The services sector is set to contribute significantly to Penang's overall economic growth. According to Penang Chief Minister Tuan Lim Guan Eng, the services sector presently lags behind that of the manufacturing sector.

In order to develop this sector, he said that Penang would have to look into increasing its strong pool of talents. There was also a need to improve the standard of the English language which he said was deteriorating.

As part of this strategy, the Penang Government will develop two buildings in the south-west district of the island to accommodate the growth of business process outsourcing (BPO). One of the buildings would be located on a piece of state land next to the Penang International Airport. However, the site of the other building has yet to be identified.

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