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The Experience of Northern Corridor Economic Region (NCER)

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The Experience of Northern Corridor Economic Region (NCER) Economic Corridor Development for Competitive and Inclusive Asia “The Experience Of Northern Corridor Economic Region (NCER)” Putrajaya, Malaysia 23rd August 2016 By: Hasri Hasan, Northern Corridor Implementation Authority (NCIA) 5 Economic Corridors Were Established In Malaysia What is an economic Stemming from RMK-9 (2006 – 2010), 5 Regional Corridors corridor? were established across Malaysia between 2006 – 2008 to • Connects economic address uneven development across the nation agents along a defined geography • Connects economic nodes or hubs, usually centered in urban landscapes • Links supply and demand markets RMK-9 (2006-2010) RMK-10 (2011 – 2015) RMK-11 (2016 – 2020) Regional Economic Corridor Focus on selected clusters Accelerating regional growth initiative commenced based on geographical and for better geographic sectoral advantages balance 2 The Corridors Are Designed To Achieve Balanced Socioeconomic Development Boost economic potential by providing 1 important connections between economic nodes or hubs Address uneven social development across Why the country and create positive impacts for 2 society by boosting job creation, increasing Corridors? living standards, accessibility to healthcare, education, etc. Close the urban-rural skills gap by raising 3 the levels of productivity and use of new technology in less developed areas 3 Regional Corridors Are Strategic Enablers To Enhance Inclusiveness RM174.5 bil investment realised Source: RMK-11 and 427,100 jobs created up to 2014 4 NCER Envisions To Be A World- Class Economic Region Of Choice By 2025 NCER Vision To be a world-class economic region by 2025 for people to invest, live, work, learn, visit and bring up families in a safe, clean and sustainable environment PERLIS Total area: 32,315 km2 KEY THRUST AREAS Population: 6.5 mil (2015) KEDAH AGRICULTURE LOGISTICS MANUFACTURING TOURISM P.PINANG ENABLERS PERAK Support Eco-System Social Development Human Capital Development NCER is a Brownfield area that leverages on the strengths of its economic activities 5 NCER Is A Key Socio-economic Powerhouse & An Important Corridor In Malaysia 6 A Regional Approach To Economic Development The responses Agriculture • Leverage on the region’s biotechnology expertise instituted by • Implement the Shared Value Concept NCIA had to be tailored to the Manufacturing unique value • Augment the region’s support eco-system • Opportunities for local private sector participation propositions of • Value-added opportunities from private sector (eg BPO) the region Tourism • Develop key areas (Langkawi, Health Tourism, Taiping Bandar Warisan and the Belum Temengor area) • Implement the Shared Value Concept Logistics • Move activities up the value chain • Leverage on the region’s experienced trade network • New logistics initiatives to augment connectivity 7 The Role Of Regional Corridor Authorities As Set Out In 11MP 1 Enhancing inclusiveness towards Regional corridor authorities will facilitate an equitable society investors to ensure Encouraging more Key Outcomes committed investments Focus Area private investment in are realised. D of 11MP rural areas 2 This investor facilitation • Efforts will be implemented in collaboration with model will ensure that regional corridor authorities to provide a more authorities continue to conducive business environment to attract higher facilitate investors once value added investment to rural areas. Realised Investment businesses are in operation, to address Accelerating regional Focus Area implementation issues growth for better and encourage future D of 11MP reinvestment. geographic balance • Regional corridor authorities will continue to spur economic growth to address inter-and intra- Job opportunities regional imbalances and increase inclusivity. • Regional corridor authorities will continue to accelerate investments by enhancing facilitation for investors, improving connectivity and mobility; and intensifying R&D and commercialisation. 8 Setting Up Northern Corridor Implementation Authority NCIA’s Mandate: Created under Act 687, NCIA is mandated to Deputy Minister in Chief drive regional strategies PM The PM’s Department Secretary in the context of the Prime Minister Of Malaysia Government’s economic (Chairman) development agenda Menteri Besar Menteri Besar Chief Minister Menteri Besar of Perak of Kedah of Penang of Perlis CEO, Deputy Chairman Sime Darby Khazanah 9 NCIA As A Regional Enabler NCIA’s Objectives NCIA’s Role as a recognised ‘Regional Enabler’ To accelerate the growth of NCIA has been positioned by numerous Government Koridor Utara to be a world- Ministries and Agencies (including State and Local class economic region of Governments) as a regional enabler for their choice for investment, work, respective programmes focusing on high impact and living and learning by 2025, catalytic initiatives to drive the growth of the economic through the agenda of sector Growth with Social Equity 1 2 3 Plan Promote Facilitate • Identify and develop strategies • Undertake broad-based • Act as the principal to drive the sector through the promotion to attract investors coordinating agent and development of required for the growth of the sector monitor the progress of the enablers and social sector. infrastructure • Facilitate investors to ensure committed investments are realised. 10 A Regional Approach To Economic Development What The First Phase Entailed: • Phase 1: 2007 – 2012 Secure anchor investors and build priority infrastructure • Phase 2: 2013 - 2020 Broaden private sector involvement, including establishing networks of businesses, foreign and domestic linkages • Phase 3: 2021 – 2025 Achieving regional leadership via sustainable, market-led growth. 11 The First Step – Enhancing Connectivity 1 Upgrading of Penang Airport RM250 Mil. 3 2 2nd Penang Bridge RM4.5 Bil. 3 Rail Electrified Double 1 2 Track RM12.5 Bil. Legend: Airport These developments have caused a change in regional Bridge dynamics Rail Line RM 17.25 Bil. infrastructure investment by Government on big ticket infra items 12 Embarking on Phase 2 What The Second Phase Entails: • Phase 1: 2007 – 2012 Secure anchor investors and build priority infrastructure • Phase 2: 2013 - 2020 Broaden private sector involvement, including establishing networks of businesses, foreign and domestic linkages • Phase 3: 2021 – 2025 Achieving regional leadership via sustainable, market-led growth. 13 Phase 2: The Implementation Of New Growth Nodes KEDAH SCIENCE & LEMBAH KEDAH RUBBER TECHNOLOGY CHUPING CITY PARK 12,674 14,471 23,244 Total number of Job opportunities Job opportunities jobs created as created by 15th created as of of 2025 year 2030 RM2.58b KORIDOR New Growth Nodes RM14.7b RM57.4b GNI contribution UTARA Total GDP in 15 Economic impact per year as of PHASE 2 years up to 2030 (2013-2020) 2025 Enhanced elements GREATER WILAYAH PERAK of inclusiveness KAMUNTING SELATAN RM12.96b RM30.5b Total GDP Total contribution by investments by 2030 2030 90,263 109,000 Job opportunities Job opportunities created by 2030 created by 2030 14 Three Clusters To Promote Chuping As A “Green Valley”… 1 Perlis exhibits high levels of solar radiation Average Annual Solar Radiation in Malaysia (MJ/m2/day) Solar Energy Generation 2 There are varied industry applications for Green Materials Green Manufacturing (Green Materials Automotive Industrial & Green E&E Manufacturing E&E Property 3 There has been growing international demand for halal products Malaysian Halal Exports 2010-2020e (expected) 120 Halal Industries 100 (CAGR) 80 ~ 16.3% 60 (CAGR) RM RM billion 40 ~ 12.9% 20 0 2010 2013 2020 Total Area of Lembah Chuping 2,481.91 acres 15 Rubber City - To Elevate The Global Competitive Position Of The Malaysian Rubber Industry The Rubber City is a strategically located project situated in the heart of the Natural Rubber Economic Belt, close to the Malaysia-Thailand border. The socio-economic development of this border region is strongly supported by both the Malaysian and Thai governments. Current state of proposed Global Leader in Development of Rubber City sites the Rubber Industry The areas in which the Rubber City is The Rubber City will stimulate the The Rubber City will lead Malaysia to proposed to be built currently has overall socio-economic development be a global leader in the rubber minimal existing economic activity, of the area by: industry by: with: Encouraging public infrastructure Leading in niche and No significant GDP contribution development downstream rubber sectors Attracting private investments No significant tax revenue Creating greater resilience with a generated Creating employment opportunities diversified portfolio of products Improving qualifications of local Few job opportunities workforce Achieving higher position in the global value chain, extracting more value in Malaysia Generating a larger knowledge- based workforce Developing local innovation and R&D capabilities 16 KSTP Combines Global Research With A Modern Industrial Park KSTP’s Vision “To be world-class in the promotion and commercialisation of applied scientific research and technology” World-Class Facilities, Effective Linkages Creative, Innovative & Equipment and Support between Research Intellectual Service Institutions & Relevant Community Industries • High-end research • A research institution with • Communal space for laboratories & equipment shared facilities, led by socialising to • Business incubation industries and formed encourage centres based on academia, intellectual government and industry interaction
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