I&T Penang Properties Blogs

A SME conference has been held in Penang recently. The one-day event, with the theme “Globalization of SMEs- The Next Battleground” was organised by The ACCA and officiated by Penang Chief Minister YAB Mr Lim Guan Eng with more than 350 delegates attended the conference.

SME developments in Penang

The developments of SME in Penang are mostly supporting MNCs. According to InvestPenang Chairman of the Executive Committee, Dato Lee Kah Choon, Penang economy has undergone five decades of evolution with the industrial transformation started 35 years ago. To date, the growing sectors in Penang are E & E and ICT sectors. As at March 2008, there are a total of 146 MSC status companies in Penang.

Dato Lee Kah Choon, Chairman of InvestPenang presenting his paper at the SME conference in Penang

Penang’s industrial evolution

New growth sectors for Penang

MSC companies in Penang

A recommended resource centre on SME developments in Malaysia is www.smeinfo.com.my by Central Bank of Malaysia which provides much related information in three languages. Another official website for SME in Malaysia is SMIDEC.

SME Outlook and Funding

The Malaysian Government, through SMIDEC, provides various facilities and assistance programmes to assist local SMEs to be globally competitive.

According to MITI’s website, the statistics on the utilisation of Funds (Grants and soft loans) for SMEs for the northern states (Perak, Penang, Kedah and Perlis) as the end of April 2007 are as follows:-

Grants
• As at the end of April 2007, a total of 17,015 applications were received by SMIDEC for the various grant schemes. Out of these, 12,417 applications (73.9 per cent) valued at RM270.61 million have been approved.
• The highest approval was for Grants for Certification & Quality Management valued at RM82.3 million (77.0 per cent) of the total grants approved.
• Total approvals of grants for the Northern Region states are 2,592 amounting RM59.7 million (21.4 per cent).

Soft Loans
• As at April 2007, a total of 1,685 applications for soft loan were received, of which 1,046 (62.7 per cent) were approved valued at RM530.7 million.
• Total approvals of Soft Loan for the Northern Region states are 193 amounting RM 112.46 million (21.2 per cent).

For this year, the government has allocated RM4.5 billion for 198 small and medium enterprise (SME) development programmes and more funds will be allocated to SMIDEC under the mid term review of 9MP. The government has also announced that an additional RM1.2 billion worth of financial facilities will be make available to assist small and medium enterprises (SME) to manage rising business costs.

The Malaysia Government will continue to provide matching grants and soft loan schemes for SMEs , If your company are one of these SMEs and your businesses are within the threshold of SMIDEC, there are many types of grants and soft loans available for local SMEs; here and here.

For advisory on SME property needs or property investments in Penang, email to us at Izrin & Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

THE new Penang state government wants to develop the state into an outsourcing and training centre for new industries. Penang’s new Chief Minister Lim Guan Eng unveils new strategies to drive the state forward. More at Star Business report on Penang as outsourcing and training hub. Penang’s industrialisation, which started in early 1970’s, has transformed the manufacturing sector currently contributes 40% to state GDP.

Industrial Parks in Penang

According to the state government development agency, PDC’s website, the agency has developed six industrial parks with a combined size of 2,384 hectares (5,890 acres) and with about 686 existing factories of which only one industrial park is located on the Penang Island whilst the remaining five are located in mainland Penang of Seberang Perai. Click here to view the location map of Penang Industrial Parks. The six industrial parks are Bayan Lepas Industrial Park, Mak Mandin Industrial Park, Seberang Jaya Industrial Park, Prai Industrial Park, Bukit Tengah Industrial Park and newly developed Bukit Minyak Industrial Park.

Due to the scarcity of land on Penang Island, the state government has expanded the existing Bayan Baru Industrial park via land reclaimation along the south eastern coastal area of Penang Island. Future industrial expansions will continue to take place in mainland Penang particularly in Bukit Minyak Industrial Park and Batu Kawan township near to the proposed Second Penang Bridge.More related info at The new conurbation area in Central mainland Penang.

The state will likely to see new investments from South Korean’s Samsung which may invest RM3.5 billion at 32 ha site in Batu Kawan, near the Second Penang Bridge.

The sales price for leasehold industrial land in Bukit Minyak industrial area ranges from RM13 per square foot whilst selling price for freehold industrial land in central Seberang Perai ranges from RM20 per square foot.

For advisory on industrial lands and property investments in Penang, email to us at Izrin &Tan Properties Sdn. Bhd. or call us at +604 6588333 (Penang Office) or +603 92839782 (Kuala Lumpur Office) and we would be pleased to assist.

New Economic Agenda for Penang

The new administration has outlined its New Agenda for Penang and pledged to pursue investor friendly policies and to make Penang a dynamic economic, inter alia, to upgrade hi-tech industries, manufacturing and SMIs/SMEs on the global value chain, rejuvenate tourism and service industries such as building more green lungs, a new Penang Zoo, hotels and tourism heritage areas, Revamp and restructure Penang Development Corporation, InvestPenang, Penang Skill Development Centre and Penang Port Authority to stimulate greater foreign direct investments, comprehensive plan to promote Knowledge-based economy to secure Penang’s place in the rapidly changing globalised world and tapping into ‘Penang Diaspora’ to complement “Brain Gain” Programme.

Projects Pending Review

Several major infrastructure projects namely second Penang Bridge, PORR, monorail, airport and port expansion under the NCER initiatives will be continued as planned whilst some will be subject to close scrutiny. Two high profile projects in Penang namely PGCC and Gurney Paragon project are pending approval or review. Read more at Large projects to come under scrutiny, Snapshot of projects, Gurney project in Penang may be reviewed and Will Penang’s property market continue to boom?

A landmark industrial building in Prai Industrial Estate, mainland Penang visible along North-south Highway. More info and updates about this landmark industrial building at Factory sold for a song and Ann Joo takes over Nanometric: