Special Economic Zones in the OIC Region:
Learning from Experience
75
Box 27 – Penang SEZ Success Factors – Penang Investment Promotion – Interviewwith Former
PDC Members
Box 28 – Penang SEZ Success Factors – Penang Competitive Advantage - InvestPenang
Interview
5.2.5 Economic Profile
Sectoral Focus
The Penang SEZ currently has a strong manufacturing base in electronics, engineering,
automotive and medical devices focused on the following investment sectors within industry
and services.
Table 5-5 – Penang Sector Focus
Industry Services
Electrical & Electronics
Global Business Services (GBS) and Shared Services &
Outsourcing (SSO)
Electronic Manufacturing Services (EMS) IC Design and Development
Light Emitting Diodes (LED) ICT / Software Development and Creative Multimedia
Life Sciences / Medical Devices Principal Hub / Operational Headquarters
Aerospace / Avionics / Automotive Software Logistics and Transportation
Renewable Energy (RE) Healthcare and Wellness Services
Halal and Food Processing
International Education
International Education
Meeting, Incentives, Conferences and Exhibition (MICE)
High Value Tourism / Hospitality
Source: PDC (2017)
Former PDCmembers involved in the establishment of the corporation and the Bayan Lepas FIZ identify
coordinated promotional activities as key to attracting foreign investment to SEZs. In the early 1970s
there were proactive efforts to market the FTZ to foreign investment through industry fairs and by
matchmaking SMEs with MNCs. These activities are identified as key factors in securing the original
eight anchor tenants within the Bayan Lepas FIZ.
The importance of a central organisation to plan, promote and manage the SEZ was also identified as a
key success factor by those involved in the zone’s initial phases of development. The members noted
that the existence of a central group always a coordinated proactive approach to investment promotion.
InvestPenang have a wide remit with regards to assisting investors with implementing projects and
implementing initiatives to improve the attractiveness of Peneng for investment. A key differential
identified by InvestPenang is their focus on the ‘liveability’ of Penang. The organisation frequently
works with federal government agencies on promotional activities including developing policies for
state housing, housing for international workforce and even elements such as international schools. The
organisation see these types of activities as key to attracting international investment within key target
sectors.
The organisation also acts as the voice between investors and the Federal Government to lobby on their
behalf with regard to national policies and incentives. This forms part of the organisation’s efforts in
‘post-investment’ care which was identified as a key component in ensuring that the continuing needs
of the industries and firms located within the zones are catered for.