LAST year, Malaysia's approved investments continued on a sharp
recovery trend with total approved investments in the manufacturing
sector recording a value of RM56.1bil compared with RM47.2bil in 2010.Penang,
Selangor, Sarawak and Johor topped the table with RM9.1bil, RM8.7bil,
RM8.5bil and RM6.6bil, respectively. Penang has consistently been among
the top investment destinations over the last four decades.The
island state is a manifestation of the success of Malaysia's evolution
from a primary-based to a highly industrialised economy.
The
success of the transition of the Malaysian economy is due, in no small
measure, to the development and industrial plans introduced by the
Federal Government since Independence, especially after 1970.A major thrust of these plans was to promote the growth of private investments, both local and foreign.These
plans combined with a politically stable environment, effective policy
and implementation framework, commitment to the development of
infrastructure, and the provision of education and skills training, were
crucial in making Malaysia a competitive investment destination.
The Free Trade Zone Act 1971, which was a result of the collaborative efforts of then prime minister Tun Abdul Razak and Penang Chief Minister Tun Dr Lim Chong Eu,
and the Promotion of Investments Act 1986 were among the key policy
instruments that provided a conducive framework to attract investments.In
1965, the responsibility of promoting investments was assigned to the
Federal Industrial Development Authority (Fida), forerunner of the now
Malaysian Investment Development Authority (Mida).
With clear
directions embodied in various economic and industrial master plans,
Fida, and then Mida, was able to generate investment growth at
exponential rates.Compared to RM4bil in the 1980s, approved
investments for Penang increased five times to RM20bil in the 1990s, and
doubled again to RM40bil between 2000 and 2008.Between 1980 and
2011, there were 3,240 projects with a total investment of RM86.9bil
approved for Penang, generating 421,299 direct employment opportunities.
Mida's
main responsibilities are to promote Malaysia as an attractive and
competitive investment destination, to provide information on the
opportunities for investments in Malaysia, target and entice potential
investors, facilitate companies which are looking for joint venture
partners, handhold and assist investors in obtaining all necessary
approvals for projects until they are operational.These include
direct consultation and cooperation with relevant authorities at both
the Federal and state levels in matters such as securing infrastructure
facilities, including land, factory sites, electricity and water
supplies, telecommunication, expediting approvals relating to building
plans, certificates of fitness and business licenses.
Mida also supports existing companies in planning expansion, diversification and re-investments.The setting up of Mida has been instrumental in making Malaysia a premier investment destination in the region.Penang has been a major beneficiary of the nation's aggressive drive to secure investments.The
Government's continued efforts in providing adequate and quality
infrastructure have enhanced the investment attractiveness of Penang.
Since the 1970s, the Government has been expanding and upgrading Penang's infrastructure.The
Penang Airport at Bayan Lepas was developed into an international
airport by 1977, further expanded in 2000 and is now again undergoing
major expansion.The Penang Bridge was completed in 1985. Certainly, Penang would not be what it is today without the bridge.Phase
One of the North Butter-worth Container Terminal (NBCT) was completed
in the early 1990s and has been further expanded since.The
North-South Highway was completed in 1994, the Butterworth-Kulim Highway
opened for traffic in 1996 and Penang is connected to the east coast of
peninsular Malaysia via the East-West Highway, which was opened in
1982.
Perhaps the most critical investment made by the Government
that continues to make Penang attractive is the setting up of
Universiti Sains Malaysia (USM) in 1969 as the second university in the
country.This led to the successful nurturing of a highly skilled and knowledgeable workforce.The
educated, English-speaking and trainable workforce in Penang was a key
attraction to foreign direct investments (FDI) in the early days of the
state's industrialization.Today, thanks to USM and the growing
number of training institutions in Penang, the state's workforce not
only manages local operations but also runs and oversees the operations
of many of the MNCs' offshore plants.
Additionally, some MNCs' design engineers are Penangites, who have produced a large number of quality patents.The state government responded to efforts at the Federal level with its own set of policies and strategies.Under the leadership of Chong Eu, the Penang Government introduced a master plan for the development of the state.
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