Post on 12-Mar-2019
transcript
iP Slide 20130709
PENANG, MALAYSIA A destination of choice for investment,
great place to work, live and play…
Penang : “Centre to ASEAN”
At the heart of East Asia and less than 2 hrs from
Singapore
Situated between 2 large economic masses
represented by Bangkok to the north and Kuala
Lumpur/Singapore to the southeast
A trade hub with geostrategic nexus
Midway between the growing economy of China
and India
Centrally located in the Indonesia- Malaysia-
Thailand Growth Triangle (IMT-GT)
Penang is at the Centre
• 2nd smallest state in Malaysia 1031 km²
• 2nd most urbanized state pop : 1.6m
• 4 decades of industrialization
• >781,500 workers supporting Penang’s economy
• >259,700 (34%) from manufacturing
Source: DOS
Penang At a Glance…
Penang’s transformation
• “Prince of Wales Island” • Natural harbor &
anchorage for trading ships
• Straits Settlements – Crown Colony George Town
• Post-independences Federation of
Malaya
• Free Port status revoked in1969
• Establishment of Malaysia’s 1st FIZ in
Bayan Lepas in 1972
• Started with 31 factories (1970s) to
>280 factories (1990s) with 60k
workers
• GDP RM5.16b (2012)
• Contributes 8.9% of Malaysia’s GDP &
16% of country’s output for
manufacturing
• Major economic structure:
Manufacturing 50% & Services 47%
• Unemployment rate 15.7% (1960s) &
4.9% (1990s)
• GDP: RM790m (1970) to RM7.8b
(1990s)
• Major economic structure:
Manufacturing 13% (1970s) to 43%
(1990s).
• 40 years of industrialization
• Recognized as the 8th most liveable
cities in Asia (ECA International)
• Diversifying into linked services & value
added industries
•George Town as a World Heritage Site
(UNESCO)
1700s –1800s 1900s Today
Source : Penang Institute, PDC, 10th Malaysia Plan
- Trading
- Agriculture
- Low cost
- Labor intensive operation
• SSO / BPO • Design &
development • LED – solid state,
chip, display/ design
• Integrated solar industry
• Computing & mobile electronics
- Precision tooling - Local contract
manufacturing - Semiconductor-
automation - Assembly & test - Consumer
electronics - Development of local supporting industries
Pre-industrialisation
Setting up MNCs
- Hard disk
drive - Test system
development - Supply chain
management - R&D
application - Vertical
integration - EMS
Highly automated manufacturing
Beginning of mechanization
Moving-up value chain
60’s 70’s 80’s 10’s 90’s
• LED-packing,
testing • Wireless / RFID • Medical devices • Biotechnology • Optoelectronics • Solar suport • Local SME migrating
to system design & development
• Aerospace / avionics
Diversification beyond semiconductor
00’s
Industrial transformation
iP Slide 2013
2009 2010
2011 2012
2013 (Q1)
Taiwan Singapore Denmark US China
US Germany Switzerland Taiwan Japan
Japan US Netherlands Canada Singapore
Netherlands Switzerland British Virgin Island Singapore US
Investment Performance Track Records
Germany Taiwan Singapore Japan France
Top 5 Investment by country, 2008- Q1,2013
Taiwan - >68
USA - >45
Germany - >11
Japan - >86
Others (Netherlands/ Sweden / Swiss, Norway, India etc) - >51
Singapore - >27
> 300 international presence in
Penang
Penang Investment Updates
Boon Siew Honda Sdn Bhd (BS Honda) RM200 million new plant at the Batu Kawan Industrial Park –started operation in Feb 2013
IHS Inc. a US-based leading source of information & insight in critical areas in energy & power, oil & gas, and defence – set up APAC CoE – Sept 29, 2011 - Initial payroll: US$8 million will be raised to US$50 million by 2015
VAT - world renowned company supplying vacuum valves, signed S&P with PDC for a site at Batu Kawan – Feb 8, 2012, starting production Apr2013.
Phison Electronics Corp opened design centre for flash memory chips in Penang – Mar 15, 2012
Bose Corp - US-based audio equipment maker setting-up manufacturing facility in Penang – operating from May 2013
Malaysian Automotive Lighting (MAL) - PDC’s first build and lease business agreement with MAL, a world leader in automotive lighting. MAL’s investment in Penang will increase by an additional RM 117 million for the next 4 years. Starting operation in Apr 2013
Tourism/ hospitality projects
• Komtar bouvelard & tower sky lounge- by Only World Group
• ESCAPE Park @Teluk Bahang- adventure park by Sim Leisure Gp
• Penang Waterfront Convention Centre- Suntech Int & IJM Land
Penang Buzz
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 Processing Outsourcing (BPO) locations of the
future (KPMG’s “Exploring Global Frontiers” Report 2009)
Voted the eighth most livable cities in Asia, on par with Seoul,
Korea and above Kuala Lumpur and Bangkok by ECA
International 2012
Georgetown – UNESCO World Heritage Site in 2008
Top in Green initiatives in Malaysia
CAT Governance praised for anti-corruption efforts (Transparency
International, AG Report 2010)
Penang Revenue 2011 – RM192.19 Million (recorded a surge of 4%
compared to previous year), AG Report 2012
Top Ten Best Street Food Cities 2012 (VirtualTourist.com )
Top 8 islands in the world ‘You must see before you die' (by
Yahoo! Travel, Feb 2011)
An industrial base state, heritage city and
campus for IP creators
iP Slide 2013
• Strategic location in the heart of Asia Pacific region
and time zone - able to conduct business round the
clock in Asia, Europe and Americas.
• Linguistic ability - multiracial & multilingual population
- can serve numerous groups in Asia as well as the US,
UK and Australia.
• Unique combination of history, architecture, nature,
food and culture - a natural destination for tourists.
• Well integrated in the global manufacturing supply
chain – great opportunities for trade business
• Malaysia: Members of various Intellectual Property (IP)
group eg WIPO etc – strong commitment to IP
protection
Penang : Key Gateway for the rest of the
world
• “Silicon Valley of the East” with 40 years
of experience in manufacturing
• Penang pioneered Malaysia’s 1st FIZ to
promote and facilitate the
development of export-oriented
electronic manufacturing
• Approximately 34% of Penang’s
workforce employed in industrial sector
• > 300 MNCs established here
• Competent local supply chain
• Diversified beyond E&E to LED, medical
device, biotech, PV/ solar, aerospace &
avionics.
• Core areas of microelectronics design:
Integrated Circuit (IC) & Design, MEMS
Sensor, Microelectronic System Design,
and Test & Measurement.
Your investment destination for next-generation technology
Penang Diversification of ‘E&E center’
iP Slide 2013
Penang as ‘BPO Hub’
Penang a future BPO star: KPMG “Large labour pools, proximity to the major client bases and multiple language skills…”
Penang as a future BPO star • Strong talents support with 20,500
professionals employed in IT-BPO
• Low attrition rate
• Multilingual, multi-ethnic and highly
trainable workforce
• Well diversified talented workforce
• Qualified and trained professionals in
finance, IT
• Strong large based MNCs – hub for shared
services outsourcing (SSO)
• Offers 10 Bill of Guarantees for MSC Status
(financial & non financial incentives)
• Some of the big players in Penang:
Penang as ‘SSO hub’Penang focus and initiative for the global SSO industry
The 1st State in Malaysia to be awarded the MSC Malaysia
Cybercity status in 2005 with area of 2,283 ac.
Rental rates : RM 1.70-3.80 per s.f. /month
99.9% service availability for telecommunications &
electricity
Malaysia ranked 3rd in SSO for 8th consecutive years; rated
the highest in “business environment” category (A. T.
Kearney).
Malaysia among the top five of 3 verticals of Banking,
Financial Services & Insurance (BFSI), Oil & Gas (O&G) and
Transportation and Logistics (Frost & Sullivan).
Penang focuses on IT, back-office (HR, finance &
accounting) and engineering services (KPMG)
Information technology Creative multimedia Shared services &
outsourcing (SSO) iP Slide 2013
Penang on Property ...
Source: The Star (26th Jan 2013)
Developers plan RM9.733bil gross development value (GDV) of properties on Penang island in 2013:
• IJM (RM5.4 billion)
• Ideal Property (RM2.0 billion)
• SP Setia (RM945 million)
• Ivory (RM520 million)
• E&O (RM500 million)
• Mah Sing (RM248 million)
• Sunway (RM120 million)
• Heritage Tourism
• Medical Tourism
• Convention centres / M.I.C.E.
• Education
Investment Opportunities in Services
Penang as ‘famous tourist destinations’
Penang has it all in tourism
Escape theme park
Refreshing
beaches @ Batu
Ferringhi
Enjoyable rides @
Penang Hill
Boutique hotel
Breathtaking view @
Straits Quay
Food heaven
Penang as ‘famous tourist destinations’
• Tourism industry is expected to grow to 36 million tourist arrivals and RM168 billion in tourist receipts by 2020 (Ministry of Tourism, Malaysia).
• The hotel industry is expected to see a four percent growth in occupancy rate to 70 percent in 2013. Recently opened hotels include Hard Rock Hotel, Eastin Hotel and new wing of the E&O Hotel. Upcoming hotels: Four Points by Sheraton, The Nomad, Penang Royale Bintang, The Light and Rice Miller. (Malaysian Association of Hotels Penang Chapter)
Penang as ‘famous tourist destinations’
• On 7th July, 2007, George Town’s rich living
heritage, culture & history - officially
recognised as a UNESCO World Heritage Site
by World Heritage Committee in Quebec
City, Canada.
• George Town was acknowledged as having
developed over 500 years of trading and
cultural exchanges between East and West in
the Straits of Malacca.
• Featuring residential and commercial
buildings, George Town represents the British
era from the end of the 18th century.
• Opportunities in hospitalities / boutiques
hotels, F&B, etc.
Penang as a UNESCO World Heritage Site
“... A unique architectural and cultural townscape without
parallel anywhere in East and Southeast Asia.” – UNESCO
Penang as ‘medical tourism hub’
Penang a leading medical tourism hub of Malaysia.
• Competitive cost with high quality medical
services and facilities
• Penang recorded RM314m in revenue from
medical tourism (2012) and accounted for 55%
of Malaysia medical tourism revenue
• Malaysian hospital fees are 25% below the U.S. (Malaysia Healthcare Travel Council)
• 7 hospitals committed to medical tourism, offers highly-trained medical professionals and
cutting-edge facilities with affordable package.
Meetings, Incentives, Conferences, and Exhibitions (MICE)
Subterranean Penang International Convention and Exhibition Centre (sPICE)
• “Penang People’s Park” that includes: Convention and Exhibition Centre, Sports Arena & Aquatic Centre
Penang Waterfront Convention Centre
• A 10,000 sq. meters multi-purpose hall convertible to a 9,000-seat arena.
• Managed by Suntec.
Universiti Sains Malaysia – Accelerated Programme For Excellence (APEX) university
Top 50 by 2020
Focus on R & D
Create 100,000 PhD graduates in next 15 yrs
> 40 institutions of higher learning in Penang
Skills training institution such as Penang Skills Development Centre (PSDC), Japan-Malaysia Technical Institute, etc
9 international schools with different curriculum
Penang as an “Education Hub”
The Penang International Airport recorded
the 3rd highest growth (3.23%) in 2012
among airports in Malaysia after KL and KK
– from 4.6mil in 2011 to 4.78mil passengers
1) Singapore (66X/week) 2) Medan (60X/week) 3) Acheh (4X/week)
4) Surabaya (3X/week) 5) Jakarta (7X/week) 6) Bangkok (14X/week) 7) Phuket (4X/week) 8) Hong Kong (14X/week) 9) Taipei (4X/week)
10) Guangzhou (7X/week) 11) Koh Samui (3X/week)
International routes:
Airline Schedules in Penang
1) Kuala Lumpur (229X/week) 2) Langkawi (14X/week) 3) Johor (14X/week) 4) Kota Kinabalu (7X/week) 5) Kuching (7X/week)
6) Kota Bharu (7X/week) 7) Kuantan (3X/week)
Domestic routes:
Penang connectivity
Penang 2nd Bridge • Construction ahead of schedule. • Expected to be opened to traffic by Oct 2013.
Penang International Airport • Phase 1 comprises upgrading and expansion of the
existing passenger terminal, security fencing, and aircraft parking apron
• Phase 2 includes a business-class hotel • Terminal capacity to be increased from 3.5 MPPA to 5.0
MPPA
Expansion of North Butterworth Container Terminal • Handling capacity will be increased to 1.8 mil TEUs
(current capacity = 1.0 mil TEUs)
Electrified Double Tracking Project • Current phase - North to Central Malaysia • Expected completion Q4- 2014
Major Infrastructure Improvement
Other Key State Projects in Penang
Education Hub • Campus for higher learning institutions
• Balik Pulau- attracted Asian Women's Leadership University (AWLU) run by Smith College, the premier women college in the US.
Penang Paradigm-
State development blueprint: Infrastructure • Plan to reduce traffic congestion, improve public transport
and connectivity. Proposed new by- pass, flyovers and tunnel.
• Land use aligned with transport planning, Self contained live, work, play townships.
Distance from Batu Kawan to:
Pg. Science Park 6 km
Butterworth 19 km
Airport < 30 km (2nd Bridge)
Batu Kawan island – next growth centre
NEW TOWNSHIP COMPONENTS ACREAGE (ACRES)
Residential 1,093.46
Commercial / Corporate Office 641.30
Mixed Development 547.02
Government Institution 194.99
Industry 1,183.80
Technology Park 83.56
University & College 167.62
Cyber Center 77.58
State Stadium 150.00
Mosque/Schools 14.95
Cemeteries and other Religious 80.53
Town Parks 46.54
International Golf & Resort 729.68
Road Reserves/Mangrove Swamps 864.97
Private Land
(Future Mixed Development)
391.00
ANSB Land
(Mixed Development)
450.00
TOTAL
6,717.00 acres
(2,729.23 ha)
Penang offering the right balance
for everyone to invest, work, live and play”
Our value - offerings
Penang…
Tranquil Island Resort in a Vibrant City
with
the right PEOPLE, favorable COST and conducive
BUSINESS ENVIRONMENT
The Choice is obvious
Choose Penang
Key Highlights