By Tara Yean
Malaysia has been demonstrating commendable economic resilience in 2024, with the state of Kedah securing the top spot in approved investments among the other states within the country for the first quarter of 2024 (1Q 2024), with a total of RM31.3 billion of investments as of June.
According to Menteri Besar Datuk Seri Muhammad Sanusi Md Nor, the figure was part of the total RM83.7 billion approved investments in Malaysia for the quarter.
The approved investments in Kedah, he said, involved 51 projects and were expected to create 2,262 jobs.
Meanwhile, in an exclusive interview with The Exchange Asia, Invest Kedah Chief Operating Officer Noor Ikhsan Abdul Aziz revealed that China-based solar panel supplier and energy storage solutions provider, Risen Energy invested a total of RM42.2 billion in Kedah last year, which became the major contributor for the state to achieve its highest-recorded investment.
“Every year, the state’s investment target is to maintain at least a total of RM10 billion annually for both foreign direct investment (FDI) and domestic investments across all sectors.
“However, in 2024, Invest Kedah is pushing hard to meet our level best to record a total of RM30 billion worth of investments in the state alone,” Noor Ikhsan said.
He added that the state is focusing on a few sectors when it comes to investments, namely renewable energy (RE), semiconductor, automotive, data centres and Halal Park, as well as potentially exploring investments from foreign corporations to establish collaborations with local universities or learning institutions.
“Corporations are also welcome to set up their own research and development (R&D) centre, training facilities or course faculties in the universities as it will contribute to the state’s talent force development and ultimately benefit the technology-sharing concept with the corporations,” Noor Ikhsan explained.
With the state emphasising more investment opportunities, Noor Ikhsan said that the state is divided into 3 major parts where such investments could occur – namely the Northern, Central and Southern parts.
Investing in Energy and Talent
However, for energy-related projects and investments, Invest Kedah encourages several locations such as the Kedah Science Technology Park (KSTP), Gurun, Bukit Selambau and Delapan SBEZ in Bukit Kayu Hitam.
The KSTP is also located in Bukit Kayu Hitam and it has 1,900 acres of land located around 4km to the Malaysia-Thailand border.
“We are also planning to attract and bring in investors to collaborate with the state’s government to develop an Industrial Power Plant to cater to the electrical needs of these industries,” he added.
When asked about other potential investment industries that Kedah would explore, Noor Ikhsan mentioned sectors such as construction, logistics, agriculture, aerospace and telecommunication, among others.
However, Noor Ikhsan noted that potential investors tend to look into the supply of local talent pool to support their operations. Hence, Invest Kedah believes it is part of the state’s responsibilities to establish initiatives and develop the talent to cater for industrial needs.
“It is commendable that the state government is focusing on creating a sustainable talent pool through initiatives such as the Vendor Development Programme – designed and developed to encourage ‘anchor tenants’ from their origin country and establish operation facilities – to increase the investment potential value of Kedah.
“Additionally, Invest Kedah also established a department of ‘Talent and Social’ that is dedicated in making the effort of facilitating the needs for talent in Kedah,” he said.
Placing Kedah as Top State for Investment
Earlier in February, a local news article reported that Sanusi said that ‘Kedah would be the top state in terms of investment, if not for Kuala Lumpur and Selangor’, and that he doesn’t want Kedah to be known as a ‘feeder’ state for other more successful states, which is expected to be achieved through the Greater Kedah plan.
In regard to this statement, Noor Ikhsan said that every state in Malaysia aspires to be the top state in investment.
“Kedah has a very big potential to stand out as its own, among other added value to the state are having its own main trade gateways such as international cargo airport, the Kedah Aerotropolis (KXP) and seaport to function as support for the growing industry.
The development of KXP is strategically located at the centre of ASEAN with a vision to become the Asia Pacific Aviation Hub equipped with regional integrated logistics and transhipment cargo hub; regional maintenance, repair and overhaul (MRO) and aerospace manufacturing; hajj and umrah hub for the northern region of Malaysia; as well as the Regional Centre of Excellence for Aviation and Aerospace Learning and Education, among others.
Noor Ikhsan said that another high-impact project that Invest Kedah believes to increase investment attractiveness is through the data centre industry, which will contribute to providing the computing infrastructure that information technology (IT) corporations require, such as servers, data storage drives and network equipment.
Currently, the Bukit Kayu Hitam is also being developed for data centre investments, which have been granted Free Industrial Zone and Free Commercial Zone status by the Ministry of Finance (MOF) with the early phase of setting up internet exchange facilities.
Securing Kedah’s Future
Noor Ikhsan further explained that the state is poised for long-term success, as outlined in the Kedah Development Plan 2035.
“The Kedah Development Plan 2035 is a state vision that involves comprehensive socio-economic development to ensure that Kedah will become a viable and competitive state nationally and globally,” he pointed out.
With Invest Kedah being the state’s principal investment promotion agency, it is up to the agency to implement the initiatives according to the policies outlined by the state. Among its functions and relations with the private industry, Invest Kedah is able to play its role in assisting the development of higher education, employability of locals and income generation to the state.
Additionally, Noor Ikhsan noted that the Kulim Hi-Tech Park (KHTP) is maintained as the state’s investment magnet since its establishment in 1996. With ready infrastructure (NurPower – dedicated power supply in KHTP), quick intermodal logistics connectivity (BKE connecting North Butterworth Container Terminal, NBCT), excellent support services and plentiful quality talents, KHTP corporations locate their operations and produce their high-value products in a conducive world-class business environment.
According to Noor Ikhsan, the size of the Industrial Zone 1,2 & 3 of KHTP is about 4,734 acres, which is nearly fully occupied. The additional zone (Greenfield) is Industrial Zone 4 (expected to be completed in November 2025) and Industrial Zone Phase 5.
Furthermore, Noor Ikhsan said that there are a total of 7 industrial corridors in Kedah, with a total size of 17,552 acres, which are ready for investment potential in the future to further develop the state and contribute to the country’s GDP as a whole.
