THE Federal Government has agreed to allow the state of Kedah to reduce a portion of its paddy cultivation areas—particularly around Alor Setar—to make way for industrial, commercial, and housing development, Prime Minister Datuk Seri Anwar Ibrahim announced on Saturday.
“This is one of the benefits of consultation between the federal and state governments,” said Anwar during the closing ceremony of the Madani Rakyat programme at the Baling District Council.
“I’ve shared my views and the Cabinet has agreed that we can slightly reduce the size of the rice bowl area, particularly in Alor Setar. The State Secretary is in negotiations to identify new zones that can meet the state’s needs in terms of industry, housing, and commerce.”
The move comes after the Kedah government requested leeway to repurpose specific plots without undermining the state’s vital role as Malaysia’s principal rice producer.
Anwar also announced an initial federal allocation of RM1 billion for flood mitigation and irrigation system upgrades, part of a broader RM5 billion initiative aimed at ensuring long-term food security and agricultural resilience.
“If we don’t improve the irrigation system, we can’t expect to increase paddy yields,” he said. “Thankfully, I’ve been monitoring the progress over the past few months and there are clear signs of improvement.”
He added that this collaborative approach marks a departure from past practices. “Never before has a Prime Minister visited states, listened to their priorities, and adjusted the Malaysia Plan and federal budget accordingly. This is the benefit of consultation.”
“In the national budget, I’ve also instructed that new 2026 projects take into account both federal and state-level priorities,” he said. “If a state identifies a priority, we will adjust and align our plans to accommodate it.”
Anwar also highlighted a significant increase in federal allocations to Kedah: from RM7.1 billion in 2021 to RM9.7 billion in 2025. Special grants have also risen from RM451 million to RM540 million during the same period.
Development expenditure has climbed from RM1.48 billion to RM2.24 billion, supporting key projects such as the RM922 million Jeniang Water Transfer Scheme, the RM700 million NCER Industrial and Logistics Hub in Sidam, the RM641 million Anak Bukit Flood Mitigation Plan, RM628 million for Kedah Rubber City, and a RM588 million extension of Kulim Hospital.
Other major infrastructure initiatives include the RM575 million upgrade of Route 7 between Lencongan Barat and Simpang Tiga Kemboja, and a RM515 million extension of Hospital Sultanah Maliha in Langkawi.
The Prime Minister stressed that national development must be implemented through close cooperation between federal and state governments.
Meanwhile, Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor welcomed the collaborative approach, calling it “the best formula to ensure Kedah continues contributing to national progress.”
He urged continued openness from the Federal Government to support implementation of state-level plans. “With a ‘whole of nation’ spirit and a true federalist mindset, we hope to translate our shared aspirations into fair and inclusive development—both in urban and rural areas.”
Speaking at the same event, Sanusi said Kedah is moving beyond its traditional agricultural identity towards becoming a key industrial state. Efforts include expansion of existing industrial zones in Kulim Hi-Tech Park, Padang Meiha, Bukit Kayu Hitam, Sungai Petani, and Gurun.
He also cited major ongoing projects such as Kedah Rubber City (KRC) in Padang Terap under the Northern Corridor Economic Region (NCER), and construction of a new road linking Bukit Kayu Hitam’s ICQS complex with the Sadao CIQ checkpoint in Thailand.
Baling itself has been earmarked as an eco-tourism district under Kedah’s 2035 Development Plan, capitalising on its natural heritage and historical sites.
“On 15 and 16 August, Baling hosted the third edition of The Magnificent Baling (TMB) 100 international marathon. This year saw 2,200 participants from 13 countries, up from over 1,000 runners from nine countries last year,” said Sanusi.
“This success demonstrates Baling’s great potential as a sports tourism destination. We are confident that participation will exceed 3,000 next year in conjunction with Visit Malaysia Year 2026.”
He expressed hope that such events would help raise environmental awareness and foster greater social unity. - Sept 6, 2025
