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Northern Corridor Economic Region (NCER) Regional Impacts, Opportunities & Prospects Presentation by: Hasri Hasan Northern Corridor Implementation Authority (NCIA)
Northern Corridor Economic Region (NCER)
Regional Impacts, Opportunities & Prospects
Presentation by:
Hasri Hasan
Northern Corridor Implementation Authority (NCIA)
Close the urban-rural skills gap
NCER Is One Of The
Five Economic Corridors
Established In Malaysia
5 Regional Corridors were established across
Malaysia between 2006 – 2008 to address uneven
development across the nation
Northern Corridor Economic Region
2 3
Why Corridors?
1
Boost economic potential
Address uneven development
and regional imbalances
Population (2016)
6.6 mil 1
Total employment
(2016)
2.8 mil
1
GDP as at 2016 (at
2010 constant price)
RM 176 bil
1
Total investment into
NCER (2016)
RM 79.9 bil
1
Jobs created (2016)
103,597 jobs 1
Perlis
Kedah
Perak
Pulau Pinang
2
The Northern Corridor
Implementation Authority
(NCIA)
3
NCIA’S MANDATE:
Created under Act
687, NCIA is
mandated to drive
regional strategies in
the context of the
Government’s
economic
development agenda
Prime Minister
of Malaysia
(Chairman)
Deputy PM
Minister in
The PM’s
Department
Chief
Secretary
Menteri
Besar
of Perlis
Menteri
Besar
of Perak
Menteri
Besar
of Kedah
Chief
Minister
of P. Pinang
Chief Executive,
NCIA (Secretary)
CEO,
Sime Darby
Minister of
MITI
Plan
Promote
Facilitate
NCIA’S ROLES:
Capitalising The Unique
Strengths Of NCER
2 Key To The
Nation’s Food
Security Agenda
• Modern Agriculture
• Usage of Technology
3 Top Tourists
Destinations
• Langkawi
• Pulau Pinang
• Belum Rainforest
1 Strategically
Located
• IMT-GT & ASEAN
• Good infrastructure
and connectivity
4 Strong
Manufacturing
Ecosystem
• Strong Cluster and
ecosystem
• Existing Talents &
Skills
4
Air
Sea
Land
Public
Transport
Logistics &
Connectivity
Tourism
Medical
Tourism Recreation &
Entertainment
Business
Tourism Niche Tourism
Electrical & Electronic
Machinery
& Equipment
Manufacturing
Agriculture &
Bio-industries
Bio-industries Agriculture
Global Business
Services
Services
NCER Focuses On 3 Priority
Sectors, Leveraging On Its
Economic Strength
NCER is a brownfield area that leverages on the strengths of its economic
activities
5
1st Wave: Catalytic
Infrastructure
Development
2nd Wave: Capacity
Development
3rd Wave: Concentration and
Specialisation
NCER Is Currently At The 3rd
Wave Of Its Development
The NCER has come a long way, through tailored
development programmes that have been delivered
up gradually to ensure a smooth implementation
Northern Corridor Economic Region
6
NCER Is Currently At The 3rd
Wave Of Its Development
7
1st Wave: Catalytic Infrastructure Development 1 To ensure seamless
connectivity & mobility of
people and goods
2 Ultimately, to boost the
economic growth of NCER
• Infra connectivity has the power to
integrate economies by deepening trade,
investment and business links.
• It can expand and strengthen regional
production networks and supply chains of
goods and services.
• It improves inclusivity, productivity and
competitiveness; and stimulates
economic activity, trade and investment.
8
NCER Is Currently At The 3rd
Wave Of Its Development
Legend:
Airport
Bridge
Railway
1
Upgrading of Penang
International Airport
RM250 mil 2 Penang Second Bridge
RM4.5 bil
3 Electrified Double Track
Project
RM12.5 bil
RM17.25 bil Investment By Federal Government
2009 2016
RM79.9 bil Total Cumulative Investment
103,597 Total Cumulative Jobs Creation
Private Investment
Jobs Creation
1st Wave: Catalytic Infrastructure Development
2nd Wave: Capacity Development
NCER Is Currently At The 3rd
Wave Of Its Development
Investments
1.4 7.48 17.39
29.67 40.34
59.14 71.62
79.92
2009 2010 2011 2012 2013 2014 2015 2016
Cumulative Private Investments 2009 - 2016
1,050
1,777
3,751
11,532
13,350
0 5,000 10,000 15,000
China
Taiwan
Japan
Germany
USA
Top 5 Origin Of Investments By Country (In RM mil)
2,608
56,619
15,475
3,818
Cumulative Private Investments By Sector (In RM mil)
Agriculture Manufacturing Tourism Logistics
Share Of Private Investments
Local Participation Foreign Participation
RM
35.8 bil RM
44.1 bil
1st Wave: Catalytic Infrastructure Development
2nd Wave: Capacity Development
Broader Economic Impact
10
Economic Impact (Up To 2016)
87,593 95,159
101,464 106,268 100,584
127,720 135,972
143,776 151,000
159,924
176,404
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016
Overall NCER GDP 2005 - 2009 and 2010 - 2016 At Constant Prices (RM 'mil) 1
1,810 1,927 2,111
2,315
3,023
3,797
4,317
2002 2004 2007 2009 2012 2014 2016
Estimated* Median Monthly Household Income Of NCER (RM) 2
1st Wave: Catalytic Infrastructure Development
2nd Wave: Capacity Development
NCER experienced higher annual GDP growth
rate of 5.5% compared to Malaysia’s 5.1% during the period of 2010 – 2016 (Dept of Statistics)
Median household income in NCER has grown by
9.3% (CAGR) from 2009 – 2016 compared to 3% from 2002 to 2007 (Dept of Statistics)
Progress In RMK-11
11
Targets Set For All Corridor
Authorities by 2020
2 Job Creation:
470,000
Realised Investment:
RM236 bil 1
Focus Area C Strategy C2
Encouraging more private investment in rural areas
Focus Area D
Accelerating regional growth for better geographic
balance
Strategy D1 has identified the need to have
Strategic Review of the Master Plans
3rd Wave: Concentration and Specialisation
12
NCER Is Currently At The 3rd
Wave Of Its Development
The Northern Corridor Economic Region
Development Blueprint (2016 -2025)
(Blueprint 2.0)
5 Strategic Thrusts
Cumulative
Investments
Cumulative
Jobs Creation
Mean B40
Income
Mean
Household
Income
RM
147.2
billion
161,197
jobs
Targets by 2025
RM
6,043
RM
12,964
RM
300
billion GDP
80 Projects
3rd Wave: Concentration and Specialisation
7 Growth Nodes Of NCER
Pulau Pinang
Perlis
Greater Kamunting
Conurbation (GKC)
Manjung-Aman Jaya Maritime City
Kedah Science & Technology Park
(KSTP)
Kedah Rubber City (KRC)
Kedah
Perak
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Agro
Science Advanced
Materials ICT
Focus Clusters
Adv. Latex
Products
Rubber
Automotive
Components
Tyre & Tyre
Related Products
Engineering
Rubber
Products
Education &
Human Capital
Agriculture Tourism
Tourism
Mfg.
Agriculture
Perlis Inland
Port (PIP)
Chuping Valley
Industrial Area
(CVIA)
Focus Clusters
Green
Manufacturing Halal
Industries
Renewable
Energy
Generation
Consolidation & Distribution Centre
Focus Sectors
Focus Sectors
Manufacturing
Green
Technology
Adv. Rubber &
Rubber
Materials
Biotechnology
&
Pharmaceutical
Services & Support
Spatial
Transformation
Maritime
Batu Kawan
Development
Manufacturing Property
Logistics Tourism
Focus Sectors
Focus Clusters
Cluster 1:
Advanced
Materials
Potential Economic Impacts
Project Estimated Timeline
Project Facts
Kedah Science & Technology
Park (KSTP)
14
Brief Overview
Bukit Kayu Hitam,Kedah
Land Size
1,938 acres
Priority Clusters
District
Kubang Pasu
Cluster 4:
Green
Technology
Cluster 2:
Agro
Science
Cluster 3:
ICT
1 2
• Phase 1B
2016 – 2020
• Phase 2
2019 – 2024
• Phase 3A & 3B
2025 - 2026
3
1
2
Advantages • Located at the main entry point
between Malaysia - Thailand
• Located right next to North-South
Expressway (Asian Highway,
AH2)
+
Economic Impact (Up to 2030)
Job Creation (By 2030)
RM57.4 bil 23,244 jobs
Project Estimated Timeline
Project Facts
Kedah Rubber City (KRC)
15
Brief Overview
Ladang Bukit Ketapang,
Kedah Land Size
1,242.38 acres
District
Padang Terap
1
• Integrated Business Centre (IBC)
2018
1
2
KRC aims to be a
global leader in the
production of latex
and dry rubber
products RM15.0 bil
GDP
Contribution
New
Investments
RM10.0 bil
Employment
Opportunity
15,000 jobs
Economic Impact In 15 Years
Source: NCIA’s Special Tax Incentives Package for Rubber City
Project Estimated Timeline
Project Facts
Chuping Valley Industrial
Area (CVIA)
16
Brief Overview
Land Size
2,482 acres
Focus Clusters
District
Padang Besar
1 2
• Integrated Business Centre (IBC)
2017 - 2018
• Phase 1 - CVIA
2016 – 2020
• Phase 2 - CVIA
2021 - 2025
1
2
Cluster 1:
Green
Industries
Cluster 2:
Halal
Industries
Cluster 3:
Renewable
Energy Generation
Potential Economic Impacts 3
Advantages • Rail connectivity to main ports in
Malaysia (Penang Port, Port
Klang)
• Located next to the upcoming
Perlis Inland Port
Lembah Chuping,Perlis
+
GNI Contribution/Year (By 2025)
Job Creation (By 2025)
RM2.58 bil 12,674 jobs
Project Estimated Timeline
Project Facts
Perlis Inland Port (PIP)
17
Brief Overview
Lembah Chuping,Perlis
Land Size
500 acres
District
Padang Besar
1 2
• Phase 1 (Planning & Approval)
2015 – 2016
• Phase 2 (Completion of PIP)
2016 – 2019
• Phase 3 (Industrial Development
Area)
2018 - 2025
1
2
Logistics
Hub
Administrative
Buildings
Warehouses
PIP is part of Logistics And Trade
Facilitation Masterplan
Main Components
Advantages • Accessible to North – South
Expressway via Changlun - Kuala
Perlis Highway
• Rail connectivity to major ports
i.e. Penang Port & Port Klang
Industrial
Development
Area
+
GNI Contribution/Year (By 2030)
Job Creation (By 2030)
RM0.94 bil 4,056 jobs
Potential Economic Impacts 3
Project Estimated Timeline
Project Facts
Batu Kawan Development
18
Brief Overview
Batu Kawan, P. Pinang
Land Size
2,887 acres
Focus Sectors
District
Seberang Perai
Selatan
1 2
• Overall Development
15 years
1
2
Sector 1:
Manufacturing
Sector 2:
Property
Sector 3:
Logistics
Advantages • Easily accessible to North –
South Expressway & Penang
Second Bridge
• Home to manufacturing
industry & mixed
development
Sector 4:
Tourism
Estimated Future
Population
250,000
+
Project Facts
Greater Kamunting
Conurbation (GKC)
19
Brief Overview
Greater Kamunting
Area Size
1,000 sq km
Focus Clusters
District
Larut, Matang &
Selama
1 2 1
Manufacturing
Potential Economic Impacts 3
GKC Study was
completed in 2015 and
identified 66 initiatives
Advantages • Easily accessible to North –
South Expressway
• Will be connected to West Coast
Expressway
• Possesses various tourist
attractions
Tourism Agri-
Culture
Education &
Human Capital
+
Total GDP Contribution
(By 2030)
Job Creation (By 2030)
RM12.96 bil 90,263 jobs
Excerpt Of Budget 2018 Announcement
Declare Pulau Pangkor in Perak as a Duty-Free Island.
However, the duty-free status excludes products such as
alcoholic beverages, tobacco and motor vehicles;
Potential Economic Impacts
Total GDP Contribution
(By 2030)
Job Creation (By 2030)
RM22.5 bil 35,310 jobs
Highlights Of The Manjung Blueprint 2017 - 2030
Manjung-Aman Jaya
Maritime City
Project Facts
Brief Overview
Manjung
Area Size
1,171 sq km
District
Manjung
1 1
Manjung Blueprint was
completed in 2017 and
identified 58 projects
Manjung as a Tourism and
Maritime City
Immediate Focus
Pangkor As A Duty
Free Island
Rapid Manjung
Rapid Manjung
30 min
Service
Frequency
2
No. Of
Routes
No. Of
Buses
Required
10
Northern Corridor
Economic Region
(NCER)
2 “Software” Aspect
Readily available talent
for the industries
Human capital
development programs
Availability of tax
incentives
Excellent business-
friendly ecosystem
1 “Hardware” Aspect
Excellent logistics
infrastructure
Strategically located
politically stable
Industry Support
Clusters
Relatively safe with
minimal natural disasters
The NCER Value Proposition
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Plan Facilitate Promote
Devise standards and
policies, direction and
strategies to accelerate
development of NCER
Ensure integration of
plans and policies between
the Federal Government,
state governments and local
authorities
Ensure the vision for key
thrust areas are aligned
with NCER’s vision
Promote and uphold
NCER’s brand to attract
investments to the region
Engage with government
agencies and potential
investors
Assist investors in
other investment
matters to ensure ease
of doing business e.g.
licensing, land matters
etc.
Ensure alignment of key
thrust area developments
and key enablers in line with
NCER’s vision
Secure private investors into
NCER through providing
assistance to investors
and coordinating
investment approvals
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NCIA’s Unique Approach
Ensures Effective Delivery
THANK YOU
