GEORGE TOWN - SOME factories in Penang are expected to force their workers to take either paid or unpaid leave and may even resort to retrenchment to cut operating costs.

InvestPenang executive committee chairman Lee Kah Choon said the measures are being considered due to the economic slowdown.

'We are aware of the problems faced by the factories and are taking steps to advise them to prevent retrenchments,' he told reporters on Wednesday.

Mr Lee said that the state was looking for diversified investments instead of concentrating on the industrial sector.

'We were used to wooing companies based in the United States or Japan to attract investments.'

'Now, we want to broaden the field by promoting investments in the education, medical and tourism sectors.'

'For example, an investor from Singapore is going to open the Hard Rock Hotel in the middle of next year at the site of the former Casuarina Beach Resort in Batu Ferringhi,' he said.

Mr Lee said Penang was 'undersold' as compared with neighbouring countries such as Singapore, Thailand and Indonesia.

'We're going to redouble our efforts to attract investors from these countries,' he said.

He said that the Penang Development Corporation (PDC) was in the process of taking over a 40ha land in Bayan Mutiara for the Penang Science Park.

'We want to venture into research and development,' he said.

He said the 'Mini Putrajaya' project which was slated at Bayan Mutiara had been scrapped as the project was too costly. -- THE STAR