THE announcement by Samsung that it selected the Philippines rather than Penang
to invest in a new integrated circuit plant is a setback to the state government
under Chief Minister Lim Guan Eng. The US$1 billion (RM3.2 billion) plant will
be built in Clark, north of Manila.
At first glance, it is hard to understand Samsung's decision. In terms of
physical infrastructure, human resources, supply base and public utilities,
Penang is superior to Clark. Also, Penang's position as one of world's
most important electronics industry hubs and the presence of extensive
supporting industries should have swung the decision in its favour.
One might suspect this was due to the recent fuel price hike and the Federal
Government's decision to defer the monorail and Outer Ring Road projects.
However, Samsung's announcement was made well before the fuel price hike
and the Federal Government's decision to shelve the projects. Furthermore,
the price of petrol in the Philippines is 64 pesos (RM4.92) per litre and
expected to go up soon.
While I am neither privy to the thought processes of Samsung's management
nor involved in the negotiations between InvestPenang and the South Korean
company, it is not too hard to guess what transpired.
Shortly before the decision was announced, Lim and his delegation paid a visit
to South Korea. It is obvious that Lim failed to convince Samsung on the
advantages of investing in Penang.
It would come as no surprise that he failed in his mission if we look at the
composition of the delegation.
The delegation of six included five party members who had neither the
experience nor the official responsibility for attracting foreign direct
investment. Only Datuk Lee Kah Choon was from InvestPenang, but even he was a
political appointee who has little experience in foreign direct investment.
The failure to convince Samsung is symptomatic of the structural problems
plaguing InvestPenang under Lim's stewardship.
These issues, if not addressed urgently, will not only result in failure to
attract FDI but also cause existing investors to look for alternative locations.
It is no secret that Penang's new leadership is viewed with suspicion by
foreign investors.
Lim's confrontational, ra-ther than conciliatory, attitude towards the
Federal Government and his constant haranguing of Putrajaya might win him
political popularity and support, but it is scaring away potential and current
investors.
His whining about projects being cancelled and Penang being marginalised has
sent a negative perception of the state's suitability as an investment
location.
It is well known among industry insiders that several large multinationals are
planning to either scale down or close their operations in Pe-nang in the coming
weeks and months.
I am sure Lim's administration is aware of these companies. It is not too
late to convince them by reversing the poor decisions made thus far.
He has to appoint (by open interviews) competent, experienced and non-political
professionals to manage investors and attract FDI.
Failure to act would be catastrophic for the economy of Penang.
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5 comments:
in this current world's economy trend,don't care who you are also cannot bring up the economy.PR gov talk big only.
taiwan newly president mah ying chiew,now people start protesting him
What is happening? PR is the best and good at talking cock. Promise 1, 000 hectares of land for Chinese independent school. Is that so easy?
Talk cock and bull shit. People love to hear good bull shit stories that don't make sense. People will support them. Barisan Nasional can do what? People ask.. PR good and good. Where are we heading actually. Crying over our bread and butter issues. We need to move on and counter all the bull shit of PR. Is the people listening? Is the people rational and making sense? People love PR talking nonsense stories. Even sampah, longkang and rumput issues cannot settle well. Expect miracle from PR government. Don't ever dreamlah.
Where is Perak Gerakan Youth leader? Are they still sleeping or dreaming? What direction are they taking? Out of Barisan Nasional? Too quiet as a youth leader. Better resign and concentrate on his business. Lama...lama.. terkuburlah Gerakan. Gerak pun tidak. Konstan pun tiada.
Jadi Penang Gerakan kalah pun kelemahan pemimpinnya. Itu lah kelemahan Gerakan sendiri. amsung memang mahu lari lagi lagi dengan keadaan politik yang tidak menentu ini. Siapa tidak bimbang? Jangan tunjuk jari sahajalah. Kerja dengan lebih keraslah
Wait lah, let them promise a lot lah, talk a lot lah, at the end they will suffer. But, BN people also need to behave lah. That Lim Siang Chai want publicity, using Gerakan to be in the press. That Ismail even worse! talking nonsense (I think he is Anwar agent, UMNO running dog). You see this kind leader in BN will lead BN to die. Badawi also too lembut lah, give him a disciplinary action or strong warning then shut others' mouths lah. No wonder BN now in this kind of situation.
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