REASSESSMENT OF PENANG’S INDUSTRIALISATION AND ECONOMIC TRANSFORMATION: FROM CHIEF MINISTERS WONG POW NEE TO LIM CHONG EU, 1960s -1980s

Abstract

Once a prosperous British trading port, Penang (in present-day Malaysia), witnessed political-economic changes that precipitated its free port status’s erosion in 1963. Plagued by economic uncertainties, Penang had to industrialise within the Malaysian common market, yet with little industrial drive forthcoming, a comprehensive plan was needed. This burden was shouldered by its first Chief Minister Wong Pow Nee, who kickstarted industrialisation through the strategies of Munro Report 1964, which promoted import-substitution. However, its unanticipated shortcomings, and other misgivings hindered its success. This burden was inherited by Chief Minister Lim Chong Eu, who successfully circumvented these shortcomings, completed Pow Nee’s foundational schemes and resolved Penang’s economic doldrums through export-oriented industrialisation and electronics manufacturing as recommended by Nathan Report 1970. In retrospect, both chief ministers made lasting contributions to the connected chapters of Penang’s industrialisation—in reality, one could not have succeeded without the other, even if this story is often studied sectionally.