EVER SINCE the PDC was formed in 1969, it has spear-headed Penang’s development into a modern economy. The PDC’s groundbreaking industrialisation efforts included establishing Malaysia’s first Free Industrial Zone at the Bayan Lepas Industrial Park in 1972, which won the 1995 FIABCI (International Real Estate Federation) Award for best industrial park in Malaysia.

 

As a result of the PDC’s efforts, Penang is now a world-class partner in global high-technology manu-facturing as well as an established international destination for the setting up of offshore bases especially. The World Development Report from 1995 stated that “Industrial development in Malaysia from the mid-1960s to the mid-1990s constitutes one of the most rapid indus-trialisation episodes the world has ever seen.”

 

Bringing industry and urbanisation to the then-rural areas of Bayan Lepas and Seberang Jaya was key to improving the state’s economy and standard of living. The PDC started two new townships in Bayan Baru and Seberang Jaya to support the industrial parks at Bayan Lepas on the island and Prai on the mainland. These townships are now metropolitan areas in their own right.

 

The PDC has also contributed towards the state’s international branding in the tourism industry, and facilitated the development of tourism products. Its efforts have brought encouraging results, and annual tourist arrivals have surpassed the three million mark since 1994. New and emerging markets such as China, India and the Middle East have also been tapped into.

 

Through the 1990s, the PDC continued with its core activities in industry, tourism and property development and established various subsidiaries as part of its diversification strategy, including hotel and leisure activities, education and consultancy services. These investments have put the PDC on the international map with joint venture partners such as the Royal College of Surgeons, Ireland and University of Dublin for the Penang Medical College. Small and medium scale industries were also established as MNCs started local sourcing and the JIT (Just-in-time) concept.

 

 

In its pioneering years, the PDC was the reference point and one-stop centre for coordinating invest-ments in Penang. Its role has now been complemented by new organisations including Invest-in-Penang Bhd, Socio-Economic & Environmental Research Institute (SERI) and the private sector.

 

Today the Corporation is undergoing organi-sational renewal to encourage new innovation and creativity from its management. After four decades of growth, how can the PDC adapt and change with the times?

 

 

The PDC and its subsidiaries carried out a restructuring exercise in 2005 aimed at streamlining and making the PDC a thinking organisation, leading to fundamental changes to its traditional strengths. For instance, the Industrial Division which promoted investment in Penang, was taken over by Invest-in-Penang Bhd, and the PDC’s role was streamlined into the provision and setting up of industrial parks, infrastructural development as well as management and sales of industrial land.

 

With the aim of rejuvenating the orga-nisation, a KPI Task Force (KPITF) was formed in 2009 to oversee operations at the PDC and its subsidiaries. The Task Force, chaired by Chief Minister Lim Guan Eng, comprises PDC Board member Datuk Lee Kah Choon, former PDC general manager Datuk Seri Chet Singh, general manager Datuk Rosli Jaafar and PDC Pro-perties managing director Wan Zailena.

 

 

Rosli, who heads the internal committee to formulate the PDC’s Strategic Plan 2010–2015 explained that, “Our Strategic Plan will cover the full range of our core businesses. It will, among other things, promote Penang as a location of choice for investors by increasing our land bank for industrial land development through land acquisition and land reclamation.” To achieve this, the PDC will develop new industrial and business parks in Batu Kawan as well as plan development areas for local SMEs in the Penang Science Park and Halal Park. Also in the pipeline is the construction of more Multimedia Super Corridor (MSC)-approved buildings.

 

There are also plans to develop existing industrial parks by “value-adding” capacity 

and services for research. The PDC will strategise how best to attract knowledge workers to work and stay in Penang, and studies will be carried out on their housing and social needs.  

 

 

On the property front, the PDC has requested proposals from local and international 

players for the purchase and development of Bayan Mutiara which covers three parcels of land – 24ha of ready land and 16ha of reclaimed land – along Penang Island’s east coast. The development is expected to generate good economic and other related benefits for Penang state; complement surrounding areas; and also demonstrate a high degree of sustainabi-lity and “green” development.

 

Rosli said that the PDC plans to accelerate township development by its subsidiaries PDC Properties Sdn Bhd and PDC Homes Sdn Bhd and through joint ventures and privatisation. “Emphasis will also be made on providing affordable homes in the region of RM150,000–RM450,000 for the middle income group. We also have plans to redevelop and add value to our first generation flats built over 30 years ago.”

 

 

Komtar, the PDC’s biggest urban renewal initiative, is presently being revitalised. The state government and the PDC have identified a number of premises to be given priority, including Komtar’s upper floors. Plans include a sky-lift that will give visitors a unique view of the island as it travels up from the fifth to the 65th floor. The state government and the PDC have plans for a Gold and Jewellery Bazaar located on a one-acre site beside Komtar.

 

Restoring the old Prangin Market is also high on the PDC’s urban revitalisation efforts. The proposed Prangin Market will be selling a variety of local crafts and products to enhance George Town’s reputa-tion as a centre of arts and culture. Komtar’s Phase 5 will also be designated for promo-ting the arts, culture, heritage and a green environment that includes an urban park.  

 

 

In 2009, the PDC established a subsidiary company, Penang Global Tourism (PGT) Sdn Bhd, which focuses on promoting and marketing tourism for the state. PGT has made headway in branding and promoting Penang internationally.

 

In terms of product development, there are plans to develop eco-tourism projects in Batu Kawan, to be ready by 2017. “We have also started to exit businesses that we do not have expertise in, or are not making profits from. We are also reviewing companies that do not have growth potential and which are not related to the PDC’s core business, so that our efforts can be more focused,” said Rosli.

 

 

Since August 2010, the Corporation has started work on the PDC Business Intelligence Quarterly (PDC-BIQ), which is aimed at compiling and analysing statistics on growth rates for Penang, manpower figures, investments, tourism and other important indicators.

 

Working closely with SERI, the PDC-BIQ will measure business cycle turning points, develop composite indicators and determine business cycles. According to Rosli, “The PDC-BIQ will be an authori-tative guide for decision makers from the government, the private sector or prospective investors.”

 

 

The Corporation is undertaking workforce planning in line with its strategic directions. Initiatives are also being taken to instil and reinforce corporate values which include CAT (competency, accountability and transparency), teamwork, and good employee relations through courses, team building and promoting open communications.

 

It is worth noting that for two conse-cutive years from 2008 to 2009, the PDC achieved the highest 4-star rating award for its financial management from the Auditor-General’s Department of Malaysia.

 

With four decades of experience and expertise, the PDC is poised to steer Penang towards its vision of becoming an international city.

** Republished with permission. This article first appeared in the October 2010 issue of the Penang Economic Monthly. Shahril Cheah is a senior manager, with 28 years of service with the PDC. He is now attached to PDC Premier Holdings Sdn Bhd, the investment holding company of the PDC.

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