APPROVAL PAGE

The Report of Professional Internship Entitled:

EFFECT OF TOURISM TO THE PENANGS ECONOMY,
ENVIRONTMENT, CULTURE, AND HERITAGE AND SEVERAL
TOURIST DESTINATION IN PENANG
Arranged by:
Name

: Revo Rosheno Arbes

NIM (Student Number)

: 105020101121005

Faculty

: Economics and Business

Program

: Economics

Concentration

: Banking and Finance

Has been evaluated and approved as a Report of Professional Internship Program,

dated October 8th, 2013.
Malang, October 8th, 2013
Student,

Internship Advisor,

Arif Hoetoro SE., MT., Ph.D

NIP. 19700920 199512 1 001

Revo Rosheno Arbes

NIM. 105020101121005

Acknowledged by,
Head Master of International Undergraduate Program in Economics

Arif Hoetoro SE., MT., Ph.D

NIP. 19700920 199512 1 001
ACKNOWLEDGEMENT

In the name of Allah, most Gracious, most Merciful, praise be to Allah

SWT lord of the world, so that the writer can finish this report as a partial
fulfillment of the requirement for the graduate degree. The writer is fully aware
that this thesis still has many weaknesses. In addition, this thesis would not be
finished without others helps therefore. In this chance she would like to express
her gratitude and appreciation to:
1. My beloved mother and father, the best parents ever. Thank you for your
support to me.
2. Mr. Arif Hoetoro, SE., MT., Ph.D as both my Internship Advisor and
Headmaster of International Undergraduate Program in Economics.
3. Prof. Candra Fajri Ananda, SE., M.Sc., Ph.D as the Dean of Faculty of
Economics and Business, Brawijaya University.
4. Aulia, Fika, Dio, Shinta, Ferry, and EmBe as both my partner within join
Overseas Academic Program to Universiti Sains Malaysia and my best
friends.
5. Universiti Sains Malaysia, School of Social Sciences, the lectures as
university partner. You are wonderful.
6. Tengku Ken Vun, Ong, and all of friends i met in USM. Youre rocks guys.
7. All of Management and Accounting student, especially Radya, Rudi,
David, Idang. Our partner in sport.
8. Mr. Devanto Shasta Pratomo, Ph. D, who always helps us in trouble.
9. Other people who cannot be named one by one, but have given much help
in completing this report.
Finally, I hope this report can be of much help for many people and hold
multiplier advantages. Furthermore, I hope it would be able to give any
development for science and knowledge, broadening knowledge and insight of the
society, enhancing soft skills and competency of the students as suitable as the
very vision of Tri Dharma Perguruan Tinggi. Honesty, there are no reasons of the
existing of my live, my objective, and my dream but in the name of sciences;

dien; share advantages; and take care for the growing of my nation, beloved
Indonesia well-being

Malang, October 2nd, 2013

Revo Rosheno Arbes

TABLE OF CONTENT
APPROVAL PAGE...................................................................................................i
ACKNOWLEDGEMENT.......................................................................................ii
TABLE OF CONTENT..........................................................................................iv
LIST OF TABLES..................................................................................................vi
LIST OF FIGURES...............................................................................................vii
LIST OF APPENDICES.......................................................................................viii
CHAPTER I.............................................................................................................1
INTRODUCTION...................................................................................................1
1.1

Background...............................................................................................1

1.2

Objective of KKNP...................................................................................3

1.3

Significance of KKNP...............................................................................3

CHAPTER II............................................................................................................6
THEORITICAL FRAMEWORKS..........................................................................6
2.1 Theory of Tourism..........................................................................................6
CHAPTER III..........................................................................................................8
THE IMPLEMENTATION OF PROFESSIONAL INTERNSHIP.........................8
3.1 Malaysia Profile.............................................................................................8
3.1.1

General...............................................................................................9

3.1.2

People and Language.........................................................................9

3.1.3

Currency...........................................................................................10

3.1.4

Weather............................................................................................10

3.1.5

Goverment........................................................................................11

3.1.6

Economic..........................................................................................11

3.2 Penang Island...............................................................................................12

3.3 University Sains Malaysia Profile................................................................13
3.3.1
Vision, Mission, Value and Trust of Universiti Sains Malaysia
(USM) ..........................................................................................................16
3.3.2

Top Management of USM................................................................17

3.4 School Of Social Science of USM...............................................................17

3.4.1 The Courses taken within The Internship.............................................19
3.5 Facilities in USM.........................................................................................33
3.5.1

Desasiswa/Student Village...............................................................34

3.5.2

Transportation In USM....................................................................35

3.5.3

Sport Facilities.................................................................................37

3.5.4

Museum Art and Galeri Tuanku Fauziah.........................................38

3.6 Effect of Tourism to Penangs Economy, Environtment, Culture and

Heritage..............................................................................................................40
3.7

Tourist Destination in Penang.................................................................50

3.7.1

Kek Lok Si.......................................................................................50

3.7.2

Batu Ferringhi Beach.......................................................................51

3.7.3

Penang Museum & Art Gallery........................................................52

3.7.4

Penang Hill.......................................................................................54

CHAPTER IV........................................................................................................58
CONCLUSION......................................................................................................58
4.1 Conclusion...................................................................................................58
4.2 Suggestion or Recommendation..................................................................58
BIBLIOGRAPHY..................................................................................................61
APPENDIX............................................................................................................63

LIST OF TABLES
Table 2.1 Courses Schedule...................................................................................11
Table 3.1 Demography of Malaysia.......................................................................13
Table 3.2 Government of Malaysia........................................................................15
Table 3.3 Top Management University in USM....................................................21

LIST OF FIGURES
Figure 3.1 Map of Malaysia...................................................................................13
Figure 3.2 USM Emblem.......................................................................................19
Figure 3.3 USM college room (Dewan Kuliah).....................................................23
Figure 3.4 Portrait of USM from Desasiswa Saujana............................................40
Figure 3.5 Sport Facilities......................................................................................43
Figure 3.6 Member of OAP...................................................................................44
Figure 3.7 Kek Lok Si Temple...............................................................................55
Figure 3.8 Batu Ferringhi Beach............................................................................57
Figure 3.9 Penang Museum Art & Gallery............................................................58
Figure 3.10 Penang Hill.........................................................................................59

LIST OF APPENDICES
Appendix 1 Letter Of Statement

CHAPTER I
INTRODUCTION
1.1 Background
College basically is a place where one could learn to be someone with broad
insight and be an educated person. Education itself is a systematic process to learn
being independent and becoming an adult so that one could take responsibility in
living his life. Living life in responsible way means having the courage to take
wise decision and also have the courage to bear all its consequence. KKNP
(Internship) has major role in one education stage by encouraging students to
implement theory they know during class. Through KKNP students was expected
to know a bit description of working and it act as a self preparation process to face
this kind of world eventually.
As college that held education in economy in particular, major of Economy
and Business Faculty of Brawijaya University has the commitment to conduct
some social and moral obligation formulated in conception of Colleges Tri
Dharma that covers education, research and community service. This commitment
was showed by making KKNP as one of compulsory subject with 4 credit weight
for its students in the form of Internship. The Form of KKNP comprise of two
things that is college work and other equivalent activity. This college work was
done in a company or other institution that has relationship with students
education program background. While other equivalent activity is activity that
could be accommodated by faculty as long this activity meets the requirement of
faculty and could be called as conversion or point credit.

The lecturer is the main activity and objective of the author toward Overseas
Academic Program (OAP) to Universiti Sains Malaysia. The author is
experiencing different form of lecturer in university concerned to Brawijaya
University, Faculty of Economics and Business as particular. It is the interesting
topic for this section. Hence, the author was taking for 4 courses in the School of
Social Sciences, Universiti Sains Malaysia which are Applied Economics,
Economics for Planning and Project Analysis, International Finance and
Economics of Development.
In this paper, the writer has choose to conduct research in University Sains
Malaysia in Penang, Malaysia, by cooperation between Economy and Business
Faculty of Brawijaya University and University Sains Malaysia which could be
equivalent as one form of KKNP. Other than that, the writer would like to share
some experience obtained during following activities reported as information
facilities and learning vehicles for related party. Writer was interested in tourism
and what is the effect of money that brought by tourist to the local economy.
Overall, according the background above, therefore the author proposes Effect of
Tourism to the Penangs Economy, Environtment, Culture and Heritage and
Several Tourist Destinations in Penang as the title of this professional
internship report. Hopefully, an experience of author within joined Overseas
Academic Program (OAP) and this report of professional internship would be
useful and hold multiplier advantages for societys well-being in term of their
insight, as generally. Moreover, it is expect to give any development for science
and knowledge, enhancing soft skills and competency of the students as suitable
as the vision of Tri Dharma Perguruan Tinggi, as specially.

1.2 Objective of KKNP

The general objective of this KKNP are:
1. Improve students understanding toward related discipline through
addition in skills, insight, knowledge and ability in socialization.
2. Enhancing students ability to adapt in the society.
3. Make the students become independent.
4. Strenghten the cooperation between FEB and USM
The professional objective of this KKNP are:
1. Implement the very aim of Overseas Academic Program (OAP) which to
provide students understanding and experience of trans-national
academic, cultural and business traditions in surrounding the university
partners.
2. Understanding 4 courses taken within join Overseas Academic Program at
Universiti Sains Malaysia.
3. Enhancing the insight to the tourism and vacation place in Penang Island

1.3 Significance of KKNP

KKNP experienced by the writer was highly beneficial for students, Economic
Department, and Economic and Business Faculty of Brawijaya University. The
Benefits are as follows:
1. Benefit KKNP for Students
a. Maturing students mindset in each research and problem solving in
the field according to the theory obtained during classes.
b. Improving competence, intellectual intelligence and its emotional
state.

c. Giving working experience to be faced by students

d. Shaping individual that prepares in facing world competition
practice.
e. Giving facility for students to develop other competence that is soft
skill as the complementary for academic ability in learningteaching in college.
2. Benefit KKNP for Economic Department and Economic and
Business Faculty of Brawijaya University
a. Helping in giving positive image for Economy Study major,
Economy and Business Faculty of Brawijaya University to the
related parties particularly institution that also supporting activity
conduct by writer.
b. Extending network between Economy Study major of Economy
and Business Faculty from Brawijaya University with Economy
Study major of Economy Faculty from another university or
company.
c. Improving curriculum relevance of Economy Study major of
Economy and Business Faculty of Brawijaya University with
working world.
d. Giving contribution of thought and experience obtained by writer
through activities made equal with KKNP.
e. Improving students competence in developing active and potential
character toward working world.
3. Benefit KKNP for the corporation/ instance/ society

a. Implementing one of the social responsibilities of the corporation

or institution for the society.
b. Getting ideas and energy in order to increase the performance of
the companies/institutions and the society.
c.

As a tool to build cooperation to find potential workforce.

4. Benefit KKNP for the advisors
a. Getting knowledge and understanding about various Economics
practices in the business world and the fieldwork.

b.

Enhancing network with the business world and the fieldwork.

CHAPTER II
THEORITICAL FRAMEWORKS

KKNP is one of compulsory class that should be taken by all

undergraduate students (S-1) in Economy Study major of Economy and Business
Faculty of Brawijaya University. Form of KKNP activity is practice or other
activity that put equivalent. Students could choose one of these two forms of
KKNP. In this matter, writer choose to take activity offered by Economy and
Business Faculty of Brawijaya University by following Internship at National
Chiayi University started from August 11th 2013 until August 30th 2013.

2.1 Theory of Tourism and Marketing Management

There are some perspective about what is tourism and marketing
management, according to Mathieson and Wall (1982), Tourism is The
temporary movement of people to destinations outside their normal places of
work and residence, the activities undertaken during their stay in those
destinations, and the facilities created to cater to their needs.
Tourism is a collection of activities, services and industries that delivers
a travel experience, including transportation, accommodations, eating and
drinking establishments, retail shops, entertainment businesses, activity facilities
and other hospitality services provided for individuals or groups traveling away
from home. (Northern Arizona University, Parks & Recreation Mgmt.)
And according to Philip Kotler (2001), Marketing Management is
analysis, planning, implementation, and control of programs designed to bring

about the desired exchanges with target audiences for the purpose of personal and
mutual gains.it relies heavily on the adoption and coordination of product, Price,
place and promotion which is the 4Ps of marketing.
One of the main management disciplines, encompassing all the strategic
planning,

operations,

activities,

and

processes

involved

in

achieving

organizational objectives by delivering value to costumers. marketing

management focuses on satisfying costumers requirements by identifying needs
and wants, and developing products and services to meet them.(Q Finance
Resource)
In National Chiayi University, author also sit in the class to attend the
course, because attending the courses is the main program of the internship.
Below are the schedule of the courses:
Courses Schedule
Date
8/12

Day
Monday

9:00 - 12:00
The Functions of
Marketing

14:00 - 17:00
Mandarin Class

8/13

Tuesday

Market Segmentation
and Positioning

Mandarin Class

8/14

Wednesd
ay

Developing A
Marketing Plan

Mandarin Class

8/15

Thursday

Mandarin Class

8/16

Friday

Developing New
Products and
Services
Electronic Commerce

Mandarin Class

Table 2.1 Courses Schedule

CHAPTER III
THE IMPLEMENTATION OF PROFESSIONAL INTERNSHIP

3.1 Taiwan Profile

Figure 3.1 Map of Taiwan

Taiwan was joined to the Asian mainland in the Late Pleistoeone, until sea
levels rose about 10,000 years ago.fragmentary human remains have been found
on the island, dated 20,000 to 30,000 years ago, as well as later artifacts of a
Paleolithic culture.
More than 8,000 years ago Austronesians first settled on Taiwan.their
languages belong to the Austronesian language family, which also includes the

Malayo Polynesian languages spanning a huge area including the entire

Maritime Southeast Asia like Philippines, Malasiya, Indonesia, and Brunei.
The island is Characterized by thee contrast between the eastern twothirds, consisting mostly of rugged mountains running in five ranges from the
northern to the southern tip of the island, and the flat to gently rolling Chianan
Plains in the west that are also home to most of Taiwans population. Taiwans
highest point is Yu Shan (Jade Mountain) at 3,952 meters (12,966 ft), and there
are five other peaks overs 3,500 m (11,500 ft).this makes it the worlds fourthhighest island.
And also the board coastal plain in the west supports most of the islands
population and is the chief agricultural zone. Natural disasters such as typhoons
and earthquakes are common. Taiwan has a semitropical climate and rainfall
ranging from moderate to heavy. with abundant sunshine and rainfall, the island is
agriculturally very productive.
3.1.1 General

Taiwan's total land area is about 36,000 square kilometers (14,400 square
miles). It is shaped like a leaf that is narrow at both ends. It lies off the
southeastern coast of mainland Asia, across the Taiwan Strait from China-- an
island on the western edge of the Pacific Ocean. To the north is Japan; to the south
is the Philippines. Many airlines fly to Taiwan, making it the perfect travel
destination.
Area
3,6000 square km

Population
23.3 million

Capital city
Taipei

Table 3.1 Demography of Taiwan

3.1.2 Language

Standard Mandarin is officially recognized by the Republic of China

as the national language, and it is spoken by the vast majority of residents. About
70% of the people in Taiwan belong to the Hoklo ethnic group and speak both
Taiwanese a variant of Min Nan, their mother tongue and Standard Mandarin.
Standard Mandarin has been the primary language of instruction in schools since
the Japanese were forced out in the 1940s. The Hakka ethnic group, comprising
around 15% of the population, use the Hakka language. Taiwan's aboriginal
minority groups mostly speak their own native languages, although most also
speak Mandarin.
English is a common second language, with some large private
schools providing English instruction. English is compulsory in students'
curriculum once they enter elementary school. English as a school subject is also
featured on Taiwan's education exams.
3.1.3 Currency

The monetary unit of the country is New Taiwan Dollar and is written
as NTD or TWD. The exchange rate is valued at Rp.389,- = NTD 1. Notes are
available in NTD 1000, NTD 500, NTD 100, NTD 200 and NTD 2000 notes,
which are being issued every half a year sequentially. Currently, the New Taiwan
Dollar coins in circulation include NTD 0.5, NTD 1, NTD 5, NTD 10, NTD 20
and NTD 50. Foreign currencies can be exchanged at banks and money
changers.

10

3.1.4 Weather

Taiwan is considered subtropical. Summer lasts from May through

September and tends to be very hot and humid. The average daytime highs range
from 30-35C or 86-95F. Winters are generally mild, although the high humidity
tends to make it feel very chilly at times. Winters run from December through
February with average highs of around 16-20C or 61-68F. Although these
temperatures are not particularly low, most houses do not have any heating, so be
prepared to bundle up.
Chances are you will get to experience at least one typhoon while you
are in Taiwan. July to October is known as typhoon season, bringing strong winds
and lots of rain. Standard preparation for a typhoon includes: stocking up on
drinking water and food, and being prepared for surface flooding and power or
water cuts. People living in apartments on the first floor may have to move
furniture and valuables to higher levels. The government will close schools during
a strong typhoon.
Another natural phenomenon of Taiwan you may experience is an
earthquake. As Taiwan is located on the pacific rim of fire, like Japan, New
Zealand, and California. Earth tremors can occur at any time of the year in
Taiwan, but the majority is so slight that they pass unnoticed. Stronger tremors do
occur around once every two or three months, but most buildings are made to
withstand the quakes fairly well.

11

3.1.5 Government

Table 3.2 Government of Taiwan

Information: President Ma Ying-jeou and Vice President Wu Den-yih invited the

presidents, vice presidents, and secretaries-general from the five Yuan (the five
branches of the ROC government).

Table 3.3 Central Government of Taiwan Organization

12

3.1.6 Economic

Table 3.4 Economic growth of Taiwan

During the first two quarters of 2012, Taiwans economic growth rates
reflected the sluggish global economic growth and the resulting weak external
demand. The economic growth rate in the first quarter of 2012 stood at 0.5 %,
turning negative during the second quarter (-0.1 %). however, as external demand
gradually stabilized in the second half of the year, the economy picked up steadily
with growth rates of 0.7 % in the third quarter and 3.9 in the fourth quarter.
For the total of 2012, the GDP growth rate was 1.3 %. In line with the global
economic slowdown, exports decreased by 2.2 %, while imports shrank by 3.8 %.
Despite the adverse impact of the lackluster global economy, labor market
conditions continued to improve, leading to an unemployment rate of 4.2 %.
Consumer prices increased by 1.9 % due to climbing energy and food prices. For

13

2013, the DGBAS (Directorate-General of Budget, Accounting and Statistics)

forecasts an economic growth of 2.4 % for the whole year.
3.2 Chiayi City
The old name of Chiayi city is Zhu Luoshan and there are two different
versions of its origin. One is that it comes from the transliteration of the name of
aboriginals village, which was called as Tirosen village by Dutch. The other
reason is that mountains on east side of Chiyi city stand in a row, therefore the
sound row became its name. Chiayi city is also known as city of peach because
of its shape in the past. Now the area around our fountain looked like the end of a
peach so citizens usually call it De-A Wee (end of a peach).
In 1661, Zheng Chenggong came to Taiwan and banished the Dutch. He
established the first Chinese government and planed Taiwan as a province with
two counties which are separated by Salt creek. Chiayi belonged to the northern
county at that time. In 1683, Taiwan was taken by Qing Dynasty and the emperor
planed Taiwan as a province with three counties. The southern county once under
Zheng Chenggons rule was divided as Taiwan county and Fenshang county. The
northern one was renamed as Zhu Luo county and its government was set in Kari
Xing which now its Tainan county. In 1794, The Zhu Luo county was move to
Zhu Luoshan. This county with wooden fence is the predecessor of Chiayi city.
Years later was rebuild as a castle. In 1727, the governor renewed its gate with
new names, built sewers and forts. In 1735, The governor planted bamboos
around the castle for further protections. In 1786, Lin Shuang-wen revolute
against the Qing Dynasty and Zhu Luo county had been besieged for 10 months.
On 3rd November 1787, after the battle the emperor changed the name from Zhu

14

Luo to Chiayi (in Chinese Chiayi means awarding for the loyalty) for rewarding
citizens courage. In 1885, Taiwan was officially regarded as a territory of Quing
Dynasty and two years later the government was more specifically reconstructed,
but the county government was still in Chiayi.
Chiayi city locates on the area of Tropic of Cancer, therefore in Chiayi city
we have both tropical and subtropical features. Sun has been guarded this city for
three hundred years. Plenty sunshine and rain and the average temperature around
23 degree Celsius make this city a good place to live and work. The development
of Chiayi city is always related to sun and humanism. Dutch and Zheng
Chenggong came here and built foundational measures during 17th century. In
1704 the emperor Kangxi set the government office here. In 1787 Zhu Luo
citizens fought against the revolution so the emperor Qianlong renamed the place
for Chiayi as a reward. In 1906 Chiayi was seriously damaged in a big earthquake,
therefore Japanese hired English architects to reconstruct Chiayi and made it as a
trade center of wood business in Ali Mountain. The Chiayi Park which has been
persisted for almost 100 years is like a historical miniature of the city of sun. We
present you common peoples snacks in the time of Qing dynasty and Japanese
colonial period. Delicate Paintings and Art of Koji Pottery not only increase our
values in art but further present the essence of humanism. Thence, the famous
writer Shu Guozhi said Chiayi city is the most interesting city in Twaiwan. The
406th CommonWealth Magzine published in September, 2008 indicated this
sunny city as a city of humanism.

15

3.3 National Chiayi Univesity Profile

Figure 3.2 NCYU Emblem

National Chiayi University was formed in February 2000 by merging two

existing colleges in Chiayi, National Chiayi Institute of Technology (NCIT) and
National Chiayi Teachers College (NCTC). The University now has six
colleges, which include 7 doctoral programs, 39 full-time masters degree
programs, 12 part-time masters degree programs, and 41 undergraduate
programs. NCYU is one of the oldest and largest universities in the southern
part of Taiwan.
National Chiayi Institute of Technology was first founded in April, 1919 as
Chiayi Agriculture and Forestry Public School. It was reorganized and named
as Taiwan Provincial Chiayi Agri-Vocational School in November, 1945. In

16

March, 1965, the School was upgraded and became Taiwan Provincial Chiayi
Junior College of Agriculture. In July, 1981, and the college became a national
college directly funded by the Ministry of Education. In July, 1997, the college
was upgraded again to a college and became National Chiayi Institute of
Technology. In its 90 year history, the College has trained professionals in
different fields.
National Chiayi Teachers College was first founded in 1957 as Taiwan
Provincial Chiayi Normal School. The school recruited junior high school
graduates and trained them as kindergarten and elementary school teachers. In
August, 1996, the School was upgraded to a five-year junior college and
renamed as Taiwan Provincial Chiayi Junior Teachers College. The College
was reformed , into a four-year college, and renamed as Taiwan Provincial
Chiayi Teachers College in July, 1987. In July, 1991, the College became a
national college and was renamed as National Chiayi Teachers College. Since
it was established in 1957, the College has trained thousands of elementary and
kindergarten teachers, most of them have taught in schools all over the country
or served in education related public sectors.
By merging the two colleges, National Chiayi University is one of the few
comprehensive universities in the southwestern part of Taiwan, covering a wide
range of domains, including Life Science, Agriculture, Management, Science
and Engineering, Humanities and Arts, and Education.
The ultimate goal of the University is to attain truth, goodness, and beauty
through excellence in research, professional training, cultural and social service.
We believe in the value of honesty, simplicity, action, innovation and service.

17

We also attempt to instill these values in the research, education and

management to upgrade the university to become the pride of Chiayi and
nationally renowned as well as internationally recognized institution.
The idea of University emblem National Chiayi university was formed by
merging National Chiayi Institute of Technology and National Chiayi Teacher
College. the emblem was designed according to the excellent traditions of the
two collages and the future development of NCYU.
The emblem includes world-famous Yushan with a rising sum, which
represents the ultimate goal of NCYU to be a prestigious university and to be
recognized locally, nationally and internationally.
The wind river in the emblem flows across the Chianan plain and it is
considered the lifeline of Chiayi. which represents the long history and the
stable development of NCYU. NCYU will continue to cultivate talents and
contribute to the country and the society.

3.3.1 Future Development of NCYU

In the near future, the university will adopt the following development
strategies:
1. Administration
Improve

administrative

efficiency by upgrading

the

universitys

information infrastructure, computerizing administration processes, and

providing more in-service training to the staff.
2. Teaching
Strengthen teaching assessment and encourage the faculty members to

18

develop innovative teaching methods and techniques to stimulate

creativity and critical thinking of the students, and as a result, to enhance
the competitiveness of the students.
3. Researching
Improve the research performance of the university by encouraging the
applications of research projects and grants and cooperating with other
universities in Taiwan or abroad.
4. Community
Provide in-service training and life-long learning to teachers and
professionals in Yunlin, Chiayi, and Tainan Region to assist them in
improving their professional skills. Actively promote industry-university
cooperation to innovate research and development work.
5. Internationalization
Promote international exchanges and cooperation by using English as the
instructional language in class, recruiting international students and
international scholars to give lectures and conduct research at the
university, and encouraging the faculty and the students to participate
international contests and conferences.

3.3.2 Staf of NCYU

19

Our Director
Name & Email

Positio
Function
n
Directo Supervision of Personnel

Telephone
+886-5-

2717190

Te-Lan Shen
Affairs

About The Frist Division

Name
Telephon
& E- Position

Function
e

mail
Ching-

Assisting Personnel Affair of Director,

Division

Shan

+886-5Home Page Designing and

Chief
Li

2717192
Management, Other Assigned Tasks
Affairs of Organic Structure, Analysis of

Chun- Executi Personnel Statistics, Hiring and

+886-5Mei

ve

Promotion Affairs Advisory Committee

2717193

Huang Officer for Faculty, Faculty Numbers & Related

Yi-

Staff, Other Assigned Tasks

Officer Affairs Related the Selection of College +886-5-

Fang

Deans, Graduate Directors, and

He

Department Chairs, Affairs Related to

2717193

Human Resource Research and

Development, Publication of University
Directory & Monthly Personnel
Newsletters, Social Security Affairs for
Disability Employees, Other Assigned
20

Tasks
Related Affairs of Employment and
Transferring for Staff, Affairs of Advisory
Committee for Staff, Affairs of Faculty
Jih-Yan

and Staff Payment, Promotive Training

+886-5-

of Staff, Issuing Full/Part-time Faculty

2717193

Officer
Hsieh

and Administration Certification,

Proclamation of Faculty Employment,
Other Assigned Tasks
About The Second Division
Name
& E-

Position

Function

Telephone

mail
Yu-Lin

Division Assisting Personnel Affair of Director, +886-5-

Liu

Chief

Other Assigned Tasks

Preparation and Submission of

2717196

Personnel Office's Annual Plan and

TheyChen
Hsieh

Executi
Report, Revision of University Task

+886-5-

Specification Table, Affairs of

2717197

ve
Officer
Retirement and Funds of Relatives

Deceased
Shu-Lin Officer Affairs Related to Faculty and Staff

+886-5-

Lee

2717197

Evaluation, Administration Affairs

21

Renewal, Appeal Affairs of Faculty

and Staff, Yearly Pay Raise of Faculty,
Other Assigned Tasks
Leave of Absence Affairs, Affairs of
Going Abroad for the Faculty and
Staff, Holiday Subsidy, Benefits of
Retired Faculty and Staff, Activity and
Yi-Fen

+886-5Officer Meetings for Chinese New Year and

Ho

2717197
Annual Retired Faculty Meeting,
Affairs of on-the-job Training and
Study Programs, Other Assigned
Tasks
Affairs of Retirement and Funds of
Relatives Deceased, Real State Loan
for the Faculty and Staff, Related
Benefits and Insurance Affairs,

Miao-

Issuing Certification for the Retiring

+886-5-

Chun

Officer Faculty and Staff, Related Affairs of

2717197

Hsu

Retired Payment, Properties of

Purchase and Maintenance for the
Personnel Office, Management of
Computerized Personnel Information
System, Other Assigned Tasks
Table 3.3 Staff of University in NCYU

22

3.4 College of Management NCYU

There are seven department in College of Management NCYU. Business
Administration, Applied Economics, Management Information Systems, Banking
and Finance, Marketing and Logistic or Transportation, Recreation, Tourism and
Hospitality Management, Agribusiness Administration, EMBA Program, and the
Global Masters Program in Tourism and Management featuring a variety of
degree programs including Ph.D., Masters, International Masters, and Bachelors.
Over 2,000 students are enrolled in the Management college of NCYU. 65 faculty
who graduated in different countries and regions possess a variety of professional
management specialties.
Facing the rapid development of globalization, college has been working
on incorporating teaching resources from all departments into a more flexible,
advanced, and integrated program systems. now, because of diversified courses,
students can incorporate and refine their sub-specialtys knowledge into their
major to reinforce their competitiveness when seeking employment.
The college of Management have a missions, the college are to develop its
students potential in management and to guide them to be Valued Managers
and, in addition, to make contributions to society and internationally by fully
using their aptitudes and abilities. Given its objectives, the development of the
Colllege of Management, National Chiayi University is based on the following:

23

A student- centered philosophy will be continually being employed

in designing, arranging, evaluating and revising the courses of the
college and their schedules to maximize the students learning.

Besides teaching management principles and practice, the college

will take initiative in causing its students to understand the
importance of high personal ethics and of working for the good of
society by encouraging its students to participate in various campus
and off- campus activities with their instructors.

The college will be an all- in- one institution; in that its different
programs will exchange their courses, teaching, research and
extension services. In reality, its freshman and sophomore students
will be part of one program; and, its various institutes will be the
extension of the MBA program.

The college will develop its own uniqueness and help its students
to gain synergy by effective utilization of the educational
resources of other colleges, especially in education, languages, the
arts, counseling, agriculture, horticulture, food science, and life
science.

The undergraduate programs will focus on a graduate having a

well- rounded education. Besides setting high standards for the
management knowledge and other professional skills, for the
students future career the college will offer special courses to

24

enhance its students linguistic, logical and general communication

skills and to develop their personality, inter-personal skills and
ethics.

The graduate programs will focus on professional training courses

and educate the students to be desired and respected professionals.

3.4.1 The Courses taken within The Internship

The author follows 2 courses for lecturer activity in term of sitting in. 4
courses is mentioned as Applied Economics, Economics for Planning and Project
Analysis, International Finance, and Economics of Development. Since the author
only conduct lecturer in term of sitting in, therefore, lecturer class only is
occupied. It is means the author did not follow tutorial class. Hence, this is it
some materials that learn by author through sitting in a class:
Applied Economics
Applied Economics is taught by Mrs. Loke Yiing Jia, Ph.D every Monday. The
author experiencing three times on this class within join Overseas Academic
Program (OAP) to Universiti Sains Malaysia. The three times are February 25 th,
March 4st and March 11th. Lecturer class for the concerned subject is conduct at
hall DK N. Finally, bellow is some material gave
The Course Synopsis
This course covers several selected economics topics, which have not been
taught in the intermediate economic theory courses. Basic concepts of economic

25

theories taught in the intermediate level are extended to better understand the
many familiar experiences encountered in daily life.
The chosen topics in this course are divided into three sections: The first
meeting consists of applications on consumer choice theories, which includes
topics such as compensated demand curves, cost living indexes, network
externalities and inter-temporal choice. In the second meeting, the course will
proceed with decision making under uncertainty. This section will discuss
application on bearing, elimination and diversifying risk. Search theory is also
introduced to explain decision making under uncertainty. The third meeting
introduces game theory, an application that is commonly used in analysis on
strategic choice and interaction issues. Application of game theory specifically on
strategic interactions of firms will be discussed.
Economics for Planning and Project Analysis
Economics for Planning and Project Analysis is taught by Prof. Dr. Jamalludin
Sulaiman, Ph.D., Dato' every Tuesday. The author experiencing three times on
this class within join Overseas Academic Program (OAP) to Universiti Sains
Malaysia. The three times are February 26th, March 5th and March 12th. Lecturer
class for the concerned subject is conduct at hall DK F. Below is some material
gave:
Cost Benefit Analysis
A cost benefit analysis is done to determine how well, or how poorly, a
planned action will turn out. Although a cost benefit analysis can be used for
almost anything, it is most commonly done on financial questions. Since the cost

26

benefit analysis relies on the addition of positive factors and the subtraction of
negative ones to determine a net result, it is also known as running the numbers.
A cost benefit analysis finds, quantifies, and adds all the positive factors.
These are the benefits. Then it identifies, quantifies, and subtracts all the
negatives, the costs. The difference between the two indicates whether the planned
action is advisable. The real trick to doing a cost benefit analysis well is making
sure you include all the costs and all the benefits and properly quantify them.
Should we hire an additional sales person or assign overtime? Is it a good idea to
purchase the new stamping machine? Will we be better off putting our free cash
flow into securities rather than investing in additional capital equipment? Each of
these questions can be answered by doing a proper cost benefit analysis.
For example, As the Production Manager, you are proposing the purchase
of a $1 Million stamping machine to increase output. Before you can present the
proposal to the Vice President, you know you need some facts to support your
suggestion, so you decide to run the numbers and do a cost benefit analysis.
You itemize the benefits. With the new machine, you can produce 100
more units per hour. The three workers currently doing the stamping by hand can
be replaced. The units will be higher quality because they will be more uniform.
You are convinced these outweigh the costs.
There is a cost to purchase the machine and it will consume some
electricity. Any other costs would be insignificant.
You calculate the selling price of the 100 additional units per hour
multiplied by the number of production hours per month. Add to that two percent
for the units that aren't rejected because of the quality of the machine output. You

27

also add the monthly salaries of the three workers. That's a pretty good total
benefit.
Then you calculate the monthly cost of the machine, by dividing the
purchase price by 12 months per year and divide that by the 10 years the machine
should last. The manufacturer's specs tell you what the power consumption of the
machine is and you can get power cost numbers from accounting so you figure the
cost of electricity to run the machine and add the purchase cost to get a total cost
figure.
You subtract your total cost figure from your total benefit value and your
analysis shows a healthy profit. All you have to do now is present it to the VP,
right? Wrong. You've got the right idea, but you left out a lot of detail.
International Finance
International Finance is taught by Mrs. Normee Che Sab, Ph.D every
Wednesday. The author experiencing three times on this class within join
Overseas Academic Program (OAP) to Universiti Sains Malaysia. The three
times are February 27th, March 6th and March 13th. Lecturer class for the
concerned subject is conduct at hall DK N. Below is some material gave:
Balance of Payment
The balance-of-payments accounts of a country record the payments and
receipts of the residents of the country in their transactions with residents of
other countries. If all transactions are included, the payments and receipts of
each country are, and must be, equal. Any apparent inequality simply leaves one
country acquiring assets in the others. For example, if Americans buy
automobiles from Japan, and have no other transactions with Japan, the Japanese

28

must end up holding dollars, which they may hold in the form of bank deposits
in the United States or in some other U.S.investment. The payments Americans
make to Japan for automobiles are balanced by the payments Japanese make to
U.S. individuals and institutions, including banks, for the acquisition of dollar
assets. Put another way, Japan sold the United States automobiles, and the
United States sold Japan dollars or dollar-denominated assets such as treasury
bills and New York office buildings.
Although the totals of payments and receipts are necessarily equal, there
will be inequalitiesexcesses of payments or receipts, called deficits or
surplusesin particular kinds of transactions. Thus, there can be a deficit or
surplus in any of the following: merchandise trade (goods), services trade,
foreign investment income, unilateral transfers (foreign aid), private investment,
the flow of gold and money between central banks and treasuries, or any
combination of these or other international transactions. The statement that a
country has a deficit or surplus in its balance of payments must refer to some
particular class of transactions.
Many different definitions of the balance-of-payments deficit or surplus
have been used in the past. Each definition has different implications and
purposes. Until about 1973 attention was focused on a definition of the balance
of payments intended to measure a countrys ability to meet its obligation to
exchange its currency for other currencies or for gold at fixed exchange rates. To
meet this obligation, countries maintained a stock of official reserves, in the
form of gold or foreign currencies, that they could use to support their own
currencies. A decline in this stock was considered an important balance-of-

29

payments deficit because it threatened the ability of the country to meet its
obligations. But that particular kind of deficit, by itself, was never a good
indicator of the countrys financial position. The reason is that it ignored the
likelihood that the country would be called on to meet its obligation and the
willingness of foreign or international monetary institutions to provide support.
After 1973, interest in official reserve positions as a measure of balance of
payments greatly diminished as the major countries gave up their commitment to
convert their currencies at fixed exchange rates. This reduced the need for
reserves and lessened concern about changes in the size of reserves. Since 1973,
discussions of the balance-of-payments deficit or surplus usually refer to what
is called the current account. This account contains trade in goods and services,
investment income earned abroad, and unilateral transfers. It excludes the capital
account, which includes the acquisition or sale of securities or other property.
Because the current account and the capital account add up to the total account,
which is necessarily balanced, a deficit in the current account is always
accompanied by an equal surplus in the capital account, and vice versa. A deficit
or surplus in the current account cannot be explained or evaluated without
simultaneous explanation and evaluation of an equal surplus or deficit in the
capital account.
A country is more likely to have a deficit in its current account the higher
its price level, the higher its gross national product, the higher its interest rates,
the lower its barriers to imports, and the more attractive its investment
opportunitiesall compared with conditions in other countriesand the higher
its exchange rate. The effects of a change in one of these factors on the current

30

account balance cannot be predicted without considering the effect on the other
causal factors. For example, if the U.S. government increases tariffs, Americans
will buy fewer imports, thus reducing the current account deficit. But this
reduction will occur only if one of the other factors changes to bring about a
decrease in the capital account surplus. If none of these other factors changes,
the reduced imports from the tariff increase will cause a decline in
the demand for foreign currency (yen, deutsche marks, etc.), which in turn will
raise the value of the U.S. dollar (see foreign exchange). The increase in the
value of the dollar will make U.S. exports more expensive and imports cheaper,
offsetting the effect of the tariff increase. The net result is that the tariff increase
brings no change in the current account balance.
Foreign Exchange
The foreign exchange market (forex, FX, or currency market) is a global
decentralized market for the trading of currencies. The main participants in this
market are the larger international banks. Financial centers around the world
function as anchors of trading between a wide range of different types of buyers
and sellers around the clock, with the exception of weekends. EBS and Reuters'
dealing 3000 are two main interbank FX trading platforms. The foreign
exchange market determines the relative values of different currencies.
The foreign exchange market is unique because of the following characteristics:

its huge trading volume representing the largest asset class in the world
leading to high liquidity;

31

its geographical dispersion;

its continuous operation: 24 hours a day except weekends, i.e., trading

from 20:15 GMT on Sunday until 22:00 GMT Friday;

the variety of factors that affect exchange rates;

the low margins of relative profit compared with other markets of fixed
income; and

the use of leverage to enhance profit and loss margins and with respect to
account size.
There are a lot of financial instruments that are made use of, in the Forex

market. They are Spot, Forward, Futures, Swap, Option, Exchange Traded fund.
Spot - This is quickest financial instrument of the Forex market and tenure
of this is only two days. The transaction happens within two days. It is the most
voluminous financial transaction in terms of trades processed. A spot pice is
decided for settlement of a currency or security and the transaction is closed in
two business days.
Forward - A forward contract is one of the most sought after financial
instruments in the Forex market, because risk can be minimized. Both the seller
and the buyer agree to carry out a transaction at a future date and time and there
is no financial exchange between the parties until the specified date comes up.
On the particular date of the transaction, the goods and services are brought or
sold irrespective of the currency trading on that day. Forward contracts are not
limited by time. A transaction can be agreed to carry out on a future date which
are a few days or a few years later than the current date.

32

Futures Future contracts are similar to forward contracts. The only

difference between a forward contract and a futures contract is that, in a futures
contract, a transaction can be agreed to be carried out at a time, which is not
more than 3 months from the current date. There is a time boundary within
which the transaction must be closed. The size and the time period of the
transaction are fixed in a futures contract unlike a forward contract.
Swap This is another type of forward transaction. Here both the parties
agree to do a currency swap for a specified period of time. They also agree to
reverse this swap and revert to their original positions at a future point of time.
It is not necessary that a swap transaction has to be carried out only in an
exchange. It is just an agreement between two parties.
Option Options are rights given to the owners to exchange their
currencies to other denomination. However it is only a right and not an
obligation for the owner to exchange his currency.
Exchange Traded Fund They are open ended financial instruments
which can be traded anytime during the course of the trading day. These
basically follow stock movements or price movements of renowned currencies
and then increase or decrease the value of their currency based on the trend of
price movements.
Economic of Development
Economic of Development is taught by Mr. Zakaria Bahari, Ph.D every
Thursday. The author experiencing three times on this class within join Overseas
Academic Program (OAP) to Universiti Sains Malaysia. The three times are

33

February 21th, March 7th and March 14th. Lecturer class for the concerned subject
is conduct at hall SK 2.
Below are some material gave:
Overview
Economic development is the development of economic wealth of
countries, regions or communities for the well-being of their inhabitants. From a
policy perspective, economic development can be defined as efforts that seek to
improve the economic well-being and quality of life for a community by
creating and/or retaining jobs and supporting or growing incomes and the tax
base.
There are significant differences between economic growth and economic
development. The term "economic growth" refers to the increase (or growth) of
a specific measure such as real national income, gross domestic product, or per
capita income. National income or product is commonly expressed in terms of a
measure of the aggregate value-added output of the domestic economy called
gross domestic product (GDP). When the GDP of a nation rises economists refer
to it as economic growth.
The term "economic development," on the other hand, implies much more.
It typically refers to improvements in a variety of indicators such as literacy
rates, life expectancy, and poverty rates. GDP is a specific measure of economic
welfare that does not take into account important aspects such as leisure time,
environmental quality, freedom, or social justice. Economic growth of any
specific measure is not a sufficient definition of economic development.
Local development

34

The term "economic development" is often used in a regional sense as well

(e.g., a mayor might say that "we need to promote the economic development of
our city"). In this sense, economic development focuses on the recruitment of
business operations to a region, assisting in the expansion or retention of
business operations within a region or assisting in the start-up of new businesses
within a region.
In addition to economic models, the needs of constituency groups guide
economic developer's actions. For example, a local economic developer working
out of a mayor's office may act towards decreasing unemployment by attracting
businesses with large labor needs (call centers). The economic developer
working for the chamber of commerce dominated by banks, real estate agents
and utilities will recruit manufacturers with large capital investments (steel and
chemical plants). The economic developer working for the state manufacturers
association will lobby for more workforce training money. The economic
developer working for a university will concentrate on business start-ups,
specifically those based on intellectual property developed by the university
(biotech).
In its broadest sense, economic development encompasses three major
areas:
1) Policies that governments undertake to meet broad economic objectives such
as price stability, high employment, expanded tax base, and sustainable growth.
Such efforts include monetary and fiscal policies, regulation of financial
institutions, trade, and tax policies.

35

2) Policies and programs to provide infrastructure and services such as

highways, parks, affordable housing, crime prevention, and educational
programs and projects.
3) Policies and programs explicitly directed at job creation and retention through
specific efforts in business finance, marketing, neighborhood development,
small business start-up and development, business retention and expansion,
technology transfer, workforce training and real estate development. This third
category is a primary focus of economic development professionals.
Economic developers
Economic development, which is thus essentially economics on a social
level, has evolved into a professional industry of highly specialized
practitioners. The practitioners have two key roles: one is to provide leadership
in policy-making, and the other is to administer policy, programs, and projects.
Economic development practitioners generally work in public offices on the
state, regional, or municipal level, or in public-private partnerships
organizations that may be partially funded by local, regional, state, or federal tax
money. These economic development organizations (EDOs) function as
individual entities and in some cases as departments of local governments. Their
role is to seek out new economic opportunities and retain their existing business
wealth.
With more than 20,000 professional economic developers employed world
wide in this highly specialized industry, the International Economic
Development Council [IEDC] headquartered in Washington, D.C. is a non-profit
organization dedicated to helping economic developers do their job more

36

effectively and raising the profile of the profession. With over 4,500 members
across the US and internationally, serving exclusively the economic
development community. Membership represents the entire range of the
profession ranging from regional, state, local, rural, urban, and international
economic development organizations, as well as chambers of commerce,
technology development agencies, utility companies, educational institutions,
consultants and redevelopment authorities. Many individual states also have
associations comprising economic development professionals and they work
closely with IEDC.
There is intense competition between communities, states, and nations for
new economic development projects in today's globalized world, and the
struggle to attract and retain business is further intensified by the use of many
variations of economic incentives to the potential business. There is significant
attention placed on the various activities undertaken by economic development
organizations to help them compete and sustain vibrant communities.
Additionally, the use of community profiling tools and database templates
to measure community assets versus other communities is also an important
aspect of economic development. Job creation, economic output, and increase in
taxable basis are the most common measurement tools. When considering
measurement, too much emphasis has been placed on economic developers for
"not creating jobs." However, the reality is that economic developers do not
typically create jobs, but facilitate the process for existing businesses and startups to do so. Therefore, the economic developer must make sure that there are
sufficient economic and community development programs in place to assist the

37

businesses achieve their goals. Those types of programs are usually policycreated and can be local, regional, statewide and national in nature.
Theories of Economic Development

Classical Liberal
a. Development is understood as economic growth and capitalformation. The key to economic growth was capital formation.
b. This led to an emphasis on large-scale infrastructure projects and
on foreign aid loans.
c. In the "stages" version of this approach, undeveloped countries
were thought of largely as "primitive" or "early" versions of
Western countires. Lesser Developed Countries needed to follow
the pattern of development set by the west. For example, Alexander
Gerschenkron and W. W. Rostow.

Social Theories of Development

d. Emphasizes the importance of "human capital" in development.
The key to economic growth was education, health, fertility, etc.
e. Shifted concerns from the overall rate of economic growth to
considerations of poverty, inequality, urbanization and other social
ills.
f. In the "small is beautiful" version of this approach, some
economists even questioned the desirability of economic growth.

For example, E. F. Schumacher.

Structural Theories
g. Emphasized the conditions unique to Third World countries. The
key to economic growth was recognizing that the experience of
Europe could be duplicated in the context of former colonies.

38

h. Shifted concerns to "import substitution," high tariffs and

government protectionism. A Marxist version of this set of theories
also developed based on Lenins analysis of colonialism.
i. In the "dependency" version of this approach, some economists
feared that the Third World would regress into a source of raw
materials for developed nations and that the world economy would
be divided into a "core" and a "periphery." For example, Raul

Prebisch.
Neo-classical Theories
j. Emphasizes the negative role often played in development. The
key to economic growth is free markets.
k. Shifted concerns from the role of governmentoften
considerable in structural theoriesto private investment and
market efficiency.
l. This set of theories is currently the most widely practiced. M.
Friedman is a major theorist.

3.5 Facilities in USM

USM has facilities for student accommodation, sporting and recreation.
The university offers housing for approximately 75% of its students. They are
known as student villages or hostels (desasiswa), and they are on campus.
Cafeterias can be found all around the university area.
3.5.1 Desasiswa/Student Village

There are some desasiswa/dormitory available in USM, students who

study in USM can live in there. Each dormitory prices rent can be different.
Below are those desasiwa:

39

Aman Damai

Bakti Permai

Cahaya Gemilang

Fajar Harapan

Indah Kembara

Jaya (Engineering Campus)

Lembaran (Engineering Campus)

Murni (Health Campus)

Nurani (Health Campus)

Restu

Saujana

Tekun

International House

Figure 3.4 Portrait of USM from Desasiswa

The author was stayed in

time. Its about

Saujana

Desasiswa Tekun at that

RM2.70 to RM4.50 per day per person

depends on the dormitory. All rooms are equipped with basic

furniture, including:-

Bed with a mattress;

Table;
40

Chair;

Wardrobe;

Fan, rubbish bin and a broom.

Pillows, linen and additional cleaning equipment are not provided. The hostels
have no kitchen, although facilities to boil water are made available. Coin
operated laundry machines are also available. There are different hostels for men
and women.
3.5.2 Transportation In USM

Commuter bus service is prepared to ease the travel of students inside

as well as outside campus, especially from hostel to lecture hall. The
service will be available at any time, unless otherwise stated. Buses in
USM will be labeled with different colors, with each responsible for
different routes. Students are advised to look at the color clearly before
boarding the bus.
YELLOW
Aman Damai II (Desa Siswa) DK S,T,U,V,W Bakti Permai (Desa
Siswa)- USM Hospital- SK I,II,III,IV/DK A,B,C School of
Languages, Literacy & Translation (SoLLat) School of House Building
& Planning (HBP) School of Management Eureka Fajar Harapan
(Desa Siswa) Aman Damai I (Desa Siswa) Aman Damai II (Desa
Siswa)
PURPLE
Main Bus Stop Indah Kembara (Desa Siswa) bus stop in front of
Jabatan Keselamatan (Security Department) DK S,T,U,V,W Bakti
Permai (Desa Siswa) USM Hospital SK I,II,III,IV/DK A,B,C Dewan

41

Budaya / School of Arts Eureka Fajar Harapan (Desa Siswa) Aman

Damai I (Desa Siswa) Aman Damai II (Desa Siswa) Indah Kembara
Main Bus Stop.
BLUE
Main Bus Stop Indah Kembara (Desa Siswa) bus stop in front of
Jabatan Keselamatan (Security Department) DK S,T,U,V,W Bakti
Permai (Desa Siswa) USM Hospital SK I,II,III,IV/DK A,B,C School
of Languages, Literacy & Translation (SoLLat) School of House
Building & Planning (HBP) School of Management (SOM) Eureka
Fajar Harapan (Desa Siswa) Indah Kembara Main Bus Stop.
RED
Main Bus Stop bus stop in front of Jabatatan Keselamatan (Security
Department) DK S,T,U,V,W Aman Damai I (Desa Siswa) Aman
Damai II (Desa Siswa) Indah Kembara Main Bus Stop.
3.5.3 Sport Facilities

Badminton Court (6 courts)

Gymnasium (1 male court & 1 female court)

Squash Court (3 courts)

Hockey

Softball

Golf

42

Ragbhi

Archery

Cycling

Figure 3.5 Sport Facilities

All sports facilities will be

Hari Raya Puasa
Hari Raya Haji
Chinese New Year
Deepavali
Others Public Holidays

3.5.4

closed on the following holidays:-

Museum Art and Galeri Tuanku Fauziah

While author studied in USM, author had a chance to visit USM

Museum. USM Museum, officially known as Muzium & Galeri Tuanku
Fauziah, is the museum and art gallery located within the grounds
of Universiti Sains Malaysia. In a similar sense as the Penang
Museum once was, the USM Museum combines both a museum and an art
gallery within the same building.
Muzium & Galeri Tuanku Fauziah was established through a proposal
upon the founding of the School of Humanities in 1971, and

43

the introduction of a Fine Arts Programme in 1972. The establishing of the

museum and art gallery was undertaken by the first vice-chancellor of the
university, the late Tan Sri Prof. Hamzah Sendut. Much of the artifacts on
display at the museum were purchased during that time.

Figure 3.6 Member of OAP

The museum appointed its first curator, Wan Zakaria Wan Ismail, in
1981. Until then, T.K. Sabapathy acted as the first honorary curator. The

44

USM Museum opened to the public on 21 January, 1982. On 19 March,

2007, it was inaugurated as Muzium & Galeri8 Tuanku Fauziah, in honour
of Tuanku Fauziah binti Tengku Abdul Rashid, the Raja Perempuan of
Perlis, who served as the Raja Permaisuri Agong of Malaysia from 2001 to
12 December, 2006.
On the ground floor of the USM Museum, which is divided into two
wings, the art gallery occupied the south wing. In the arcades and the north
wing are galleries displaying traditional musical instruments and copies of
the Quran.
The upper floor of the museum is devoted to archaeology, mining
and space exploration, among others. Within the archaeology section are
displays on the various archaeological sites in Malaysia. In the mining
section are diagrams and dioramas of oil rigs, while the space exploration
section showcases man's flight into space.
3.6 Effect of Tourism to Penangs Economy, Environtment, Culture
and Heritage
Penang is located at the Northwest coast of Peninsular Malaysia by the
Straits of Malacca. It is the second smallest state in Malaysia right after
Perlis. The name Penang is actually derived from a tree called Pokok Pinang
that is widely found along the sea side of Penang Island. Generally the state
of Penang could be sub divided into two geographies; the Penang Island and
also the Seberang Perai. Penang which is widely made out of hilly

45

topography has a limited low land area for development hence the land
reclamation project near the coastal area.
In an average day, the temperature at this place varies from 27 degree
Celsius to 30 degree during the day time while the night time promises a
temperature from 22 degree Celsius to 24. Since Malaysia is located on the
Equator line, this place has a very high humidity and the average annual
rainfall is approximately 2670 mm.
Tourism Development- Infrastructures
Unlike any other states in Malaysia, Penang is labelled as one of the
leading destination in the country today and many tourists who visited
Malaysia would definitely anticipate the visit to this very heritage site. The
main reason why Penang has been where it is today is mainly because it also
has a better and more developed infrastructure than most of the other places
in the country.
Generally there are two stadiums located at Penang for the convenience of
the locals as well as to attract tourists and outsiders to take part in any sports
event over here. The City Stadium or more commonly known as Stadium
Bandaraya Pulau Pinang is the first and oldest stadium which is still in use up
till today. It was built by the British in 1932 and ever since then had become
a popular spot for any football matches. The other stadium mentioned is the
Penang State Stadium. This newly completed stadium back at the year 2000
has a capacity of 40, 000 spectators.

46

The next cutting edge design infrastructure built in Penang is none other
than the Geodesic Dome located at Komtar. This progressive and advance
looking dome is a multipurpose hall used for official functions,
performances, states events and many other event purposes. The design of
this dome comes from the concept study by R. Buckminster Fuller who is the
master mind behind this partial-spherical structure. The main entrance to this
dome is through the level five roof top which only makes it even more
appealing to the tourists and visitors.
In terms of highways infrastructure, Penang is certainly quite
commendable as well. Highways such as the Bayan Lepas Elevated
Highway, Jelutong Expressway and Butterworth Outer Ring Road are the
few expressways constructed for the convenience of the automobile users.
And let us not forget about the advanced-looking Penang international
airport. The Penang International Airport (PEN) is the main airport for the
northern region of Peninsular Malaysia. At present, the airlines flying to the
Penang International Airport includes AirAsia, Cathay Pacific, China
Airlines, Firefly, Jetstar Asia, China Southern Airlines, Kartika Airlines, Lion
Air, Malaysia Airlines, Silkair, Singapore Airlines, Sriwijaya Air, Thai
Airways and Tiger Airways. This airport is also known as the fourth biggest
airport in Malaysia after KLIA, Kota Kinabalu International Airport and
Kuching International Airport. It has also been awarded as the Airport of the
Year for 2009 Frost and Sullivan Asia Pacific Aerospace and Defence for
airports for the category of below 15-million-passenger.

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Economic Impact of Tourism

The main economic development in Penang would most certainly relies on
the tourism sector as it turns out that this sector yield major contribution
towards the income and financial growth of the state. Based on the record by
the Tourism Ministry, Penang has recorded a 40 per cent increase in the
number of international tourist arrivals between January and June this year
(2010). There were 405,932 tourists up till June, as compared to 244,146 in
the same period last year. Of the tourist arrivals, Indonesians topped the list
at over 92,000, followed by Singaporeans (51,392), China (16,000),
Australia, Japan, Latin America and India (12,000 each), United States
(10,000) and Middle East countries (1,360).
The Swettenham Cruise Terminal which was recently redevelopment has
added an extra entry point into the island. Based on the statistic from Penang
Economics Monthly April 2010 Issue 4.10, it states that in year 2009, a total
of 680, 000 cruise passengers are recorded to have arrived in Penang. It has
been estimated that this year at least 890, 000 numbers of tourists will turn
up. The average cruise passenger spends anywhere between US$85 (rm280)
to US$115 (rm350) a day when they came on land.
Another factor that contributes to Penangs thriving economic from the
tourism sector is no doubt the Tourism Malaysias active courtship of the
Middle Eastern market. It has been clear that 11th September incidence is a
significant factor influencing the increase of Middle Eastern tourist arrivals
to Malaysia. There are however other factors such as tourist expenses in
Malaysia, tourist income, travelling expenses and the standard of living in

48

this country that affect vastly on the number of tourists arrivals as well.
Based on the work done by Norlida Hanim Mohd Salleh (2010, pp. 37-52),
she mention that, The importance of the Middle East tourists to the
Malaysian tourism industry can be viewed from several indicators such as
number of tourist arrivals, tourism receipts, the average length of stay and
potential of future tourism market. She also mentioned that the average
spending of the Middle Easterners have a higher purchasing power than other
tourists over here. According to the case study, the average expenditure of the
Middle Easterners was RM3, 503 during the year 2003 whereas tourists from
other places only spent RM2, 013.
In general, tourism has a variety of economic impact on the Penang Island.
All these could be explained using the Multiplier Effects Theory. From the
work done by Daniel J. Stynes (1997, pp. 11-14), he mentioned that;
The most direct effects occur within the primary tourism sectors --lodging,
restaurants, transportation, amusements, and retail trade. Through secondary
effects, tourism affects most sectors of the economy... The study might use a
sales multiplier of 2.0 to indicate that each dollar of direct sales generates
another dollar in secondary sales in this region.
This clearly shows us that tourism the main the effect of this Multiplier
theory where with tourism it brings about the development of other industries
as well such as restaurants, shopping malls, and theme parks.

49

However there are still numerous negative impacts of tourism for Penang
Island. For one, a country that relies on tourism industry alone as their main
source of revenue could be risky and dangerous. Economic dependence
should always be versatile and all-rounded in order for a state to prosper and
flourish. This is because tourism business is very seasonal. During peak
season, tourist arrivals will increase tremendously especially during the year
end period. Conversely the number of tourist will dropped drastically during
off-peak season. And this can post immerse danger to the states wellbeing as
it might create a high rate of unemployment.
Environment Impacts of Tourism
It is important to understand that although tourism has boosted the
economics of Penang vastly but one shall never forget on the value of the
environment and natural habitat of the very island. For what we know, land is
a very scarce resource in Penang Island. This is mainly due to the fact that
Penang is largely made up of hilly topography and most of the low land area
has already been accommodated and developed.
Based on the research done by Ngai Weng Chan (1998, pp: 305-318), he
also mentioned that the efforts at industrialization and the development of
other economic sectors had bring about the improvement of the states
urbanization. Unfortunately this had also caused greater pressure on the land
usage. As a result, the Government act upon on the land reclamation as a
solution but it is still not enough to satisfy the high demand for land in the
island. At present, many developers have already resort to the remaining hill

50

land and also the reclamation area on the island for their next huge projects.
Example of such project would be the Waterfront City Project, which
represents one of the highest proportions of leisure-based services anywhere
in South East Asia. Promising as it may seem, this project which is to be built
on the 338 acres of reclaimed land along Penangs eastern coastline will
majorly impact on the condition and status of the islands wellbeing. To
begin with, placing fill in a reclamation area could disturb the water quality
of the adjoining sea as well as threatening the flourishing existence of fish
stocks and habitats found in coastal seas and connecting lochs and lagoons.
Another example of project built without the heed and consideration of the
environmental issues would be the Tanjung Bungah suburb which is situated
between Georgetown and Batu Ferringhi. This village was built at the hill
land areas which could post many dangers to the environment and also on the
inhabitants over there. Based on the journal written by Adrian M. Steinberg
(2010, pp. 318-340), he mentioned that, There are many environment risk
by project at hill site areas in Tanjung Bungah, Batu Ferringhi. Tanjung
Bungah used to be a peaceful village only lodged by small groups of families
and fishermen. However over the years, many huge corporate chose this very
spot to build commercial buildings for tourism purposes. Example of these
recreational structures includes the Tanjung Bungah Floating Mosque and
also the Penang Water Sport Centres. Hence, the quality of the sea water
deteriorates due to the discharge of raw sewage and the resulting pollution
makes it a breeding ground for jelly fish. As a result, the sea all along the
northern belt is no longer suitable for swimming anymore.

51

Penang Hill which is another famous tourist destination spot is an example

of tourism development at hill land area. Located high above the land,
Penang Hill is perfect as a holiday sanctuary due to the breezy and cooler
environment. The state Government permitted this development because it
brings forth higher monetary and fiscal policy to the states economy. Based
on another case study by Ngai Weng Chan (1998, pp. 14-27), he mentioned
that, Massive hill development, especially the clearing of vegetation and the
cutting of hill slopes will bring about increased and accelerated run-off,
increased soil erosion and a high probability of landslips and landslides. In
the event of heavy rainfall, such as that which coincided with Tropical Storm
Ryan on 18 September 1995, landslips and landslides would occur. In fact, a
total of about 60 landslides were reported along roads on Penang Hill and its
vicinity after the heavy rainfall during the above storm. This clearly shows
that without a proper planning and preparation, many inadvertent events
might occur.
Paya Terubong used to be a predominantly agriculture area. As the years
gone by, it slowly turns into a working-class neighbourhood in the central
part of Penang Island. Based on a case study by Ngai Weng Chan (1998, pp.
14-27), he found that there is a total of 60 landslides reported along the roads
of Penang Hill after the destructive Tropical Storm Ryan which happened
back at 18 September 1995. Landslides not only harm the residents of an area
but, in fact, it post tremendous dangers to motorists as well. In addition, it
might pollute the river and in long-term run, may results in flood at low land
area. The massive expansion project at Paya Terubong is the most apparent

52

example of hill land development at Penang which is rather an impulsive and

foolish action. The project which mostly accentuate on housing,
infrastructure and a new township is actually one of the main tourist
attraction at Penang Island at current. According to the Malaysian Law
however, hill land with slopes of more than 20 degrees should be safeguard
and conserved in its natural state, generally as a forest reserves. Ngai also
stated in his case study that the Paya Terubong hill land development is a
major failure of the state island by saying, According to the Consumer
Association of Penang (in its April 1996 issue), the Paya Terubong housing
project is an invitation to a disaster, possibly comparing the Majestic Heights
as similar to the Highland Towers which collapsed in 1993. Soon after this
report, the extensive mudflows occurred in early May 1996. Chan (1997) has
demonstrated how rapid development on the hill slopes of the Paya Terubong
valley in Penang has given rise to landslides, mudflows, sedimentation of
rivers and downstream flooding.
Culture and Heritage Impacts of Tourism
Even though the official religion of the country and state is Islam, the
residents in Penang are all given the freedom and rights to follow on their
personal beliefs. Buddhism is still the main religion over here. As such, the
Peranakan or more commonly known as the Baba Nyonyas made 5% out of
the 2 million residents of Penang. The Baba Nyonya is actually a descendent
of the Chinese immigrants who partially adopt Malay customs with a touch
of Chinese as well. This made the Penang Island rich with an abundant of

53

cultures and traditions. For Penang Global Tourisms (PGT) new managing
director Ooi Geok Ling, she exclaimed that if she were to describe Penang as
a dish, she would go for the Rojak;
All the individual fruits and veggies retain their individualism, and the
rojak sauce brings everything together. This is what makes Penang so unique,
our diversity and our pride in being Penangites.
This clearly indicates that Penang has a presence of people from so many
ethnicities and religions living together in harmony. All these could be
reflected in the many festivities that are being celebrated throughout the year,
ranging from the Chinese New Year to the Indian Festival, Thaipusam.
Besides, Pesta Pulau Penang which is an annual carnival event makes the
city all vibrant and vivacious.
Besides that, Penang is also famous with the Dragon Boat Festival. Since
1979, it has been a culture to hold the International Dragon Boat Festival
over the Teluk Bahang Dam. Besides attracting international tourists during
the period of this event, this amazing festival also strengthens and tightens
the bonds between the each and every citizen. Another remarkable festival
held yearly over this state would none other be the Chingay Festival. This
interesting event which all started back at 1919 to celebrate on the birthday
of Kuan Yin, the Goddess of Mercy displays a wonderful act of skill in the
form of a procession.

54

George Towns entry into the Unesco World Heritage Sites listing is a big
recognition of Penangs unique history. This big recognition was declared
back at July 2008. George Town which was one if the first British colonies to
be established back many years ago is indeed filled with many historical
sites. Besides that, Penang is also famous for many other historical sites that
some even dated back at centuries ago. All these factors contributed to the
rising numbers of tourist arrivals into the state regardless of domestic or nondomestic.
3.7 Tourist Destination in Penang
Penang Island has some interesting, attracting and amazing vacation place.
Below are some vacation place which author visited when studied in USM:
3.7.1 Kek Lok Si

Also known as the Temple of Supreme Bliss, Kek Lok Si is said to be

the largest Buddhist temple in Southeast Asia, and arguably one of the
most famous in Penang.
Located in Air Itam, the hills in that area (called He San or Crane
Hill) have traditionally been regarded as geomantically significant, having
all the right feng shui for a temple. In fact, they are extremely popular as
a retreat for monks and Taoists striving for immortality.

55

Figure 3.7 Kek Lok Si Temple

The temples construction began in 1893, inspired by the chief monk of

the Goddess of Mercy Temple at Pitt Street. The Manchu Emperor
Guangxu approved of the project, bestowing a tablet and gift of 70,000
volumes of the Imperial Edition of the Buddhist Sutras. Other Chinese
rulers, such as His Majesty Emperor Kuang Xi and Empress Cixi of the
Ching Dynasty, have been sufficiently impressed with the temple so as to
have bestowed the temple with gifts.

56

The best time to visit Kek Lok Si is during the Chinese New Year
celebrations, when the temple is adorned with thousands of bright hanging
lanterns. At other times, there is still much to see, with prayer halls,
pagodas, bell towers and a tortoise pond topping the list.
Its main draw is the striking seven-storey Pagoda of Rama VI (Pagoda
of 10,000 Buddhas), completed in 1930. Boasting 10,000 alabaster and
bronze statues of Buddha, its design symbolises the harmony between
Mahayana and Theravada Buddhism, marrying a Chinese octagonal base
with a middle tier of Thai design, topped by a Burmese crown. One can
climb to the top of the pagoda via a steep flight of stairs and be rewarded
with a great view of Penang. The 30.2m bronze statue of Kuan Yin, the
Goddess of Mercy, is yet another popular highlight.
3.7.2 Batu Ferringhi Beach

Batu Ferringhi, situated along the coastal road north-west of

Georgetown and lined with a string of international- standard resorts, is the
most popular beach in Penang.
Figure 3.8 Batu Ferringhi Beach

57

Soak in the sun or unwind on the beach while you enjoy a host of
aquatic thrills from wind-surfing to canoeing. For a spine-tingling
adventure, try parasailing to enjoy the view of the beach from the sky.
As the sun sets, Batu Ferringhi comes alive with a carnival-like
atmosphere with an open-air bazaar selling anything from ornate curios to
enticing souvenir items.
Watch local artisans demonstrate the intricate art of craft-making and
batik- painting. Dubbed the Feringghi Walk, the bazaar offers shoppers a
host of attractions.
3.7.3 Penang Museum & Art Gallery

58

Walk into the compound of the Penang State Museum, and you will first
be greeted by a regal bronze statue of Captain Francis Light, the founder
of the Penang Straits Settlement, gazing down upon you.
Once you set foot inside the museum building, you will see why the
State Museum located along Jalan Farquhar in Georgetown is reputed to
be one of the best state museums in the country. Divided into galleries
dedicated to Penang's historical communities, as well as particular
historical events that took place in Penang, the museum houses a fine
collection of old photographs, maps, historical documents, Chinese
furniture, embroidery, costumes and other historical relics.

Figure 3.9 Penang Museum Art & Gallery

59

On the first floor where the Art Gallery is located, works of local artists
and paintings of old Penang are on display, namely those by William
Daniels and Captain Robert Smith. From time to time, special exhibitions
are held here.
3.7.4 Penang Hill

Penang Hill is one of Penang Islands featured attractions. Well known

for its cool and fresh climate from the tropical heat of George Town, it is a
popular holiday retreat to the locals as well as tourists. Penang Hill is also
known for its magnificently spectacular panoramic view of George Town,
the mainland, the Penang Bridge and the Straits of Malacca which can be
viewed from the Penang Hill Summit. The hill, also known as Bukit
Bendera or Flagstaff Hill, is 833 m (2,723 ft) above sea level and stands
out prominently from the lowlands as a hilly and forested area.
Figure 3.10 Penang Hill

Access to the hill is most enjoyable by the Penang Hill Railway, a two
section funicular railway which climbs Penang Hill from Air Itam. The

60

railway was opened to the public on October 21, 1923 and the total
journey takes about half an hour, with passengers changing cars at the
mid-point station. The train may also stop at other intermediate stations
upon request or the alighting of residents living around the hill.
Alternatively, there is a 5.1 km (3.17 mile) tarred road popularly known
as the "jeep track". It is open only to the vehicles of hill residents. The
"jeep track" is also a popular hiking route. It begins at the quarry of the
entrance of Penang Botanic Gardens and it takes a two or three hour
leisure hike to reach the top.
The sights on Penang Hill itself are a nice relaxing view. Because of its
cool weather, beautifully landscaped flowers of all colours bloom in full
glory in the gorgeous flower garden.
Not only are the plants fresh with life but the modestly tiny bird park
situated before the entrance of the old Bellevue hotel is alive with cheerful
singing and the colourful dashes of the playful birds.
Besides that there is a tea kiosk, several restaurants, souvenir stalls, a
mosque, and a Hindu temple for visitors to visit. A number of picturesque
bungalows and guesthouses were built around Flagstaff Hill and some are
up for rent for those who intend to stay for more than a day.
Numerous trekking trails lead from various starting points in the
lowlands to Penang Hill. The more popular trails include the Moongate
Trail, trail from Air Itam Dam to Tiger Hill, trail from Hye Keat Estate and

61

trail from the Municipal Park (formerly Youth Park). Some of the trails are
used by farmers to transport produces to the markets of Balik Pulau and
Air Itam. Some of the more famous pit stops at the hill are 52 and 84. At
these pit stops, the view of island is visible to hikers who are able to get
some water and tea prepared by locals stationed on the hill.
Present on Penang Hill is also a 32 counder cannon, rich in historical
value. Weighing 2.75 tons. It can fire a 32 pound ball propelled by an
11LB (5kg), gun powder charge giving a muzzle velocity of 1600 ft per
second. Usually situated at the lower gun deck, with a muzzle some 2 m
above water-line, it can reach the target range of 1,000 feet.
It is made of bronze, an alloy of copper and tin commonly used in 18th
and 19th century artillery. This cannon was probably transported from
town to hill as an ornament or to warn the presence of pirates.
The new Penang Hill funicular train service has been opened to the
public from April 25 after the upgrading. Before the upgrade, the total
journey uphill takes about half an hour, with passengers changing cars at
the mid-point station. The train may stop at other intermediate stations
upon request. Unlike the previous train service, today, the new train does
not require passengers to change trains half way up. Passengers will have
non-stop service in air conditioned Swiss-made coaches.
The Penang Hill railway has been operating since 1923, providing 87
years of service until today. In 1977 new cars were provided, before the

62

most recent upgrade starting February 2010. New cars were purchased to
increase the passenger capacity as well as the speed of the train. Today it is
capable of carrying up to 100 passengers at one go, and the train runs
every half hour.

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CHAPTER IV
CONCLUSION
4.1 Conclusion
After joined Overseas Academic Program in USM for 1 month since
February 19th-March 19th, 2013, author can get a lot of experience by attending the
classes and stayed in another country. Author can get some new experience and
expand new horizon about education and tourism.
After all the observation done on the impact of tourism on Penang Island,
we found that tourism has indefinitely brought about many changes to the used-tobe-peaceful island. The most apparent changes would definitely be on the
environment of the island. Noted as one of the best and most relaxing destination
in Malaysia, Penang was once a very serene and calming place to holiday at.
Currently however, many unplanned and unorganized development had cause
many environment degradation.
In terms of states economic, there is no doubt that tourism plays a major
role in sustaining the monetary of the country. Tourism brings positive impact on
economy by providing more job employment for the local peoples.
In author perspective, Indonesia is not so far away behind Malaysias
tourism. We can improve our tourism by social engineering and build the
infrastructure. Goverment has a massive responsibility to take care both of them.

4.2 Suggestion or Recommendation

64

Based on the above conclusion, writer could give suggestion as follows:

1. For students

Students should try to improve their ability by exerting ideas

through Overseas Academic Program activity and internship
offered by campus management, that is to help students in
improving their study achievement and obtain experience in
studying abroad. Such program is very helpful for students in
preparing themselves for the future and to be able to compete in
working world.

Students should follow Student Exchange and internship so that

they could improve their language skills and to extend their social
network.

Students should follow activities or program offered by Economy

Faculty, such as student exchange, internship, field study, and
international conference in accord with its discipline so that it
could give additional knowledge in discipline related.

2. For program, Faculty and University

Suggestion for Faculty of Economics and Business, Brawijaya University,
would be:

For program, faculty and university should take more active role in
improving such program and preparing this program so that there
wouldnt be problems after being overseas.

Scholars in Faculty of Economics and Business, Brawijaya

University, should give more attention toward programs offered to

65

international students and improve those programs, for more

advance and better program in the future.

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Mathieson, A. & Wall, G. (1982). Tourism: Economic, Physical and Social
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66

Northern Arizona University, Parks & Recreation Mgmt. Introduction - Online

Lesson (http://www.prm.nau.edu/prm300, Accessed on September 27, 2013)
McIntosh, R.W. & Goeldner, C.R. (1986). Tourism: Principles, Practices and
Philosophies, 5th ed. John Wiley & Sons, New York.
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Tourism:

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Glossary.

(http://media.unwto.org/en/content/understanding-tourism-basic-glossary,
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http://www.soc.usm.my/index.php/about-us/our-school.

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on September 25, 2013)

SKKT. 2013. USM Living in Campus Guide Student Hostels (online).
(http://www.myusminfo.com/desasiswa/intro/#more-603, Accessed on September
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Norlida Hanim, Redzuan Osman, Abu Hassan Ashari Mohd Noor, Mohd Safar
Hasim. 2010. Malaysian Tourism Demand From the Middle East Market: a
Preliminary Analysis. International Journal of West Asian Studies. Malaysia
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Chan, Ngai Weng. 1998. Environmental hazards associated with hill land
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APPENDIX

69