Special Economic Zones in the OIC Region:
Learning from Experience
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institutions and other training providers, helping to identify the skills and training needs of the
business community.
The PSDC was initially established in collaboration between the PDC and representatives of Intel
and Motorola who helped to coordinate and establish the centre. The PDC provided the initial
building and the land for the centre and responsibility of a management council which was
formed of private sector representatives. The Management Council is currently comprised of 11
elected, 4 appointed office bearers and 9 ex-officio members. 76
Box 31 – Penang SEZ Success Factors – Skills and Industry – Interviews with Former Members
of PDC
The PSDC is 80% financed by the private sector with 149 member firms which represents 60%
of the Penang workforce. Of these member firms, 32% are electronic companies, 22%
engineering and 19%manufacturing.77
To date the PSDC has trained over 200,000 participants through more than 10,000 courses since
its inception in 1989. It has pioneered local industry development initiatives, assisted in the
input and formulation of national policies pertaining to human capital development and has
contributed directly to the Malaysian workforce transformation initiatives.
In 2016 the Centre executed its Industry 4.0 initiative to support the new phase of industrial
development within Malaysia. As part of this initiative the PSDC will aim to become a centre of
76 PDC interview with BuroHappold 2017
77 OECD (2011) Higher Education in Regional and City Development: State of Penang, Malaysia
Interviews with former members of the PDC involved in its establishment, identify that the
close collaboration of the PDC with industry partners has been key to the success of the
Penang Skills Development Centre. Industry funding and involvement within the
establishment and operation of the centre has enabled Penang to foster a highly skilled
workforce which directly meets identified needs of MNCs and industry.
Those interviewed identify that the presence of a highly skilled workforce has been a key
factor in retaining electric and electronic MNCs throughout the evolution of the Penang FIZs
and the movement up the value chain into higher value activities such as research and
development and global business services. The ability of Penang to integrate its domestic
workforce into higher value activities and in particular managerial and technical positions
has embedded MNCs and supporting industries within Penang’s FIZs.