Bayan_Lepas_Free_Industrial_Zone

Bayan Lepas Free Industrial Zone

Bayan Lepas Free Industrial Zone

Industrial zone in George Town, Penang, Malaysia

The Bayan Lepas Free Industrial Zone (Bayan Lepas FIZ) is a free trade zone within George Town in the Malaysian state of Penang. Located adjacent to the Penang International Airport and 12 km (7.5 mi) south of the city centre, it is a high-tech industrial park widely regarded as the Silicon Valley of the East.[3][4][5]

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Created in 1972 as Malaysia's first free trade zone, the Bayan Lepas FIZ played a critical role in Penang's economic diversification and is now home to various multinational corporations, including Bosch, Motorola, Dell, Intel and Hewlett-Packard.[6][7][8]

History

The 1,400-acre (5.7 km2) Bayan Lepas FIZ was the brainchild of Lim Chong Eu, who served as the Chief Minister of Penang between 1969 and 1990, in response to Penang's economic downturn at the time.[9][10][11] George Town, Penang's capital city, had its free port status revoked by the Malaysian federal government in 1969, leading to massive unemployment which peaked at 16.4%.[9] Lim identified the electronics sector as having the best potential to absorb the state's excess semi-skilled workforce.[10]

Nearly 1,000 acres (4.0 km2) of land adjacent to the Penang International Airport were acquired for the construction of Malaysia's first free trade zone, as well as the adjacent township of Bayan Baru.[12][13] The Penang Development Corporation (PDC) was tasked with the construction of both the zone and the township.[14][15] To attract multinational corporations to the zone, the Free Trade Zones Act was enacted by the Malaysian federal government in 1971 and pioneer tax incentives were offered.[10][16]

The first phase of the FIZ, covering an area between the airport, Jalan Sultan Azlan Shah and the Keluang River, was opened in 1972.[1][12][17] The zone has since been expanded and developed in phases. Phase 2 encompasses an area between Jalan Sultan Azlan Shah, Bukit Gedung and the Snake Temple.[17] Phase 3 was partially built on reclaimed land, while Phase 4, the largest and final phase, was completed by the 1990s.[17]

The FIZ proved successful in attracting multinational firms and its creation played a vital role in reversing Penang's economic crisis.[9][10] Intel, AMD, Hewlett-Packard, Clarion, National Semiconductor, Hitachi, Osram, and Bosch—collectively known as the Samurai Eight—were the first multinational companies to set up factories within the zone, followed by several other firms including Motorola and Dell.[18] These firms are also supported by smaller, local-owned enterprises and startups, such as Piktochart.[6] Consequently, the manufacturing sector became one of Penang's largest economic sectors, while the zone itself has been described by the international press as the Silicon Valley of the East.[3][4][6][19]

The Tun Dr Lim Chong Eu Expressway, pictured here, links the Bayan Lepas FIZ with downtown George Town, the Penang Bridge and the Second Penang Bridge.

Infrastructure

The Bayan Lepas FIZ lies next to the Penang International Airport, allowing for ease of exports. This elevated George Town as the top exporter among Malaysian cities. In addition, the FIZ is also connected to the city centre, the Penang Bridge and the Second Penang Bridge via the Tun Dr Lim Chong Eu Expressway and the pan-island Malaysia Federal Route 6.

Tenants

The following is an incomplete list of multinational firms within the Bayan Lepas FIZ.

Phase 1

Phase 2

Phase 3

Phase 4

Economy

In 2021 alone, the Bayan Lepas FIZ received almost RM71 billion of investments, about 93% of Penang's total investments that year.[20] An estimated RM295,173 million worth of exports also passed through the Penang International Airport throughout 2021, the largest among all entry and exit points in Malaysia.[20][21]

See also

References

  1. [1]
    Yeow, Teck Chai. "The Development of Free Industrial Zones–The Malaysian Experience" (PDF). World Bank. {{cite journal}}: Cite journal requires |journal= (help)
  2. [2]
    "Innoplex to attract world-class industrial players | Buletin Mutiara". www.buletinmutiara.com. Retrieved 3 March 2018.
  3. [3]
    Roughneen, Simon (15 July 2015). "Styling itself as the 'Silicon Valley of the East'". Nikkei Asian Review.
  4. [4]
    "Penang: Malaysia's secret silicon island". BBC News. Retrieved 4 February 2018.
  5. [5]
    "Special Economic Zones in the Indonesia–Malaysia–Thailand Growth Triangle: Opportunities for Collaboration" (PDF). Asian Development Bank.
  6. [6]
    "A Silicon Valley of the East: Penang's thriving start-up community". Channel NewsAsia. Retrieved 4 February 2018.
  7. [7]
    Vaghefi, Negin (5 July 2022). "Penang's Industrial Parks Surge in Global Prominence - Penang Monthly". penangmonthly.com. Retrieved 24 October 2023.
  8. [8]
    Xiong, Ooi Tze (31 July 2022). "PSDC's Role Continues to Grow as Penang Celebrates 50 Years of Industrialisation - Penang Monthly". penangmonthly.com. Retrieved 24 October 2023.
  9. [9]
    "The man behind Penang's economic transformation". The Star. Retrieved 30 November 2017.
  10. [10]
    Ooi, Kee Beng (December 2009). "Tun Lim Chong Eu: The past is not passé". Penang Monthly. Retrieved 30 November 2017.
  11. [11]
    Lee, Goh Ban. "Remembering Tun Dr Lim Chong Eu". www.thesundaily.my. Retrieved 24 October 2023.
  12. [12]
    Peter Nijkamp, Amitrajeet A. Batabyal (2016). Regional Growth and Sustainable Development in Asia. Springer. ISBN 9783319275895.
  13. [13]
    Sue-Ching Jou, Hsin-Huang Michael Hsiao, Natacha Aveline-Dubach (2014). Globalization and New Intra-Urban Dynamics in Asian Cities. Taipei: National Taiwan University. ISBN 9789863500216.
  14. [14]
    Shahril Cheah (October 2010). "Penang's development still depends on the PDC". Penang Monthly. Retrieved 3 March 2018.
  15. [15]
    Ooi, Kee Beng (2010). Pilot Studies for a New Penang. Singapore: Institute of Southeast Asian Studies. ISBN 9789814279697.
  16. [16]
    "Transformation of Bayan Lepas into free trade area does not diminish its attractions | Wong Chun Wai". wongchunwai.com. Retrieved 3 March 2018.
  17. [17]
    "Review for Bayan Lepas Free Trade Zone, Bayan Lepas". PropSocial. Retrieved 3 March 2018.
  18. [18]
    Fikri Fisal (August 2016). "PDC – Making Penang Lead". Penang Monthly. Retrieved 3 March 2018.
  19. [19]
    "Penang Economic Indicators" (PDF). Penang Monthly.
  20. [20]
    "My Local Stats Barat Daya Pulau Pinang 2021". Department of Statistics Malaysia.
  21. [21]
    "External Trade Cont. – StatsDW Portal". Retrieved 13 October 2023.
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