SPEECH BY CHIEF MINISTER OF PENANG
AT THE KERRY LOGISTICS OPENING CEREMONY
4th JANUARY 2016
Good morning, everyone. I am pleased to be here today for the opening ceremony of Kerry Logistics Network development center in One Precinct, Penang. It’s an honor for Penang to welcome Asia’s premier logistics service provider to set up their Global Business Services (GBS) or formerly known SSO, centre here.
It felt as if it was just yesterday when I was here to welcome the opening of two prominent GBS companies in Penang which is Wilmar and Citigroup. It feels great to be back to see that the number of GBS companies has grown and it is a great pleasure to welcome Kerry Logistics on board.
KLN operates here are as a shared services center to provide IT Application Development & Maintenance for Global Logistics Supply Chain to Kerry Logistics Network Limited (KLN). KLN is a global conglomerate with annual turnover of USD 250 million and worldwide workforce of 20,000. The headcount for the Penang office is around 10 and it is expected to expand to cover 30 by 2016 and more than 50 by 2017.
Having Kerry on board Penang investment arena will help Penang to build competitive IT resources with global experience. Penang's availability of talent, energy and entrepreneurship will combine well with Kerry's experience and expertise. We are positive that Kerry can lead Penang towards the next wave of Internet on logistics supply chain for South East Asia by combining the IT and Data Technology with strong business and operation domain knowledge on global logistics supply chain.
Bayan Baru as a Hub for Penang Global Business Services
Kerry Logistics has made a right choice in choosing Penang. Penang is the first state in Malaysia after Cyberjaya, Selangor to be awarded the MSC Malaysia Cybercity status. Furthermore, Penang Development Corporation signed a RM1.3 billion joint venture agreement with Singapore-based Temasek and Economic Development Innovation Singapore (EDIS) for the development of a BPO Prime Project here in Bayan Baru. BPO Prime will help to fulfill the demand for Grade A office space and help make Penang a hub for Global Business Services.
GBS ecosystem in Penang
We are grateful for Kerry’s confidence towards Penang and its GBS scene. Kerry has chosen Penang because Penang is one of the sustainable fast growth state in Malaysia with world-class Forbes 500 companies. Penang GBS sector has achieved rapid growth over the years and Malaysia has consecutively been ranked the world's third GBS destination by global management consulting firm AT Kearney since 2004 after India and China.
In Penang, the cumulative investments for GBS companies with MSC status between 2009 and 2014 have reached RM4.073 billion. The GBS sector here is also providing more than 8,000 high income jobs to locals and serving both regional and global markets. The biggest is Citigroup which set up their global financial credit hub here. With a headcount of 1,400, 32 million transactions world-wide and a value of USD 7.2 trillion, Penang is capable of providing world-class service to international companies. And now we have Kerry Logistics in Penang. The numbers are expected to increase by 60 per cent in the next three years due to the high quality, good and clean governance in Penang. Remember we are the only government in Malaysia to be praised by Transparency International.
Ladies and Gentlemen,
In progressing towards an international and intelligent city, Penang builds it strength around its existing competencies. We need to attract the best international companies here and in Kerry Logistics, we have one of the best in the world. I wish Kerry Logistic every success.