Penang falling behind in investments

27 Aug 2012, 5:04 PM
Posted in Bureau, Coordinator, News, Special Issue, Economics

There is a potential economic crisis looming for Penang because of three important contributing factors.

First, there was a 70% drop in investments from January to May this year, second some existing investments pulled out while some already approved investments did not show up.

Penang Gerakan secretary Goh Kheng Sneah said this latest phenomenon was worrying for Penang and the people’s livelihood would be greatly affected when jobs opportunities diminished.

Taking Chief Minister Lim Guan Eng to task, Goh said Lim owed Penang people a good explanation and what measures are being taken to redeem the situation.

Equipped with statistics from the Malaysian Investment Development Authority (Mida), Goh said the figure showed Penang recording a sharp 70% drop in investments from January to May this year. This pushed down the state to 7th placing amongst all the states in Malaysia, in term of investments when compared to last year, where it held the top spot.

The statistics showed Penang only recorded around RM1.1bil of the total proposed capital investments for the first five months of this year.

“From our own calculations, we are bracing for a lower inflow of investments this year. This reflects badly on the state’s performance,” said Goh at a press conference held at the Penang Gerakan headquarters.

Also present were Penang Gerakan vice-chairmen Ong Thean Lye and Dr Lim Boon Han, Publicity, Information and Communications Bureau chief Dr Thor Teong Gee, Legal and Human Rights Bureau chief Baljit Singh, Economy and SME Bureau chief Michael Heah and David Yim, who is special assistant to Penang Barisan Nasional chief Teng Chang Yeow.

Goh said Penang had investments which were approved in the past two to three years which did not materialise.

“The CM should have the details on the investments which did not materialise. He should do something before Penang’s economy suffers a downturn,” said Goh.

Goh said he is 99.99% positive that the production line for the handphone maker Blackberry is pulling out its manufacturing line from Penang.

“My sources informed me that the production line is pulling out and I would like Lim to comment on that matter.” Goh said he is willing to apologise to all Penangites if the information is untrue.

“If the news is true, then Lim should do something to salvage the retention of the production line and if he cannot then, he (Lim) should apologise to the people,” Goh said.

Penang Gerakan vice-chairman Ong Thean Lye said Lim should explain to the people about his many overseas trips mostly to China and Korea and what benefits brought to the Penang people.

“He should tell the people what kind of investments he has obtained so far. I remembered that about two years ago, Lim said upon returning from Korea that investors were going to invest in a golf resort at Batu Kawan but until today we have not seen anything,” Ong said.

Ong was referring to the RM350mil golf resort that was proposed in 2008.

The project fizzled out after a memorandum of understanding (MoU), signed between the Penang Development Corporation and South Korea’s DK ENC Company Ltd, lapsed in 2010.

Ong also questioned what kind of investments and plans Lim has for Penang in order to transform the economy from labour-intensive dependant to a hi-tech manufacturing hub.