Special Economic Zones in the OIC Region:
Learning from Experience
77
Real Estate
The PDC offers real estate options including the sale of land to industrial investors as well as
‘ready-made’ industrial buildings and serviced land lease.
Box 29 – Penang SEZ Success Factors – The Role of PDC in Development and Operation –
Interview with PDC
Economic Performance
The headline economic performance of the Penang FIZs, FCZs and Industrial Estates is
summarised below i
Table 5-6 – Penang SEZ - Economic Performance Summary
Economic Performance Indicator Performance Summary
Foreign Direct Investment
($)
It is estimated that the FIZs, FCZ and Industrial Estates have attracted a
total of $16 billion since 1999.67
Number of Companies within
SEZ
It is estimated that there are approximately 4,000 of which 10% are Multi-
national Companies (MNCs)68
Direct and Indirect Job
Creation
In total it is estimated that the FIZs and Industrial Estates have created
more than 250,000 direct and indirect jobs.
Between 2008 and 2016 it is estimated that 139,133 direct manufacturing
jobs were created within Penang’s FIZs and Industrial Estates.69
Export Values ($) $29 billion in 2016 which equates to approximately 14.5% of total exports
Total Annual Output ($)
No data is collected at the FIZ/Industrial Estate level. However, data for
manufacturing activity within the State of Penang shows that in 2013 total
67 It should be noted that whilst statistics are not available for the FIZs and Industrial Estates, consultation with key
stakeholders as part of interviews conducted in the site visit indicate that the majority of FDI within the manufacturing sector
is concentrated within one of the FIZs or Industrial Parks developed by PDC.
68 As previously noted, statistics are not available for the FIZs / Industrial Estates, however it is expected that the majority of
manufacturing firms and enterprises are located within these areas.
69 As previously noted, statistics are not available for the FIZs / Industrial Estates, however it is expected that the majority of
manufacturing jobs are located within these areas.
The PDC identifies that its role has changed over time from simply selling industrial plots of land to
investors to developing land and buildings and leasing them to companies wishing to locate within
the FIZs and Industrial Estates. They identify that this ‘Build and Lease’ model of development has
attracted companies which don’t wish to invest large capital sums upfront in land and buildings but
which are keen to invest in production and R&D activities. This has been a key success factor in
attracting higher companies higher up the value chain engaged in R&D and global business service
activities.