InvestPenang Investors point of contact The Principal Investment - - PDF document

▶
investpenang investor s point of contact
SMART_READER_LITE
LIVE PREVIEW

InvestPenang Investors point of contact The Principal Investment - - PDF document

Apr 20, 2023 475 likes •603 views

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 Investors point of contact The

slide-1
SLIDE 1

9/12/2014 1

Penang - The destination of choice for investments,

A great place to live, work, learn and play…

Dec 8, 2014

“Grow Your Business with International Partnership” Supplier Day

InvestPenang – Investor’s point of contact

  • The Principal

Investment Promotion Agency of the Penang State Government for the promotion of the manufacturing & services sectors

  • Point of contact for

investors.

  • Collaborates with

Federal/ State agencies Promotion

  • Assist

State in Planning

  • Policy

advocacy Planning & Evaluation

  • Provides

information

  • n the

business

  • pportunities

in Penang Opportunities for Investment

  • Facilitates

implementati

  • n of the

investment projects in Penang Facilitation

slide-2
SLIDE 2

9/12/2014 2

Federal & State Government Relationships

Prime Minister (PM) Federal Government Chief Minister State Government

+ Investment Promotion Arm + Investment Arm + Penang Office

+ Ministry of Health + Institute of Medical

Research

+ Malaysian Biotech

Corp.

+ Ministry of

Education

+ Ministry of

International Trade and Industry + Malaysian Investment Development Authority, + Malaysian External Trade Development Corp.

+ Ministry of

Science, Technology and Innovation

+ Universiti Sains Malaysia, Penang + Multimedia Development Corporation

+ MPPP

Local Authority

Island + MPSP

Local Authority Mainland

Penang Key Facts

Where business goes to grow

Penang 2nd Bridge

  • 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,

  • thers
  • Temperature: 21°~

32°C

Source: DOS, Labour Force Survey Report 2012

slide-3
SLIDE 3

9/12/2014 3 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 8th 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

slide-4
SLIDE 4

9/12/2014 4

70s 80s 90s 00s MNC’s 60s

  • Quality

branding

  • Operational

excellence

  • Mfg – order

fulfillment

  • Disk drives
  • Process

automation

  • Consumer

electronics assembly

  • Piece-parts &

sub-assemblies

  • Localization –

backend automation & tooling

  • Die fabrication
  • Labor

intensive semiconduct

  • r mfg
  • Semiconductor assembly
  • Local machine shop upgrades
  • Logistics
  • Technical services
  • Machine shops
  • Mech. R&M
  • Cottage industries
  • Local precision tooling
  • Local back end

automation

  • Quality revolution
  • Local CM’s
  • Local high tech

traders

  • Test automation
  • Trading
  • Sub-Assembly CM’s
  • Technical services
  • Software/firmware
  • Internationalization
  • Outsourcing services
  • Global supply

chains

  • Non-core
  • utsourcing
  • Global

procurement

  • R&D
  • Sales/marketing
  • Global ICT

integration

  • Equipment mfg

Local industry value add Local SME’s

SME value add line

10s

  • Biotech mfg.
  • Solar panels
  • Business units
  • Technology eco-

systems

  • LED fab/packaging
  • IC design

Low Vol/High Mix CM

  • Technical services
  • Tech startups
  • ODM’s
  • Design services.
  • Branding
  • Partnerships with

MNC’s

  • 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

1970s 1980s – 1990s

Jobs & GDP Growth

2000 and beyond

Knowledge intensive, innovation-led manufacturing and services

Special Economic Zone (“SEZ”) 1st Growth Wave: Malaysia’s First Free Trade Zone in Bayan Lepas, Penang Industrialization 2nd Growth Wave: Expansion of SEZs into Industry Clusters

3rd Growth Wave: Development of ICT Project

Move the PENANG ECONOMY up the value chain

slide-5
SLIDE 5

9/12/2014 5

  • 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

Our promoted sectors

  • Electrical & Electronics
  • Electronics Manufacturing Services (EMS)
  • Light Emitting Diodes (LED)
  • Life Sciences / Medical Devices
  • Aerospace / Avionics
  • Renewable Energy (RE)
  • Halal & Food Industry

Industry Services

Over 300 multinational companies have chosen Penang as their location of choice to do business

  • No. of companies

Japan: > 85 Taiwan: >70 US : > 50 Singapore: >30 Germany: > 10 Others : >50

Others – EU co

slide-6
SLIDE 6

9/12/2014 6

Investment Performance in Penang 2000-Jul 2014

2 4 6 8 10 12 14

Source: MIDA

Domestic Investment Foreign Investment Total Capital Investment

RM Billion

Recent Projects in Penang:

Penang E&E Clusters

slide-7
SLIDE 7

9/12/2014 7

Machining Stamping & Fabrication Automation Plastic Moulding Die Casting PCB Assembly Surface Treatment Jigs & Fixtures CNC

Precision Engineering 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

Penang CAT Centre

Career Assistance and Talent Centre

“My Penang….. My Workplace” Attract and retain talent in Penang

slide-8
SLIDE 8

9/12/2014 8

20 2012 Gra 12 Graduate duate Output Output

Talent nts

Institutions

  • f Higher

Learning

2 Public ic Univers rsit itie ies

3 Private te Universi rsities

27 College ges 2 2 Polytechnic ics 6 Communit ity y College ges

4 4 Industrial Training Institutes 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

  • RM0.66/m3 vs KL/ Selangor

RM2.07/m3 Johor RM2.60/m3

Among cheapest water rates in Malaysia

  • Compared to Asian region

Among cheapest electricity rate in the region

  • Lower annual turnover rates

Staff attrition

  • Kuala Lumpur – RM 1,900 /month
  • Johor – RM 1,500 / month
  • Penang RM 1,450 /month

Lower median salary

Source: Department of Statistics 2012

Country Electricity Tariff （per KWh） （USD） MALAYSIA 0.11 THAILAND 0.11 INDIA 0.12 CHINA 0.13 SINGPORE 0.23 PHILIPPINES 0.27 JAPAN 0.22

slide-9
SLIDE 9

9/12/2014 9

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

  • 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

Strategic location in Batu Kawan Industrial Park

Innovation Led Manufacturing Education Hub & Talent Pool

slide-10
SLIDE 10

9/12/2014 10

Choice of manufacturing/operation space in Penang

  • Vacant industrial land in Batu

Kawan Industrial Park and Penang Science Park (0.5 acres to 5 acres)

  • Ready built factory units at

Batu Kawan SME Village:

  • Semi-detached (7k sqft)
  • Terrace (3k sqft)
  • Flatted manufacturing space

for light industries (6k -13k sqft) in Penang SME Centre

  • Wide range of selections for

existing buildings in industrial parks

8th most livable cities in Asia

  • “habitat of choice” for local and global talents
  • Quality of life is key to attract & retain talents

UNESCO world cultural heritage site

  • Vibrant showcase for art and creativity
  • Best street food and beach resorts in the region

10 international schools

  • American, British, Japanese, Taiwanese curricula

7 private hospitals with international accreditation

  • 55% medical tourism revenue contribution by Penang

Pioneering Green State

  • Promotion of recycling community , Green Building Index compliance

& Sustainable water supply Safe City

  • Largest drop in crime index in Malaysia - 15% drop in Q1 2014
  • Installation of closed circuit televisions and police patrolling over

hotspot areas Home to global citizens

  • 2000 expatriates in enjoy quality lifestyle with lower cost of living
  • International associations (e.g.: International Women’s Association)

Stable Economy GDP : RM 52.5 B (2012) GDP growth in 2012: 5 % (3.9% :2011) Contributes average of 7.0% of GDP in Malaysia

Why Penang?

slide-11
SLIDE 11

9/12/2014 11

Penang: where you want to be….

“My continuing adventures – living in PENANG NG, , working g in PENANG NG and making g PENANG NG home”

Tranquil Island Resort in a Vibrant City

Thank you! www.investpenang.gov.my

Invest-in-Penang Berhad PSDC Building, 1, Jalan Sultan Azlan Shah, Bayan Lepas, 11900 Penang, Malaysia Tel: 604-646 8833 Fax: 604-646 8811