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Joint Training Program on Economic Corridor Development for Competitive and Inclusive Asia

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Joint Training Program on Economic Corridor Development for Competitive and Inclusive Asia Joint Training Program on Economic Corridor Development for Competitive and Inclusive Asia 29 August 2017 NCER Is One Of The Five Economic Corridors Established In Malaysia Stemming from RMK-9, 5 Regional Corridors were Northern Corridor Economic Region established across Malaysia between 2006 – 2008 to address uneven development across the nation Population 2015 1 6.5 mil Total employment 1 (at 2015) 2.8 mil GDP as at 2015 (at 1 2010 constant price) RM 169 bil Total investment into 1 NCER (at 2016) RM 79.9 bil 1 Jobs created (at 2016) Why Corridors? 103,597 jobs 1 2 3 Boost economic potential Address uneven development Close the urban-rural skills gap and regional imbalances 2 Capitalising The Unique Strengths Of NCER Strategically Key To The 1 Located 2 Nation’s Food • IMT-GT & ASEAN Security Agenda • Good infrastructure • Modern Agriculture and connectivity • Usage of Technology Top Tourists Strong 3 Destinations 4 Manufacturing Ecosystem • Langkawi • Strong Cluster and • Pulau Pinang ecosystem • Belum Rainforest • Existing Talent & Skill 3 RMK-11 Has Positioned Corridors Strategically To Enhance Inclusiveness Chapter 3: Enhancing inclusiveness towards an equitable society Focus Area C Encouraging more private investment in rural Strategy C2 areas Accelerating regional growth for better Focus Area D geographic balance 11th Malaysia Plan Targets Set For All RM236 bil 470,000 Corridor Authorities by 1 Realised Investment 2 Job Creation 2020 Blueprint 2.0’s Targets RM146.5 bil 161,197 For NCER by 2025 1 Realised Investment 2 Job Creation Corridor Authorities continue to play significant role to ensure investments are realised and attract investment in rural / less developed areas 4 NCER Is One Of The Five Economic Corridors Established In Malaysia 3rd Wave: Concentration and Specialisation Blueprint 2.0 (80 Projects) 2nd Wave : Capacity Development (RM79.9b investment, 103,597 job creation) 1st Wave: Catalytic Infrastructure Development (RM17.25b) 5 NCER Is One Of The Five Economic Corridors Established In Malaysia 1st Wave: 2nd Wave: Catalytic Infrastructure Development Capacity Development Legend: Airport Bridge Railway Private Investment 1 Upgrading of Penang International Airport RM79.9 bil Total Cumulative Investment RM250 mil 2 Penang Second Bridge 2009 2016 RM4.5 bil 3 Electrified Double Track Project Jobs Creation RM12.5 bil RM17.25 bil 103,597 Total Cumulative Jobs Creation Investment By Federal Government 6 NCER Is One Of The Five Economic Corridors Established In Malaysia 1st Wave: 2nd Wave: Catalytic Infrastructure Development Capacity Development Economic Impact up to 2014 “Setakat 2016, Wilayah Ekonomi Koridor Utara (NCER) mencatatkan tarikan pelaburan paling tinggi sejumlah RM6.6 billion”… 7 NCER Is One Of The Five Economic Corridors Established In Malaysia 1st Wave: 2nd Wave: Catalytic Infrastructure Development Capacity Development Economic Impact (Up To 2014) NCER GDP 2005 - 2009 and 2010 - 2014 At Median Monthly Household Income Of NCER Constant Prices (In RM 'mil) (In RM) 1 2 3,797 159,924 151,000 143,776 135,972 3,023 127,720 106,268 101,464 100,584 2,315 95,159 2,111 87,593 1,927 1,810 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2002 2004 2007 2009 2012 2014 NCER experienced higher annual GDP growth Median household income in NCER has grown by rate of 5.8% compared to Malaysia’s 5.4% during 10% (CAGR) from 2009 – 2014 compared to 3% the period of 2010 – 2014 (Dept of Statistics) from 2002 to 2007 (Dept of Statistics) 8 NCER Has Attracted World Class Foreign And Local Companies Cumulative Private Investments Top 5 Origin Of Investments By 2009 - 2016 Country (In RM mil) 79.92 USA 13,350 71.62 59.14 Germany 11,532 40.34 Japan 3,751 29.67 17.39 Taiwan 1,777 7.48 1.4 China 1,050 2009 2010 2011 2012 2013 2014 2015 2016 0 5,000 10,000 15,000 Cumulative Private Investments Share Of Private Investments By Sector (In RM mil) RM 35.8 bil 3,818 2,608 RM 44.1 bil 15,475 45% 55% 56,619 Agriculture Manufacturing Tourism Logistics LocalLocal Participation Investments ForeignForeign Participation Investments 9 Blueprint 2.0 To Propel Further Growth Of NCER 3rd Wave: Concentration and Specialisation 80 Projects Identified In Blueprint 2.0 Growth Nodes 7 Projects Transcending Borders 28 Projects Localised High Impact 45 Projects The Northern Corridor Economic Region Development Blueprint (2016 -2025) (Blueprint 2.0) 10 The NCER Blueprint 2.0 Was Developed & Introduced Early This Year GROWTH WITH SOCIAL EQUITY Vision To be a world-class economic region by 2025 Mission To identify commercially-viable opportunities and implement strategic initiatives to: Blueprint 2.0 (BP2.0) was developed in consultation . Spur economic growth to address inter and with 409 stakeholders from the federal and state intra-regional imbalances and increase governments, the private sector as well as from inclusivity learning institutions. BP2.0 is driven by the purpose of . Achieve balanced growth in all sectors, Growth with Social Equity. Manufacturing, Agriculture & Bio-industries Key features of BP2.0: and Services . Provides specific direction to transform NCER . Enhance talent to meet the growing needs of the region . Comprises revised targets and indicators . Increase private-sector investments and private . Enhances NCIA’s strategic direction, roadmap and finance initiatives implementation plans 11 The NCER Blueprint 2.0 Was Developed & Introduced Early This Year GROWTH WITH SOCIAL EQUITY Enhancing inclusiveness towards an equitable society Re-engineering growth and productivity in priority sectors Blueprint 2.0 (BP2.0) was developed in consultation with 409 stakeholders from the federal and state Strengthening infrastructure to governments, the private sector as well as from support connectivity and growth learning institutions. BP2.0 is driven by the purpose of Growth with Social Equity. Key features of BP2.0: Fostering talent development for an . Provides specific direction to transform NCER advanced region . Comprises revised targets and indicators . Enhances NCIA’s strategic direction, roadmap and implementation plans Addressing investors’ needs 12 NCER Is Leveraging On The Strengths Of Its Key Sectors Perlis Kedah Pulau Pinang Perak NCER is a brownfield area that leverages on the strengths of its economic activities NCER is strategically located at the centre of South East Asia 13 NCER Targets In Blueprint 2.0 RM RM169 RM RM 91,221 71.6 billion 4,815 1,926 jobs 2015 billion RM RM225 RM RM 129,197 109.5 billion 8,265 3,852 jobs 2020 billion RM RM300 RM RM 161,197 146.5 billion 12,964 6,043 jobs 2025 billion GDP Average household Average B40 Cumulative Cumulative income income Investment jobs created Note: Investment and job creation targets are NCIA targets as per the corridors’ expected outcomes 14 7 Growth Node Projects Perlis Inland Port (PIP) Kedah Science & Perlis Technology Park (KSTP) RM0.94b 4,056 PNK setahun Kedah Jumlah pada tahun RM57.4b 23,244 pekerjaan 2025 Impak Ekonomi Peluang Pulau Pinang Sehingga 2030 pekerjaan Chuping Valley Industrial Area (CVIA) Kedah Rubber Perak City (KRC) RM2.58b 12,674 PNK setahun Jumlah RM14.7b 14,471 pada tahun pekerjaan Jumlah KDNK Peluang 2025 dalam 15 tahun pekerjaan Pembangunan Greater Kamunting Manjung- Batu Kawan Conurbation (GKC) Aman Jaya Maritime City RM22.5B RM12.96B 90,263 35,310 peluang KDNK sehingga KDNK sehingga peluang pekerjaan tahun 2030 pekerjaan tahun 2030 15 Typically Projects Are Initiated From Strategic Plans Typically Projects Are Initiated From The Examples Of Project Initiated By NCIA In Strategic Plans Perlis Chuping Valley 1 2 1 Industrial Area (CVIA) Perlis Strategic Development Plan 2012 - 2030 2 Perlis Inland Port (PIP) Perlis Strategic Logistics & Trade Development Plan Facilitation Upgrading Of Padang 2012 - 2030 Masterplan Besar Inland Container 3 Terminal 3 4 4 Perlis Superfruits Cluster Border Economic Chuping Valley MySuria Programme Transformation Programme Development Plan 5 Chuping Valley Industrial Area (CVIA) 1Brief Overview 2 Focus Clusters 1 Project Facts Lembah Chuping,Perlis Cluster 1: Cluster 2: Cluster 3: Green Halal Renewable Land Size Industries Industries Energy Generation 2,500 acres CVIA study was completed in 2015 District 3 Potential Economic Impacts Padang Besar GNI Contribution Job Creation Per Year (By 2025) (By year 2025) 2 Project Estimated Timeline • Integrated Business Centre (IBC) Mar 2017 – Sep 2017 RM2.58 bil 12,674 jobs • Phase 1 - CVIA 2016 – 2020 + Advantages • Rail connectivity to main ports in • Phase 2 - CVIA Malaysia (Penang Port, Port 2021 - 2025 Klang) • Located next to the upcoming Perlis Inland Port 17 A Structured Game Plan To Attract Investors • NCER Development Blueprint 2.0 has identified key industry segments we should focus on when we engage with potential investors. • We have been able to narrow down on: - areas to focus on - rationale behind a participation - and how these entities will operate Investors: The investor attraction funnel • Will take action when they are ready, not when we are ready • Will not only look for geographic, demographic and cost of doing business information – also on opportunities and risks • Will try to find customers, suppliers and distributors: Lead nurturing Investor nurturing • Will not just look at incentives, but also how a community are aligned Pre Post • Will look for paths which can Investment investment investment provide soft landing for their investments 18 The Quality Of Our Handholding Will Be A Key Differentiator Common Agenda Shared vision • A key differentiator
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