'Build first, approve later' policy

From malaysiakini

Penang has implemented a 'build first, approve later' policy to expedite construction of factories in its industrial zones.

This is part of the incentives to boost industrial growth and expand employment opportunities across the state.

Under this policy, local authorities will relax red tapes and allow investors - locals and foreigners - to build factories while their building plans are being processed.

This will cut time and costs for investors - therefore increasing Penang’s attractiveness - according to Chief Minister Lim Guan Eng. The leader believes investments will increase jobs, which will be a boon for the state.

Lim understands that this policy which is restricted for industrial premises will face objections from citizen interests groups - since factory buildings have to comply with guidelines and specifications stipulated by local authorities in order to obtain occupational certificates (OC).

The chief minister assured that while the OC and approval will come later, the investors still have to submit their project plans and receive initial consent from local councils. Construction can only commence after this.

"Of course investors must comply with the rules and regulations. Otherwise local municipalities will reject their building plans eventually and will not issue OCs.

"Construction of their factories definitely must meet local building guidelines and specifications," he told newsmen during a press announcement by new American investor National Instruments (Nati) in George Town.

Nati To Employ 1,500 Staff

The industrial sector is the cornerstone of Penang's economic growth since the 1970s, forming more than 40 percent of the state's gross domestic product and providing jobs to many in Penang and neighbouring states.

Nati's US$80 million investment for a research and development and operations facility in the Bayan Lepas Industry Zone will cover a seven-year period to 2015.

The information technology hardware and software manufacturer - once their plant is fully operational - will employ 1,500 people and account for 40 percent of Nati’s global production, making it the company’s growth engine.

Nati CFO and senior vice-president (manufacturing and IT operations) Alex Davern said Penang was chosen ahead of other options worldwide - including high-profile Singapore.

Penang was chosen for its high quality infrastructure system, business friendly governance, professionalism of the Federal Malaysian Investment Development Authority (MIDA) and the island state’s proud track record of luring and maintaining long-term foreign investments, especially from US.

Other attractive factors were the country's high quality tertiary education system, sizeable pool of technically talented manpower, including skilled engineers and IT professionals and proficiency in the English language.

Davern said the company was here for the long run and would consider ties with energetic small and medium businesses.