“Kedah, Your Ultimate Profit Centre” INVESTMENT OPPORTUNITIES IN KEDAH, MALAYSIA
“Kedah, Your Ultimate Profit Centre”
INVESTMENT
OPPORTUNITIES
IN KEDAH, MALAYSIA
Area size of 329,000 sq km
14 states
GDP 2012: 5.6% , 2013: 4.7%
Population of 29 mil people withmultiple ethnic groups and religions
Stable and pro-business government
MALAYSIA
South China Sea
Japan
Malaysia
Capital city is Alor
Setar
Area size 9,426 sq
km (2.9% of
Malaysia)
12 districts including
Langkawi Island
Population: 2.02 mil
KEDAH DARUL AMAN
GEOGRAPHY & CLIMATE
• Located in the northwest corner of Peninsular
Malaysia, bordered by Perlis in the north, by the
Straits of Malacca on the west, and by Penang and
Perak in the south.
• Climate - tropical monsoon
• Uniform temperature between 24°C to 34°C
ECONOMIC GROSS DOMESTIC PRODUCT
- KEDAH
2009 2010 2011 2012 2013
GDP at
constant
2005 prices
(RM million)
21,092 21,998 23,863 25,278 26,434
GDP per
capita at
current
prices (RM)
12,481 13,744 15,388 15,814 32,984
GDP
Growth (%)(0.5) 4.3 8.5 6.1 4.6
Source: Department of Statistics, Malaysia
Capital city is Alor Setar
KEDAH KEY GROWTH AREAS
World famous tourist
destination with an
international airport facilityBorder Town development at
Bukit Kayu Hitam. One of the
major entry points from
Thailand
World class Kulim Hi-Tech
Park
Sungai Petani Industry City.
Halal Park
Automotive Hub in Gurun
Kuala Ketil Industrial Area
Bukit Kayu Hitam Industrial
Estate
Universiti Utara Malaysia
(UUM)
AIMST University
Automotive Hub in Kulim
UiTM
Polytechnic
Polytechnic
Durian
Burung
Bukit Kayu
Hitam
INVESTMENT OPPORTUNITIES
Investors are welcomed to invest in:• Automotive / Transportation – Related Industry
• High-Tech Manufacturing; Research, Design and Development
• Hi-Technology
• Bio-Technology
• Agro & Aquaculture
• Manufacturing
• Tourism
• Oil & Gas
• Halal Food Hub
INDUSTRIAL DEVELOPMENT ZONING
IN KEDAH
• Divided into 5 development zones:-•
The Northern Part of Kedah – Halal Industry, Education, Land Port, CIQ and hydrocarbon.
•The Northwest – Tourism, Marine Industry Services
•The Central part – Automotive, Petroleum & Tourism
•The Eastern Corridor – Agro-Based Industry, Agro Tourism
•The Southern Part of Kedah – High-Tech Industry,
Bio-Tech, Manufacturing.
POTENTIAL INVESTMENT
ZONES
WHY KEDAH?
Kedah : A Preferred Choice
• Political and economic STABILITY.
• Government committed to maintain a BUSINESS
FRIENDLY environment.
• PRODUCTIVE and MULTI-LINGUAL workforce.
• MARKET oriented economy.
• COMPETITIVE and COST EFFECTIVE investment
environment.
• EXCELLENT infrastructure.
• LOWER cost of operation.
• LOWER cost of living.
• COMPETITIVE industrial land.
• FAST approval to set up business
• Financial FACILITIES
REASON TO INVEST IN KEDAH
KEY DEVELOPMENT NODES
2013 - 2018
Kulim Hi-Tech Park
Kedah Science & Technology Park
Rubber City
Kulim International Airport
Kedah Aerocity
Automotive Hubs
Petrochemical / Oil & Gas
Medical Science City
Kedah Integrated Fishery Terminal
High Precision Machining Centre
KEY
NODES
2013-2018
KULIM INTERNATIONAL AIRPORT
• Location - Kulim, Kedah.
• Proposed New Major Airport (Northern region)
Passenger
up to 40 millions
passengers/year
Cargo
next 30-50 years
Two runways.
Link to high speed train
KEDAH AEROCITY
• Kedah Aerocity aims to develop Southern Kedah
into a regional aviation maintenance, repair and
overhaul (MRO) services hub, capitalising on
global market growth.
• Caters to international FBOs, MROs, Air Charter
Operators and OEMs.
• Compliment to Kedah International Airport (KXP)
•Kedah Aerocity follows initiatives that have been
undertaken through Malaysia Entry Point Projects
(EPP) include the gradual adoption of European
Aviation Safety Agency (EASA) standards by the
Department of Civil Aviation Malaysia (DCAM).
DCAM is also in the process of introducing an E-
exam platform to expedite licensing for new
aircraft engineers.
•Currently in Malaysia, we have company such as
Fixed Base Operator
Maintainance, Repair & Overhaul
Air Charter Operators OEMs
SUNGAI PETANI-KEDAH INNER
EXPRESSWAY (SPIKE)
New expressway connecting Changkat Jering,
Perak to Sungai Petani, Kedah via Kulim
Approximately 133 km.
Shorten travel time at North-South Highway by
avoided traffic congestion at Seberang Perai, Pulau
Pinang
In the future, State Government will have another
alternative to connect this expressway to Bukit
Kayu Hitam that will take about 83 km.
SPIKE will be a compliments to Kulim Hi-Tech Park
dan Kedah International Airport
MEDICAL SCIENCE CITY
Proposed area – Bandar Baharu, Kedah
Components:
Zone A - Medical Manufacturing Industries
Zone B - Medical Research Centre
Zone C - Medical Research University
Zone D - Anti Aging Hospital
Zone E - Healthcare Assisted Living home
Zone G - Green City Home
Zone H - Medical Commercial Complex
Total Investment : Total RM2.34B
Job Opportunities : 6,850 jobs
KEDAH SCIENCE & TECHNOLOGY
PARK (KSTP)
Located at Bukit Kayu Hitam
Industrial Area
Near Thailand border (Danok).
45 km north of Alor Setar
Total size 1,933 acres
Mirror the success of Kulim Hi-
Tech Park but focusing on
advanced technologies
PROPOSED SITE
KSTP’s Vision
KEDAH SCIENCE & TECHNOLOGY
PARK (KSTP)
Proposed Development Clusters in KSTP
KEDAH SCIENCE & TECHNOLOGY
PARK (KSTP)
KEDAH SCIENCE & TECHNOLOGY
PARK (KSTP)
“The Rubber City is a national level strategic project that is
expected to bring benefits to both Malaysia and Thailand”
A strategically located project situated in the
heart of the Natural Rubber Economic
Belt, close to the source of raw materials;
strongly supported by the Malaysian and
Thai governments to stimulate socio-
economic development in an economically-
depressed border region
A national level project
RUBBER CITY
The Rubber City is a strategic project to elevate the global
competitive position of the Malaysian rubber industry, and
provide economic benefit to the hinterland of Kedah
The Rubber City will lead Malaysia to
be a global leader in the rubber
industry by:
Leading in niche and
downstream rubber sectors
Creating greater resilience with a
diversified portfolio of products
Achieving higher position in the
global value chain, extracting
more value in Malaysia
Generating a larger knowledge-
based workforce
Developing local innovation and
R&D capabilities
The Rubber City is a strategically located project situated in the heart of the Natural Rubber Economic Belt,
close to the Malaysia-Thailand border. The socio-economic development of this border region is strongly
supported by both the Malaysian and Thai governments.
Global Leader in
the Rubber Industry
Rubber City is proposed at
Ladang Bukit Ketapang / Kuala
Nerang
RUBBER CITY
Core Industries
“Green” Rubber Products
Rubber-based products which are produced using
environmentally-friendly raw materials and / or
processes, e.g. Ekoprena tyres1, reclaimed rubber
products such as rubberised bitumen; or which
contribute to lower carbon footprint
Precision Engineered Rubber Products
Precision moulded rubber products for different
industrial sectors, e.g. seals, gaskets, bearings for
automotive, medical devices, aerospace,
construction sectors
Specialized Latex and Rubber Products
Innovative, high value-add and specialized
products for niche customer segments, e.g.
specialty / surgical gloves, catheters, latex
mattresses, adhesives, “intelligent” rubber
Catalytic Anchor Tenants
Large, well-recognized leading rubber product
manufacturers, e.g. latex / nitrile gloves, passenger
and commercial tyres, condoms
High Value Add Sub-categoryLegend: Catalytic Sub-category
RUBBER CITY
… focusing on high value add downstream products from both
natural and synthetic rubber
Rubber ProductsSynthetic RubberNatural Rubber
RUBBER CITY
KEDAH INTEGRATED FISHERY TERMINAL
PROPOSED PROJECT SITEKEDAH INTEGRATED FISHERY TERMINAL
Malaysia is one of Indian Ocean Tuna Commission (IOTC)
31 members (as at 2013)
KEDAH INTEGRATED FISHERY TERMINAL
EEZ: East Malaysia
Oceanic Tuna: 25,000 tan
(RM 150 million)
EEZ: Peninsular Malaysia
Neritic Tuna 200,000 tan
(RM 200 million)
Indian Ocean
Oceanic Tuna 30,000 tan
(RM 300 million)
KEDAH INTEGRATED FISHERY TERMINAL
Architectural Illustration
KEDAH INTEGRATED FISHERY TERMINAL
Kedah has become the automotive
hub in 2 areas namely Gurun and
Kulim
These 2 sites carry 14 brands
including BMW, MAZDA, KIA,
PEUGEOT, CITROEN, HAVEL
(Greatwall) and etc.
Advantages of Gurun and Kulim:
Direct access to North South
Expressway
Close to double tracked railway line
and station
Availability of land for expansion and
for new investors
Availability of talent to support
operations
AUTOMOTIVE HUBS
Activities
Oil Refinery
Oil Storage
Oil Transportation
Supporting Activities
OIL & GAS ACTIVITIES IN KEDAH
YAN, KEDAH IS A STRATEGIC LOCATION TO FULFILL OIL
EAST ASIA DEMAND FROM WEST ASIA SUPPLY
Crude Oil
Petroleum products
YAN
PETROCHEMICALS
(YAN PETROLEUM INDUSTRIAL ZONE)
PETROCHEMICALS
(YAN PETROLEUM INDUSTRIAL ZONE)
Outside the major fault zone and is
the ‘Central Point’ from the West to
the Peninsula
Enjoys the most comfortable span
outside the world’s busiest shipping
route
Existing natural passage way and
draft for extra large vessels to ply
the area
North of Penang Port
Hydrographically suitable for SBM
(Single Buoy Mooring) operation
Suitable for Tank Farm and refinery
Strategic LocationNorth
Basin
South
Basin
Jerlun
ZIPY
Reference TLDM Hydrographic MapMAL 565 Ko Tarutao – Pulau Pinang Edition 31 October 2006 Note 2004-66-2006-150-202007-72-91Note: 1 Nautical Mile = 1.854 KM
North
Basin
South
Basin
Jerlun
ZIPY
Reference TLDM Hydrographic MapMAL 565 Ko Tarutao – Pulau Pinang Edition 31 October 2006 Note 2004-66-2006-150-202007-72-91Note: 1 Nautical Mile = 1.854 KM
West of Kuala Sg Limau and
North West of Pulau Bunting,
Coast of Kedah State,
Open Sea
Mouth to Straits of Melaka
Good Draft 36m
Coastal areas with excellent
geographical, political and
socio–economic potentials
for development
PETROCHEMICALS
(YAN PETROLEUM INDUSTRIAL ZONE)
Strategic Location
KULIM HI-TECH PARK
– Vibrant Business Environment
Centrally located within
Malaysia’s Northern
Region
26 km from North
Butterworth Container,
Penang Port
45 km from Penang’s
Bayan Lepas International
Airport
Directly linked to the
North-South Highway and
East-West Expressway via
Butterworth Kulim
Expressway
MASTERPLAN
Total Industrial Land:
1,061 acres
Occupied :
878 acres
Available :
183 acres
INDUSTRIAL ZONE
IZP1 – TENANTS
IZP2 – TENANTS
COMMUNITY POLICE
COMMUNITY POLICE
Industrial Land
Total Land: 371 acres
Occupied : 231 acres
Available : 140 acres
IZP3 – TENANTS
INDUSTRIAL ZONE PHASE 4
Target completion
2015
INFRA UTILITIES
Cur. Demand: 45K cu m/day
Current Demand: 110 MW
Current Demand: 3,000 lines
Dedicated main supply from Sg. Muda, with dedicated water treatment plant
Supply Capacity – 85,000 cubic metre per day (3 reservoirs)
Water quality per WHO standard
Maximum 24 hour restoration time
Supply capacity has increased to 107,000 cubic metres per day with completion of IZP3.
Electricity Water
Minimum service availability for all services per month (99.9%)
Transmission capacity: 24 -core fibre optics network
Exchange capacity: 7,000 lines upgradeable to 40,000 lines
24-hour, 365-day service centre
Now, 4MB Broadband (Streamyx). Soon, broadband to homes ranges from 1MB –100MB. 1G on request.
Infostructure
GAS MALAYSIA &
KULIM INDUSTRIAL GASES (KIG)
Natural GasProvided by Gas Malaysia Sdn Bhd to tenants using an underground gas pipeline
Industrial GasesProvided by KIG to tenants using an underground gas pipeline
-N2 Plant-Specialty Gas Plant-Warehouse for Storage-Technical Centre
Industrial Chemicals
-Provided by BASF
Gases & ChemicalsJABATAN BEKALAN AIR
(JBA) KEDAH
99.99% reliability & service availability
2 blocks of combined cycle generation facilities – 220 MW
Reliable supply:
6 units of generator available currently /
3 units running continuously at any one time/ 4th on standby
2 independent supply sources with Hot Standby connection to TNB, &SCADA system for monitoring, controlling and restoration of power
Underground cabling (XLPE cable)
NORTHERN UTILITY RESOURCES (IPU)
Max. Demand: 160 MW
NO AREA YEAR STARTED DEVELOPMENT AREA
( ACRES)
1. Kulim 1978 430.16
2. Sungai Petani 1989 622.31
3. Bakar Arang 1980 558.28
4. Tikam Batu 1975 89.10
5. Mergong II 1980 102.35
6. Mergong Barrage 1988 100.49
7. Kuala Ketil 1994 332.00
8. Bukit kayu Hitam 1995 348.4
9. Gurun 2003 376.82
10. Kulim Hi-Tech Park 1992 4032
Total 6,991.91
INDUSTRIAL AREA IN KEDAH
Organized by : Kedah State Development Corporation
Main Criteria:i. Fundingii. Reliabilityiii. Marketiv. Benefit to State
APPLICATION FOR
SPECIFIC TRADE /
BUSINESS LICENSE
Submit plan to Local
Authorities (MBAS, MPSP,
MD) for “Kebenaran
Merancang & Membina”
MANUFACTURING
LICENSE / INCENTIVES /
DUTY EXEMPTION
- From MITI / MIDA
APPLICATION TO
PURCHASE INDUSTRIAL
LAND
•State Economic
Development Corporation
•Private Developer
•State Government Land
Preliminary study /Application & approval
by Investment Committee
Obtaining General Information(MIDA , Invest Kedah)
Submit detailed proposal (KIC, UPEN)
Approval by State Planning Committee
(SPC) & MajlisMesyuarat Kerajaan
Negeri (MMK)
License / Approval
•Technical Department –
DOE, JPBD, JPS, Bomba,
Police, Land Office
APPLICATION PROCEDURE TO
INVEST IN KEDAH
INVESTOR SUPPORT
End-to-end investor support and handholding resources
from Federal, Regional and State Authorities
Pre-
investmentInvestment
Post-
investment
Manufacturing Sector
Performance in Kedah
& Malaysia
APPROVED PROJECTS BY STATE
(Jan – March 2015)
APPROVED PROJECTS BY STATE
(2014)
APPROVED MANUFACTURING PROJECTS IN
KEDAH WITH PARTICIPATION BY COUNTRY 2014
Country Number Employment Investment (RM)
GERMANY 3 1006 3,210,270,160
USA 1 771 771,000,000
China 1 229 99,600.000
Ireland 1 555 300,979,500
Netherlands 2 201 41,058,001
India 1 201 23,038,223
Hong Kong 1 121 12,706,560
Taiwan 3 194 7,324,303
Japan 1 0 5,715,047
Iran 1 20 3,623,000
Australia 2 102 3,540,000
Thailand 1 75 2,950,200
Singapore 5 102 3,540,000
Source :
APPROVED MANUFACTURING PROJECTS IN
KEDAH (BY INDUSTRY), 2014
Industry
TOTAL
No.Employ-
ment
Domestic Investment
(RM)
Foreign Investment
(RM)
Total Capital Investment
(RM)
Food Manufacturing 2 156 48,965,301 1,257,558 50,222,859
Beverages & Tobacco 1 185 16,274,000 0 16,274,000
Textiles & Textile Products 2 156 18,223,291 2,950,200 21,173,491
Wood & Wood Products 6 80 12,271,276 2,868,000 15,139,276
Chemical & Chemical Products 6 304 34,508,558 51,420,731 85,929,289
Rubber Products 1 96 3,398,041 1,456,303 4,854,344
Plastic Products 6 191 27,649,313 9,255,047 36,904,360
Basic Metal Products 2 17 6,450,000 0 6,450,000
Fabricated Metal Products 3 317 163,027,103 99,600,000 262,627,103
Electronics & Electrical Products 9 3,114 17,304,788 3,977,623,000 3,994,927,788
Transport Equipment 6 342 115,778,177 298,799 116,076,975
Scientific & Measuring Equipment 6 1,131 304,470,070 370,165,713 674,635,783
TOTAL 50 6,089 768,319,918 4,516,895,350 5,285,215,268
Source :
Q & A
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