MULTINATIONAL corporations (MNCs) should consider taking up land which is much cheaper outside Penang for their expansion to grab opportunities made available under the Northern Corridor Economic Region (NCER).

Penang Chief Minister Tan Sri Dr Koh Tsu Koon said the synergy between Penang, Kedah and Perak under the NCER would also enable Penang to grow and attract new industries.

He said new investors and existing MNCs in Penang that wanted to expand their investment here could consider locating their facilities in places like Kulim, Taiping and Parit Buntar, which are not far from Penang.

"If the state has to allocate about 40.5ha for one MNC to expand, then we will be depriving at least a few SMEs of a chance to develop their business here," he said yesterday at Intel Malaysia’s 35th anniversary and the 50th Merdeka anniversary celebrations at Intel’s Penang facility.

Also present were outgoing Intel Malaysia managing director K.C. Yoon and his successor Atul Bhargava.

Earlier, Dr Koh said Intel’s capital investment here, which grew from RM6bil (US1.6mil) in the early 1970s to more than RM11.4bil (US3bil) today, showed Intel’s commitment to developing the Information Technology (IT) industry in Malaysia.

"Intel has not only contributed to the growth of the electronics industry, it has also laid the foundation for continued growth of the IT industry in Penang," he said.

Yoon in his speech said that 35 years ago, Intel, which has since expanded its presence to Kulim and Cyberjaya, started off with a staff of 100 who were mainly production operators but today, 40% of its 10,000 employees were engineers.

"We could not have achieved this without the strong support and business-friendly policies of the Malaysian Government," he said.

Bhargava said Intel would increase its competitive edge by engaging in more value-added activities involving design and development.

He also said Intel Malaysia planned to expand its efforts in education, environment and community outreach programmes.

Ten long-serving employees of the company were honoured at the function.