2022 is expected to be a promising year for Kedah, especially after their record investment of RM 43 billion in the previous year as reported in Free Malaysia Today (FMT). As such, the Kedah government expects to draw RM 10 billion worth of new investment from 2022 onwards.
The main attraction for such a high volume of investment is the rapidly growing industrial and manufacturing projects in the state.
In 2022, the following 5 areas in Kedah are expected to be most in-demand considering the rise in manufacturing and industrial projects undergoing there.
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Kulim Hi-Tech Park (KHTP)
The state government is expanding Kulim Technology Park Corporation (KTPC) in Kulim Hi-Tech Park (KHTP) industrial area. As per MIDA, foreseeing the growing attraction of investors in KTPC, they have agreed to implement the expansion in 2 phases, Phase 4A and Phase 5.
The new extension will stretch upon 695 acres to cater to the need of the investors, said Menteri Besar Datuk Seri Muhammad Sanusi Md Nor at a press conference after he presented Kedah’s Budget for 2022 at the State Legislative Assembly on 14 November 2021. He further stated that this would create approximately 15,000 new job opportunities for the people in the area
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Special Boundary Economy Zone (SBEZ) in Bukit Kayu Hitam
Another project that will boost the economy of Kedah is the Science and Technology Park (KSTP) in Bukit Kayu Hitam Special Boundary Economy Zone (SBEZ). KSTP is designed to be a modern industrial park that will be ideal for global research centres. According to New Straits Times (NST), the establishment will facilitate research centres concerning agriculture, agro-science, information, communication and technology (ICT) and green technology.
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Kedah Rubber City (KRC)
Kedah is also advancing in the manufacturing sector by its very first Rubber Industrial Park in the nation. It has taken the name of The Kedah Rubber City (KRC) as the surrounding communities flocked nearby the Industrial Park to cater to this new venture. The construction of the foundation and infrastructure of the Industrial Park started back in 2019. Operations are now expected to start by the first quarter of 2022 as per New Straits Times (NST) report.
The establishment already made a notable transaction in 2020 with the acquisition of 105 acres for a nitrile butadiene latex plant. Hong Seng Consolidated Sdn Bhd bought the land for RM 46 million to develop the plant in the prime location.
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Bukit Selambau
Tenaga Nasional Berhad (TNB) is contributing to the government’s mission of growing renewable energy (RE) in the country. Its second-largest Large Scale Solar (LSS) project is located in Bukit Selambau. The 30 MW plant is equipped with 134,880 solar photovoltaic panels with 14 inventors. It was initially scheduled to start operation on 8 September 2020 but the plant suffered massive delay due to the pandemic as per TNB official website.
Malaysia is in a more balanced condition now with a reviving economy and easing of restrictions. Hence, the plant can soon start operation. Once active, it can greatly contribute to the area’s residents in terms of new job prospects, and make the area sustainable with its green initiative approach.
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Kuala Muda
The government set a target to grow renewable energy (RE) to 31% of the generation mix by 2025. Tenaga Nasional Berhad (TNB) took a major initiative to contribute to this mission through their Sustainability Pathway. Currently, TNB managed to achieve 3,406 MW domestic and international RE. Bernama reveals that to further grow RE, they have signed a 21-year power purchase agreement (PPA) for a 50 MW large scale solar (LSS) development in Kuala Muda, Kedah. The project operating under the LSS4 bidding programme is scheduled to start operation by 31 December 2023.
Industrial and manufacturing activities in the above areas are set to increase in 2022 considering the projects undergoing there. Whether it is Technology Park or a Large Scale Solar System, new industries mean new job opportunities which will increase the purchasing power of people. Thus, potential investors are finding these 5 areas attractive as they are developing to be one of the top productive areas. They will grow in value as they will be in high demand in the coming years which will, in turn, add to their returns.
