The document summarizes urban regeneration initiatives in George Town, Penang led by Think City. It discusses the challenges facing historic George Town as a UNESCO World Heritage site including traffic, pollution, lack of affordable housing and loss of traditional trades. Think City implemented the George Town Grants Programme providing $20 million for projects focused on mobility, social/cultural communities, economy, environment and sustainability. Example projects included surveys of land use and urban planning, redeveloping waterfront areas, affordable housing, apprenticeships for endangered trades, greening shared spaces, and improving cycling infrastructure. Partnerships were formed through the Business Improvement District scheme and Little India Improvement District community initiative to enhance public spaces and pedestrian connectivity.

1. Urban Regeneration in a Historic City:
Think City’s Initiatives in George Town,
Penang
Smart Cities Conference 12 March 2014
Neil Khor
Senior Fellow, Think City
1

2. AGENDA
 Setting the Context:
Malaysia’s Response to the Urban Challenge
 Penang as a Case Study:
Challenges, Opportunities in a Historic City
 Putting Policy into Practice:
Urban regeneration in a World Heritage Site via a
public grants programme

4. Cities are Engines of Economic Growth
Source: World Bank, World Development Indicators 4
In 1800, only 3% of people lived in cities
In 1950, only 30% of the world was urban
By 2030, 60% of people will live in cities

10. Globally, economic activity is highly concentrated in key
cities in each country
High income countries are economically dense
Adapted from Cities, People and The Economy (2010)

14. Working Partners
Economics of geography suggests that high density localities will be
best placed to attract new firms and exploit economies of scale.
• The world is being shaped by
competition between cities, and no
longer between nations
• People now choose the city where
they want to live; before they chose
the job they wanted
• Efficient and liveable cities are the keys
to successful national development
• Agglomeration permits scale
economies and generates higher
incomes
• Agglomeration will only happen in
globally and locally networked cities
Rapid urbanization requires cities to be made liveable and sustainable to
optimize the potential of cities as the engines of economic growth
A changing world

15. Source: Economic Intelligence Unit, Price Waterhouse Coopers
Trend line of countries’ expected spending according to wealth
There is a strong linkage between the wealth
of cities and the quality of life within cities

16. Malaysia’s Response to the Urban Challenge

17. 28% 75%
1970 2013
11%
1911

18. “Competition is no longer only
between nations but also between
cities. For Malaysia to move into a
higher income economy, we must
exploit higher returns by adopting
strategies to build density, develop
clusters and specialize in high
value sectors.”
Dato’ Sri Mohd Najib Tun Haji Abdul
Razak,
Prime Minister of Malaysia

19. “ …leveraging on cities to accelerate economic growth
will be an important strategy during the 10th
Plan”
Building vibrant and attractive
living spaces. Influencing the
form and character of living
spaces to make them attractive
places to live, work and
play”
Concentrated decentralization and
promote areas with the greatest
potential. Strive towards compact,
energy-efficient urban forms with
clear identity

20. 20
Source: adapted from the 10th
Malaysia Plan
Growth will be concentrated in urban conurbations

21. 21
Kuala Lumpur, Iskandar and George Town Conurbation already
account for more then 50% of Malaysia GDP
Source: adapted from the 10th
Malaysia Plan

27. Iskandar
10MP has identified strategies that will focus on building density,
developing clusters and specialization in high value sectors
Greater KL
A comprehensive plan is required to harness
economic opportunities in the region
27

29. Who we are
•Providing urban policy thinking.
•Implementing innovative urban solutions.
•Driving urban regeneration.

30. 30
Penang as a case study …
Putting POLICY…into PRACTICE

31. 31
• George Town is a UNESCO World Heritage Site (alongside other
global sites like Venice, Borobudur, Angkor Wat and Hoi An)
• Penang is Malaysia’s culinary capital (world renowned food haven)
• Penang is the third most popular destination (13% of Malaysia’s
total foreign tourists)
• A Melting Pot of Food, Beaches, Heritage, Culture &
Religion

32. 51% 92%
1970 2013
37%
1911

33. Putting POLICY…into PRACTICE

35. “We came here for low
cost labour… we stayed
for talent.”
“We came here for low
cost labour… we stayed
for talent.”

36. Trading
(1786-1969)
Manufacturing
(1970-2008)
Knowledge
(2009 - )
Port City Industrial
City
Knowledge
City
Compact City Urban Sprawl ???

37. Challenge for Penang: Losing its old world charm

38. Challenge for Penang: Traffic Congestion
Perbandingan di antara Jumlah Kenderaan dan Jumlah Penduduk di
Pulau Pinang antara Tahun 1998 hingga 2007
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Tahun
BilanganKenderaan/Penduduk
Jumlah Kenderaan Bermotor Jumlah Penduduk
Comparison between number of registered motor vehicles
and population in Penang (1998 – 2007)
• Private car registrations increased by an average of 9% each year for the last 15 years (double the
rate for motorcycles). If this rate keeps up, the number of cars will double every 8 years

39. Challenge for Penang: Urban Areas Getting Hotter
39

40. Challenge for Penang: Mean Temperature Rising
Mean Temperature in Bayan Lepas, Penang (1951 - 2009)
26.0
26.5
27.0
27.5
28.0
28.5
29.0
1951
1956
1961
1966
1971
1976
1981
1986
1991
1996
2001
2006
Year
(oC)

41. Challenge for Penang:
Unsustainable Water and Solid Waste Trends
Water consumption
and Solid waste per
capita is nearly twice
higher then Singapore
Country / Region Average (LCD)
Penang 291
Rest of Malaysia 188
South East Queensland 163
Singapore 154
France 150
Germany 127
Estonia 100
Water consumption

42. Challenge for Penang: Bad street infrastructure
Over-burdened drainage system leadingOver-burdened drainage system leading
to flash flood prone streetsto flash flood prone streets
High street
curbs are
not
pedestrian
friendly
42

43. Challenge for Penang: River Pollution
43

44. Challenge for Penang: Marine Water Quality
44

45. Vulnerable groups pushed to the periphery and concentrated in
emerging urban ‘slums’
Tanjong Tokong UDA FlatsMacallum Street Flats
15 Storey20 Storey
Social Housing in the 70’s & 80’s
45

46. The outcome of all of these challenges
• Flight of talent from Penang.
• Declining growth of high-value
tourism.
• Declining quality of life
High opportunity cost: The decay of Penang’s natural endowment is
happening at a time when the ‘liveability of cities’ has become a key
factor in the competitive advantage of nations.
46

47. © All Rights Reserved.
This material is confidential and property to Khazanah. No part of this material
should be reproduced or published in any form by any means, nor should the
material be disclosed to third parties without the consent of Khazanah.
CONFIDENTIAL
Penang as the centre of
the Northern Region. The
economic activity brings
the region together.
Penang as the centre of
IMT-GT. Good
connectivity can bring
activity into the region,
thus enhancing itself and
the region as a whole.
Penang as the centre for
the Bay of Bengal. Can
act as the urban centre
for the Bay of Bengal
region.
PENANG
The Regional Opportunity
Penang has the potential to be the heart of
one of the fastest growing regions with
access to a large hinterland for resources,
human capital, technology and markets

48. Building on Strengths: Penang is emerging as a business & services hub
of the Bay of Bengal (GDP of over USD 750bil)
Adapted from presentation on “Positioning Penang”, December 17th
2008
Dr Homi Kharas, Wolfensohn Center for Development, The Brookings Institution
• Penang is well-placed to
become a hub for the
Northern Corridor, the
Indonesia-Malaysia-
Thailand growth triangle
and the Bay of Bengal.
The Northern Corridor is
well situated as the
dominant economic
mass in the IMT-GT.
Penang has the highest
economic density and
lowest distance to
market for a large local
area in this triangle.
• The economics of
geography suggests
that high density
localities will be best
placed to attract new
firms and exploit
economies of scale.
 ‘Cones’ on the map represent economic output per square kilometre;
the cities with higher ‘cones’ are more economically dense
 The
emergence of
a new mega
region
48

49. 49
Bayan Lepas 64%
RM 240 bil
KLIA 34%
RM 130 bil
Subang 1%
RM 4.5 bil
Others 1%
RM 3.3 bil Malaysia Cargo Movement
(mil kg)
Total: 79.4m kg
Thailand
Vietnam
Laos
Cambodia
Philippines
Subic Bay
Yangon
Ho Chi Minh
Phnom Penh
Bangkok
Indonesia
Singapore
Penang
Jakarta
Kuala
Lumpur
3 hours
Myanmar
2 hours
1 hour
Medan
Chennai
Three concentric circles define the
distance from Penang in terms of air
flying times of 1 hour, 2 hours and 3
hours respectively
Overview of the Catchment Area Defined by Air
Flying Times from Penang
Penang Airport constitutes 20% of Malaysia’s
total airflown cargo
Building on Strengths:
Penang is emerging as a logistics hub
• Penang Airport has the maximum
direct connectivity and cargo
volume in the IMT-GT region
• Penang Port has a total handling
capacity of 25 million tonnes of
cargo, interconnected by road & rail
• Malaysia’s rail system: 70% of
KTM’s freight services is based in
the north with regular service
between Bangkok and Butterworth

50. • George Town is a UNESCO World Heritage Site (alongside other
global sites like Venice, Borobudur, Angkor Wat and Hoi An)
• Penang is Malaysia’s culinary capital (world renowned food haven)
• Estimated # of Tourist Arrivals in 2008 ≈ 4 million
• A Melting Pot of Food, Beaches, Heritage,
Culture & Religion
Building on Strengths:
Penang remains an attractive tourism destination
50

51. 51
Building on Strengths:
Penang is an anchor for medical tourism in Malaysia

52. 52
Food, Beaches and Heritage are large Tourism draws
• George Town core a UNESCO World Heritage Site
• Malaysia’s culinary capital (World renowned food haven)
• Silicon Valley of the East
“It’s about time Southeast Asia offered business an alternative to
choking, congested capitals. But hope now flickers. George Town…is
stepping out of the shadows.”
Monocle, “Trade Secret – Malaysia”, April 2008
Building on Strengths:
Penang is already a strong brand

53. For Penang, this requires its cities, people and economy to
develop together
CITIES
PEOPLEECONOMY
Agglomeration and
increasing returns to
scale
Liveability
Talent
Liveable and efficient cities attracts and retain talent and
this bring capital together to build the economy.

54. Building distinctiveness : Penang’s cultural heritage;
cosmopolitan people; and built form
54

55. A city that promotes new ideas for improving urban
mobility for everyone
55
“Transport defines the form of a city.”
The Economist, May 2007
55

56. A city with a place for small businesses, space for
children and marginalized
More civic spaces for the marginalized to
indulge in healthy activities…

57. A city that retains its rich cultural heritage, urban form
and diversity
Economically
Successful
Socially
Equitable
Environmentally
Responsible
Sustainable
communities
We need to have a different way of
imagining the city that is built on
ideas of sustainability

58. Positioning Penang
Positioning Penang
• Strategy for reinventing the George
Town Conurbation
• Key enabling factors and policy levers
needed for Penang to avoid the Middle
Income Trap
GTTP
Sustainable Penang Initiative 2
• Community level; people’s initiative
• Building consensus on a sustainable
liveable Penang
George Town Transformation Programme
• Micro level implementation;
demonstrative & catalytic projects
• Transform George Town into a model 21st
century city and a ‘sticky space’ to retain
and attract talent
Transforming
Penang into an
International City
State, which is…
Location of choice
for investors
+ Destination of
choice for visitors
+ Habitat of
choice for talent,
desiring
sustainable living
Sticky
Space
58

60. •To become the most livable
place in Malaysia and top 25
Most Liveable Places by 2030
•Transform Penang as Malaysia ´s
laboratory for urban solutions in
the knowledge economy
60
VISION:

63. Strategic Spatial Framework
63

64. Major upgrade to the urban infrastructure is on the way to
strengthen the competitiveness of the region. (>RM20b)

65. 65
• Rapid

66. from Policy… to Practice
Urban regeneration in a World Heritage Site
through a public grants programme

67. George Town Grants Programme
• Physical/Public Realm
• Social Capital &
Capability
• Knowledge
OUTCOMEOUTCOME
• A culturally vibrant & sustainable city,
• Endangered trades, services and
communities taken off the endangered list
• A community aware of its history and
heritage
• Resilient small businesses that evolved with
the WHS
• George Town’s OUVs enhanced
DETAILSDETAILS
• Fund Size : RM 20 million
• Project Size: RM 20,000 to RM 2
million
• Duration : 24 months
• Grant Type :
• Project & Booster Grants
• Matching Grants
• Repayable Grants
• Technical Assistance &
Capacity Building Grants
6 KEY THRUSTS6 KEY THRUSTS
• Mobility & Connectivity
• Social & Cultural
Communities
• Economy & Services
• Environment &
Sustainability
• Safety & Quality of Life
• Learning & Knowledge
OBJECTIVESOBJECTIVES
• Kick-start the regeneration of George Town
• Build on the momentum of the civil society
and private sector initiatives
• Capacity building and capability
development for the protection and
development of the living heritage, culture
and architecture
• Encourage a sustainable livable environment
CORE PRINCIPLESCORE PRINCIPLES
• Catalyst
• Partnership
• Developmental
• Inclusive
• Sustainable
• Creativity & Innovation
3 KEY AREAS3 KEY AREAS

68. THINK CITY PROJECTS

69. • George Town Land Use SurveyGeorge Town Land Use Survey
– in-person survey collected data on
every business, residence, association,
government agency, hotel and
education institute within the George
Town WHS (covering 260ha)
• George Town Conurbation StudyGeorge Town Conurbation Study
– provides the spatial framework with
planning, design and development
recommendations designed to support
the transition of the regional economy
and improve quality of life
Baseline studies

70. D e v e l o p m e n t a l:
Rejuvenating the Waterfront
70

71. Adaptive Re-Use:
of waterfront properties
71

72. M e d i c i n a l H a l l :
Retaining traditional trades in new context
Yin Oi Tong, established in 1796 is the oldest Chinese Medical Hall
in South East Asia

75. I n c l u s i v e
75

76. 76
Affordable Housing Scheme

79. 79
Apprenticeship Programme for Endangered Trades
& Celebrating “Living Heritage”

80. S u s t a i n a b l e :
Greening the city’s “Shared Spaces”
80

81. Jan 2011
81
Carnarvon Street Pilot Greening Project

83. Improving urban mobility in Penang
Successful implementation and cycling
campaign in Penang, including night cycling in
UNESCO World Heritage Site

84. Creativity & Innovation:
Aspirational & Practical Solutions
84

85. Creativity & Innovation:
Aspirational & Practical Solutions
85

86. 86

87. Building Partnerships:
87

88. Business Improvement District Scheme (BIDS)Business Improvement District Scheme (BIDS)
Panoramic view of the BIDs Area

89. Business Improvement District Scheme (BIDS)
Asia’s first Business Improvement District Scheme

90. George Town BIDS
90

91. ENHANCEMENT TO
PEDESTRIAN CONNECTIVITY
George Town BIDS
91

92. Little India Improvement District (LIID)Little India Improvement District (LIID)
Community Led InitiativeCommunity Led Initiative

93. 93

94. 94

95. Proposed Special Action Plan for Little India

96. Proposed Special Action Plan for Little India

97. Public Engagement ActivitiesPublic Engagement Activities

98. 98

99. 99

100. 100

101. Malaysian Federal
Government
Agencies
Jabatan
Perancangan
Bandar dan Desa
Majlis Agama
Islam Negeri
Pulau Pinang
World Bank
Majlis
Perbandaran
Pulau Pinang
Penang State
Government
Aga Khan Trust
for Culture
Khazanah
Nasional Berhad
Working Partners

102. 102
5 – number of cultural
interpretation centres
40% - the number of
community-led initiatives

104. Working PartnersReinventing The City: Intelligent Urbanization
City as a Living Space
– Public health, safety & security
– Mobility & accessibility
– Open spaces and private space
– Inner city regeneration / renewal
– Affordable Housing
City as a Transaction Hub
– Economic Revitalization
– Regional / international hub
– Creativity & Innovation
– Connectivity & Logistics
– Microenterprise / corporate social entrepreneurship
City as a Cultural Hub
– Cultural & Civic Facilities
– Living Heritage & Endangered Trades
– Entertainment & Culture
– Cultural Diversity
– Creative Industries
City as a Knowledge Hub
– Repository of Knowledge
– Learning & Living
– Libraries & Museum
– Living History & Culture
– Research, Innovation & Development Centres
City as a Civic & Democratic Space
– Urban Governance & Popular Participation
– Social Inclusion & Sense of Community
– Poverty
– Cultural Diversity
– Access to Public Facilities
City as a Sustainable Space
– Greening, urban form and planning
– Parks & Gardens
– Waste Management
– Walkable & Cyclable
– Ecological sustainability
– Carbon footprint & energy
A city that combines most of these characteristics is likely to have a high
“Liveability” index

105. Cities
Hub + Home
Inclusive
Respectful
Vibrant & Creative
Excellence Driven
Welcoming
Intimate
Surprising
Non-Conformist
Young
& Pro-active
Value-Based Approach vs Physical Planning
Approach
Sustainable,
Liveable City
105