THE economic fortune of Perlis, Kedah, Penang and Perak — the four states in the Northern Corridor Economic Region (NCER) — are set to receive a boost from a slew of projects this year.
As new initiatives and innovation facilities within the four states take off, the spillover effects will not only benefit those working and living in the economic corridor, but also position Malaysia as a leader in several sectors.
The Northern Corridor Implementation Authority (NCIA), which is targeting to facilitate a total of RM6.5 billion in investments for the NCER, is poised to work with four firms on projects in the manufacturing, logistics and agriculture sectors, respectively.
“A superfruits project, which will be developed in Perlis, is set to provide Malaysia with an import substitution of RM6 million a year once it takes off,” said NCIA chief executive Datuk Redza Rafiq.
The reported value of Malaysia’s annual superfruit imports stand at US$144 million (RM577.44 million).
Superfruit is a marketing term used in the food and beverage industry and keys to marketing a successful superfruit product reportedly includes the native fruit qualities. Scientific evidence suggests they have potential health benefits. The project involves marketing and developing a strategy to attract consumers.
FigDirect Sdn Bhd, which was incorporated last year with a paid-up capital of RM250,000, is said to be the country’s first commercially planted fig farm.
Together with NCIA and several other parties, the company, which is planning to increase its paid-up capital to RM1 million, is set to develop the superfruits industry for Perlis from a site at the Mas-Mas Permanent Forest Reserve in Chuping.
Redza said the superfruits project by FigDirect would cover a 25ha site at the permanent forest reserve.
“The objective of this initiative is to increase the production and processing activities of figs in a bid to expand the agro-based products for the local and overseas markets,” he noted.
In the neighbouring state of Kedah, the livelihood of paddy farmers is beginning to look up, thanks to a programme in modernising agriculture practices, aimed at better management of their fields.
“Pertubuhan Peladang Kawasan Kuala Muda Selatan has successfully implemented a two-phase programme in increasing paddy yield from 3.1 tonnes per hectare to six tonnes per hectare.
“They are now keen to move on to a third phase of the project, which will involve 276 farmers on a total 500ha land,” said Redza.
Facing with drainage system problems and loss of crop of up to 50 per cent, the farmers are seeking NCIA’s assistance to upgrade the infrastructure of their drainage systems, improve pest disease control, improve soil fertility management and facilitate the modernisation of agriculture through the usage of machinery and equipment.
In Penang, Attest Research Sdn Bhd (ARSB) is set to expand and upgrade its research and development (R&D) facilities.
The company, which operates out of Chemor in Perak and from University Sains Malaysia’s main campus at Minden in Penang, is moving to a new facility in Bayan Lepas.
ARSB specialises in the research and development of a wide spectrum of pharmaceutical and healthcare products for human use, right from the pre-formulation studies up to clinical trials.
“The pharmaceutical industry is currently undergoing a phenomenal change due to the so-called `patent cliff’,” said Redza.
“ARSB, one of the leading contract research organisations focusing on drug formulations, delivery systems and human clinical trials in Malaysia, is poised to take full advantage of the above opportunities created by the patent cliff.”
Patent cliff is a term associated with the pharmaceutical industry and often referred to the potential sharp decline in revenues upon patent expiry of one or more leading products of a firm.
A patent cliff is said to happen when a firm’s revenues could “fall off a cliff” when one or more established products go off-patent, since these products can be replicated and sold at much cheaper prices by competitors.
“As ARSB aims to position itself as a global formulation house and pharmaceutical research company, it is vital to ensure that pharmaceutical formulation and development activities in ARSB are on par with global standards for it to establish itself in global markets,” he added.
Meanwhile, Temasek Growth Sdn Bhd (TGSB) is looking to invest in the Manjung district, Perak, as it looks to its future source of growth from the biodiesel and oleochemical business.
“The strategic location of the company’s plant in the northern region and easy access to the port for shipment to overseas markets places the company in good stead for growth,” said Redza.
TGSB is said to be expecting to achieve its target sales of more than RM200 million this year, as it benefits from consistent R&D activities carried out over the last three years.
It became the new owner of a biodiesel plant at the Lumut Maritime Terminal in Perak and the refinery is touted as the only biodiesel plant in the northern region.
“The technology adopted by TGSB at its plant allows feedstock to be transformed into biodiesel at a fraction of time and costs less than half of the biodiesel manufacturing methods employed in Malaysia,” he said.
“This in turn produces a premium quality product with a higher price value, compared with a product produced using conventional technology methods,” Redza added.