PENANG’s second chief minister Lim Chong Eu transformed Penang from a backward, agricultural island into a dynamic industrial hub.

His successor, Tan Sri Koh Tsu Koon, helped to propel Penang further up the technological value chain by attracting high-tech industries and bringing in thousands of high-end jobs.

However, Chief Minister Lim Guan Eng is bucking the trend by bringing in low-tech foreign direct investment (FDI) like golf courses and low-end jobs like golf caddies, gardeners and farmers.

Looking at Guan Eng’s speeches, policy pronouncements and overseas forays for foreign direct investment, I am confused by what he is trying to achieve or what his long-term strategies for the state are in terms of FDI and development.

His choice of investment destinations and policies defy common sense. For example, he led a huge delegation to South Korea in the midst of an economic crisis. It is common knowledge that South Korea is one of the countries suffering severely from the downturn and the Korea Composite Stock Price Index and won have been battered by investors.

He further attended the Asia Pacific Tourism Investment Conference, at which no other foreign government participated.

He also led delegations to China and Dubai, two countries unlikely to contribute to the high-tech and high-value investment that Penang needs.

He has claimed success by pointing out the US$100 million (RM360 million) golf course investment by a Korean company. One would hardly think of golf caddies and gardeners as high-value jobs. Also, Penang is a state with scarce land, thus having some of the most expensive properties in the country.

Many middle- and low-class families have moved to the mainland in search of more affordable homes. By encouraging more golf courses, he is creating not just an environmental disaster but also depriving poor residents of affordable homes.

His idea of attracting Middle-Eastern investors for halal projects is equally laughable as Sungai Petani and Perlis have been earmarked as halal hubs under the Northern Corridor Economic Region master plan.

In contrast to Guan Eng, Koh succeeded in moving Penang from a low-cost manufacturing location to an important hub for high-tech electronics manufacturing.

Visitors were often amazed at Penang’s success in attracting many major electronic- manufacturing companies.

Koh also had a clear vision in moving the state forward with his Penang Second Strategic Development Plan (2001 to 2010) by focusing on new areas of growth such as bio-technology, photonics, opto-electronics and software.

Prior to the March general election, Guan Eng and his Democratic Action Party had promised to transform Penang using their eight-point manifesto.

In it, DAP had promised to usher in a new era of prosperity and high growth by bringing in new high-tech investments, new sources of income, more high-paying jobs and rejuvenating tourism.

Many residents (myself included) were enticed by the promises and voted in Guan Eng and the Pakatan Rakyat government. However, within weeks, the reality set in and residents realised that his delivery falls far short of his promises and rhetoric.

Lim Kit Siang, the DAP adviser, even promised to turn Penang into a new Singapore.

However, Penang looks set to compete with the likes of Vietnam and Indonesia for the same low-tech FDI.

In terms of FDI, initially Guan Eng was fortunate as many high-end and major FDIs secured during Koh’s tenure were closed after the former’s administration took over the state. But Guan Eng’s luck has run out. Based on his performance, Penang is moving backward and downward.

CALVIN SANKARAN, Bukit Mertajam

Source: NST – December 4, 2008