Welcome Address By Penang Chief Minister Lim Guan Eng for SEMICON SEA 2015 Opening Ceremony On April 22 2015 at SPICE Arena.
It is a great pleasure to welcome all of you to SEMICON SEA 2015 here in SPICE Arena. It’s wonderful to be able to stand here today and to welcome all of you to Penang, dubbed the Silicon Valley of the East yet rich in the diversity of our heritage and culture.
Ladies and Gentlemen,
SEMICON Southeast Asia is the region's only trade and technology event that covers the entire microelectronics manufacturing ecosystem, from process materials and equipment to packaging, test, and assembly technologies. And for the first time, this prestigious event is held in Penang, Malaysia. This isn’t just a pat on our back; this is another milestone marked for us to continuously empower the semiconductor industry in Penang as well as in Malaysia, to greater heights.
40 years Industrial Ecosystem and Sound Economic Growth
Penang industrialization record of 40 years provides an outstanding combination of attributes that are the cornerstone of the thriving semiconductor industry in Malaysia. All the top names in the E&E industry are here and we have nearly 1,000 factories all over Penang.
FDI will continue to push Penang's economy ahead. Penang has received about 13% of Malaysia's total investment between 2008 and 2013. Within the same time span, Penang captures almost 15% of Malaysia's FDI. Investment statistics released by MIDA recently, showed that Penang has recorded a 109% increase in investments last year over 2013’s volume of RM3.91 billion to RM8.16 in 2014. Penang’s investment for 2008 to 2014 is RM 48.2 billion, a 93.6% increase over similar period from 2001 to 2007 of RM 24.9 billion. 62.5% of the total investment came from FDI. This proves that foreign direct investments have fueled Penang attractiveness a preferred investment location. Penang with its vibrant E&E ecosystem of over 3,000 well diversified and competent local suppliers. Thus, Penang now contributes about 8% of back end semiconductor output globally. With the increasing number of investments, both domestic and foreign, Penang has emerged as a state that has world class capabilities, robust supply chain, proven track
record and critical support services that help to provide shorter development cycles, steeper learning curves, reduced cost and time to market.
Penang towards Generating Higher Pool of Knowledge Workers
With 40 years of cumulative industrial intelligence, developing the state’s talented young people to move up the value chain has become a priority of the State Government. In Penang, there are over 40 public and private universities and colleges, in addition to the eight reputable international schools. We have set up learning and training centers, such as Penang Skills Development Centre - a world-class, non-profit training and educational centre built on a tripartite partnership model between the Government, Industry, and Academia as we believe it is important to nurture talents that caters specifically for the industrial and services sectors.
Penang is also successful in attracting talents from overseas. The Penang Career Assistance and Talent (CAT) Centre is assisting an international internship programme, in collaboration with universities in Japan, New Zealand, Germany and Switzerland. 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.
Ladies and Gentlemen,
Convergence of Manufacturing and Services Sector is the Key to Future Economic Success
Although we strive for excellence in the manufacturing sector, we do believe that the key to Penang’s future economic success is not through over-reliance on one sector but to seek convergence between manufacturing and services sectors as well as the government sector. This convergence that is taking place in Penang is making progress towards revolutionizing Penang’s intellectual capability towards a high income state.
Incorporating Desirable Work-Life Balance to Residents
No matter how much I have talked about the attractiveness of Penang investment-wise, Penang is the destination of choice because it is a great place to live.
With a UNESCO World Heritage site, the best street food in the world and a mere 10 minute drive from either the beaches or the hills, it is no wonder that the paper, Guardian UK has named Penang as the Top 10 “World’s Must Visit Destinations in 2014”.
If you need further convincing, please take the opportunity today to talk to those existing companies in Penang, they will be our best reference. We also have MIDA and investPenang booths in this exhibition where you can pay a visit and have your enquiries answered. If your time permits, I also recommend you to participate in investPenang’s arranged site visit to Batu Kawan Industrial Park and selected factories; so that you will be able to see for yourself Penang’s semiconductor ecosystem. investPenang’s officials will also be on standby for the next 3 days to meet you individually.
Penang offers our hand as a partner who will stand by you. We will not guarantee that there will be no problems but we assure you that we will help to resolve them together.
Thank you very much.
LIM GUAN ENG