PENANG THE SILICON ISLAND OF ASIA. DATO SERI LEE KAH CHOON Director of investpenang
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1 PENANG THE SILICON ISLAND OF ASIA BY DATO SERI LEE KAH CHOON Director of investpenang
2 PENANG & MALAYSIA AS THE CENTRE OF EMERGING ASEAN Benefit from the Regional FTAs ASEAN Economy World s 7 th largest economy. By 2030 it is predicted to eclipse Japan s and be the world 4 th largest single market after the EU, US and China. World s 3 rd largest consumer market (>620 mil people) Source: / ASEAN secretariat / UK-ASEAN business council, Ministry of Industry, Indonesia
3 QUICK STATS ABOUT PENANG 1,031 sq km area (green area) 1.8 mil population 68.8% working age group 822,200 workforce 299,200 in manufacturing Multilingual talents (English, Malay, Mandarin, Tamil, etc.) 45 years of cumulative industrial intelligence RM47,322 GDP per capita 6.6% of national GDP 5.3% GDP growth (2017)
4 WORLD CLASS INFRASTRUCTURE & LOGISTICS
5 PENANG S TRANSFORMATION GDP (RM) billion Yr Services 49% Construction 3% Year 2016 Economic Structure Agriculture 2% Manufacturing 45% Employment Share Services Agriculture 1% Construction Manufacturing 33%
6 PENANG S VALUE PROPOSITIONS STRATEGIC LOCATION WITH COMPETITIVE COST TALENT & EFFICIENT COST SUCCESSFUL TRACK RECORD CONDUCIVE BUSINESS ENVIRONMENT Centre of ASEAN Green zone Stable economic profile Among the cheapest utility rates in Asia Lower median salary Home to talent pool Low attrition rate Highest migration effectiveness ratio at +58.4% >40 years of industrial experience Home to > 300 MNCs & 3,000 SMEs Established and complete supply chain, enabling plug & play options Quality lifestyle & vibrant cultures / heritage city Work Live Learn Play balanced lifestyle Good connectivity & infrastructure Highly developed technology parks Batu Kawan complete township for business and living
7 Investment value (RM million) FDI IN 2017 PENANG S FDI ACHIEVEMENT TOP 5 FDI SOURCE BY COUNTRY ( ) UNITED STATES GERMANY FDI ACHIEVEMENT OVER THE YEARS 12,000 10,000 8,000 6,000 4,000 2,000 JAPAN SINGAPORE CHINA
8 >300 MNC AND COUNTING NO OF COMPANIES BY COUNTRY >50 >15 >85 OTHERS >150
9 PENANG S NICHE & LEADING SECTORS Penang produces 8% of Malaysia s total 13% contribution of back-end semiconductor output globally, making it among the world s leading location for micro-electronics assembly, packaging and testing. Home to Malaysia s largest electrical & electronics exporters GLOBAL EMS COMPANIES WORLD S TOP LED PRODUCERS WORLD S TOP MEMORY STORAGE PRODUCERS HOME TO 1/3 OF MEDICAL DEVICES COMPANIES IN MALAYSIA
10 PENANG S E&E CLUSTERS & SUPPLY CHAIN E&E Sector Companies that are engaged primarily in the design and manufacturing of the following components and products E&E Sub-Sector Electronic Components Consumer Electronics Industrial Electronics Electrical components / EMS Electrical Appliances Industrial Electronics E&E Micro Sub-Sector
11 STRONG MEDICAL DEVICES ECOSYSTEM IN PENANG Penang - Major medical devices cluster in Malaysia Home for 1/3 of medical devices companies in Malaysia (55 out of total 190) Penang accounted for 1/3 of the total value of medical devices export from Malaysia. 55 Strong presence of established supporting industries and supply chain Many local suppliers are certified with ISO 9001, ISO 13485, ISO 14000, ISO/TS and FDA certified for Medical Devices 95
12 NEW & RE-INVESTMENTS IN PENANG MANUFACTURING SERVICES
13 PENANG S SUCCESS STORIES First site out of USA Established in Penang in 1972 Workforce: from 100 (1972) to 8,000 (2016) 3,000 are R&D engineers Initial investments of USD1.6million grown to over USD 5billion One of Intel s most comprehensive sites Malaysia Design Centre (MDC) Largest Silicon Design Centre in Malaysia GBS Expansion: Malaysian Shared Services Centre & Asia Pacific and Japan Online Sales Group (APJ OSG) Began operations in 2006 Total building footprint (sq ft) 468k sq ft at 26- acre site Total investments valued at RM265 million Employing >900 employees >90% are professionals Expansion in Penang in 2016 after acquisition by Avago Operations in Penang include R&D, New Product Introduction, Product Engineering & Test Dev Engineering, IC Rel Lab, Global Supply Chain, Business, Finance and APAC HR Outsource manufacturing to local companies Why Penang Strategic location in Asia Talent and workforce availability Strong support from local government Why Penang Strong ecosystem Outsource partners are MNCs & local Malaysian companies Availability of skilled talents
14 PENANG S GROWTH IN GLOBAL BUSINESS SERVICES (GBS)
15 INTELLECTUAL PROPERTY (IP) PROTECTION Malaysia is a party of the following treaties: World Intellectual Property Organization (WIPO), 1967; Paris Convention for the Protection of Industrial Property 1883; Berne Convention for the Protection of Literary and Artistic Works, 1886; Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement Patent Cooperation Treaty (PCT) 1970 IP in Malaysia comprises: Patents Trademarks Industrial Designs Copyrights Geographical Indications Layout Designs of Integrated Circuits
16 NURTURING TALENTS IN PENANG Graduate Output = 256,828 Field of Study No. % Education 29, % Arts & Humanities 18, % Social Sc, Business & Law 85, % Science, Maths & Computer 27, % Engineering, Mfg & Construction 36, % Agriculture &Veterinary 3, % Health & Welfare 18, % Services 12, % General Program 24, % Total 256, % MALAYSIAN MEISTER PROGRAM - Scholarship to deserving students in the field of Science, Technology, Engineering, Mathematics, Accountancy & Finance - Offers diploma and degree in engineering courses - Runs EMC, RF and embedded lab as well as 3D prototyping service - Enable employees / school leavers to obtain recognized skills training demanded by industry with German Chamber accreditation
17 BATU KAWAN: POSITIONED FOR GROWTH Emerging Supporting Clusters in Education Degree courses in engineering, business, design, information systems Strong Industrial Base Manufacturing base in automotive, engineering, medical devices, electronics New Retail and Recreational Facilities IKEA integrated shopping mall development with offices and residences Planned theme park and golf resort Under Construction Design Village providing a world class shopping experience Specialist Medical Center Stadium (40k capacity) and many more Affordable housing Priority to talents and knowledge workers. 11,800 residential units in Batu Kawan High-end residences 3,000 gated & guarded residential houses by EcoWorld
18 PENANG A COMPLETE LIFESTYLE 7 private hospitals with international accreditation Where history meets the future, Where nature meets technology, Where work and play comes together. Diversified culture, food variety & vibrant living The most livable city in Malaysia (ECA International) UNESCO World Heritage Site (since 2008) 11 international schools Safe city American,Japanese, British, Taiwanese curricula One of the safest cities in Malaysia. Installation of closed circuit televisions and police patrolling over hotspot areas Pioneering Green State Promotion of recycling community, Green Building Index compliance & sustainable water supply
19 About investpenang
20 Penang offers the right balance of INVEST - WORK - LIVE - and - PLAY
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