KUALA LUMPUR: IN its next wave of development, termed Blueprint 2.0, policies and strategies have been devised to increase wealth by improving connectivity, providing job opportunities, improving productivity and meeting the needs of investors.
Datuk Redza Rafiq, chief executive of the Northern Corridor Implementation Authority, shares some insights into the region moving forward using strategic partnerships between state authorities to expand the business boundaries.
Question: The Northern Corridor Economic Region (NCER) has created waves globally in the manufacturing ecosystem. How much of the dynamics has changed for these four states since the first blueprint was launched?
Answer: The NCER has come a long way from days when it was positioned post-Merdeka to eradicate poverty based on the value propositions and resources of the respective states.
The journey has been smooth right from the first wave when our catalyst was mainly focused on getting the infrastructure in place for the region, which covers 25 districts across Kedah, Perak, Perlis and Penang.
With connectivity linking businesses and people, that has caused a change in the dynamics of the northern states.
We introduced the electrified rail double tracking costing RM12.5 billion, then we embarked on the second bridge for Penang (RM4.5 billion) and the international airport was upgraded costing RM250 million.
From these, we created two other growth areas, Kulim-Sungai Petani and Taiping-Kamunting, which led to further spin-off activities in nearby Batu Kawan.
Then, we followed with the second wave, through with capacity development by which, I mean, flowed from strong private sector participation, which is important to support the government’s role as a growth enabler.
Between 2009 and 2016, private investments totalled RM79.9 billion in the four states, providing 103,597 jobs.
Economic activities, as measured by the gross domestic product (GDP), have expanded, recording a 5.8 per cent compound annual growth rate from 2010 onwards.
Back in 2008 and 2009, the median household income was about three per cent per annum, but that jumped to 10 per cent in 2014.
The strong numbers and investments totalling RM6.6 billion enabled the northern corridor to top the list on the scorecard of the Malaysian Industrial Development Authority.
Q: With so much of economic development and progress, what can we expect from the third wave and how much further will it contribute to growth?
A: Given the infrastructure, economic backdrop, state plans and priorities, and resources, we need to move to the next level.
Now that this region is ready for the third wave, which will see the development more concentrated and specialised, we can step up efforts towards an equitable society.
The 11th Malaysia Plan has spelt out the role of the regional corridor authorities to bring about inclusivity and private sector participation in the rural areas.
To achieve this, we need to align our focus with the big picture and that is what is entailed in the review of the blueprint.
Prime Minister Datuk Seri Najib Razak will launch the Blueprint 2.0 today.
Unlike previously, which adopted a top-down approach, we are now using a bottom-up approach with the help of the stakeholders, namely, the government, academia and private sector to achieve the targets we have set.
It is about creating employment opportunities further, raising income levels and skills sets not to mention the quality of life.
Q: Can you identify the targets in the new wave?
A: The group identified 80 projects, which we grouped in three categories — manufacturing and agriculture and bio industries and services — to take things to the next level from 2016 to 2025.
The unique strengths of NCER are its strategic location (Indonesia-Malaysia-Thailand Growth Triangle and Asean), food security agenda, tourist agenda and manufacturing ecosystem.
Seven growth nodes are the big ticket items spread over four states, based on detailed studies which identified the job opportunities, as well as the impact of GDP and gross national income. They are:
PERLIS Inland Port;
CHUPING Valley Industrial Area;
KEDAH Science & Technology Park;
KEDAH Rubber City;
BATU Kawan Development;
GREATER Kamunting Conurbation; and
MANJUNG-AMAN Jaya Maritime Jaya
We also have 28 transcending border projects in which we work closely with the four states and get them to collaborate.
Some of the projects in this game changer are very interesting.
Take, for instance, the super foods and superfruits grown in the four states.
Perak has halia Bentong, Penang has lemon, Kedah has fig while Perlis has large tracts for the cultivation of fig, lemon and gac fruit.
These are high-value crops where we work closely with the private sector which assists in the marketing aspects while the tissue culture is provided by our local university, Universiti Sains Malaysia.
We are also into localised high-impact projects like the famous My Suria, stage bus service transformation, community innovation centre and estate management model.