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Penang This Month

  • E BANNER FUN RUN  945 X 300DPI 01
    USM Campus Fun Run 2015
      Date  :10th October, 2015
    Registration Time  :6:30am – 9:00am
                                             Flag Off Venue  :USM Stadium, USM Main Campus, Penang
    Registration fees  :Students (RM 20) & Non-Students (RM 30)
    For more information about the run, and to download the registration form, please visit

Press Statement by Penang Chief Minister Lim Guan Eng at Komtar, 2nd December 2011

Penang SME Centre To Grow Both Entrepreneurs and Innovators - The Technoprenuer

Penang leads in developing, promoting and facilitating small and medium enterprises (SME) growth in the country. The soon-to-be ready SME Centre, currently being constructed by Penang Development Corporation (PDC) at Bayan Lepas Industrial Park Phase IV is expected to be opened to SMEs by the end of Q1 next year. The RM40 million building with a total built-up of 160,000 sq. ft. aims to assist, nurture and incubate innovative SMEs to move up the value chain through the provision of space with competitive rental rates. Additionally, the SME Centre will also offer space for local SMEs to showcase their products and services, thus facilitating the development and complementing the supply chain of the promoted industries in Penang.

Penang’s future prosperity rests on our ability to grow the next generation of technopreneurs who are both innovators and entrepreneurs. Through the Penang Science Council, the innovative or creative new start-ups will be nurtured with technical assistance and subsidized rental. The successful industry captains will provide the mentoring on how to be a successful CEO.

The SME Centre is the brainchild and collaborative efforts of the Penang Development Corporation (PDC), investPenang and the Penang Science Council‘s Mentoring Scientific Entrepreneurs Pillar led by Dato’ Seri Kelvin Kiew.  Consultations and discussions were held with numerous industry leaders to seek their opinions and advice on the planning and construction of the SME Centre.

Why the SME Centre? With subsidised rentals which are relatively cheaper than the market rate on Penang Island, the SME Centre will act as an incubator for budding SMEs to grow. Its strategic location which is near to the who’s who of the electronics industry in Penang’s silicon valley as well as its proximity to the 2nd Penang Bridge, the SME Centre provides a favourable location for SMEs that are supporting the promoted industries such as light emitting diodes (LED) / solid state lighting (SSL), medical devices, aerospace / avionics, semiconductors and photovoltaic (PV).

The multinational corporations (MNCs) operating in Penang are known to have spawned and nurtured local SMEs. Today, after 40 years of experience in the export-oriented electronics industry, Penang has produced a small number of successful local technopreneurs with presence overseas as well as who have gained international recognition.

Nevertheless, the State Government has realised that Penang should not be over-dependent on foreign direct investments (FDIs) which are very susceptible to the vicissitudes of the global economy. Bearing this in mind, the State Government is aggressively promoting and developing the growth of SMEs in Penang as a means to stabilise the economy through import substitution of the once imported parts and components.

The SME Centre is one of the 3 approaches taken by the State Government to accommodate the growth of SMEs in climbing up the value chain as well as to build the Penang Brand or the “Powered in Penang” products and services.

The SME Centre will be managed by SME Centre Management Council which consists of the Penang Science Council’s Mentoring Scientific Entrepreneurs Pillar, investPenang and PDC.

Apart from the SME Centre, the other 2 approaches comprise the setting up of the SME Market Advisory, Resource and Training (SMART) Centre, which was launched in June 2010 and the development of SME Villages in Bukit Minyak and Batu Kawan in Seberang Perai to allow SMEs to grow by building their factories in their land. Thus far, the SMART Centre has provided business and market intelligence, conduct business matching between the multinational corporations (MNCs) and the SMEs with the aim to develop supply chain; conduct capacity building workshops as well as provide a directory listing. To date, the SMART Centre’s capacity building workshops have attracted more than 1,000 participants from the SMEs. A total of 209 SMEs are currently listed in the SMART Centre’s online directory.

While it is unquestionable that the local SMEs have developed strong technical competencies over the past 40 years of exposure to export-oriented industrialisation, regrettably, the SMEs in general have not been able to establish a Penang Brand. Most of the successful SMEs form part of the lower tiers of the supply chain of their MNC customers. Few have become critical suppliers or tier-one suppliers to top global brand names.

Taking cognisance of the need to grow world-class SMEs, the SME Centre together with the services offered by the SMART Centre serves to enhance the competitiveness and capability of SMEs, especially in quality, reliability and delivery of their products and services.

In a recent SME Corp report, SMEs accounted for 56% of the country’s workforce from 2005 till 2010. As such, the SME Centre will play a catalytic role in creating employment as well as in spawning, incubating and growing future successful SMEs.

A progressive rental rate is applied for leasing of space in the SME Centre. The rates for Year 1 are as follows;

Year 1 Rates (RM p.s.f.)

Level 1 of building


Level 2 of building


Level 3 of building


Level 4 of building


Given the current market rate on the island, the subsidy by the State Government is approximately RM0.80 p.s.f. per month. To rent a space at the SME Centre, please obtain the SME Centre Application Form from investPenang’s SMART Centre, 1st Floor PSDC Building, 1 Jalan Sultan Azlan Shah, 11900 Penang (Tel: 604-640 9988) or from PDC, Industry Division (Tel: 604-634 0111). All completed forms are to be submitted to the SMART Centre / PDC. Successful applicants will only be finalized at the earliest March of next year.


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