Special Economic Zones in the OIC Region:
Learning from Experience
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Penang one of the world’s leading locations for micro-electronics assembly, packaging and
testing. This has attracted the likes of Intel and AMD to Penang’s industrial zones.71
Penang’s ability to attract multi-national investment has enabled it to undergo significant
economic transformation since the adoption of the Free Zone policy in the 1970s. This is
illustrated below i and demonstrates the rapid economic growth in Penang between
1970 and 1990.
Figure 15 – Economic Growth within PDC Industrial Zones
Source: PDC Interviews 2017. BuroHappold Analysis.
71 Invest Penang Interview with BuroHappold 2017
0
100
200
300
400
500
600
700
800
900
1970 1990 2016
No. of Factories in PDC Industrial Parks
+14.1% CAGR
+2.6% CAGR
0
50
100
150
200
250
300
1970 1990 2016
Total Employment (000s)
+19.2% CAGR
+3.5% CAGR