A comparison of the GDP growth rates between Penang and its competitors indicates that Penang shares the same growth trend as that of Singapore. Economic growth in both locations peaked in 1994. As in the case of Singapore, Penang’s growth tapered off and dipped further in 1998, when it experienced a contraction of 8.5% in 1998.  However, Singapore does not pose as a major competitor to manufacturing investments as compared to the newly emerging locations like Philippines and China. Although the Philippines’ economy has not been expanding as vigorously as Penang’s, it has been growing progressively from 0.3% in 1992 to 5.7% in 1996, before dipping to –0.5% in 1998. The other major economy that Penang should be looking out for is China although its economic growth has declined from 14.2% in 1992 to 7.1% in 1999, and is expected to drop further to 6.5% in 2000. The two emerging economies have strong competitive advantages in cheap but skilled labour force.  Publication: Socio-Economic & Environmental Research Institute (SERI), 2000.  Author: Ong, Anna Cheng Imm.