Historical of industrial development strategies in Penang over the last five decades: A study of the SMEs

Abstract

The aim of this paper is to examine the history of industrial development strategies with respect to small and medium enterprises (SMEs). The paper starts with the historical economy development in Penang. In Penang, the structural transformation of the state was enabled by the leadership of four State Chief Ministers. Firstly, under the leadership of Tan Seri Wong Pow Nee, we see the establishment of MakMandin and the Perai Industrial area. Secondly, under Tun Dr Lim Chong Eu there was the transformation of Penang into an industrialized entity. The rapid economic transformation during this period using the Penang Development Corporation as a facilitating mechanism made a big impact on the Industrial Free Trade Zone, especially in terms of making use of the industrial policy to improve employment opportunities. Thirdly, efforts were made by Tan Seri DrKohTsu Koon, the third State Chief Minister, in the 1990s who took his own initiative to uplift SMEs through global supplier programs in PDC. Dr Koh Ksu Koon improved the framework that was inherited from Lim Chong Eu. Finally, from 2008 onwards, under the leadership of Lim Guan Eng, the secretary-general of DAP, the national opposition party currently ruling the state of Penang, the state has changed its direction, whereby besides concentrating on the electronic sector, it has also promoted Penang as a centre for the medical tourism industry. This shift in development and sectoral paradigm is due to the challenges faced by Penang from global competitors, namely Malaysia's neighbors such as China, Vietnam, Indonesia, Thailand, the Philippines, and Cambodia.