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 ˆ˜Vœ“iÊ Ì>ÝÊ iÝi“«Ìˆœ˜Ê vœÀÊ £äÊ Þi>ÀÃÊ ÃÌ>À̈˜}Ê vÀœ“Ê ̅iÊ £ÃÌÊ Þi>ÀÊ œvÊ «ÀœvˆÌ>LˆˆÌÞÆÊ œÀÊ £ää¯Ê ˆ˜ÛiÃ̓i˜ÌÊ Ì>Ý
Ê >œÜ>˜ViÊvœÀÊxÊÞi>ÀÃ
UÊ-Ì>“«Ê`ÕÌÞÊiÝi“«Ìˆœ˜ÃÊ>˜`ÊÌ>ÝÊiÝi“«ÌÊ`ˆÛˆ`i˜`ÃÊ
Uʓ«œÀÌÊ`ÕÌÞÊ>˜`ÊÃ>iÃÊÌ>ÝÊiÝi“«Ìˆœ˜Êœ˜Êˆ“«œÀÌÃʜvÊÀ>Üʓ>ÌiÀˆ>Ã]ÊVœ“«œ˜i˜ÌÃ]Ê̜œÃÊ>˜`ʓ>V…ˆ˜iÀÞÊ
Uʜ`ˆ˜}ÊVœ“«>˜ˆiýʈ˜ÛiÃ̓i˜ÌÃʈ˜ÊÃÕLÈ`ˆ>ÀˆiÃʵÕ>ˆvÞÊvœÀÊÌ>ÝÊ`i`ÕV̈œ˜Ã
Seeds Research and Development Centres
To drive greater research collaboration
and the application of biotechnology
UÊ/>ÝÊ`i`ÕV̈œ˜Ãʜ˜ÊVœÃÌÃʈ˜VÕÀÀi`Ê̜ÊLÕÞÊ«Àœ«ÀˆiÌ>ÀÞÊÀˆ}…ÌÃÊvœÀÊ>ÊxÊÞi>ÀÊ«iÀˆœ`Ê܅ˆV…Ê>ÀiÊx£¯Ê>>ÞÈ>˜‡œÜ˜i`
UÊ£ää¯Ê ˆ˜Vœ“iÊ Ì>ÝÊ iÝi“«Ìˆœ˜Ê vœÀÊ £äÊ Þi>ÀÃÊ ÃÌ>À̈˜}Ê vÀœ“Ê ̅iÊ £ÃÌÊ Þi>ÀÊ œvÊ «ÀœvˆÌ>LˆˆÌÞÆÊ œÀÊ £ää¯Ê ˆ˜ÛiÃ̓i˜ÌÊ Ì>Ý
Ê >œÜ>˜ViÊvœÀÊxÊÞi>ÀÃ
UÊÓä¯ÊÌ>ÝÊÀiL>ÌiÊvœÀÊ̅iʘiÝÌÊ£äÊÞi>ÀÃ
UÊ-Ì>“«Ê`ÕÌÞÊiÝi“«Ìˆœ˜ÃÊ>˜`ÊÌ>ÝÊiÝi“«ÌÊ`ˆÛˆ`i˜`Ã
Uʓ«œÀÌÊ`ÕÌÞÊ>˜`ÊÃ>iÃÊÌ>ÝÊiÝi“«Ìˆœ˜Êœ˜Êˆ“«œÀÌÃʜvÊÀ>Üʓ>ÌiÀˆ>Ã]ÊVœ“«œ˜i˜ÌÃ]Ê̜œÃÊ>˜`ʓ>V…ˆ˜iÀÞÊ
UʜÕLiÊ `i`ÕV̈œ˜Ê œ˜Ê iÝ«œÀÌÊ «Àœ“œÌˆœ˜Ê iÝ«i˜ÃiÃÊ >˜`Ê iÝ«i˜`ˆÌÕÀiÊ ˆ˜VÕÀÀi`Ê vœÀÊ ,EÊ ÃiÀۈViÃÊ vÀœ“Ê ÎÀ`Ê «>À̈iÃ
Uʘ`ÕÃÌÀˆ>ÊՈ`ˆ˜}ʏœÜ>˜ViÊvœÀÊ£äÊÞi>ÀÃ
Uʜ`ˆ˜}ÊVœ“«>˜ˆiÃʈ˜ÛiÃ̓i˜ÌÃʈ˜ÊÃÕLÈ`ˆ>ÀˆiÃʵÕ>ˆvÞÊvœÀÊÌ>ÝÊ`i`ÕV̈œ˜Ã
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 ˆ˜Vœ“iÊ Ì>ÝÊ iÝi“«Ìˆœ˜Ê vœÀÊ £äÊ Þi>ÀÃÊ ÃÌ>À̈˜}Ê vÀœ“Ê ̅iÊ £ÃÌÊ Þi>ÀÊ œvÊ «ÀœvˆÌ>LˆˆÌÞÆÊ œÀÊ £ää¯Ê ˆ˜ÛiÃ̓i˜ÌÊ Ì>Ý
Ê >œÜ>˜ViÊvœÀÊxÊÞi>ÀÃ
UÊ-Ì>“«Ê`ÕÌÞÊiÝi“«Ìˆœ˜Ã
UʜÕLiÊ`i`ÕV̈œ˜Ãʜ˜ÊiÝ«œÀÌÊ«Àœ“œÌˆœ˜
Uʘ`ÕÃÌÀˆ>ÊՈ`ˆ˜}ʏœÜ>˜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