A conversation over tea this past weekend was once again centred around Penang. After all the complaints and negative comments about Malaysian politics; a breath of fresh air is found in Penang.   

Businessmen are impressed to say the least over what they are seeing in Penang. A businessman across the table, putting down his cup of tea, said; “maybe we should all migrate to Penang.”  

This is not just a feel good factor although somebody quipped that Penang town itself is looking good.  The streets are clean and the town looks bright.  The numbers are proof that Penang is actually getting better.

Penang brought in a total of RM12.2 billion in investments last year topping all other Malaysian states. It is a 465 percent hike from 2009 when the Pakatan government first took over under the leadership of Lim Guan Eng.

As a businessman, it’s not difficult to see and understand why Penang has superceded all the other states in investments. What an investor looks for is ease of doing business and long term stability and consistency in government policies.  

When I set up a business and invest millions of ringgit I want to know upfront what are the costs and expenses. Ambiguous request for “kickbacks” and “approval fees” is absolutely detestable.  

With any government agency you do business with, there is all the time a subtle request for “commission” or “rewards” to the purchaser or to a political association. This is so prevalent it is almost sickening and the government can close their eyes to this in denial, but the truth is that it exists.  

The reason why nothing has been done is perhaps because it is seen as normal behaviour from the top most echelons of government service all the way down to the bottom feeders. The culture in Malaysia is such and has been so for the past 20 years. It has probably even gotten worst.

Hence, when governments clean up the act and reduce corruption and graft to a minimum, any serious investor will stop and take notice. It automatically becomes attractive.  I can only say that Penang will continue to grow and will continue to be the centre of business activity in Malaysia.   

Investors from China are looking for safe places to put their money and Penang apparently has been on their radar screens since 2009.

But while Penang is raking in the bulk of the investors, the federal government is busy inciting racial and religious sentiments so as to perpetuate their rule for another five years.