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Monday, September 12, 2005

Make Penang a new outsourcing hub

Science, Technology and Innovation Minister Datuk Dr Jamalusin Jarjis said barely eight months after the establishment of Penang Cybercity 1 in Bayan Lepas, Penang has managed to get 58 MSC-status company to operate there, which is almost double the target of 30 companies by year end.

"One only has to look at the economic boost experienced by Penang in the eight months to understand the soundness of the strategy to established mini-MSC in the state." comment NST in it editorial today.

"Penang has establashed itself with its strong present of hardware companies like Intel, Seagate and Dell. Many multinational companies operating in Penang will outsource some of their activities" added Jamaluddin.

Base on the industrial revolution cycle.

Labour intensive-->Capital Intensive-->Technology intensive

Pensonic----------->Intel----------------->Dell, Acer

Thus, Penang has a complete the high-tech industrial cycle and it's time to move up value chain to in software cycle.

First, Penang state government has to make an effort to connect the whole island with broadband like Ireland in a shortest possible time to improve its competitiveness. I feel this is not difficult as Penang is not as big as Ireland, Singapore or South Korea.

Second, Penang state government also have to ensure all school in the state to become smart school in a shortest possible time.

If the state government able to achieve the above two. I feel it able to mitigate the China competitive effect on it manufacturing sector and improve it chance to compete with India in the software sectors.

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