Northern Corridor Economic Region
The Northern Corridor Economic Region, commonly referred to as the Northern Corridor, is a development plan encompassing the four northwestern states of Malaysia, namely Perlis, Penang, Kedah and Perak. It was launched in 2007 by the federal government with an aim to transform the region into a sustainable and socio-economically balanced region by 2025. The Northern Corridor Implementation Authority is the statutory body responsible to establishing the NCER's direction, policies and strategies.
Background and history
In an effort to reduce regional imbalances and provide equitable economic growth across the country, the Government of Malaysia established five economic regions in the Ninth Malaysia Plan. The Northern Corridor Economic Region was formed in 2007 to leverage on the various economic and social advantages of selected areas in the four northern states of Peninsular Malaysia – Kedah, Perlis, Perak and Penang. The Northern Corridor Implementation Authority was established as the body tasked to oversee, plan and execute economic and social development strategies in the NCER by focusing on agriculture, manufacturing and services.In 2014, the district of Manjung, Perak, was included in the NCER; and this was followed by the rest of Perak in 2016. The northern states that form the NCER remain as the country's most ideal agricultural location with consistent tropical weather as well as vast and fertile land. All the four states have consistently enjoyed economic and political prosperity. The region is strategically located, bordering Thailand and facing the Straits of Malacca. It has the potential to be a world-class trade destination by leveraging on strong relationships with Sumatra and Thailand. The region's border towns such as Pengkalan Hulu-Betong, Padang Besar, Bukit Kayu Hitam-Sadao and Durian Burung-Ban Prakop are gateway towns between Malaysia and Thailand that hold potential for economic and social expansion.
Perlis, Penang, Kedah, and northern Perak combine to form 7 percent of Malaysia's land area, but contributed over 20 percent to the country's GDP, 60 percent of agricultural land, 30 percent of tourism income, and 45 percent of exports in 2011, according to NCIA chief executive Redza Rafiq.
The NCER blueprint was formulated by Sime Darby Berhad. The plan calls for investments totaling RM117 billion over 18 years from 2007 to 2025. Implementation of the plan is divided into three phases. The first phase involved securing anchor investors and constructing priority infrastructure. The second phase aims to broaden and deepen private sector involvement, while the final phase is to achieve regional market leadership through sustainable market-led growth.