GEORGE TOWN – The nation’s northern region has secured RM16 billion worth of investments pledged by investors who expect the economy to rebound once the Covid-19 threat is over.
The investments, expected to flow in over several months, are poised to create 19,652 jobs in Perlis, Kedah, Penang and Perak.
Addressing the 26th National Corridor Implementation Authority (NCIA) council meeting via Zoom, Prime Minister Tan Sri Muhyiddin Yassin said the pledges are a testament to investors’ confidence in the government’s ability to manage the health crisis.
“The encouraging investments show that investors are confident in the country’s economic fundamentals despite the challenges posed by the pandemic.
“The investment commitments and job opportunities are a sign of investors’ confidence in the viability of Malaysia and NCER (Northern Corridor Economic Region) states.”
He said the investments secured by NCIA this year are proof of its success in building a resilient ecosystem that will contribute to economic recovery and provide social safety nets.
NCIA chief executive Datuk Seri Jebasingam Issace John said these are signs that an economic rebound will take place soon.
“There is new hope, and the light at the end of the tunnel is getting brighter.”
At the online event, eight companies expressed their commitment to making high-impact investments in NCER.
“Under the National Recovery Plan announced on June 15, the government seeks to provide (Covid-19) vaccines to as many members of the population as possible by the end of this year, or earlier,” said Muhyiddin.
“This will help revive businesses and the economy. The investment commitments we are seeing today will, God willing, accelerate our recovery process, especially in NCER.”
Among those who participated in the event were Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed, Perlis Menteri Besar Datuk Seri Azlan Man, Kedah Menteri Besar Muhammad Sanusi Md Nor, Penang Chief Minister Chow Kon Yeow and Perak Menteri Besar Datuk Saarani Mohamad.
Hong Seng Industries Sdn Bhd and LTS Logistics Sdn Bhd today agreed to inject RM1.55 billion into the Kedah Rubber City (KRC), the country’s first dedicated rubber industrial park. KRC’s infrastructure development is progressing ahead of schedule, and it is slated to begin operations in the fourth quarter of the year.
Hong Seng Industries will contribute RM1.5 billion, and LTS Logistics, RM55 million. The initiative is expected to create 2,630 jobs.
Linking the region’s major rubber producers in the Indonesia-Malaysia-Thailand Growth Triangle, KRC will strengthen the rubber value chain across the upstream, midstream and downstream segments, enabling local small and medium enterprises to be more competitive.
NCIA has also been able to grow the medical devices industry, which has seen robust growth amid the pandemic.
Aspen Glove Sdn Bhd is acquiring almost 90ha of land at the Kulim Hi-Tech Park to manufacture nitrile and natural rubber surgical gloves.
Ammorium Resources Sdn Bhd will set up a plant to design, develop and manufacture medical-grade nitrile examination gloves on a 52ha plot in Tronoh, Perak.
The electrical and electronics (E&E) industry, meanwhile, continues to be a major engine of growth for the region.
The Bayan Lepas-based Intel Technology Sdn Bhd and Intel Microelectronics (M) Sdn Bhd, both wholly owned subsidiaries of a Fortune 500 company, will invest RM4.4 billion, creating 1,593 jobs.
The Batu Kawan-based Greatech Integration (M) Sdn Bhd, a home-grown large local company and world-leading solutions provider in factory automation, machinery and equipment in E&E, will invest an additional RM1.6 billion in a new operations facility that is expected to commence operations in Q4 this year and create 450 jobs.
E&E investor Infineon Technologies (Kulim) Sdn Bhd is injecting RM2.65 billion into its high-end fully integrated wafer fabrication facility at the Kulim Hi-Tech Park that is expected to create 1,815 jobs.
Another strategic project is the NCER Agriculture Economic Zone (NAEZ) in Chuping, Perlis. The project is endorsed by the Agriculture and Food Industries Ministry, and set to drive Malaysia’s advancement in the agri-food arena and ensure the nation’s food security. The NAEZ is expected to create an economic impact of RM6.1 billion, attract private investment of RM5 billion, and create more than 17,600 job opportunities by 2025 for the region.
In line with the NAEZ initiative, FGV Integrated Farming Holdings Sdn Bhd – a wholly owned subsidiary of FGV Holdings Bhd – is transforming Chuping to be a large-scale farming area for major agriculture activities. The project is set to unlock the full potential of almost 4,500 hectares of agriculture land in FGV Chuping Agro Valley through the development of an Integrated High-Value Cash Crop Plantation and the potential development of a fully integrated large-scale dairy farming that will commence after completion of a comprehensive feasibility and technical study by end 2021. – The Vibes, June 25, 2021
