Located adjacent to the Penang International Airport and 12 km (7.5 mi) south of the city centre, it is a high-tech industrial park widely regarded as the Silicon Valley of the East.

[3][4][5] Created in 1972 as Malaysia's first free trade zone, the Bayan Lepas FIZ played a critical role in Penang's economic diversification and is now home to various multinational corporations, including Bosch, Motorola, Dell, Intel and Hewlett-Packard.

[9][10][11] George Town, Penang's capital city, had its free port status revoked by the Malaysian federal government in 1969, leading to massive unemployment which peaked at 16.4%.

[17] The FIZ proved successful in attracting multinational firms and its creation played a vital role in reversing Penang's economic crisis.

[9][10] Intel, AMD, Hewlett-Packard, Clarion, National Semiconductor, Hitachi, Osram, and Bosch—collectively known as the Samurai Eight—were the first multinational companies to set up factories within the zone, followed by several other firms including Motorola and Dell.