Special Economic Zones in the OIC Region:
Learning from Experience
85
excellence for Industry 4.0 within Penang and Malaysia by providing leadership, a platform for
best practice learning and talent development support through Shared Services facilities to meet
the current needs and demands of industry. 78
5.2.6 Summary Success Factors
Governance and Regulatory Framework
5.2.6.1 Strong vision underpinned the Island of Penang’s growth potential with political support
The vision for Penang was developed through strong state government support led by Chief
Minister Lim Chong Eu who aligned job creation policy objectives with emerging opportunities
for international specialization through links to global production networks. This strong
political will was attractive to initial investors who were attracted by well-designed investment
promotion strategies (including FTZ status), infrastructure development, skills development
and links between local and foreign firms to identify requirements.
The long tenure of the Chief Minister and his management team (for over 20 years) also helped
to foster a sense of developer confidence with regards to policy direction and political certainty.
5.2.6.2 Establishment of a central entity as developer and operator of the FIZ and Industrial Estates
The PDC has been very successful at developing and operating the FIZs and Industrial Estates.
The corporation was established prior to the creation of the first Bayan Lepas FIZ and was
tasked with the responsibility of driving forward socio-economic growth, urban redevelopment,
affordable housing and promotional and investment activities.
The Corporation’s key successes have stemmed from its strategy to plan and develop industrial
areas with high quality infrastructure and facilities, supported by township development
including affordable housing.
The autonomy of the statutory body is also key to its ability to perform its functions effectively
as the central point of strategy formulation, implementation and coordination. This enabled the
PDC to foster a strong business community with a firm commitment to FDI promotion and an
impression of very easy conditions for conducting business.
The availability of land within the early stages of FIZ development was also identified as a key
factor in attracting MNCs to locate within Penang. 79 Ownership of the land by PDC gave
78 Interview with InvestPenang, PDC and BuroHappold 2017
79 Interview with PDC’s original chairman, Mr Dato Cheri Singh