The electrical and electronics industry (E&E), which accounts for 64% of manufacturing export and 42.6% of FDI, cluster around Penang and Kulin. However, the share of FDI directed to Malaysia within the South East Asia region has diminished from 31% to 11% over the 1985-2005 period. The reduction of FDI flows point to the need to improve the attractiveness of the country and Penang in order to regain competitiveness.