Speech by Lim Guan Eng at PKR fund raising dinner “The Development And Economic Future Of Penang” on Monday, 10^th May 2010 at 8.30 pm: 

Penang’s focus on Penang’s human resources to propel Penang forward as an international city, high-income & knowledge economy with a GDP of RM 45 billion and per capita income of RM50,000 by 2020 

Penang’s Focus On Penang’s Human Resources To Propel Penang Forward As An International City, High-Income & Knowledge Economy With A GDP Of RM 45 Billion And Per Capita Income Of RM50,000 By 2020.

Penang’s focus on Penang’s human resources to propel Penang forward as an international city, high-income & knowledge economy with a GDP of RM 45 billion and per capita income of RM50,000 by 2020. Penang GDP has grown from approximately RM1.3 billion in 1970 to RM45 billion by 2020 and this increase is largely due to the expanding manufacturing sector that now accounts for 39% of Penang’s economy, with the services sector 57%. Penang’s contributes nearly 25% to Malaysia’s imports and exports both in value and volume. From March 2008 when the PR took power till February 2010, Penang has attracted investments of RM9 Billion.

For 2010, the state government has set a target of RM4.2 billion in both local and foreign investments into Penang, double that of last year’s RM 2.1 billion. Amongst quality companies attracted to Penang recently includes Honeywell Aerospace Avionics Malaysia, Ibiden Electronics Sdn. Bhd. and National Instruments, with its R&D Operations facility in Penang. Recently, B Braun spent 100 million euro for its research facilities together with Osram’s opening of Asia’s first wafer fabrication plant for LED lighting.

Our challenge today is to maintain Penang’s competitive edge by converting into a knowledge-based and innovation-driven economy. The proposed 200 acre Education Hub in Balik Pulau together with the expansion of the existing PSDC would serve as an incubator to develop knowledge, skills and human capital.

Eleven strategies have been identified for Penang to transform itself into an international city and high income economy. They are:

1. Capable, clean and efficient civil service;

2. An over-riding commitment to economic growth; and

3. High degree of public-private partnership(PPP).

4. A people oriented government based on 3Es to Enrich the people for an equitable share in the economic cake, Empower the people with rights, opportunities and freedom, Enable the people with skills and knowledge;

5. Development of human capital towards excellence, creativity and innovation. It has always been said that small minds discuss people, average minds discuss events and great minds discuss ideas and we need to grow great minds to make your dreams come true;

6. Observing the rule of law to promote certainty, justice and public order;

7. CAT (competency, accountability and transparency) governance to establish a leadership with integrity –. For the first time for any government in Malaysian, Penang has been duly recognized by the Transparency International for our anti-corruption efforts such as punishing culprits and rewarding whistleblowers with our Integrity Award. In 2009, 12 per cent of the state’s budget or RM36 million was saved due to the prudent cost savings deployed under this policy – a feat commended by the 2008 Auditor’s General report also for promoting good governance within the state.

8. Branding for Penang to ensure quality, reliability, safety, sustainability and integrity.

9. Sustainable and balanced development that helps to achieve a green state. The recent announcement of Penang’s focus on ensuring GBI (Green Building Index) compliance has alleviated Penang’s development to be better in terms of environmental friendliness.

10. Social cohesion and inclusion towards a shared society that allows democratic participation, respect for diversity and individual dignity, equal opportunity and prohibition of discrimination.

11. Building reciprocity, reputation and trust through civic education and communications towards a civil society.

We hope to be both the sweat shop of the manufacturing sector and the smart shop of the services sector. In order to achieve that, there must be continuity of interest amongst the young in the field of science and technology.

The state government, realizing the importance of these subjects, has set up the Penang Science Council to establish Penang as a center of excellence of science and technology. Through the assistance of various industry captains such as Intel, Motorola, B Braun, Mini Circuits and renowned industry leader Dato Wong Siew Hai, the Penang Science Council will be industry-driven to match resources with needs. This will help our efforts to increase our per capita income to RM 50,000 and double the real GDP to RM 45 billion to become a developed state by 2020.

*Lim Guan Eng, Penang Chief Minister, DAP Secretary-General & MP for Bagan