While capitals work to boost liveability – determined by security, healthcare, infrastructure, education, culture and environment – in order to attract talent and investment, secondary cities like Penang, or Chiang Mai and Phuket in Thailand, try to hold on to their identity and charm in order to remain competitive.
Twin cities
In a collaborative move, representatives from Bandung, Cebu, Chiang Mai and George Town came together at the Southeast Asian Creative Cities Network forum in August. Separately, a memorandum of understanding was signed last month to officially name George Town and Phuket twin cities in order to exchange expertise in tourism, business and culture.
Secondary cities, like Penang, benefit from agglomeration and density and also remain an attraction thanks their cultural heritage, Federico Gil Sander, World Bank senior country economist for Malaysia, pointed out.
Since Penang already has a thriving electronics industry, it can specialise in the manufacturing sector alongside the service industry, he said. Stimulants for growth in each city do not necessarily need to be the same, and each can build its own speciality, he added.