With an ambitious plan of not just economic but also social targets during an economic downturn, the NCER has its work cut out for it. Fortunately, its efforts are paying off, generating attention and investments, from local and overseas parties.

After a somewhat gradual start, the Northern Corridor Economic Region (NCER) has been emerging with force in recent months, drawing billion-dollar international investments and launching measures to boost local talent and enhance business prospects.

Launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi in July 2007, the NCER comprises four states — Perlis, Kedah, Penang and the northern districts of Perak. Implemented by the Northern Corridor Implementation Authority (NCIA), the NCER’s master plan focuses on the long-term enhancement of the agriculture, manufacturing and services/tourism industries as well as infrastructure, transport and logistics in supporting the combined economic activities of the four states.

“The thrust of the programme is social equity,” the NCIA’s senior vice-president (manufacturing industry division) Chris Tan told the Edge recently. “The NCER initiative is intended to address any infrastructural disparities between the underdeveloped localities and the urban centres like Penang.”

Ideal Working and Living Environment

The plan aims to secure mainly local investors during the first three years, followed by the rollout of high- impact projects in each participating state. In addition, the NCER will see upgrading of infrastructure such as roads, new highways and expanded transportation/logistics facilities such as air, railway and ports.
This will help make it a destination of choice for foreign and domestic businesses to invest in, while its emphasis on social development, community infrastructure and environmental integrity will make it a place where both Malaysians and foreigners would choose to work, learn, visit and live.

Penang the Centre of Growth

The NCER master plan envisions over RM177 billion in investments up to the 12th Malaysia Plan in 2025. Of this, the government will be funding about RM60 billion, while the remaining RM117 billion is targeted for funding via a combination of private investments and Private Finance Initiatives (PFI).

With current economic conditions, its funding until the mid-point of the Ninth Malaysia Plan (9MP) was revised from RM2 billion to RM1.506 billion – still “a lot of money”, says NCIA chief executive Datuk Seri Paduka Mohammad Annuar Zaini.

Penang itself has been allocated RM6.2 billion under the 9MP, an increase of 27% from the Eighth Malaysia Plan (8MP), and is expected to be the key beneficiary of the NCER’s efforts.

The state's strategic location and infrastructure make it the natural gateway to the NCER and an ideal logistics hub for the Indonesia-Malaysia-Thailand Growth Triangle. Already the country’s manufacturing hub producing 28 per cent of Malaysia’s exports, Penang’s efforts to move up the value chain into high-tech and high-value, skill and capital-intensive work will be enhanced.

Billion-Ringgit Initiatives and Better Talent

Despite the economic downturn, investors are coming aboard the NCER. Sime Darby has been touted as one of four investors (the others being from the Middle East and Asia Pacific) keen to develop Pulau Jerejak as a tourism-related hub. The 362-hectare island, earmarked for a premier medical tourism centre under the NCER blueprint, would with this new round of investors see an influx of billions of ringgit over 10 years.

Meanwhile, the Federal Government late last year launched two new initiatives in partnership with the manufacturing industry: the Northern Corridor Industrial Technical Skills Enhancement Scheme (NCITES) and the Kulim Hi-Tech Park Skills Development Centre. The initiatives are aimed at nurturing relevant skills and increasing the local talent pool, particularly in the Kulim Hi-Tech Park (KHTP), helping to retain existing investors and attract new ones.

Other important manufacturing projects under the NCER are a centre of excellence (CoE) for micro-electronics and a biotech incubator.

Boosting Infrastructure

NCIA’s Datuk Seri Paduka Mohammad Annuar has acknowledged that there are still many basic structures to put in place before the NCER can fulfil its vibrant economic and social potential. Priorities include conditions at the Penang Port and Kulim Hi-Tech Park, services such as educational facilities for expatriate families and the social environment, including crime and lack of recreational facilities.

In terms of development, fortunately many developers have been taking the Government’s cue and have embarked on their own projects in Penang –IJM Corporation with its RM5 billion The Light waterfront development, and Hunza Properties with its Gurney Paragon development, to name a few.

Making the Most of all its Assets