"A lot of start- up costs are prevented by coming to Penang," Wong says of quality and productivity issues. "Usually when people do comparisons, they look at raw costs and do not have a feel for the hidden costs. From my experience, when you do a start up there will be ethics issues, shrinkage of products on the line." That's not the case in Penang, he adds.
   In February, Dell launched an Enterprise Command Center (ECC) in Penang, which is designed to monitor and coordinate service provision and parts delivery to its server and storage systems customers throughout Southeast Asia, Australia and New Zealand. Dell chose Penang to host the center because of the proximity to its manufacturing plant, engineers and multi- lingual agents.
   Earlier in 2006, Dell announced an expansion in Penang to meet the demand for notebook computers, which is growing more than 30 percent annually. With the expansion, the facility could provide jobs for 600 more workers.
   Another boon to Penang is Seagate Technology's upward revision of capital investments in 2006 to US$1 billion, which will include new production lines and the potential for a 15- percent boost in its technical work force. Seagate currently has 3,300 workers in Penang, 500 of them engineers and technicians.
   What keeps multinational high- tech computer makers expanding their operations in Penang?
   "Really, it comes down to just two or three things for our company to be here," says Dell's Wong. "We have a very active engagement model with the government. We can discuss any issues, unlike other areas such as China and India. We have the talent pool to improve our operations to world- class standards; that has been a big plus in relative cost competitiveness. Stable wages, low inflation, openness of talent to learn and develop to move up the value chain – those are the key reasons."
   "I think that Penang has clearly moved up the value chain, says Wong, adding that his multinational colleagues "don't want low- labor cost, low- skill companies chasing the last dollar here. Penang is positioned like a boutique, catering to the higher end and those who prefer transparency, intellectual property protection and years of integrity and good leadership."
   Now is the time, Wong says, "to market to the world that Penang is conducive to high- value added operations."
   For more information, please visit www.investpenang.gov.my.