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Langkawi International Smart Green City Forum 2015
17 October 2015
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Agenda
• A Regional Approach To Economic Development
• Playing The Role Of Enabler And Facilitator
• Ensuring Inclusiveness And Sustainability
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A Regional Approach To
Economic Development
3
A Regional Approach To
Economic Development
Malaysia’s 5year plans to
head towards
Vision 2020
Moving into the knowledge
economy
Late 1990s onwards
1980s to mid 1990s
Resource Led
Economy
Knowledge
Economy
1957 to late 1970s
Agriculture
Based
Economy
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A Regional Approach To
Economic Development
Five regional enablers to drive
economic development
Koridor Utara covers 7% of Malaysia’s land area
Koridor Utara covers
7% of Malaysia’s
area,
but contributes
overland
20%
ofbut
Malaysia’s GDP
contributes over 20% of Malaysia’s GDP
>30%
…of tourist expenditure
>60%
…of agriculture regions for paddy growing
8th
…most liveable city in Asia
…of manufacturing
exports
A Regional Approach To
Economic Development
Regional
programmes
cannot work
unless they fit
the cultural and
social context
in which they
are being
implemented. A
region’s social
and cultural
aspects must
be understood
Three changing elements that
influence regional development
Historical
Geographical
Social/Cultural
Regional
Economic
Development
Nation
Building
Regional development is constantly
evolving, owing to the changing needs
and circumstances of the community.
It is a dynamic process, not a goal.
Playing The Role Of Enabler
And Facilitator
NCIA’s
Mandate:
Created under
Act 687, NCIA is
the entity
mandated to
drive the
Government’s
regional
strategies in the
context of the
economic
development
agenda
Koridor Utara’s development is
driven by four key thrust areas
Enabling Eco-system
Human Capital Development Programmes
Playing The Role Of Enabler
And Facilitator
NCIA’s
Mandate:
Created under
Act 687, NCIA is
the entity
mandated to
drive the
Government’s
regional
strategies in the
context of the
economic
development
agenda
Council members of NCIA
Playing The Role Of Enabler
And Facilitator
Common Agenda
Shared Measurement
Mutually Reinforcing
Activities
Continuous
Communication
Backbone Support
The
sector to spearhead
Shared private
vision
economic development
Shared results & accountability
Government
Government
Delivery of co-ordinated plan of action
Enabler and
via differentiated approaches
facilitator for
economic
Consistent
& open communication
development
Escalation feature, with ability to
convene
participating organisations
Academia
Academia
Knowledge
transfer
partners
Businesses
Businesses
Driver of
economic
opportunities
The
The Public
Public
Beneficiaries
and partners in
the delivery of
economic
initiatives
Government
Playing The Role Of Enabler
And Facilitator
NCIA has been What happens in the background of
positioned by
each private sector engagement
Ministries and
Institutions are determined by laws
Top-down
Agencies
written by political leaders.
approach
(including State
and Local
Institutions arise from social norms,
Governments)
customs, traditions and values of
Bottom-up
individuals and that written laws only
as a regional
approach
serve to formalise what has already
enabler for their
been shaped by individuals.
respective
Members of NCIA Council and
The NCIA
programmes.
Approach
management committees comprise
representatives of each of the 4
states. Committees at State level also
include NCIA representatives
Businesses
Playing The Role Of Enabler
And Facilitator
Deal flows to catalyse economic
growth via private sector endeavour
The Private
Sector
Assistance on building
arrangements
Why has the private
sector been identified to
spearhead economic
development?
Job
Opportunities
Business
Opportunities
Supporting
Enablers
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Businesses
NCIA Phase 2 Strategy Driven
By Key Growth Nodes
The Growth Nodes Strategy is guided by
six (6) strategic studies
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Businesses
Snapshot: Economic Impact
From Key Growth Nodes
Lembah
Chuping
Kedah
Science &
Tech Park
Lembah Chuping
Kedah Science &
Technology Park
12,674
49,321
Total number of jobs
created as of 2025
Total number of jobs
created as of 2030
RM2.58b
RM72.68b
GNI contribution per
year from Lembah
Chuping’s proposed
industries as of 2025
Total output impact
from construction
and operations from
2016 - 2030
Two New Green
Initiatives in
Koridor Utara
Greater
Kamunting
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Businesses
Snapshot: Chuping Valley
Perlis exhibits high levels of solar radiation
Average Annual Solar Radiation in
Malaysia (MJ/m2/day)
An increase in the amount of renewable energy
investment implies demand
Malaysian Investments in Approved Renewable Energy
Projects (RM bil)
Solar Energy
Generation
RM billion
2
1,5
1
0,5
0
2012
Green
Materials
Manufacturing
There are varied industry applications for
Green Materials
Not all parts of the E&E value chain are extensively
undertaken in Penang
General E&E Value Chain
Automotive
Industrial
E&E
Property
Green E&E
Manufacturing
There has been growing international
demand for halal products
R&D/Design
Legend:
0,40
RM
RM billion
0,50
(CAGR)
~ 16.3%
80
20
Proposed Value Chain Focus of
Lembah Chuping
Final Testing/
Packaging/
Assembly
Distribution/
Installation
Value Chain Focus of
Penang
0,60
100
40
Testing/
Packaging/
Assembly
Malaysian Value Add Per Gross Output (2012)
120
60
Raw/
Intermediate
Component
Production
Pharmaceutical goods are higher value added
compared to F&B
Malaysian Halal Exports 2010-2020e (expected)
Halal
Industries
2013
(CAGR)
~ 12.9%
RM 0.40
0,30
RM 0.15
0,20
0,10
0,00
0
2010
2013
2020
Pharmaceuticals
F&B
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Businesses
Snapshot: Kedah Science And
Technology Park
KSTP’s Vision
“To be world-class in the promotion and commercialisation of
applied scientific research and technology”
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Academia
Ensuring Inclusiveness And
Sustainability
Collaborative Leveraging on the institutions of
efforts with
higher learning
USM, UniMAP,
UUM and also
KUISAS have
enabled NCIA
Benefiting
to set up
communities in
Koridor Utara
knowledge
receptacle and
knowledge
transfer
initiatives in
Koridor Utara
INDUSTRY: to utilise
the resources of IPTAs
to enhance their
capabilities.
COMMUNITY: to
benefit from the
knowledge generated
in IPTA to improve
quality of life within
the community.
GRADUATE/
POSTGRADUATE
INTERNS: to enhance
their personal &
professional
development.
ACADEMIA: to take in
knowledge from
industry/community
into their teaching,
R&D and consultancy
activities.
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The Public
Ensuring Inclusiveness And
Sustainability
The NCIA
Getting the local communities
Shared Value
involved
Concept (SVC):
• When a company locates itself in a particular
A new way
area, we are presented with various avenues
forward?
for collaboration.
• The normal view is “what is good for a
company is also good for the community”,
as the company would be able to create jobs
and business opportunities.
But SVC states that what is good for the
community can also be good for the company.
The Public
Ensuring Inclusiveness And
Sustainability
ECONOMIC IMPACT:
a) Reduced urban-rural
disparities
b) Equitable distribution of
sustainable economic
opportunities
c) Increased household
incomes, job opportunities,
business profitability,
and standard of living
SOCIAL IMPACT:
a) Improved community wellbeing
b) Enhanced collaborations
with multiple stakeholders
c) Improved relationships
between the business
community and the people
Getting the local communities
involved
The Public
Ensuring Inclusiveness And
Sustainability
Getting the local communities
involved
Re-conceiving products & markets
The Nestle Paddy
Club represents
a real game
changer for
paddy growing
Re-imagining the supply chain
Re-thinking engagement models (eg
clustering) to ensure economic spillovers to local communities
The Public
Nestle Paddy Club
UPSTREAM
DOWNSTREAM
MARKETING
SVC :
i.
Nestle will buy back all
paddy production from
farmers.
ii. Nestle provide Agro
Organica , an organic
fertilizer to their farmers at
discounted prices.
Paddy
straws
to
be
processed
into organic
fertilizer
UPSTREAM
‘Raw material/
paddy straw
Contract
farmers
(150 pax)
Workers
(150 pax)
DOWNSTREAM
(Nestle products &
organic fertilizer from
paddy straws)
MARKETING
(Finished goods and ready
for consumption) through
milling company
Nestleappointed
Milling Co 1
Nestleappointed
Milling Co 2
Nestlé has access to a reliable,
traceable and controllable source
of rice for infant cereals
manufacturing
The Public
Nestle Paddy Club

Location: Kerpan,
Kedah

Farm size: 300 hectares

Project components:
i.
Upgrading Farm
Infrastructure and
Facilities
ii.
Purchasing
Machinery and
Equipment
(I) Increase Farmers’ Income
a) Current: RM10,400
(RM2,600.00 x 2 Hectares x 2 seasons per year)
b) Expected: RM30,800
(RM7,700 x 2 Hectares x 2 seasons per year)
(II) Increase of RM20,400 per Contract Farmer per year
a) 196% increase in income per Contract Farmer
Paddy
Production Kg /
Hectare / Season
Contract BuyBack Price / Kg
Estimate
Production Cost
/ Hectare
Profit/ Hectare /
Season
Before
4,000
RM1.40
RM3,000
RM2,600
8,000
RM1.40
RM3,500
RM7,700
After
Note: Higher production cost due to compliance with Nestle’s SOP requirements.
Creation of 150
contract farmers
Public Funding =
RM2.0 Mil
Total Private Funding = RM10.0 Mil
(to be invested in Koridor Utara)
Timeline = From Year 2014 – 2018 ( 5 Years)
* Proposed funding for infrastructure cost covering 300 hectares.
The Public
Ensuring Inclusiveness And
Sustainability
Getting the local communities
involved
Re-conceiving products & markets
SuriaKU project
represents a
real game
changer for the
solar industry
Re-imagining the supply chain
Re-thinking engagement models (eg
clustering) to ensure economic spillovers to local communities
The Public
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SuriaKU : Proof of Concept
Owner : Pn Rupeah Bte Ali
Address : No 414, Kampung Ulu Pauh, 02600 Arau, Perlis
Date of Installion: 17January 2014
Date of FiAH approved : 4 September 2014
Date of connection to national grid : 23 October 2014
The Public
And In Conclusion…
• Shared value
• CIC
Come with us to the North of
Malaysia – the Northern Corridor
Economic Region is the key to
your continued success.
This is our
commitment
to you…
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Reach for the Stars!
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