Northern Corridor Economic Region (NCER) Regional Impacts, Opportunities & Prospects

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1 Northern Corridor Economic Region (NCER) Regional Impacts, Opportunities & Prospects Presentation by: Hasri Hasan Northern Corridor Implementation Authority (NCIA)

2 5 Regional Corridors were established across Malaysia between to address uneven development across the nation NCER Is One Of The Five Economic Corridors Established In Malaysia Perlis Northern Corridor Economic Region Kedah Pulau Pinang Population (206) 6.6 mil Total employment (206) 2.8 mil Perak GDP as at 206 (at 200 constant price) RM 76 bil Why Corridors? Total investment into NCER (206) RM 79.9 bil Jobs created (206) 03,597 jobs 2 3 Boost economic potential Address uneven development and regional imbalances Close the urban-rural skills gap 2

3 The Northern Corridor Implementation Authority (NCIA) NCIA S MANDATE: Created under Act 687, NCIA is mandated to drive regional strategies in the context of the Government s economic development agenda NCIA S ROLES: Prime Minister of Malaysia (Chairman) Deputy PM Minister in The PM s Department Minister of MITI Chief Secretary Plan Menteri Besar of Perlis Menteri Besar of Perak Menteri Besar of Kedah Chief Minister of P. Pinang Promote Facilitate CEO, Sime Darby Chief Executive, NCIA (Secretary) 3

4 Capitalising The Unique Strengths Of NCER Strategically Located IMT-GT & ASEAN Good infrastructure and connectivity 2 Key To The Nation s Food Security Agenda Modern Agriculture Usage of Technology 3 Top Tourists Destinations Langkawi Pulau Pinang Belum Rainforest 4 Strong Manufacturing Ecosystem Strong Cluster and ecosystem Existing Talents & Skills 4

5 NCER Focuses On 3 Priority Sectors, Leveraging On Its Economic Strength Tourism Agriculture & Bio-industries Medical Tourism Recreation & Entertainment Global Business Services Bio-industries Agriculture Manufacturing Business Tourism Niche Tourism Services Logistics & Connectivity Land Air Electrical & Electronic Machinery & Equipment Public Transport Sea NCER is a brownfield area that leverages on the strengths of its economic activities 5

6 NCER Is Currently At The 3 rd Wave Of Its Development Northern Corridor Economic Region 3 rd Wave: Concentration and Specialisation The NCER has come a long way, through tailored development programmes that have been delivered up gradually to ensure a smooth implementation 2 nd Wave: Capacity Development st Wave: Catalytic Infrastructure Development 6

7 NCER Is Currently At The 3 rd Wave Of Its Development st Wave: Catalytic Infrastructure Development 2 To ensure seamless connectivity & mobility of people and goods Ultimately, to boost the economic growth of NCER Infra connectivity has the power to integrate economies by deepening trade, investment and business links. It can expand and strengthen regional production networks and supply chains of goods and services. It improves inclusivity, productivity and competitiveness; and stimulates economic activity, trade and investment. 7

8 NCER Is Currently At The 3 rd Wave Of Its Development st Wave: Catalytic Infrastructure Development 2nd Wave: Capacity Development Upgrading of Penang International Airport RM250 mil Legend: Airport Bridge Railway 2 Penang Second Bridge RM4.5 bil Private Investment RM79.9 bil Total Cumulative Investment Electrified Double Track Project RM2.5 bil RM7.25 bil Investment By Federal Government Jobs Creation 03,597 Total Cumulative Jobs Creation 8

9 NCER Is Currently At The 3 rd Wave Of Its Development st Wave: Catalytic Infrastructure Development Investments 2nd Wave: Capacity Development Cumulative Private Investments Cumulative Private Investments By Sector (In RM mil) 5,475 3,88 2,608 56,69 USA Germany Japan Taiwan China Top 5 Origin Of Investments By Country (In RM mil) 3,75,777,050 3,350, ,000 0,000 5,000 Share Of Private Investments RM 35.8 bil RM 44. bil Agriculture Manufacturing Tourism Logistics Local Participation Foreign Participation

10 Broader Economic Impact st Wave: Catalytic Infrastructure Development Overall NCER GDP and At Constant Prices (RM 'mil) 87,593 95,59 0,464 06,268 00,584 Economic Impact (Up To 206) 76,404 59,924 5,000 43,776 35,972 27,720,80,927 2nd Wave: Capacity Development Estimated* Median Monthly Household Income Of NCER (RM) 2 2, 2,35 3,023 3,797 4, NCER experienced higher annual GDP growth rate of 5.5% compared to Malaysia s 5.% during the period of (Dept of Statistics) Median household income in NCER has grown by 9.3% (CAGR) from compared to 3% from 2002 to 2007 (Dept of Statistics) 0

11 Progress In RMK- 3 rd Wave: Concentration and Specialisation Focus Area C Strategy C2 Encouraging more private investment in rural areas Focus Area D Accelerating regional growth for better geographic balance Targets Set For All Corridor Authorities by Realised Investment: RM236 bil Job Creation: 470,000 Strategy D has identified the need to have Strategic Review of the Master Plans

12 NCER Is Currently At The 3 rd Wave Of Its Development 3 rd Wave: Concentration and Specialisation 5 Strategic Thrusts Targets by 2025 GDP RM 300 billion Cumulative Investments RM 47.2 billion Cumulative Jobs Creation 6,97 jobs 80 Projects Mean B40 Income RM 6,043 The Northern Corridor Economic Region Development Blueprint ( ) (Blueprint 2.0) Mean Household Income RM 2,964 2

13 7 Growth Nodes Of NCER Perlis Inland Port (PIP) Consolidation & Distribution Centre Perlis Kedah Focus Clusters Advanced Materials Kedah Science & Technology Park (KSTP) Agro Science ICT Kedah Rubber City (KRC) Green Technology Focus Clusters Green Manufacturing Chuping Valley Industrial Area (CVIA) Halal Industries Renewable Energy Generation Pulau Pinang Perak Focus Clusters Adv. Latex Products Biotechnology & Pharmaceutical Tyre & Tyre Related Products Adv. Rubber & Rubber Materials Services & Support Rubber Automotive Components Engineering Rubber Products Focus Sectors Batu Kawan Development Focus Sectors Greater Kamunting Conurbation (GKC) Manjung-Aman Jaya Maritime City Focus Sectors Agriculture Mfg. Tourism Maritime Manufacturing Property Agriculture Manufacturing Tourism Logistics Tourism Education & Human Capital Spatial Transformation 3

14 Kedah Science & Technology Park (KSTP) 2 Brief Overview Project Facts Priority Clusters 2 Bukit Kayu Hitam,Kedah Land Size,938 acres District Kubang Pasu Project Estimated Timeline Phase B Phase Phase 3A & 3B Cluster : Advanced Materials Cluster 2: Agro Science Cluster 3: ICT Potential Economic Impacts Economic Impact (Up to 2030) RM57.4 bil Cluster 4: Green Technology Job Creation (By 2030) 23,244 jobs + Advantages Located at the main entry point between Malaysia - Thailand Located right next to North-South Expressway (Asian Highway, AH2) 4

15 Kedah Rubber City (KRC) Brief Overview Project Facts Ladang Bukit Ketapang, Kedah Land Size, acres District Padang Terap 2 Project Estimated Timeline Integrated Business Centre (IBC) 208 KRC aims to be a global leader in the production of latex and dry rubber products Employment Opportunity 5,000 jobs New Investments RM0.0 bil Economic Impact In 5 Years Source: NCIA s Special Tax Incentives Package for Rubber City GDP Contribution RM5.0 bil 5

16 Chuping Valley Industrial Area (CVIA) 2 Brief Overview Project Facts Focus Clusters 2 Lembah Chuping,Perlis Land Size 2,482 acres District Padang Besar Project Estimated Timeline Integrated Business Centre (IBC) Phase - CVIA Phase 2 - CVIA Cluster : Green Industries Cluster 2: Halal Industries Cluster 3: Renewable Energy Generation 3 Potential Economic Impacts GNI Contribution/Year (By 2025) RM2.58 bil Job Creation (By 2025) 2,674 jobs + Advantages Rail connectivity to main ports in Malaysia (Penang Port, Port Klang) Located next to the upcoming Perlis Inland Port 6

17 Perlis Inland Port (PIP) 2 Brief Overview Project Facts Main Components 2 Lembah Chuping,Perlis Land Size 500 acres District Padang Besar Project Estimated Timeline Phase (Planning & Approval) Phase 2 (Completion of PIP) Phase 3 (Industrial Development Area) Logistics Hub Administrative Buildings Warehouses 3 Potential Economic Impacts GNI Contribution/Year (By 2030) RM0.94 bil Industrial Development Area PIP is part of Logistics And Trade Facilitation Masterplan Job Creation (By 2030) 4,056 jobs + Advantages Accessible to North South Expressway via Changlun - Kuala Perlis Highway Rail connectivity to major ports i.e. Penang Port & Port Klang 7

18 Batu Kawan Development 2 Brief Overview Project Facts Focus Sectors Batu Kawan, P. Pinang Sector : Manufacturing Sector 2: Property Sector 3: Logistics Sector 4: Tourism Land Size 2,887 acres 2 District Seberang Perai Selatan Project Estimated Timeline Overall Development 5 years Estimated Future Population 250,000 + Advantages Easily accessible to North South Expressway & Penang Second Bridge Home to manufacturing industry & mixed development 8

19 2 Brief Overview Focus Clusters Project Facts Area Size,000 sq km Greater Kamunting District Larut, Matang & Selama Manufacturing Tourism 3 Potential Economic Impacts Greater Kamunting Conurbation (GKC) Agri- Culture Education & Human Capital Total GDP Contribution (By 2030) RM2.96 bil Job Creation (By 2030) 90,263 jobs + Advantages Easily accessible to North South Expressway GKC Study was completed in 205 and identified 66 initiatives Will be connected to West Coast Expressway Possesses various tourist attractions 9

20 Manjung-Aman Jaya Maritime City Brief Overview Project Facts Area Size,7 sq km District Manjung Highlights Of The Manjung Blueprint Potential Economic Impacts Total GDP Contribution (By 2030) RM22.5 bil Job Creation (By 2030) 35,30 jobs Manjung Manjung as a Tourism and Maritime City Immediate Focus Pangkor As A Duty Free Island Excerpt Of Budget 208 Announcement Declare Pulau Pangkor in Perak as a Duty-Free Island. However, the duty-free status excludes products such as alcoholic beverages, tobacco and motor vehicles; Rapid Manjung Manjung Blueprint was completed in 207 and identified 58 projects Rapid Manjung 0 No. Of Buses Required No. Of Routes 2 Service Frequency 30 min

21 The NCER Value Proposition Hardware Aspect 2 Software Aspect Excellent logistics infrastructure Excellent businessfriendly ecosystem Strategically located politically stable Readily available talent for the industries Industry Support Clusters Relatively safe with minimal natural disasters Northern Corridor Economic Region (NCER) Human capital development programs Availability of tax incentives 2

22 22 NCIA s Unique Approach Ensures Effective Delivery Plan Promote Facilitate Devise standards and policies, direction and strategies to accelerate development of NCER Ensure integration of plans and policies between the Federal Government, state governments and local authorities Ensure the vision for key thrust areas are aligned with NCER s vision Promote and uphold NCER s brand to attract investments to the region Engage with government agencies and potential investors Assist investors in other investment matters to ensure ease of doing business e.g. licensing, land matters etc. Ensure alignment of key thrust area developments and key enablers in line with NCER s vision Secure private investors into NCER through providing assistance to investors and coordinating investment approvals

23 THANK YOU

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