Date    : June 4, 2010

Venue  : E & O Property (S) Pte Ltd (Beach Road)

Time    : 10.00am

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Ladies and Gentlemen

A very good morning to everyone.

The idea of Penang Investment Tourism Office (PITO) was conceived in the middle of last year. Today will be the start of PITO’s operation. Penang has led once again to become the first state in Malaysia to set up an investment & tourism promotion office overseas.

Singapore is the most appropriate choice for Penang’s first venture overseas not just for its importance in terms of investments and tourism but also our shared history and cultural links.

Last year, Singapore investment ranked number two (2) in Penang, contributed 13.4 per cent of the foreign investments in Penang. In terms of tourism Singapore contributed almost half the numbers of tourists visiting Penang and that number will surely grow in tandem with the increasing number of flights to Penang by budget airlines.

Penang’s share of Malaysia’s exports have grown from 31% in 2007 to more than two thirds now. From March 2008 when the we took power till February 2010, Penang has attracted investments of RM9 billion. We target ourselves investments of RM 4.2 billion this year.

We recognise that Penang’s attractiveness is due to the availability of talented workforce, reliable logistics hub, competent supply-chain management, livable city where creative and innovative people desire to stay, Intellectual property protection and good governance. We need to sustain that if we are to continue to attract high value-added and high-tech companies to those that have just invested in such as Honeywell Aerospace Avionics Malaysia, St. Jude Medical, Ibiden Electronics Sdn Bhd and National Instruments. Recently, B Braun spent 100 million euros on its expansion programme, while Osram is reinvesting hundreds of millions more.

My government is trying to make Penang more appealing with CAT governance centered on competency, accountability and transparency. We have managed to turnaround our projected deficit Budgets with the largest budget surplus of RM 88 million in 2008 and RM 77 million in 2009. Such success was based on open tenders, increasing revenue collection and prudent spending. Actual expenditure as against projected expenditure of RM 252 million against RM 301 million in 2007, RM 283 million against RM 319 million in 2008 and RM 299 million against RM 331 million in 2009. Revenue collection increased from RM 296 million in 2007 to RM 371 million in 2008 and RM 377 million in 2009, where the increase last year is worth noting despite recording negative growth due to the global economic recession. Transparency International has praised Penang’s CAT governance, the first time any Malaysian government Federal or state has received this accolade.

Penang property market in 2010 has boomed with the residential property remains the dominant driver. Amongst the world-class projects that may interest Singaporeans is the  E&O in Tanjung Pinang. However Penang is not just about property plays.

Tourism, medical tourism, education and heritage are “green fields” of growth. As the Singapore government plans to attract 23 million tourists by 2015, I hope Penang can tap on the spillover opportunities and bring a portion of those visitors to Penang.

I am confident that tourist arrivals in Penang will increase, and our target for 10 million tourist arrivals by 2014 will be met. As of today, we have 68 Singapore-Penang flights per week, with Malaysia Airlines (7), Silk Air (21), Tiger Airways (12), Air Asia(14) and JetStar (14) . The Transport Ministry has given approval for 84 flights a week. As such, there are opportunities to increase the number of flights between Penang and Singapore.

George Town’s listing as a World Heritage Site by UNESCO has sparked tremendous interest among many building owners in reviving their heritage buildings and attracted world famous architects to restore them for “adaptive re-use” such as heritage hotels, bars and restaurants, boutiques and specialty shops. With the UNESCO World Heritage listing for George Town, Penang offers tourists a nostalgic glimpse for Singaporeans of our common past and a taste of the rich cultural diversity that is both timeless and unforgettable. Heritage preservation is based on the simple principle of doing as much as you can by changing as little as possible. Come to George Town so that you can see, touch and feel its distinctive character and soul that makes it a Unesco World Heritage site.

In Penang, the quality of life is a top priority. Today, we are proud that George Town, Penang has moved from its 10^th ranking  in 2007 to be the 8^th most livable city in Asia for  2010.  ECA International, the world’s leader in the development and provision of solutions for the management and assignments of employee around the world, has ranked Penang globally at No. 62^nd, an improvement from the 74^th position in 2007. The 2010 Asia and global ranking have put George Town at par with Malaysia’s capital city, Kuala Lumpur.  This improvement reflects the state government’s commitment to transforming Penang into the first state in Malaysia to be green with “No Plastic Bags” campaign and fully wifi-connected.

When we combine all the elements, Penang becomes the most convenient place to learn, work, play and live in. Investment and expansion plans in Penang will attract the professionals, experts, expatriates and their family members.

Today we are here to witness the launching of the Penang Investment Tourism Office (PITO), Penang’s representative office in Singapore. The setting up of PITO will help Penang to reach out to the potential investors from all over the world especially Singapore. Through PITO, foreign investors will be able to obtain information on potential of investing in Penang and how to enjoy their stay in Penang.

With that, I now declare that the Penang Investment Tourism Office is officially opened. Thank you.