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10. Penang's Sputtering Engine: Approved Manufacturing Projects In Decline
Penang's approved manufacturing project values have fallen sharply, from RM4.8 bil in 1999 to RM1.9 billion in 2003 (yellow bars). Since they are "approved" projects, some may not even be carried out, may not be fully implemented, or may be dragged out over a longer period of time than planned.
In other words, we haven't seen the full negative impact yet. If and when implemented, the approved projects of 2003 will only be ready to operate 2005 or later. The next charts will show potential job creation to decline to historical low from these projects.

9. Penang Stucked: Slow Shift To Tertiary Sector
Penang continues to rely heavily on manufacturing. It is failing to expand its low- and high-end services, such as tourism, logistics, research and development, software, and finance. Further shift to services is generally associated with more highly developed economies.

8. What Pearl? Relying On Less Lucrative
Domestic Tourists
This chart shows the long-term trend that Penang increasingly relies on domestic
tourists (green area). From 2000 to 2003 especially, the portion of foreign
and local tourists reversed from 62%-38% to 38%-62%.
Although domestic tourists are welcomed and bring revenues too,

7. What Pearl? International Tourists Down Sharply Before
SARS
International visitor arrivals to Penang were down in 1997, and were especially negative during 2000-2003. Penang's total visitor arrival growths were negative, except during 1998-2000, the unsustainable, post-devaluation honeymoon.

6. Penang's Hotel Occupancies Down
Penang hotel occupancy trends are down in the long term. The falls started before 911, and long before the SARS-hit 2003

5. Suffocated: Air Passengers Stagnated and Down
Penang's total air passenders in 2003 (2.43 million) was down to the lowest level since 1992 (orange lline). The upward trend in early 1990's has completely broken down. Long-term domestic arrival was flat: it declined from 1996 (green line), rebound since 2001, but remained lower than 1992, despite total economic growth. International passengers (blue line), despite a brief post-devaluation spike, by 2003 has slided to the low levels of 1991-1992.

4. Penang Suffocated: Aircraft Arrivals Down Long-Term
There are 25% fewer airplanes arriving in Penang compared to early 1990's.
Aircraft arrivals declined most sharply after 1996. A small
rebound in in 2001 was followed by even lower levels by 2003.

3. Penang Choked: Car/Motorcycle Density Doubled Population Weight in Nation
In terms of vehicle density per person, Penang is 2.2 times the national average for motorcycles, 1.7x for private car, 0.8x for taxi (for a tourist, urban area).
When private cars and motorcycles are combined, Penang has twice the density of the nation (red column). That is, Penang has 0.92 private car or motorcycle per man, woman, senior citizen or baby, while Malaysia has 0.46 private car or motorcycle per person.

2. Choked: Above-Average Car/Motorcycle per Capita, Below-Average Taxis
Penang has only 5.7% of Malaysia's population. But it has 12.6% of Malaysia's motorcycles, 9.7% of private cars, and 11.2% of private cars-plus-motorcycles (combining these two categories makes sense because car and motorcycle users are usually mutually exclusive). Yet it has only 4.4% of the taxis in Malaysia.

The Pearl of Orient? But where's the pearl? If you think this question is unappreciative of Penang, wait till you see the facts. In a series of 13 charts on Penang, we will see general economic decline and a rather bleak outlook.
The first chart highlights Penang's relative poverty in Malaysia. Despite that poverty, Penang has double the national average for private vehicles, which explain why Penang's road and parking spaces are bursting at the seams.
Following a decade-long slump in tourism in Penang, hotels and airport will probably continue to be under-utilized even with a post-SARS rebound. Shrinking approved manufacturing projects, meanwhile, predict bleak outlooks for jobs and Penang's climb up the "value-added ladder".
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