PENANG, July 14 (Bernama) -- Penang could become the logistics, transportation and trade hub for the Northern Corridor Economic Region (NCER) considering its multitude of facilities for communications and transportation services.

Chief Minister of Penang Tan Sri Dr Koh Tsu Koon said that with its transportation and trade services for the NCER, the state would be able to contribute towards a more dyanamic economic growth in the region.

With its second Penang bridge, Penang Outer Ring Road, existing road upgrading projects, the upgrading of the Bayan Lepas International Airport, as well as its ports and rail links, Penang will be able to play a role in the distribution of development results to all areas in the region.

Koh said this in his congratulatory speech and pledge of loyalty here today to the Yang Dipertua Negeri, Tun Abdul Rahman Abbas, at the conferment of awards and state medals in conjunction with the latter's 69th birthday here.

"It is most appropriate for four states in the northern region to pool their resources to form a bigger economic foundation. By using their distinctive advantages, Penang, Perak, Kedah and Perlis would be able to face all the challenges and together gain from globalisation," Koh said.

He said the same stragegy could be used to open larger economic opportunities for the northern region in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and Asean.

He, however, said the state government must ensure that the state gains enough economic momentum towards a knowledge based economy or K-economy with the capability of real progress towards 2020 and the years beyond.

For this, the state government has to focus on five main strategies, namely to drive competitiveness and strengthen its economic foundation, successful implementation of the Ninth Malaysia Plan projects and the integration of NCER to the point of reaching out to IMT-GT. It must also encourage development and human resources innovation and strengthen the institutional framework, integrity and effectiveness.

He said Penang has been successfully facing steep competition in the industrial sector with China, India and Vietnam the last three years and plans to venture into new areas of Information Communication Technologies, radio frequency, medical equipment and bio-pharmaceuticals.

He said the new value additions were being developed in the existing sectors of electronics, semi-conductor, automation and machinery employing good supply networking and logistics management.

The tourism sector, the second most important sector for Penang, will also be further boosted with the international centre for cruise ships at Pelabuhan Swettenham here, the development of the National Park in Telok Bahang and Pantai Acheh, as well as the building of the cable cars and the conservation of the interior areas in Georgetown as historical heritages, he said.