NCER Brochure - EnglishFA NEW.indd
Transcription
NCER Brochure - EnglishFA NEW.indd
Come North Come Explore The Myriad Of Opportunities At The Northern Corridor Economic Region (NCER) Let Us Talk Business You are looking for new business opportunities to invest your funds. We are in the business of developing the NCER encompassing the states of Kedah, Perak, Perlis and Penang in Malaysia. Your mission is to get good returns on your investments. Ours is to assist you locate new business opportunities. Together, we can achieve the NCER’s vision of being a worldclass economic region by 2025, an economic region empowered by a population living a balanced lifestyle. The NCER is an economic corridor with a holistic approach to business. It is an economic zone with heart - one that is rich and ripe with investment possibilities, yet caring enough about our communities and our business partners. The Northern Corridor Implementation Authority (NCIA) – Your One-Stop Green Lane Facilitator The Northern Corridor Implementation Authority (NCIA) is a body incorporated in 2008, to provide for the proper direction, policies and strategies in relation to socio-economic development within the NCER. It provides coordination between government agencies to promote trade, investment and development. Certainly, the journey towards becoming a world-class economic region will be challenging and exhilarating. If we do it collaboratively, we can chart a better and brighter future for the NCER. Regard the NCIA as your Green Lane facilitator. We are here to help you find your economic niche. This is our proposition to you. Come North, expand your business boundaries, we are here to assist you Northern Corridor Economic Region - Koridor Utara 3 Market Spotlight Market Spotlight Opportunities At A Glance 4 Northern Corridor Economic Region - Koridor Utara Market Spotlight Visionary Look We have an economic blueprint that offers a visionary look at what Malaysia needs to get ahead in the global scheme of things. We are committed to achieving growth with social equity and balanced development, distributed across the region. ‘Prosper thy neighbour’ will be our guiding principle in the implementation of economic policies and activities. Each decision taken will be premised on whether it is market-driven or value-added. We recognise the many opportunities for change and we are prepared to be the agent of change, as you choose to tap into the potential of Malaysia’s northern states. To generate growth, we need to expand the existing economic sectors and transform conventional methods into new productivity-centric processes. It may entail only small tweaks of improvement or require giant sectoral shakeouts to get results. Together we can drive the evolution of the NCER. Let us leverage on the region’s inherent strengths and put in place key enablers, so that investors can position their products and services in the new economy beyond Malaysian shores. “We recognise the many opportunities for change and we are prepared to be the agent of change, as you choose to tap into the potential of Malaysia’s northern states.” Northern Corridor Economic Region - Koridor Utara 5 Market Spotlight Key Differentiating Factor...You! Manufacturing Public and private sector-driven projects have been identified. We now need you – the key player, the enterprising investor – to determine the success route of these projects. The three key sectors are Agriculture, Manufacturing and Tourism. The NCIA’s role is to move these key economic sectors up the value chain, expand the economic progress to sister states and reduce regional socioeconomic imbalance. If manufacturing is closer to your heart, then we do have business to talk about. Manufacturing accounted for 30% of Malaysia’s Gross Domestic Product (GDP) in 2008. In the World Competitiveness Yearbook 2008 covering 55 economies, Malaysia’s manufacturing sector is ranked 19th globally and 5th in Asia (after Singapore, Hong Kong, Taiwan and China). Agriculture The agriculture sector will be revitalised to fulfil domestic demands and exports. In doing this, we will not only raise the output of the agricultural sector, but will concurrently elevate the living standards of farming communities, alleviating them from poverty. We are seeking those with the knowledge, skills, tools and talent to help farmers deliver a better yield of high-quality agriculture products. We aim to graduate them to modern farming methods, biotechnology output and environmentallyfriendly applications. This will help produce better crops, boost production and meet global food standards. 6 Northern Corridor Economic Region - Koridor Utara The NCIA is constantly on the lookout for ways to fine-tune aspects of the NCER’s economy in order to retain its competitive advantage in manufacturing. The NCER’s edge is its ability to fast-track the implementation of high-end, valuebased manufacturing. As the Malaysian economy moves up the value chain in manufacturing, the NCER aims to retain its lead in this sector by constantly reinventing itself through its ‘Centres of Excellence’ (COEs). Your expertise and knowledge in consolidating the process of knowledge-transfer in manufacturing would be invaluable. Market Spotlight Tourism Wide Ranging Opportunities Whether one possesses a keen interest in dare-devil adventure travel or chooses to rest and recuperate as a medical tourist; whether one prefers to shop in the many different bazaars or treasure hunt for some ‘Peranakan’ antiques - the NCER has many untapped attractions waiting to be unveiled. The blueprint for the economic future of the NCER opens up vast opportunities for savvy investors. From agriculture to manufacturing, from tourism to infrastructure the areas of focus span wide enough to make room for your particular speciality and your investment funds. Come and discover the natural wonders of the Royal Belum Rainforest, walk in the footprints of history at Lembah Bujang, be intrigued by the beauty of Langkawi and explore the heritage towns of Penang and Taiping. The depth and breadth of potential that this sector holds, has yet to be fully explored. This makes it all the more lucrative for investors eyeing this sector. Come North, be part of this regional transformation Services Infrastructure is another area up for your consideration. There are many areas up for expansion and improvement including rail-road-air connectivity. There is the need for new services such as amphibious planes for inter-regional travel and light rail transit in the busier towns. All these require investor participation and facilitation. On the social development side, if you possess a desire to promote human development on a regional scale and know of concrete ways to help the general population, especially the rural population, increase their socio-economic status, then you can be of real service to the NCER and we to you. “The three key sectors are Agriculture, Manufacturing and Tourism. The NCIA’s role is to move these key economic sectors up the value chain, expand the economic progress to sister states and reduce regional socioeconomic imbalance.” Northern Corridor Economic Region - Koridor Utara 7 Agriculture Agriculture A Boundless Green Zone 8 Northern Corridor Economic Region - Koridor Utara Agriculture “Key to this agricultural transformation is sowing a new generation of modern farmers, confident of a sustainable future in ploughing the fruits of this industry.” Growing Malaysia’s New Economy The agriculture sector is regaining focus in a big and passionate way, where it is heralded as the third engine of growth and promoted as ‘New Agriculture’ in Malaysia’s latest 5-year development plan – the Ninth Malaysia Plan. This places agri-preneurs in a prime position to partake of this far-sighted vision. The relative importance of the agriculture sector far outstrips its seemingly modest contribution of less than 10% to GDP. The NCER is close to realising the government’s vision of enhancing the value of primary production through cross-sector linkages and opportunities afforded by the new global economy. New Agriculture Interest in agriculture has been renewed worldwide, driven by concerns of the new world environment and demographics. There is now an increasing concern about food security. The NCER’s agricultural players are poised to exploit the four drivers of this millennium’s agricultural transformation: • Agro-biotechnology revolution • From labour-intensive to modern farming • Transformation of the food supply chain with deeper involvement of the agri-preneur in the value chain • Reducing poverty and preserving the environment The NCIA intends to raise the NCER agriculture sector’s share of GDP to exceed 15% by 2012 from the current 7.5% (2008). Through huge investments in infrastructure and programmes to modernise the agriculture sector, the region’s primary production landscape will be strengthened. Key to this agricultural transformation is sowing a new generation of modern farmers, confident of a sustainable future in ploughing the fruits of this industry. Northern Corridor Economic Region - Koridor Utara 9 Agriculture Ripe with Possibilities The focus on diversification of agricultural activities in the NCER opens up many opportunities for the investor. Kedah’s expansive plains are ideal for the establishment of large plantation estates. Perak’s forests, especially the pristine Belum State Park, are a trove of undiscovered biological treasures for research and development. The stable climatic conditions of Perlis are highly suited for the development of high value and low tolerance products like seeds and flowers. The NCER accounts for over 60% of the nation’s rice production and a substantial financial allocation has been earmarked to modernise this highly strategic sector. We will invest in a wide spectrum of projects covering not only basic needs such as improving the irrigation system and advancing farm management techniques, but also forward-looking initiatives such as research into the latest seed technologies. With these investments, we expect to double paddy yields from the current average of three to four tonnes per hectare. The NCER’s well protected coastline and calm conditions of the Straits of Melaka are rich grounds for marine aquaculture activities involving various marine life such as fish, prawns, lobsters and oysters. Penang hosts the World Fish Centre, a world-class scientific research organisation funded by the World Bank, Food and Agriculture Organisation (FAO) and the United Nations Development Programme (UNDP). It is one of fifteen international centres operated by the Consultative 10 Northern Corridor Economic Region - Koridor Utara Group on International Agricultural Research (CGIAR) that provide world-class support for the fisheries and aquaculture industry in the region. In addition, an area of 437.6 hectares in Kedah, Perak and Perlis has been identified as ideal for the development of commercial freshwater aquaculture activities. Its objective is to increase the production of freshwater fish and shellfish to exceed 500,000 metric tonnes by 2010 to fulfil domestic demands alone. Leveraging Biotechnology Major investments are in the pipeline to diversify the product profile in line with market demands. New product explorations are being encouraged, through research and development, to promote biotechnology innovations and a business development infrastructure. Investors can leverage on biotechnology centres within the NCER to spur improvements in seed-stock, new husbandry or new management techniques. Our research and development framework can also incubate and implement technologies to streamline relationships between producers and consumers to extract synergies from the sweeping changes taking place in the local, regional and global supply chains. “New product explorations are being encouraged, through research and development, to promote biotechnology innovations and a business development infrastructure.” Agriculture Planning Future Growth Despite Malaysia’s track record, we cannot rest on our laurels. Our pioneering work in land ownership and social development programmes through agencies such as the Federal Land Development Agency (FELDA) have been undisputed global benchmarks. Through these programmes, the government has created an entirely new class of smallholders which have helped propel Malaysia to the heights of past decades. Export Connections There is an existing established logistics network that can be leveraged upon by growers and producers of high value fresh items: fruits, vegetables, flowers, exotic fisheries and niche livestock. Products can be shipped quickly and efficiently. The reliability of our network has encouraged Japanese tuna fleets to use Penang’s port and airport over the years. To pave the way for future generations, however, the infrastructure has to be raised to the next level. We seek investors to introduce new methodologies to drive economies of scale. Wide-ranging improvements are required in the areas of land management, irrigation and flood management systems, new crop development, aquatic and aquaculture product development, husbandry techniques, supply chain management, and human capital programmes. Harvesting the Opportunities Symbiotic Synergies The integration of various focus areas within the NCER will create new crosspromotional opportunities. Tourism development programmes can help expose the NCER’s agricultural products to new markets through direct or word-of-mouth promotion. Agricultural tourism is also emerging as an intriguing new niche for investment in a world where ‘back to nature’ and ‘preserving the environment’ take on increasing significance. Our education and social development programmes on the other hand, will create the human capital, providing a complete production ecosystem for investors. Agriculture will be the vanguard for social development in the northern region. Our new Agriculture will be different from the dirt and grime archetypes of the old. We are looking for partners with ideas to propel the NCER forward. Agriculture will smartly integrate technology, education and innovation. We need to know how to attract, produce and retain the next generation of agripreneurs for the long haul. Come North, let us till the green fields of opportunity together “Agriculture will smartly integrate technology, education and innovation. We need to know how to attract, produce and retain the next generation of agri-preneurs for the long haul.” Northern Corridor Economic Region - Koridor Utara 11 Manufacturing Manufacturing New Economy, Changing Landscape 12 Northern Corridor Economic Region - Koridor Utara Manufacturing Propelling the Nation’s Economy The manufacturing sector is a mainstay of the Malaysian economy, contributing 30% to GDP in 2008. Manufacturing has helped to propel Malaysia to be the 10th largest trading partner of the USA since 2005. Malaysia’s manufacturing ‘crown jewels’, which account for almost all of the nation’s high value semiconductor exports to the world, are located in the NCER. Penang – Tradition of Excellence Since 1971, Penang’s Free Industrial Zones (FIZs) have hosted multinational corporations (MNCs) such as Intel, AMD, Dell, Acer, Sony and Bosch, among others. The 30-year mega investments and infrastructural developments have entrenched Penang as a major part of their global operations. Local companies too have grown in lock-step with the MNCs by providing cost effective solutions by combining the latest international designs with local know-how. Many of these ‘Made in Malaysia’ products have been exported around the world. Our quality and value have made local companies globally recognised, and have even made them acquisition targets by large sovereign funds. Currently, almost 40% of the world’s supply of premium microprocessors originates from Penang. Some of the world’s largest notebook manufacturers have centralised their global manufacturing here, shipping their products worldwide via the Penang airport served by daily direct air links to the USA and Europe by logistics giants such as FedEx and UPS. Manufacturing has become part of the island’s heritage with approximately 40% of its working population, employed in this sector. “Malaysia’s manufacturing ‘crown jewels’, which account for almost all of the nation’s high value semiconductor exports to the world, are located in the NCER.” Northern Corridor Economic Region - Koridor Utara 13 Manufacturing Kulim – Self-contained Cybercity While Penang’s manufacturing ecosystem continues to build a solid reputation for itself, Kulim Hi-Tech Park (KHTP), established in 1996, has steadily come into its own. This purpose designed, self-contained and centrally-managed industrial park, situated across 1,619 hectares, has been dubbed Malaysia’s ‘Science City of the Future’ and is building a reputation for excellence being recently voted as one of the ‘Top Five Asian High-Technology Parks.’ KHTP contains all the ingredients for safe, efficient and cost-effective operations for manufacturers of all manner of high-tech products and services. It is home to some of the largest facilities for the world’s top semiconductor companies: Intel, Infineon and First Solar. With these large investors as well as the numerous local original equipment manufacturers (OEMs) and essential support serviceproviders, KHTP is quickly earning a reputation as a competitive hub for siliconbased industries with ample land to grow further. Connected directly to the Penang Airport by the dual-carriageway Butterworth-Kulim Expressway and two cross-channel bridges, KHTP’s high value products can reach the world safely and quickly. Pauh – The Next Door Advantage Pooling the Right Talent The NCIA will continue to establish more Centres of Excellence (COEs) as it reaps the results of this successful public-private sector partnership between the manufacturing sector and the government. COEs are a dynamic way to ensure that the competitive level of our talent pool is constantly topped-up with the necessary skills and training. As Malaysia accelerates towards industrialisation, Penang and Kulim’s success is expected to spillover to Perlis. The Pauh Industrial Zone in Perlis, which will spread across 65 hectares of land, is located only 100 kilometres from Penang, connected via the North-South Highway. This park is being developed to take advantage of the abundance of engineers being produced by engineering colleges in the vicinity. Being strategically located on the Thai-Malaysian border, it also offers excellent access to Southern Thai markets. COEs will be established across the NCER to focus on sub-sectors specific to the promoted areas. They will expose new graduates to the latest industry knowledge and post-graduates to research projects. A Design COE will be set up in Penang and co-located with other MNC design centres there. A Biotech COE will be established in the Penang Science Park where biotech and biomedical companies are clustered. There are similar plans to create a cluster of Agricultural Technology COEs to drive the innovations in the NCER’s agriculture sector. The NCIA invites investors to come and discover the early-bird opportunities offered by Pauh including affordable land prices, low production and living costs, access to skilled human capital and access to the services and infrastructure of neighbouring states. COEs will enhance the pool of talent. Investors keen to leverage on this expanding resource of skilled talent to power their investments in a digital economy should look towards growing their businesses in the NCER. 14 Northern Corridor Economic Region - Koridor Utara Market Spotlight KORIDOR UTARA Perlis Kedah Penang Relying on the Past, Banking on the Future The NCER has built a solid track record in manufacturing over 30 years. Our success can be attributed to established manufacturing expertise, expanded physical infrastructure and new approaches in transforming our support system. The NCER will continue to lead the industrial growth for manufacturing in Malaysia. Investors can consider the NCER their gateway to investment success. Perak Come North, tap into our potential and partner us for growth “COEs will enhance the pool of talent. Investors keen to leverage on this expanding resource of skilled talent to power their investments in a digital economy should look towards growing their businesses in the NCER.” Northern Corridor Economic Region - Koridor Utara 15 Tourism Tourism Leisure For Your Taking 16 Northern Corridor Economic Region - Koridor Utara Tourism Fascinating North The NCER combines frenetic economic activities with leisurely getaways. Tourism, the most colourful business sector within the NCER, leverages on the rich history, natural endowment, archaeological treasures, culture and cuisine of the north. It presents a myriad of opportunity for the astute investor looking to uncover the depth of its beauty. Where beaches are concerned, Penang and Langkawi are globally-renowned. For nature-enthusiasts, large tracts of virgin jungle offer prospects for wildlife expeditions, hiking, bird-watching, jungle-trekking and cave-exploration. For the historical and cultural experience, Penang with its UNESCO World Heritage Site status and Taiping with its 33 Malaysian ‘Firsts’ present many opportunities. For the serene atmosphere of the rural countryside, the placid paddy scenes in Kedah and Perlis feature nicely. The options available span as far as your creativity allows. While the tourism potential of the north has yet to be fully realised, this is soon set to change. Collectively, the NCER targets to increase tourism receipts from RM1,890 per visitor in 2005 to RM3,034 by 2012. Annual tourist expenditure is targeted to increase from RM9 billion in 2005 to RM21.8 billion in 2012 and RM64.5 billion in 2020. With air and in-land transportation services already widely available, we now invite investors to develop the NCER’s high-potential tourism destinations, especially those less known. “Tourism, the most colourful business sector within the NCER, leverages on the rich history, natural endowment, archaeological treasures,culture and cuisine of the north. It presents a myriad of opportunity for the astute investor looking to uncover the depth of its beauty.” Northern Corridor Economic Region - Koridor Utara 17 Tourism Call of the Wild at The Royal Belum The Royal Belum Rainforest is a 130 million year old pristine rainforest in Hulu Perak that spans 117,500 hectares, with several river systems running through it. It supports an ecological system that is rich in flora and fauna including rare and endangered species. It is home to wildlife such as the tiger, elephant, Sumatran rhino, Sambar deer, tapir, hornbill, Malaysan gaur and black panther. Within it are also aboriginal settlements. While it has been identified in the National Ecotourism Plan as a priority ecotourism site in Malaysia, its potential is yet untapped. The NCIA is committed to conserving the Royal Belum Rainforest as a permanent nature reserve devoted to ecological preservation and research. We are striving for sustainable development of the highest standards alongside the conservation of natural assets. In the surrounds of the Royal Belum, however, there is land that can be ideal for the development of specialised resorts and luxury lodges with access to the rainforest, to service a potentially huge foreign and domestic market for eco-tourism. Let us help you locate the best fit for your investment here. We hope to encourage investors with the relevant skills and knowledge to invest in developing high-quality, innovative and eco-friendly facilities and offerings to entice tourists to include the Belum adventure in their Malaysian travel itinerary. “We hope to encourage investors with the relevant skills and knowledge to invest in developing high-quality, innovative and eco-friendly facilities and offerings to entice tourists to include the Belum adventure in their Malaysian travel itinerary.” 18 Northern Corridor Economic Region - Koridor Utara Tourism Adventure and Eco-Tourism Possibilities Apart from Belum, there are many other locations for eco-centric activities, sports tourism and adventure travel in the NCER including the Mangroves of Matang and the forest reserve of Kuala Gula in Perak noted for its Bird Sanctuary. Kedah and Perlis also possess their own forest reserves of Kuala Nerang and Sungai Batu Pahat respectively, with inherent potential to be developed and promoted. The Bukit Merah Laketown Resort in northern Perak is an integrated zone developed by the private sector for leisure, recreation and enjoyment of nature. With a man-made lake converted from a water reservoir for paddy irrigation, it now houses a water theme park and the only Orang Utan Santuary in Peninsular Malaysia – home to several Borneo Orang Utans of different ages who live and breed there as part of a preservation programme. There are ample opportunities for new and ancilliary offerings in this niche of adventure and eco-tourism. Many of these sites are ideal for dare-devil activities that have yet to be introduced, such as bungee jumping, skydiving, repelling, abseiling and rock-climbing. There are also many caves in the region that are ideal for caving. They include Gua Kelam, Gua Kelam II and Gua Wang Burma in Perlis; Gunung Keriang and Bukit Baling in Kedah; and Gua Gendang in Pengkalan Hulu, Perak. Most of these are accessible while some have no physical development yet despite their great tourism potential. If you wish to tap into these opportunities, we can assist you in targeting your investment. “There are ample opportunities for new and ancilliary offerings in this niche of adventure and eco-tourism. Many of these sites are ideal for daredevil activities that have yet to be introduced, such as bungee jumping, skydiving, repelling, abseiling and rock-climbing.” Northern Corridor Economic Region - Koridor Utara 19 Tourism On the Heritage Trail Prehistoric Treasure Troves Penang has for centuries been the centre of maritime trade making it a meeting place of cultures. Its historical roots permeate every corner of the island state with its cultural variety reflected in its architecture, diverse population, cuisine and places of worship. More tourists are likely to visit Georgetown, now that it is regarded as one of UNESCO’s World Living Heritage Sites. The archaeological sites within the NCER contain a wealth of relics including cave drawings, skeletons, pottery and stone tools. Kota Tampan in Perak, which houses the Lenggong Archaeological Museum, is the site of a prehistoric stone tool workshop that is more than 74,000 years old. It is also home of Malaysia’s oldest inhabitant – the Perak Man, whose skeleton dates back to the Palaeolithic period approximately 11,000 years ago. Taiping in Perak is another historical landmark with Malaysia’s 33 ‘Firsts’, that awaits rejuvenation of its past glory. The royal township of Kuala Kangsar in Perak is home to a royal lineage that dates back to the oldest Malay Sultananate from Melaka. Its heritage includes the Kenangan Palace, the Sultan Azlan Shah Gallery and the Ubudiah Mosque. Alor Star in Kedah proudly holds the legacy of the world’s 4th longest reigning monarch. The NCIA hopes to drive greater interest in the conservation of heritage buildings that range from old Malay architecture to colonial mansions and shophouses. These structures have tremendous potential for conversion into high-end boutique hotels, galleries, museums and restaurants. Our tourism strategy calls for the development of historical offerings, to attract more tourist dollars into the region. Come and talk to us if you have identified a possibility up north. 20 Northern Corridor Economic Region - Koridor Utara The archaeological marvels of Lembah Bujang in Kedah consist of ruins that date back more than 1,500 years. This rich archaeological find documents an important part of Malaysia’s history - evidence that Malaysia and South East Asia were involved in trade and commerce many centuries ago. This niche area of tourism offers a unique frontier of opportunities that caters to archaeologists, academics and research-oriented visitors to come and uncover its many mysteries. Tourism Rural Charm Agro-tourism is gaining popularity among travellers today, but while the concept is widely embraced overseas, it remains an untapped resource in Malaysia. With vast plantation grounds spread across the NCER, we hope to see the growth of a new industry that services those who seek the farm experience. In addition, a myriad of towns and villages in the NCER have maintained its old Malay architecture and rural feel, and are highly suitable for the development of unique boutique and wellness resorts. We invite innovative and distinctive ideas of how to leverage on the NCER’s rural charm. Help us unveil the beauty of the Malaysian countryside. Medical Tourism More foreigners, especially those from the West, are realising the value of obtaining world-class medical services that are affordable. Within the region, Asian medical tourists are assured of high-quality medical care just across their borders. Penang has already established a name as a medical tourism hub. It has seven renowned private hospitals offering medical tourism: Gleneagles Medical Centre, Island Hospital, Lam Wah Ee Hospital, Penang Adventist Hospital, Mount Miriam Cancer Hospital, Pantai Mutiara Hospital and Loh Guan Lye Hospital. Additionally, the Integrated Medical Resort at Batu Kawan features a medical centre, nursing college and water chalets. Apart from the medical faculty of Universiti Sains Malaysia, there is a network of private medical schools in the region to support this industry: the Penang Medical College, AIMST University in Sungai Petani, Kedah and the Allianze College of Medical Sciences at Kepala Batas, Penang. The NCIA envisions that medical tourism in the NCER is set to grow exponentially in the near future. The industry needs to reach wider global markets and include broader services such as dentistry, optometry, psychiatry, rehabilitative medicine, cosmetic medicine, as well as holistic and traditional wellness. With highly-qualified human resource trained in leading international institutions readily available, this opens up vast opportunities for investors experienced in developing this niche. Travel with Us Tourism offers great investment returns and the NCER’s still untapped tourism attractions require the right input and capability to capitalise on its potential. Whatever your preferences, we aim to meet your needs. We are looking for investors who will expand the potential of this sector, while avoiding economic displacement and preserving environmental conservation. Come North, unveil a world of diverse attraction Northern Corridor Economic Region - Koridor Utara 21 Infrastructure Infrastructure Building Top Notch Systems 22 Northern Corridor Economic Region - Koridor Utara Infrastructure Economic Accelerator Mobility Factors When a nation embarks on a dynamic move to accelerate economic growth and boost income levels, the infrastructure conducive to business has to be in place. The NCIA is committed to providing both the hard and the soft infrastructure within the NCER, with a view to improving regional connectivity while fulfilling national aspirations. The transportation system within the NCER will be enhanced to allow for the easy mobility of goods and people. An integrated transportation system and transportation terminals will be initiated to ensure that interconnectivity via sea, air, rail or road is seamless and extremely reliable. This is in the aim of making the NCER the gateway to the states in the East, down South, the Klang Valley and to the rest of Southeast Asia, with special attention to the Indonesian-MalaysianThailand Growth Triangle (IMT-GT). This opens up opportunities for investors to share their expertise in improving the transportation infrastructure up north. We are taking a wholesome look at the infrastructure needs for the NCER and we have the support of the federal government for necessary funds to be allocated for infrastructural improvements. While the NCER comprises of four different states, it will be promoted as a corridor-centric and not a state-centric initiative. “The transportation system within the NCER will be enhanced to allow for the easy mobility of goods and people. An integrated transportation system and transportation terminals will be initiated to ensure that interconnectivity via sea, air, rail or road is seamless and extremely reliable. ” Northern Corridor Economic Region - Koridor Utara 23 Infrastructure Our Goals, Your Opportunities Roads Projects have been planned to enable the speedy freight of goods and farm produce. Rural roads which link the farm areas to the main roads will be upgraded and widened to ensure that large farm machinery have access across isolated farm lands. There is also a need to beef up the load-carrying capabilities of the road system that leads to all border towns, sea ports and airports throughout Peninsular Malaysia. In the first two years of operations (2009-2010), 525 kilometres of farm roads will be upgraded within the Muda Agriculture Development Authority (MADA) granaries. Additionally, the construction of a second Penang Bridge will create another link to the mainland. The Kedah Central Spine Highway from Kota Putra to Kulim; the Persisiran Pantai Highway from Kuala Kedah to Air Tawar; and the Jalan Bukit Jana - Anak Kurau Highway in Perak will considerably ease the flow of traffic. Other projects in the pipeline are the Penang Outer Ring Road and the Rapid Penang Bus Integrated system. Rail Rail connectivity will be improved through projects such as the Electrified DoubleTracking project that will run from Ipoh to Padang Besar, targeted for completion in 2014. The haulage industry will receive a boost with the completion of the Inland Container Depot at Padang Besar. There is also the deferred Penang Light Monorail Transit project whose plans can be revived and expedited if facilitated by the private sector. We invite investors to make proposals as to its development through Private Fund Initiatives (PFI) or ‘Build-Operate-Transfer’ (BOT) arrangements. Ports and Airports Penang will be positioned as a Port Hub to drive the momentum of the shipping business and help the NCER achieve its aim of garnering one million Twenty Foot Equivalent Units (TEUs) by 2012. To enable Penang to become a key port in this region, facilities will be upgraded or built to meet the expanding demand for its port services. The Penang Port Commission has undertaken the responsibility of upgrading its wharf facilities. To complement this activity, the government recognises the need for the dredging of the Penang North Straits and plans are in place to establish Centralised Tankage Facilities. These present opportunities for savvy investors “We envision that in the long run, the facilities at these airports would need to be upgraded, with extensions made on parking aprons and taxiways, to enable them to cope with the foreseeable rise in traffic of passengers and carriers. ” 24 Northern Corridor Economic Region - Koridor Utara Infrastructure Limau Diversion flood mitigation plan for Yan in south Kedah; and the secondary canal and drainage plan for the MADA granary areas. Utilities and Waste who either wish to partner the government in its development, or to take on the responsibility through a PFI. Meanwhile, other on-going projects include the upgrading of the Kuala Perlis Jetty and Ferry Terminal, the Kuala Kedah Ferry Terminal and the Kuah Langkawi Ferry Terminal. Where airports are concerned, the NCER has two international airports - one in Langkawi and the other in Penang. The airport in Alor Setar caters to domestic travel. For the moment, the international airports of Langkawi and Penang have runways that extend 3.8 kilometres and 3.4 kilometres respectively, with terminals large enough to accommodate Airbus and Boeing 747 aircrafts and are serviced by international carriers such as Malaysia Airlines, Singapore Airlines, Gulf Air, Cathay Pacific, Thai Airways, Korean Air, Silk Air and Air Asia. They collectively moved approximately five million passengers in 2007. We envision that in the long run, the facilities at these airports would need to be upgraded, with extensions made on parking aprons and taxiways, to enable them to cope with the foreseeable rise in traffic of passengers and carriers. Demand for energy is expected to multiply threefold by 2020. Therefore, efforts will be made to strengthen the transmission and distribution of electricity as well as to ensure the electricity supply is adequate and reliable. There is also a need to look into the issue of sufficient water supply so that the NCER will not suffer from water shortages in future and that the piped-in water is clean. There must be adequate solid waste and sanitation facilities along with a proper waste management policy to protect and support the livelihood and businesses of those located at the NCER. Again the participation of private investors is welcome to finance the various projects. Smart Positioning Infrastructure investment and development has to be smartly positioned to cater to where there is the most demand for it. This entails conducting proper market studies and collaborating closely with the relevant state governments especially if it concerns land and utilities development. Every project has to be looked at from an end-to-end scale, ensuring there is no mismatch. We invite out-of-the-box thinking to figure out how to power-up and service the northern region most efficiently. Come North, connect your cutting-edge infrastructure idea with us Flood Mitigation and Irrigation Floods are a perennial problem that cause significant losses to the nation each year. Current irrigation systems require upgrading to meet with the increasing demands expected of the agriculture and the aquaculture industries. Here too, remedial actions will be taken with the granary areas flood mitigation project and the upgrading works for irrigation in the granary areas. In the pipeline are the Sungai Baru Diversion flood mitigation project for north Kedah; the Sungai Northern Corridor Economic Region - Koridor Utara 25 Education and Human Capital Development Education and Human Capital Development Developing Next Generation Thinkers 26 Northern Corridor Economic Region - Koridor Utara Education and Human Capital Development Education, the Bedrock to Progress The NCIA fully supports all efforts to promote lifelong learning among the population within the NCER. A well-educated population will improve the quality of human capital development and fuel the nation’s aspirations for sustainable development. We want our people to be smart, creative, self-reliant and resourceful. We want strategic programmes that will help our people become next generation thinkers and entrepreneurs. As the NCER actively moves its manufacturing, agriculture and tourism sectors up the value chain, new growth areas will place additional demands on the ability of our future workforce to stay relevant. “As the NCER actively moves its manufacturing, agriculture and tourism sectors up the value chain, new growth areas will place additional demands on the ability of our future workforce to stay relevant.” Northern Corridor Economic Region - Koridor Utara 27 Education and Human Capital Development Opportunities in a Knowledge-Centric Community In Malaysia, all citizens have access to eleven years of education, six years at the primary level and five years at the secondary level. Approximately 500,000 students leave secondary school each year and the government aims that by 2010, 40% of Malaysian school-leavers will proceed to tertiary level. There are over 2,000 primary schools and over 600 secondary schools in the NCER, but only 65 institutions of higher learning. There are also only four international schools, seven polytechnics, four public universities, five private universities and four university branch campuses in the NCER. Education has become a strategic export commodity as the nation consolidates its role as a centre of educational excellence within the region. There are more than 100,000 foreign students enrolled at Malaysian institutions, with Indonesia and China as the biggest markets, followed by the Middle Eastern and African countries. To drive the valuable business of education, the government has liberalised policies that relate to it as a boost to the sector. Local students can now enrol alongside foreign students in international schools. We also welcome foreign teaching staff and members of faculty in local institutions. We invite investors to ride this wave of opportunity with us and take advantage of the growing demand for education. Skills Upgrade As the economic region begins to progressively improve, the demands on the labour market will rise in tandem. The NCIA is aware how critical it is for its people to evolve into knowledge workers, equipped with the right skills to meet market demands. With approximately 55% of the population within the NCER below the age of 29, there is an opportunity for educators and learning providers to promote specific skills. Given the strategic focus in the NCER for the agriculture, manufacturing and tourism sectors, the potential areas of investment in education are: • Establishing sector-specific tertiary institutions including schools for hospitality and tourism, business management, high-technology manufacturing and agriculture • Setting up vocational institutes • Investing in research centres such as for agriculture, biotechnology and high-technology manufacturing • Creating programmes that apply the latest technology to conventional industries • Instituting globally-recognised standards and state-of-the-art learning infrastructure Globally, specialised skills have become the main differentiating factor of a dynamic economy. Varied businesses – from hospitality to high-tech manufacturing, from agriculture to consultancy – all expect highly-trained workers to be readily available. This creates a dependence for the right learning institutions and programmes. “We invite investors to ride this wave of opportunity with us and take advantage of the growing demand for education.” 28 Northern Corridor Economic Region - Koridor Utara Education and Human Capital Development Lifelong Learning There is an urgent need to continuously entice and nurture the love for learning within the NCER. We are spearheading several initiatives to promote the growth of lifelong learning. They aim to bridge the gap between rural and city folks through the use of information and communications technologies (ICT); encourage global thinking through international exposure; and promote the mastery of skills in vocational and technical fields. In putting in place the building blocks to encourage lifelong learning, we need the leading institutions, the experts, the trainers, the motivators and the business mentors to take our people, young and old, to a higher, more knowledgeable plain. The NCER offers compelling opportunities for educators and learning providers willing to take up this challenge of embracing lifelong learning. Sparking an Entrepreneurial Mindset At the NCER, we can create the right environment to promote learning and entrepreneurship. We believe these twin-factors will eventually lead to more innovative thinking and potential trade openings, which will then translate into broadened opportunities for all concerned. We need to have you on board to help us get the right returns on our human capital. We need you to inspire the future generation within the NCER to be what you are today – an acknowledged success in your respective field of expertise. Come North, take up the intellectual challenge “In putting in place the building blocks to encourage lifelong learning; we need the leading institutions, the experts, the trainers, the motivators and the business mentors to take our people, young and old, to a higher, more knowledgeable plain.” Northern Corridor Economic Region - Koridor Utara 29 Social Development Social Development A Balanced Economy 30 Northern Corridor Economic Region - Koridor Utara Social Development Vision in Place The idea of the NCER was conceived with the objective of maximising its economic potential and closing the development and income gap between the different regions in Malaysia. It also aims to move toward higher value-added, knowledgebased and innovative economic activities to drive further increases in per capita income. Investors who prioritise the need for a balanced economy will appreciate the NCER’s aspirations and key thrust areas and will want to be in the driver’s seat with us. As Malaysia progresses up the global economic ladder of success, the income disparity is apparent between the rich and the poor. The 2004 United Nations Human Development Report indicates Malaysia has the highest income disparity between the rich and the poor in Southeast Asia, greater than that of its neighbouring countries, with the richest 10% controlling 38.4% of the economic income compared to the poorest 10% which controls only 1.7%. This disparity continues to widen even within the NCER. Despite considerable progress in reducing overall poverty levels in the northern region, poverty still remains a pressing issue. In rural areas, traditional, low-value forms of agriculture dominate, restricting access to higher income-generating opportunities, while in urban areas, high-value manufacturing and services prevail. This further reinforces the rural-urban income disparity. “Investors who prioritise the need for a balanced economy will appreciate the NCER’s aspirations and key thrust areas and will want to be in the driver’s seat with us.” Northern Corridor Economic Region - Koridor Utara 31 Social Development Equitable Distribution of Wealth In line with the vision of growth with social equity, a number of social development programmes will be implemented in the NCER to narrow the developmental gap in the region. We will address the socio-economic imbalance through focused programmes aimed at boosting the per-capita income of the NCER population. It will target higher value-added and knowledge-based economic activities to improve the economic well-being particularly of the rural communities. By providing greater access to education and social-support such as training and entrepreneurship development, we will raise the capacity of rural communities to enable their participation in our growing economy. We will make the transition to high-value, productive and profitable commercial ventures by encouraging large private sector corporations to assist the target groups to scale-up in agricultural production, entrepreneurship capabilities and skills development. “The framework developed will set the precedent to be emulated by others in moving towards the ultimate goal of eradicating poverty.” 32 Northern Corridor Economic Region - Koridor Utara Social Development Towards A Better Future The NCIA will continue to tackle the major social issues and pursue vigorously the socio-economic developments within the NCER. This will act as development catalysts to generate new economic activities and provide job opportunities within the region. The framework developed will set the precedent to be emulated by others in moving towards the ultimate goal of eradicating poverty. NCER’s social development vision will act as the key differentiator and decisive enabler to attract investors who deem ‘responsibility’ as more than a mere buzzword. Serious attention to sustainable development aims to draw in the conscientious investor who will make the NCER their first and only stop. Come North, let us build a balanced economy that can be enjoyed by all Northern Corridor Economic Region - Koridor Utara 33 Our Incentives, Your Investments Our Incentives, Your Investments A Palette Of Opportunities 34 Northern Corridor Economic Region - Koridor Utara Our Incentives, Your Investments “These economic tools are tailored expressly to boost certain activities and locations specific to the NCER within the three key sectors – Agriculture, Manufacturing and Tourism.” Special Offerings NCER Pro-Business The Malaysian government has provided fiscal and non-fiscal incentives to encourage greater participation from a broader range of businesses. These economic tools are tailored expressly to boost certain activities and locations specific to the NCER within the three key sectors – Agriculture, Manufacturing and Tourism. The tax exemptions and perks drawn up by the government cover the gamut of possible businesses and are aimed at being business-friendly in its concept. For international investors who have discovered all that Malaysia has to offer and would like to stay, we welcome them through the Malaysia My Second Home Programme (MM2H). MM2H aims to attract foreigners to take up permanent residence or retire in Malaysia, where they can enjoy better quality and lower cost of living. To achieve the objective of becoming the economic food-zone of Malaysia, the NCER has its own complementary incentives. For example, pioneer status companies enjoy a partial exemption from income tax. This includes an exemption of 30% tax on statutory income for five years commencing when the product is first on sale. Come North, you can rely on the NCER to help you think big, and scale fast Other NCER-related incentives cover food and ‘halal’ food production, reinvestments in food production and food processing activities, as well as reinvestment in resource-based industries. By establishing hightechnology companies for strategic projects as well as small and medium enterprises (SMEs), the NCER hopes to strengthen industrial linkages that will modernise the promoted sectors. Northern Corridor Economic Region - Koridor Utara 35 Our Incentives, Your Investments Other Specific Incentives OBJECTIVES INCENTIVES Commercial-scale Agricultural Projects To ensure the agricultural sector achieves the government’s aim of becoming a food zone to have ample time to recoup its capital and reap greater profits UÊ£ää¯Ê ViÊ Ì>ÝÊ iÝi«ÌÊ vÀÊ £äÊ Þi>ÀÃÊ ÃÌ>ÀÌ}Ê vÀÊ Ì iÊ £ÃÌÊ Þi>ÀÊ vÊ «ÀvÌ>LÌÞÆÊ ÀÊ £ää¯Ê ÛiÃÌiÌÊ Ì>Ý Ê >Ü>ViÊvÀÊxÊÞi>Àà UÊ-Ì>«Ê`ÕÌÞÊiÝi«ÌÃÊ>`ÊÌ>ÝÊiÝi«ÌÊ`Û`i`ÃÊ UÊ«ÀÌÊ`ÕÌÞÊ>`ÊÃ>iÃÊÌ>ÝÊiÝi«ÌÊÊ«ÀÌÃÊvÊÀ>ÜÊ>ÌiÀ>Ã]ÊV«iÌÃ]ÊÌÃÊ>`Ê>V iÀÞÊ UÊ`}ÊV«>iýÊÛiÃÌiÌÃÊÊÃÕLÃ`>ÀiÃʵÕ>vÞÊvÀÊÌ>ÝÊ`i`ÕVÌà Seeds Research and Development Centres To drive greater research collaboration and the application of biotechnology UÊ/>ÝÊ`i`ÕVÌÃÊÊVÃÌÃÊVÕÀÀi`ÊÌÊLÕÞÊ«À«ÀiÌ>ÀÞÊÀ} ÌÃÊvÀÊ>ÊxÊÞi>ÀÊ«iÀ`ÊÜ V Ê>ÀiÊx£¯Ê>>ÞÃ>Üi` UÊ£ää¯Ê ViÊ Ì>ÝÊ iÝi«ÌÊ vÀÊ £äÊ Þi>ÀÃÊ ÃÌ>ÀÌ}Ê vÀÊ Ì iÊ £ÃÌÊ Þi>ÀÊ vÊ «ÀvÌ>LÌÞÆÊ ÀÊ £ää¯Ê ÛiÃÌiÌÊ Ì>Ý Ê >Ü>ViÊvÀÊxÊÞi>Àà UÊÓä¯ÊÌ>ÝÊÀiL>ÌiÊvÀÊÌ iÊiÝÌÊ£äÊÞi>Àà UÊ-Ì>«Ê`ÕÌÞÊiÝi«ÌÃÊ>`ÊÌ>ÝÊiÝi«ÌÊ`Û`i`à UÊ«ÀÌÊ`ÕÌÞÊ>`ÊÃ>iÃÊÌ>ÝÊiÝi«ÌÊÊ«ÀÌÃÊvÊÀ>ÜÊ>ÌiÀ>Ã]ÊV«iÌÃ]ÊÌÃÊ>`Ê>V iÀÞÊ UÊÕLiÊ `i`ÕVÌÊ Ê iÝ«ÀÌÊ «ÀÌÊ iÝ«iÃiÃÊ >`Ê iÝ«i`ÌÕÀiÊ VÕÀÀi`Ê vÀÊ ,EÊ ÃiÀÛViÃÊ vÀÊ ÎÀ`Ê «>ÀÌià UÊ`ÕÃÌÀ>ÊÕ`}ÊÜ>ViÊvÀÊ£äÊÞi>Àà UÊ`}ÊV«>iÃÊÛiÃÌiÌÃÊÊÃÕLÃ`>ÀiÃʵÕ>vÞÊvÀÊÌ>ÝÊ`i`ÕVÌà Premier Industrial Parks To encourage investors to set up operations in premier industrial parks While this list is not exhaustive, incentives include: UÊ£ää¯Ê ViÊ Ì>ÝÊ iÝi«ÌÊ vÀÊ £äÊ Þi>ÀÃÊ ÃÌ>ÀÌ}Ê vÀÊ Ì iÊ £ÃÌÊ Þi>ÀÊ vÊ «ÀvÌ>LÌÞÆÊ ÀÊ £ää¯Ê ÛiÃÌiÌÊ Ì>Ý Ê >Ü>ViÊvÀÊxÊÞi>Àà UÊ-Ì>«Ê`ÕÌÞÊiÝi«Ìà UÊÕLiÊ`i`ÕVÌÃÊÊiÝ«ÀÌÊ«ÀÌ UÊ`ÕÃÌÀ>ÊÕ`}ÊÜ>Vi Northern Corridor Economic Region - Koridor Utara 37 Connect With Malaysia’s NCER Target Your Business With Growth Today, Connect With Malaysia’s NCER Strategic Partners for a Balanced Economy More than 50 years of independence and strategic planning have provided Malaysia with a diverse base of economic activity and development infrastructure. As we embrace the future, we want the northern region’s economy to improve by leaps and bounds, while at the same time, for wealth to be shared across the region. A conducive business environment will spell success for you, while ‘doing business with heart’ will help to free our rural communities from the shackles of poverty. Galvanising an entire region to move into a more dynamic, more vibrant, more enriching future is a refreshing challenge for us. We assure you that we are ready and willing to embark on it. In the NCER, we believe in action. We are moving in a direction that can and will make a difference. We need smart, strategic partners to get this regional initiative going on the right foot, right from the start. Come North, let us expand business boundaries together 38 Northern Corridor Economic Region - Koridor Utara