From Free Port to Modern Economy: Economic Development and Social Change in Penang, 1969 to 1990 ed. by Chet Singh et al. (review)

This book provides a multidimensional perspective on how Malaysia's northern state of Penang became one of the most industrialized hubs in Southeast Asia. Central to this transformation is the larger-than-life figure of the late Tun Dr Lim Chong Eu (1919–2010), the former Chief Minister of Penang, who was in office from 1969–1990. It is, therefore, apt that a group of researchers come together to shed light on Lim's decades-long tenure on his centenary birthday. Eight chapters covering aspects as wide-ranging as industrial policy, state-federal relations, and socioeconomic equality are presented in a highly engaging fashion.

Perhaps unbeknownst to the current generation of Penangites and Malaysians, the northern state's prosperity and fame was not a surety when Lim first became Chief Minister. Three main inter-related developments—mounting unemployment, the loss of Penang's Free Port status, and a federal government emerging from the scars of the country's May 13 sectarian riots—required Lim's immediate attention. Particular praise goes to Khoo Boo Teik and Toh Kin Woon, who provide ample details in Chapter 1 on the trials and tribulations of the former Chief Minister in tackling these issues. Drawing on rich archival research and their intimate understanding of Malaysian politics, Khoo and Toh reveal the thought process and conduct of the 'Father of Modern Penang'. While there were some shortcomings, the overall prognosis of Lim's time in office is undoubtedly positive.

For industrial policy scholars, Chapters 3, 5, 7 and 8 would prove insightful. Although few consider Malaysia a 'quintessential' developmental state in the fashion of post-World War Two Korea, Taiwan and Singapore, Penang's achievements in fostering its electronics sector can still teach us a thing or two. To this end, the Penang Development Corporation (PDC) during the 1970s–1980s shared multiple similarities with the much-celebrated Korean Economic Planning Board and Singaporean Economic Development Board. Capable and fairly autonomous, the PDC also formed close ties with the private sector (both local and foreign) (see Chapter 5). Although the PDC eventually lost some of its institutional capacity and autonomy, it demonstrates that aspiring subnational governments (especially those in the Global South) can pursue industrial upgrading, even in spite of an unsupportive national context.

Relatedly, Chapter 3 provides readers with a first-hand account of how to 'do' development, tapping into the experience of Chet Singh—PDC's first General Manager. Although the circumstances which led to PDC's inception is perhaps unique only to Penang of the late 1960s, the broader principles (e.g., hiring competent and dedicated executives and establishing close links with industry, government, and academia) would apply just as well in other contexts. Chapter 8 takes on a longer-term perspective, unpacking how Penang's electronics sector has gained maturity and captured niches in global production networks over four decades. Some of the key issues explored include China's rise as an assembly centre that might potentially hamper Penang's upward trajectory and the northern state's specialization in increasingly complex electronics goods and services.

Overall, this book discusses an important person and the issues that he stood for, coming through with flying colours. The book's detailed empirical analysis more than makes up for its somewhat thin theoretical, conceptual contribution, which is understandable in undertakings of this sort. In sum, the book is a recommended source of information for both general and specialist readers interested in the dynamics of regional development and state-business relations, within the context of Penang, Malaysia, and Southeast Asia.