THE greatest testament of confidence in the state government comes in the form of a RM1.05 billion investment from Seagate.
While all sorts of wild allegations and false claims were thrown up by the opposition, data and figures provided by the authorities like MIDA put a stop to all of them
On Aug 11, Chief Minister Lim Guan Eng said in a press statement: “Up to May 2014, Foreign Direct Investment (FDI) into Penang amounted to RM3.1 billion in investments – up from RM3.9 billion for the whole of 2013. Up to May 2014, FDI into Penang’s manufacturing sector amounted to RM2.34 billion, up from RM1.8 billion for 2013. However, theses figures from MIDA of FDI of RM2.34 billion does not include Seagate’s RM1.05 billion investment.”
Lim said: “Penang remains attractive to high technology and innovation based investors and there is a gradual trend of investors moving their higher knowledge content jobs especially research and development and design. Three to four new projects in the state will be announced in the course of the year which may not be recorded in MIDA’s investment figures.”
There is also a surge of Shared Services Outsourcing or SSO investors in Penang – such as Wilmar, CitiGroup, Air Asia, IHS, First Solar Global Service and TOLL – which offered high-income and high-value jobs to locals over the last two years.
Even though investments by SSO industries are not captured in MIDA figures, this industry provides average net salaries of RM5,783 per month (according to MDEC, 2014) versus average of RM2,786 per month in the manufacturing sector (according to DOS, April 2014).
This sector currently employs over 7,000 people.
The state government has signed a RM11.3 billion joint-venture agreement with Singapore’s Temasek Group to carry out the Penang International Technology Park in Batu Kawan and BPO projects in Bayan Baru that will create 21,000 high-value jobs.
Also not captured in the MIDA figures are investments in six new hotel projects with an approximate gross development value (GDV) of RM693 million materialising on the island between 2014 and 2017 (Malaysian Hotels Association, Penang Chapter). Using the multiplier factor of 4.75, the 1,157 new hotel rooms are estimated to create 5,500 new jobs in accommodation and food services activities in the next three years.
“Penangites may remember that in 2002, Seagate closed down and thousands of people lost their jobs. However, now they are coming back and will create high income jobs for our people. That’s the difference between ‘then and now’. Closed down then, opening now,” Lim added in his statement.