Penang has lost a multi-billion ringgit investment because a South Korean company which had planned to open a plant in Batu Kawan, has now opted to go to Manila instead. The RM3.2bil plant, which would produce integrated circuits, would be opened in Clark, north of Manila in the Philippines. The firm’s decision could be influenced by the uncertainty of the second Penang Bridge.
An increase in infrastructure would certainly be helpful to the country’s economic growth. Due to the scarcity of resources, it is true, that not all government projects can be implemented. Therefore the federal government will have to make careful decisions and choose what is best for the people in the long run. However as the world economy is not in a boom period, it is only rational that the Korean firm’s best interest to make an investment that would bring the highest return on investment.
However the decision to not open a plant that produces integrated circuits in Batu Kawan should not be a problem to Penang’s economy. This is because in the business world there are other potential investors that might be interested in the state.
With the new chief minister Mr Lim Guan Eng at the helm of the new state government, it is definitely possible to attract more investors to invest in Penang.