First and foremost, I would like to welcome Tan Sri Mohd Bakke Salleh, President and Group Chief Executive of Sime Darby Bhd and his team to Penang for the signing of MOU between PDC and Sime Darby.
This signing marks an important milestone as it symbolises the cooperation and synergy between PDC, a premier State development agency with Sime Darby, a renowned Government-Linked Corporation(GLC) and multinational conglomerate to collaborate on the development of Byram/ Changkat at Seberang Perai Selatan, Pulau Pinang into Malaysia’s premier SME High-Tech Industrial Park.
In terms of the background to this collaboration, PDC had earlier been entrusted by the State Government to review Sime Darby Property Sdn Bhd’s application for rezoning 926.829 acres agricultural area to industrial area in Byram/Changkat.
As the rezoning exercise comprised part of the land affected by the land acquisition by PDC for industry and mixed development, PDC had proceeded with discussion for collaboration to develop the land, with Sime Darby developing the land for Small Medium Industry (SMI) and PDC developing its land for industrial and mixed development. PDC had agreed to withdraw the acquisition process which has been gazetted under Section 8 of APT 1960, once the MOU is signed. PDC and Sime Darby has also agreed that Sime Darby will bear all costs connected with the withdrawal of the land acquisition.
This collaboration is in line with the State’s emphasis on promoting industrial development as well as Small, Medium Industry. As you are aware, the economic growth of Penang has largely been focused on manufacturing, contributing almost half of Penang’s GDP, especially in the electronics sector.
In terms of investments, MIDA figures have shown that Penang recorded a 109% increase in investments last year over 2013’s volume of RM3.9 billion to RM8.2 in 2014. Penang’s investment over a 7 year period from 2008 to 2014 is RM 48.2 billion, a 93.6% increase over similar 7 year period from 2001 to 2007 of only RM 24.9 billion.
Penang’s focus on industry as an engine of growth has met with much success with international marquee brands setting up base in Penang as a location of choice for investments, e.g. Sandisk Storage – a global leader in flash storage and memory; Penang Seagate Industries – involved in data storage and production of hard drives; Bose Systems – a leading global manufacturer of high tech audio system; Haemonetics – a global leader in blood management system; RM 1billion investments from Jabil, Seagate and HP respectively.
The State Government and PDC have also focused on providing support services to SMEs as the sector represents a significant contribution to economic growth and generation of income for local entrepreneurs. Our support sevices include the setting up of the free advisory SMART Centre, the SME Centre of subsidised rental for new SMEs as well as development of an SME Village in Batu Kawan.
Hence Sime Darby’s plans for developing the land for SMEs is very much in line with the State Government’s aspirations to enhance this sector. The investment by Sime Darby into the Sime Darby SME High-Tech Park will see an estimated Gross Development Value of approximately RM1.8 billion. Sime Darby has promised that it will be affordable to encourage the SME sector.
Ladies and Gentlemen,
I am pleased to note that the salient points of this MOU which has been discussed and mutually agreed upon by both PDC and Sime Darby are:
Byram / Changkat Master Plan
Both parties will formulate a Master Plan that is mutually agreed upon, with development of industrial and mixed development. Sime Darby will develop 929.8 acres with Small Medium Industry and PDC will develop 4017.4 acres for heavy /moderate/light industry, SMI and mixed development.
Each party is responsible for the Environmental Impact Assessment (EIA) application. PDC is responsible for the appointment of TIA consultant and the cost will be shared according to the plot ratio.
Cost Sharing
Sime Darby’s land is 929.8 acres (18.8%) and PDC’s land is 4017.4 acres (81.2%). Based on the Master Plan, the cost sharing for main infrastructure facilities will be carried out for the following:
- Roads/Bridges
- Sewerage/PMU/PPU/Water Tanks
- Other Utilities
- Drainage Master Plan
- Earthworks Plan
- Environmental Impact Assessment (EIA)
- Traffic Impact Assessment (TIA)
InvestPenang, the State’s premier investment promotion agency will undertake to promote Sime Darby and PDC’s industry land, including screening interested companies.
I hereby congratulate PDC and Sime Darby for their joint efforts on formulating the strategies and alliances that will spur Penang’s industrial development further.
I am sure both Sime Darby and PDC, both of whom are synonymous with excellence and high standards will remain fully committed to maintaining their competitive edge and premier positions in the implementation of this project.
On this note, I would like to invite Tan Sri Mohd Bakke Salleh, President and Group Chief Executive of Sime Darby Bhd to say a few words before we proceed to the signing of the MOU.
Thank you.