Opening Address by Penang Chief Minister Lim Guan Eng at Frepenca AGM

I wish to thank the organizing committee of today's Dialogue for my team to be here today for the fifth time to this annual dialogue.

The share of manufacturing sector in Penang was 50% of the GDP in 2010 and is expected to be 49% in 2015. Even though Penang seeks to promote our services sector, Penang must not neglect its manufacturing sector as this sector is a key foundation for a vibrant economy. One of the key reasons is that manufacturing sector creates demand for the growth of high-productivity services sub sector such as finance, telecommunications and transport. Further, some knowledge-intensive services are spin-offs from the manufacturing production. Penang will continue to attract high-value industries such as avionics, bio-medical products, photovoltaic and LED.

Over the past 4 years, I wish to highlight some of Penang’s proudest achievements to date:

  1. Once again, Penang is top for manufacturing investment for 2011 with RM9.1 billion recorded. This has made Penang #1 two years in a row since 2010 when we recorded RM12.2 billion. Penang contributed 30% of Malaysia’s FDI during those 2 years.

  2. Penang state government’s competency, accountability and transparency (CAT) governance for anti-corruption efforts received commendation of Transparency International in 2010, and earned the distinction of being the best financially managed state in the country for three consecutive years by the Auditor-General.

  3. In a global economy filled with debt crisis, Penang recorded the remarkable achievement of reducing our debts by 95% from RM630 million on 8 March 2008 to RM30 million at the end of 2011.

  4. Penang is also the safest state in Malaysia with the highest reduction of 27% in crime index in the country among all states in 2010 and topped the country again for the first six months of this year with crime reduction of 26%.

  5. Penang as a resort destination has been voted by Yahoo Travel as one of peethe top eight islands in the world to see before one dies, and the state’s green initiative including the ban on plastic bags daily

  6. Penang International Airport is undergoing a RM250 million expansion to increase its passenger capacity to five million people.

  7. The state government has implemented key approaches to reduce the traffic congestion:

    • The bottleneck at the flyover near the exit of the Penang Bridge on the island side will be greatly reduced when the 3 lane expansion is completed by end of September. This solution was possible due to the LLM and IJM for finally hearing out the grouses of the FTZ tenants over the past many years.

    • The construction of undersea tunnel and 3 major road constructions will cost the state government RM5-8 billion and is currently tendered out via open tender.

    • Short-term measures to mitigate traffic congestion in Penang involving flyover and road constructions around Jalan Gottlieb, Jalan Masjid Negeri, Air Itam, Jalan Scotland and Tanjong Tokong will cost MPPP RM60 million. All these short-term measures will complete in 3 year’s time.

  8. Penang has contributed more than 60% of total medical tourism receipts in the country. Out of Malaysia’s total medical tourism receipts in 2009, Penang contributed RM164 million out of RM288 million. In 2010, Penang contributed 66% or RM218 million out of the total medical tourism receipts of RM336 million.

The RM40 million Penang SME Centre is the second phase of the State’s 3-prong approach for SMEs development. Before, many of Penang SMEs are still operating out of informal premises, such as homes and shop lots. The Penang SME Centre is the answer to support and facilitate the SMEs, to assist in incubating and developing their competencies as well as to nurture them to move up the value chain.

With the SME Centre up and running, the Penang Development Corporation (PDC) will be focusing on the development of the two SME Villages on the mainland, one at a 150 acres Batu Kawan area and another at the Bukit Tengah area.

I wish to once again thank Frepenca for their continuous working relationship with the state government. Without such collaboration, Penang would not have achieved its outstanding performance over the past 4 years. Let us work together to make Penang the place to live, work, play, heal and invest.

Lim Guan Eng Penang Chief Minister