The National Economic Advisory Council cited evidence from the Ministry of Human Resources (MOHR) that an estimated 350 000 Malaysians adults are working abroad in 2008, over half of whom had tertiary education (NEAC, 2010). The establishment of the Penang Skills Development Corporation (PSDC) in 1989 was a critical step in the effort to provide skilled workers for the rapidly expanding multinational corporations (MNCs) primarily in electrical and electronics (E&E). The underlying issue for Malaysia and for the Northern Corridor Economic Region and Penang in particular is the need to move “up the value chain” from a low-skill, low-production economy to a higher skill, higher wage economy. The ability of Penang to compete on the basis of low-skilled labour is increasingly limited by competition from other countries in Southeast Asia and restrictions on foreign workers. At the same time, the region faces competition from Singapore and other countries that do have the human resources and access to research and innovation needed to compete at the high-end of the value chain. As emphasised by the National Economic Advisory Council in the New Economic Model, the problem is not only an inadequate supply of graduates.