I'm not a trained economist but it seems that Malaysia is going to face severe challenges if the arrangement by the outgoing Chief Minister is anything to go by.
Motorola has been offered a RM1b project in order to entice them to stay in Penang and secure the "10,000 jobs" and local companies who are suppliers.
The foreign company will also pump in RM350m over the next 5 years.
The question that should be pondered is, "After the 5 years, WHAT?"
It seems that Motorola is getting the better deal and Malaysia has underwritten that project in Penang for free and we are committed to purchase an additional RM650m equipment without any proper tender.
I predict the company will relocate to Vietnam or China after 5 years and it is time for the ministries to work out better business strategies than this type of crude bargaining.