SPEECH BY THE HONOURABLE MR WONG MUN HOE, STATE ASSEMBLYMAN FOR PANTAI JEREJAK IN SUPPORTING THE STATE SECRETARY, PENANG (INCORPORATION) (AMENDMENT) ENACTMENT 2004 AT THE PENANG STATE ASSEMBLY IN OCTOBER 2004

I wish to thank Dato’ Speaker for allowing me to speak in support of the State Secretary, Penang (Incorporation) (Amendment) Enactment 2004 Bill.

Dato’ Speaker. The role and responsibility of the Government is to ensure the economic and social well-being of the people and to ensure that all development programmes carried out by the Government will benefit the people. The historical mandate given to the Barisan Nasional Government in the recent General Elections in March has provided a need for us to take on greater responsibility, for with greater powers come greater responsibility. .

I have earlier discussed during the Supply Bill on the need for us to be pro-active, dynamic, active and to reinvent ourselves, our businesses, our government and our bureaucratic practices to take advantage of the new, open, globalised, trading and marketing environment. I have also talked about our bureaucratic culture which needs greater flexibility, more professional and more meritorious-based. There is a need for the Government to have forward planning and be prepared to take risks accordingly. I have also argued that we should not fear changes; rather we should seek actively to embrace and generate positive changes.

In this context, the Amendments to the State Secretary, Penang (Incorporated) represents such a step forward. We must therefore be prepared to look at the amendments positively and support the benefits that will come from it. The amendments are necessary so as to enable the Government and its machinery to use its properties so as to enable it to play an active role in economic matters. This needs to begin at the deliberation, planning, implementation, monitoring and until the evaluation stage. The Government can also utilizes its properties when there arise a situation where there is not enough capital and when there is a need for Government involvement. This can be considered in cases when the private sector involvement is either negligible or when there is a need to serve the mass public. The Bayan Lepas Free Industrial Zones and the Multi Super Corridor are just two examples that come to mind which need Governmental involvement and participation. This is why Invest Penang has now become so important for us, for with the setting up of Invest Penang, the Government is now no longer reign in by the bureaucratic structure that limits its ability co compete and challenge with the rest of the world for the vital investments that are needed to feed the State’s economy.

Elsewhere in the country, there are the examples of the Kulim Hi-Tech Park, the Johore Port and Petronas. These are cases where you have Government Corporations doing the hard work and able to exploit its assets and capital. The end result is to further promote and stimulate growth and development. In other countries, such as Singapore, wholly-owned Government corporations such as the Temasek Holdings, MND Holdings and Sheng-Li Holding Company have all done an excellent job in investing on behalf of the country. All these companies mentioned are involved in activities such as the buying of shares and equity in companies, the undertaking of a commercial or industrial venture, and the entering into a partnership or a joint-venture with any persons or organisations. There are many such examples elsewhere such as Japan and its zaibatsus and keiretsus (Mitsui, Mitsubishi, Sumitomo) or Korea and its chaebols (Samsung, Hyundai, Daewoo, Lucky Goldstar). In actual fact, Japan Incorporated has existed for centuries!

Dato’ Speaker. All the activities I mentioned just now are all important activities if we want the Government to be pro-active rather than reactive. This is particularly so in today’s world where global competition is so steep. Section 3A (f) and (g) are issues arising from a lack of capital in many cases. In these instances, the State Government is probably the only institution able to amass such capital, and therefore this proposed amendment is necessary in the context of competition.

Naturally, in supporting this amendment, there should also be some kind of mechanism provided for, where we can ensure greater transparency and accountability. I would like to suggest that the measures can include the provision of a separate board of directors and separate board of management and the need to include more stakeholders rather than mere shareholders. Community forums may be an additional tool and I would like to suggest that the corporation’s finances and performance should be readily available and may be included via the Web. It is all really a question of good governance and we, the Barisan Nasional Government practices good governance.

I am therefore of the opinion that the amendments proposed, represent a step in the right direction. It is not just a necessity but also timely particularly in the face of the increasingly stiff global competitition.

With this, Dato’ Speaker, I wish to give my support to the Bill.