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Speech by the Chief Minister of Penang Lim Guan Eng at the Economist Corporate Network talk on 28th April 2014

Good afternoon ladies and gentlemen. It is my pleasure to address this luncheon in the presence of such highly influential business leaders. I would like to extend my appreciation to Mr Justin Wood and the Economist Corporate Network for putting this together.

Businesses these days grapple with different challenges emanating from fierce competition, technological advances, socio-political changes, the degradation of the environment and unpredictable climate. Whilst these are challenging issues on their own, they are compounded by financial markets volatility induced by the monetary policies in the developed world and the slowdown in the Chinese economy.

So, let me share with you some ideas that Penang is implementing in helping businesses cope.

Firstly, my government believes that the role of the government is to stay out of business. This is because over a long period of time, we can see that the track record of government backed businesses has been dismal if not scandalous, for example Perwaja Steel.

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Penang Targets RM 6.1 Billion Investments In 2011 To Attract High Value-Added, High-Tech, Knowledge Based Companies(en/bm/cn)

Penang Targets RM 6.1 Billion Investments In 2011 To Attract High Value-Added, High-Tech, Knowledge Based Companies That Engender High-Income, Technology Transfer and Innovative Industries.

The Penang State Government is targeting to achieve RM6.1 billion investments for this year, which is 50% of the record RM 12.2 billion in 2010 and topped the investment charts for the first time in Malaysia. A lower figure has been set to attract high value-added, high-tech, knowledge based companies that engender high-income, technology transfer and innovative industries. Additionally the Gartner September 2010 report indicates that worldwide semiconductor revenue growth is expected to decrease from 31.5% in 2010 to 4.6% in 2011. This means that the growth rate will taper off.

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How Asia Can Have A Sustainable Future?

Speech By Penang Chief Minister Lim Guan Eng During The 4th Asia Economic Summit Jointly Organised By The Asia Society And Asian Strategy & Leadership Institute(ASLI) In JW Marriott Hotel, Hong Kong On 9.12.2008.

Eight Measures To Transform Penang From A Sweat Shop To A Smart Shop And Reinvent The Economy For Sustainable Growth And Prosperity.

The theme of the 4th Asia Economic Summit of “Reinventing Asian Economies for Sustainable Growth & Prosperity” is apt and timely following the global financial crisis that has threatened both the growth and prosperity of both developed country and emerging economies. There is also a need to reinvent as the conditions that made prosperity and growth possible either do not exist or are not applicable any more.

The most popular measures to counter the current recession includes an expansionary budget and government guarantees for financial institutions. However we need to look beyond the recession and be bold enough to undertake fundamental reforms and reinvent the economy to allow Asia is to continue enjoying sustainable growth and prosperity. Asia is too diverse to be presented in a singular case. So allow me to present the perspective of Penang, the problems, successes and failures of a middle income state.

Penang is a key trading post that successfully evolved into one of the largest electronics manufacturing hub in the world during the last century. Penang’s success from the 70s to the 80s made Penang the leading state in Malaysia with GDP per capita of RM 28,851, double that of Malaysia at RM 19,189 for 2008. Despite being the second smallest state in Malaysia and with a population of only 1.4 million, Penang’s exports alone amounted to 27% of Malaysia’s total exports.

There were five common characteristics of successful growth economies identified in “The Growth Report” by A. Michael Spence were:-
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A Testimony Of The Confidence Of Korean Investors In Penang’s Future

The US$ 100 Million Golf Course In Batu Kawan Is A Testimony Of The Confidence Of Korean Investors In Penang’s Future Despite The Global Financial Crisis And Belief In Our Commitment To Transforming Penang Into An International City.

The Penang state government welcomes the signing of the MOU between PDC and DK ENC to build a US$ 100 million golf course in Batu Kawan as a testimony of the confidence of Korean investors in Penang’s future in spite of the global financial crisis. By proceeding ahead with the golf project during such uncertain times, Korean investors have also signalled their belief in the new government’s commitment to transforming Penang into an international city.

To transform Penang into an international city, we want participation from all nationalities. We have investors from many countries. But we need to work harder to get more investors from some countries such as Korea, without which Penang can not claim to be a truly international city.

Korea has achieved tremendous success in growing its economy from a poor war-torn state to a developed nation. The success of Korea can be seen by its per capita GNP of only US$130 as compared to Malaysia’s US$350 in 1966. Korea’s GNP per capita is now more than US$18,000 as compared to Malaysia’s US$6,000/-. From almost three times better off than Korea 42 years ago, Malaysia is now three times worse than Korea.

The remarkable economic success of Korea was achieved without any natural resources such as oil and commodities, except for its people. There is much to learn from the success of Korea’s economic transformation based on a culture of excellence, a strong work ethic, openness to new ideas and mastery of technology.

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