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The Spatial Configuration of Private Investments by Economic Actors in Perak

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The Spatial Configuration of Private Investments by Economic Actors in Perak The spatial configuration of private investments by economic actors in Perak A consideration of centricity of the regional urban system of Southern Perak (Peninsular Malaysia) Luka Raaijmakers (6314554) Under supervision of dr Leo van Grunsven Faculty of Geosciences Department of Human Geography and Planning Master’s degree in Economic Geography Specialisation in Regional Development & Policy November 2019 Page | 2 Acknowledgements This thesis is part of the joint research project on regional urban dynamics in Southern Perak (Peninsular Malaysia). The project is a collaboration between Utrecht University (The Netherlands) and Think City Sdn Bhd (Malaysia), under supervision of dr Leo van Grunsven and Matt Benson. I would like to thank dr Leo van Grunsven for his advice related to scientific subjects and his efforts to make us feel at home in Malaysia. Also, I would like to thank Matt Benson and Joel Goh and the other colleagues of Think City for the assistance in conducting research in – for me – uncharted territory. I would like to address other words of thanks to the Malaysian Investment Development Authority, Institut Darul Ridzuan and all other political bodies that have proven to be valuable as well as economic actors for their honesty and openness with regard to doing business in Malaysia/Perak. Finally, the fun part of writing a master’s thesis in Malaysia, apart from obviously living abroad on a vibrant island, was the part of doing research. This required a little creativity, some resilience and even more perseverance. This could not have been done without the other student members of the research team that took part in the collective effort of unravelling the urban system of Perak by using the knowledge we have gained in our years as academics. Therefore, also my gratitude to you guys for this. Luka, November 16th, 2019 Page | 3 Table of contents Acknowledgements ........................................................................................................................................................... 3 Table of contents ................................................................................................................................................................ 4 List of figures and tables ................................................................................................................................................. 7 Figures ............................................................................................................................................................................... 7 Tables ................................................................................................................................................................................. 8 List of abbreviations ......................................................................................................................................................... 9 1. Introduction ............................................................................................................................................................. 10 1.1 Peninsular Malaysia’s urban system configuration .............................................................................. 10 1.2 Polycentric urban development ................................................................................................................... 10 1.3 Main theme of the joint research and focus of this thesis .................................................................. 11 1.4 Aim of the thesis and research questions ................................................................................................. 12 1.5 Scientific relevance ............................................................................................................................................ 13 1.6 Outline of the thesis ........................................................................................................................................... 13 2. Introduction to the study area ......................................................................................................................... 14 2.1 Location and administrative districts ........................................................................................................ 14 2.2 Demarcation of the study area ...................................................................................................................... 15 2.3 Demography .......................................................................................................................................................... 15 2.4 Economy ................................................................................................................................................................. 16 2.5 Infrastructure ....................................................................................................................................................... 16 2.6 Cities’ profiles and economic activities ...................................................................................................... 17 2.7 Development plans ............................................................................................................................................ 19 3. Theoretical Framework ...................................................................................................................................... 20 3.1 The concept of polycentricity ........................................................................................................................ 20 3.2 The functional dimension of polycentricity ............................................................................................. 21 3.3 Polycentricity and economic performance .............................................................................................. 22 3.4 Complementarity and specialisation .......................................................................................................... 23 3.5 Private investments and urban structure ................................................................................................. 24 3.6 Government policy ............................................................................................................................................. 25 3.7 Conceptual framework ..................................................................................................................................... 27 3.8 Study scenarios .................................................................................................................................................... 27 4. Methodology ............................................................................................................................................................ 30 4.1 Comparison of investment performance and benchmarking ................................................... 30 Page | 4 4.2 Analysis of industrial policy .................................................................................................................... 32 4.3 Mapping of planned patterns of private investment ............................................................................ 34 4.4 Description of industrial estates and the composition of industries ............................................ 35 4.5 Mapping of patterns of private investment ............................................................................................. 36 4.6 Trend overviews of industries ...................................................................................................................... 37 4.7 Description of regional assets ....................................................................................................................... 38 4.8 Presentation of conclusion and reflection ................................................................................................ 42 5. State investment performance......................................................................................................................... 43 5.1 Absolute investment statistics ...................................................................................................................... 43 5.1.1 Number of projects and jobs.................................................................................................................. 43 5.1.2 Investment volumes .................................................................................................................................. 44 5.2 Relative investment performance................................................................................................................ 46 Conclusion ..................................................................................................................................................................... 48 6. Industrial policy ..................................................................................................................................................... 50 6.1 Policy plans............................................................................................................................................................ 50 6.1.1 Federal development plans .................................................................................................................... 50 6.1.2 State development plans ........................................................................................................................
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