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SEPTEMBER 2006

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Penang, Malaysia: An Editorial Profile


Knowledge Corridor

   By providing a world- class ICT infrastructure, the Multimedia Super Corridor is Penang's ticket to a knowledge- based economy and to elevating Malaysia to developed- nation status by 2020.
   The 2005 expansion of the MSC to Penang, with parts of the Bayan Lepas industrial park earning
An experienced work force and good infrastructure help automation companies in Penang, such as Pentamaster (above), become global players in the automation industry.
"Cyber City" status, provides multinational companies with opportunities in software, for example. With state- of- the- art ICT capabilities in one of the most politically and economically stable countries in the world, the MSC already is becoming a favorite with global leaders who have set up regional/global SSO bases, such as in outsourcing for sales, call centers, HR and finance.
   As a cyber city, Penang can offer investors in the MSC freedom from local ownership requirement, zero income tax for up to 10 years or an investment tax allowance, and duty- free import of multimedia equipment.
   Robin Seo, recently retired country manager of Motorola Malaysia and managing director of Motorola Technology, is working with the K- ICT Connectivity Committee to provide a roadmap for the development of Penang's knowledge economy. "A lot of companies are gearing up to high- value activities, such as design. When you do design, the data needs are huge.
   "Our goal is to improve the knowledge base and to cultivate the ICT industry to enhance productivity of industry. And we need to improve the
Robin Seo advises on K-ICT
efficiency of government."
   Multinational business is well connected in Penang, Seo says, and "the Internet is well used by the school children." But currently the broadband penetration rate for households in Penang is only 10 percent.
   "We are rolling out broadband across the state … and want to bring fiber and wireless broadband into homes next." A major goal, Seo says, is to improve broadband penetration in households to 75 percent by 2010.
   Companies operating within the MSC are focusing on software development, followed by Internet- based business and content development, reports a July 2006 Danish investment analysis. One of the strengths of locating software development activities within the MSC is the large talent pool of skilled English- speaking developers with many different nationalities, making multi- lingual development possible.
   In particular, the many Chinese native among these create the opportunity for companies to develop software for the Chinese market, while still reaping the benefits of being located in Malaysia.

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