景点。只有宜居才能吸引人才集中在槟城,才能成为国际智慧型城市。

未来经济成功的关键不可以过度依赖一项领域,而是必须汇聚制造业、服务业及政府领域。服务领域不只是包括旅游、医药诊疗及教育,同时还包括商业共享服务、资讯科技服务及商业业务外包服务,例如金融、会计及数据处理。

为了成功汇流各产业领域,政府作为制造业与服务业之间的率先启动者扮演着重要的角色,因此政府也必须投资及创新。政府必须投资在硬体设施、人才、奖励与津贴;同时政府必须在政策模式上创新:
• 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”

我们需要的是制造业、服务业与政府之间的平等合作。换句话说,就是资金、人力、创新与作为率先启动者的政府合作无间。槟城的未来的繁荣将系于制造业、服务业及政府领域的有效汇流,能并驾齐驱地兼顾效率导向及创新导向。

在制造业及工业所提供的就业机会,服务业也是另一个就业机会来源,在IT-BPO的服务里将需要大量的办公室作业。这个中心将会协助州内的企业利用全球都接受的商业及业务模式,好让商业可以专注发挥所长。
 
我们栽培州内有才华的年轻人,带领他们往高价值工作前进包括资讯工艺,这也是州政府的首要工作。同时我们鼓励基础建设,特别是在教育方面吸引世界级的教育机构,不只是大学机构也有技职教育机构,也为我们的年轻一代创造就业机会。

我们要帮忙提升本州迈向知识经济,丰富本土产品的内涵,借整合工业园区提升附加价值、推动经济多元化及提倡创业。从人口的现实考量,这种完善的框架让能创造高薪工作。
 
外包对经济及就业机会的重要性

全球外包市场价值为4580亿美元,预料其复合年增长率(CAGR)为6.4%,到了2017年将达6250亿美元。银行、金融服务及保险、电讯及制造业都是外包业的需求所在。资讯工艺外包(63%)及业务流程外包(33%)占据外包市场的大宗。

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%。

业务流程包括客户作业、数据处理、后台管理、会计、技术支援、翻译、软件发展、资讯顾问、灾难复原服务。截至2013年6月,外包工业已经创造了5万个新工作。马来西亚多媒体发展机构(MDec)也估计到了2017年将有8万5000个就业机会。

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。


33亿令吉的IT-BPO包含三个部分

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)

槟城政府要兴建240万平方尺的高级办公大楼的综合发展,包括服务性公寓、拥有A级设备商业空间。世界顶尖100所大学也会兴建于此。

创意多媒体工业是全世界最受青睐的行业,其前景包括前期制作、影像及特效、播映、动画、电子游戏、互动内容、手机内容、程式及互动媒体。换句话说,创意多媒体工业将让科技及艺术和谐地结合。

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。

为了孕育这个崛起的知识领域,乔治市古迹已经被列为创意多媒体中心,其中10万平方尺的办公空间将被列为创意动画区(CAT)。槟州政府也有意租下著名的叶祖意古迹大楼以及分配乔治市古迹区广场的723平方尺的地段,作为创意动画区发展用途。

3万个高薪职位

耗资33亿令吉的IT-BOP中心善用我们在制造业的优势,为槟城带来独特的生意模式,并且成为新的才能、技术及事业的培训基地。IT-BPO中心将成为经济改变的促进器,为大马创造3万个高薪、知识密集及具附加价值的工作职位。由于IT-BPO要的是有才华的马来西亚人,而不是外国劳工。我们需要发展及培育服务领域。

槟城大力推广已经成为联合国教科文组织世界文化遗产的乔治市,在旅游业方面创造了让人印象深刻的记录。槟城不断地主办各种音乐、艺术及文化庆典,同时在古迹区内成功塑造了富有波希米亚艺术气息的壁画及铁线雕塑区域。槟城国际机场在2013年的访客人数达到了550万人,比2012年的480万人上升了15%。同时槟城在2012年成为国内名列前三最多游客到访的地点,共创造了85亿8000万令吉的收入。

医药保健旅游,医药保健旅游已经在大马非常普遍,尤其是槟城俨然是医药保健之都。马来西亚在世界医药保健旅游在全世界名列第5名,提供了价廉却高质量的医药服务。槟城在保健旅游方面稳健成长15%,我们很骄傲地看到全国2亿5000万令吉的医药保健旅游市场,槟城占据了3份之2的市场份额。


结语:让槟城更清洁、更绿化、更安全及更健康,是槟城成为国际智慧型城市刻不容缓的事。为了确保这点,我们的经济必须充满动力、弹性及能适应多变的全球环境。同时我们也得时时记住要拥有坚若磐石的良政、廉洁领导及法治作为基础。在槟城,秉着能干、公信、透明的施政方针,让我们达到安定繁荣。唯有这样,槟城才能成为三位一体的首选之地,那就是居者首选的宜居地、游客首选的旅游胜地及投资者首选的生意地