Wan Zailena, CEO, investPenang

   "We want industries that build on our existing capabilities – electronics and manufacturing," Zailena explains. "But we are looking at manufacturing in different types of electronics, such as automation and precision engineering, precision plastics, and manufacturing support services. Now we can go out for medical devices, a brand new industry for Penang," she says. The support services industry already is well developed in Penang "whether you need a clean room or sterilization."
   The investment promotion agency wants to solicit business that will develop Penang's strengths, she says, building higher value in its electronics industry with investments for design and development and research centers.
   "Also, biotechnology is interesting," she says, due to Penang's extensive post- secondary resources, including medicine and pharmacology.
   Because Penang is multi- racial and multi- ethnic, "it's an ideal site for clinical trials as well," says Zailena, who headed human resources at Intel before taking the helm at investPenang. "We have a population that is fairly 'drug- naïve,' and has not been exposed to numerous types of drugs."
   In addition, medical devices giant Braun has pledged multi- million dollar investments annually over the next four years in Penang. "We have already planned for Braun, which is among the biggest medical devices and instrument manufacturers in the world, to be the nucleus of the same industry here in Malaysia," said Chairman Ludwig Georg Braun.
   Already in place is a plot of land at the Bukit Minyak Industrial park that is earmarked for biotech, bio- pharma, life sciences, research labs and an agro- biotech- based industry. Other initiatives include plans for an investment center in marine and fish biotech, by combining the strength of three marine institutes.
   "In addition, Penang has other areas where we attract investors: radio frequency technology and business process outsourcing," Zailena says. "These fall within the whole electronics industry. This is not to say that manufacturing won't be supported. We have to continue to improve our delivery system for investors and look at our competitive infrastructures."
   The industrial progression by Intel, the world's largest chipmaker, is instructive. With a 34- year, US$1.9 billion investment history in Malaysia, Intel has entrusted its Penang facilities and work force to grow beyond manufacturing to include design and development and back- office operations.
   Intel has opened a new technology design and development center at its facility in Bayan Lepas Free Industrial Zone. At the opening, Intel CEO Craig R. Barrett credited the area's "readily available infrastructure, high- volume manufacturing capabilities, skilled work force and strong government support for informational technology innovation."
   In 2004, the chipmaker decided to go global with its shared services needs. With worldwide employment of 85,000 and a full 40 percent of its US$34 billion in revenues coming from the Asia Pacific, Intel decided that its growing campus in Penang would be a good choice for one of the company's two SSCs in Asia.
   Count Motorola among the global industries moving their Penang operations up the value chain. In May, Motorola unveiled its Advanced Communications Laboratory and a Seamless Mobility Experience Center in Penang.
   In addition, Motorola's US$21- million expansion from 550 to 800 of the R&D work force at its two- way radio design center in Penang has made it the largest of its kind in the world.
   As for the automation industry, Penang maintains a better business climate for the industry than other regions in Southeast Asia, says Pentamaster executive chairman C.B. Chuah. "Most of the automation companies in Penang are global players … because we have the experienced people and infrastructure."