9/12/2014 Penang - The destination of choice for investments, A great place to live, work, learn and play … “Grow Your Business with International Partnership” Supplier Day Dec 8, 2014 InvestPenang – Investor’s point of contact • The Principal Investment Promotion Planning & Agency of the Penang Facilitation Evaluation State Government for • Provides • Facilitates the promotion of the information • Assist implementati manufacturing & on the State in on of the services sectors business Planning investment • Point of contact for opportunities • Policy projects in Opportunities investors. in Penang advocacy Penang for Investment • Collaborates with Federal/ State agencies Promotion 1
9/12/2014 Federal & State Government Relationships Prime Minister (PM) Federal Government + Ministry of + Ministry of + Ministry of Science, International + Ministry of Health Technology Education Trade and and Innovation Industry + Malaysian + Malaysian Biotech Investment + Institute of Medical Corp. Development Research Authority, + Multimedia Development Corporation + Malaysian External Trade Development Chief Minister Corp. State Government + MPSP + MPPP + Investment + Universiti Sains Malaysia, Penang + Penang Office Local Authority Promotion Arm + Investment Arm Local Authority Mainland Island Penang Key Facts Where business goes to grow • 2nd smallest state in Malaysia 1031sq.km (MY 330,000 sq.km) 2nd most • urbanized state population 1.6m (MY29.3m) 4 decades of • industrialization >770, 500 workers • supporting Penang’s economy >240,400 (31%) in • manufacturing Languages Spoken • Bahasa Malaysia, English, Chinese (Mandarin, Hokkien), Tamil, others Penang 2 nd Bridge Temperature: 21 ° ~ • 32 ° C Source: DOS, Labour Force Survey Report 2012 2
9/12/2014 Penang in the news: An industrial base state, heritage city and campus for technology Top 10 dynamic industrial cluster locations in the world to have demonstrated a successful manufacturing experience among developing economies (UNIDO Industrial Development Report 2009) Top 31 Business Process Outsourcing (BPO) - locations of the future (KPMG’s “Exploring Global Frontiers ” Report 2009) Produces 8% of global back-end support for semiconductor industry (SEMI, 2013) Georgetown – UNESCO World Heritage Site in 2008 The 8 th most livable cities in Asia (ECA Intl. 2012) Top in Green initiatives in Malaysia C.A.T. Governance praised for anti-corruption efforts (Transparency International, AG Report 2010) Top culinary spot (Lonely Planet 2014) Penang Economic Profile • GDP : RM 54.97 B • GDP growth in 2013: 4.6 % (5.0% :2012) • Contributes 7.0% of national economy (2013) • Penang’s Share of Economic Activity: - • Malaysia Inflation rate : 2.1% (2013) Source: Department Of Statistic Malaysia 3
9/12/2014 • Global supply • Biotech mfg. • Solar panels chains • Non-core • Business units • Technology eco- outsourcing • Global systems • Process • Quality • LED fab/packaging procurement • R&D • IC design automation branding • Consumer • Operational • Sales/marketing • Global ICT electronics excellence Local industry • Mfg – order assembly integration value add • Piece-parts & • Equipment mfg Low Vol/High Mix fulfillment CM • Disk drives sub-assemblies • Technical services • Localization – • Tech startups • Trading backend MNC’s • ODM’s • Sub- Assembly CM’s • Quality revolution automation & • Design services. • Technical services • Local CM’s • Branding tooling • Software/firmware • Labor • Local high tech • Partnerships with • Die fabrication • Internationalization intensive traders • Outsourcing services MNC’s • Test automation semiconduct • Local precision tooling or mfg • Local back end Local SME’s automation • Semiconductor assembly • Local machine shop upgrades SME value • Machine shops • Logistics add line • Mech. R&M • Technical services • Cottage industries 80s 60s 70s 90s 00s 10s Move the PENANG ECONOMY up the value chain • Penang has experienced 2 growth transformations to become a successful industrialized economy • Penang’s economy targeted to move up the value-chain by driving the 3rd growth wave of knowledge intensive and innovation-led growth • Promoting economic diversification e.g advanced technology, creative multimedia content, BPO-ITO, engineering design, R&D, ICT Jobs & 3 rd Growth Wave: GDP 2 nd Growth Wave: Development of ICT Project Growth 1 st Growth Wave: Expansion of SEZs into Knowledge intensive, Malaysia’s First Free Industry Clusters innovation-led Trade Zone in Bayan Industrialization Lepas, Penang manufacturing and services Special Economic Zone (“SEZ”) 1970s 1980s – 1990s 2000 and beyond 4
9/12/2014 Our promoted sectors Industry • Electrical & Electronics • Electronics Manufacturing Services (EMS) • Light Emitting Diodes (LED) • Life Sciences / Medical Devices • Aerospace / Avionics • Renewable Energy (RE) • Halal & Food Industry Services • Shared Services & Outsourcing (SSO) • IC Design & Development • ICT / Software development & Creative Multimedia • Operational Headquarters, International Procurement Centre and Regional Distribution Centers • Logistics & Transportation • Healthcare & Wellness Services • International Education • Meeting, Incentives, Conferences, and Exhibitions (MICE) • High value Tourism / Hospitality Over 300 multinational companies have chosen Penang as their location of choice to do business Others – EU co No. of companies Japan: > 85 Taiwan: >70 US : > 50 Singapore: >30 Germany: > 10 Others : >50 5
9/12/2014 Investment Performance in Penang 2000-Jul 2014 RM Billion 14 12 10 8 6 4 2 0 Source: MIDA Domestic Investment Foreign Investment Total Capital Investment Recent Projects in Penang: Penang E&E Clusters 6
9/12/2014 Precision Engineering in Penang Machining Stamping & Automation Fabrication Plastic Moulding Die Casting PCB Assembly Surface Treatment Jigs & Fixtures CNC Penang CAT Centre Career Assistance and Talent Centre “My Penang….. My Workplace” Attract and retain talent in Penang www.penangcatcentre.my “ resource centre and point of contact for employers and job seekers” Matching job seekers with potential employers Policy advocacy on how to address talent gap Initiatives to attract and retain talent Penang Future Foundation Scholarship Award – Scholars bond to serve organizations in Penang Affordable housing scheme – Priority given to talent working in Penang 7
9/12/2014 Talent nts 2 Public ic Univers rsit itie ies 3 Private te Universi rsities 27 College ges Institutions of Higher Learning 2 Polytechnic 2 ics 6 Communit ity y College ges 20 2012 Gra 12 Graduate duate Output Output 4 Industrial Training Institutes 4 es 1 1 Youth Skills Development nt Institutes es 2 2 Teacher Training Institutes Year 2010-2012, Malaysia produces 190,000 university graduates yearly Engineering produces 35,358 graduates Competitive cost of doing business Among cheapest water rates in • RM0.66/m3 vs KL/ Selangor RM2.07/m3 Johor RM2.60/m3 Malaysia Among cheapest electricity rate Electricity Tariff • Compared to Asian region ( per KWh ) Country in the region ( USD ) Staff attrition MALAYSIA 0.11 • Lower annual turnover rates THAILAND 0.11 • Kuala Lumpur – RM 1,900 /month Lower median INDIA 0.12 • Johor – RM 1,500 / month salary • Penang RM 1,450 /month CHINA 0.13 Source: Department of Statistics 2012 SINGPORE 0.23 PHILIPPINES 0.27 JAPAN 0.22 8
9/12/2014 Cost of Doing Business in Penang investPenang’s ‘Cost of Doing Business’ booklet available for collection at investPenang booth or download at www.investpenang.gov.my Strategic location in Batu Kawan Industrial Park • Comprehensive master plan • Eco-friendly township – work, live & play • World class technology and innovation led industries • Supply chain at SME Village • Education hub • Affordable housing – 11,800 units Education Hub & Talent Pool Innovation Led Manufacturing 9
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