By Lydia Lim, Senior Political Correspondent

(Picture: Penang Chief Minister Lim Guan Eng showing MM Lee a view of Penang from the 65-storey Komtar tower in the city centre, where his office is located. - ST Photo)
Penang - Minister Mentor Lee Kuan Yew yesterday packed into his one-day visit to Penang a noon meeting with Chief Minister Lim Guan Eng and other state government leaders, plus talks with two former chief ministers of the north-western state.
Penang is the only non-Malay-majority state in peninsular Malaysia. Since last year's general election, it has been governed by the Pakatan Rakyat opposition alliance, with the Chinese-based Democratic Action Party (DAP) in the driver's seat.
The Penang state government is keen to attract Singapore investments but Mr Lee offered his view that the state first needed better roads, bridges, airports and other communication links. He urged the state government to work with the federal government to secure the revenue needed to build such infrastructure, his press secretary Yeong Yoon Ying said.
MM Lee met Mr Lim for close to an hour. He also had a 15-minute discussion with members of Mr Lim's state executive committee.
Mr Lim told reporters he proposed certain broad areas of economic cooperation with Singapore, including tourism, health tourism, education, manufacturing and air services. The number of flights between Singapore and Penang has been climbing and will reach 84 a week by next year.
He also proposed that as Singapore pushed on with upgrading its economy, it could consider relocating the industries it had outgrown to Penang. The island is Malaysia's second most industrialised state, after Selangor. Several multinational electronics companies have manufacturing facilities here.
Mr Lim, who is also the DAP secretary-general, said he sensed Mr Lee was here for a feel of the new political situation.
Mr Lee last visited Penang in 1989, when the state government was controlled by Gerakan, a Chinese-based component party of the ruling Barisan Nasional (BN) front.
Mr Lim said that during their meeting, Mr Lee mentioned Tun Daim Zainuddin's prediction that it would be difficult for BN to regain Penang for at least 10 years.
Tun Daim is a former Malaysian finance minister and a keen observer of the political scene.
'In that context, he was trying to assess first-hand the leaders in charge of the administration...and how Singapore should deal with the changed political scenario,' Mr Lim said.
Mr Lim met the Minister Mentor for the first time yesterday. He had met Prime Minister Lee Hsien Loong in April, on his first visit to Singapore as Chief Minister.
He said he discussed with both leaders how Penang and Singapore could help and serve each other's interests.
At the same time, Mr Lim said he appreciated that 'the relationship between Singapore and the federal government takes foremost priority for Singapore'.
Mr Lim was also asked by reporters about cooperation between the DAP and the People's Action Party (PAP), given their shared history.
Mr Lim said the two parties had taken different paths. What they have in common today is a shared belief in good governance and clean government, which are 'a given in Singapore'.
Former chief minister Koh Tsu Koon called on Mr Lee in the afternoon, at his suite in the historic Eastern & Oriental Hotel, the 'Raffles' of Penang. Mr Koh is president of Gerakan and a Minister in the Prime Minister's Department. He lost his state seat in last year's election.
Mr Koh told reporters they exchanged views on the latest political developments in Malaysia and Penang.
They also discussed various scenarios for the next election and how much might depend on whether the three-party opposition alliance could stay united, Mr Koh said.
Mr Lee also found time to catch up with an old friend, former chief minister Lim Chong Eu. At age 90, he is Penang's elder statesman.
When Singapore was part of Malaysia, the PAP led by Mr Lee partnered Tun Dr Lim's United Democratic Party to campaign for a 'Malaysian Malaysia'.
-end of ST article
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