NCIA To Boost Private Sector Participation In Second Phase

Source From (Bernama): http://www.bernama.com/bernama/v6/newsbusiness.php?id=675176

Published: on 23 Jun 2012

By Samantha Tan Chiew Ting

GEORGE TOWN, June 23 (Bernama) -- The Northern Corridor Implementation Authority (NCIA) is entering the second phase of strengthening private sector participation in the regional economy.

The NCIA has three-phased approach in its development-planning framework.

The second phase will be achieved by sustaining an unbroken stream of foreign direct investments (FDIs) into the Northern Corridor Economic Region (NCER), while at the same time, carving out business opportunities for local small and medium-sized enterprises.

Starting next year to 2020, the second phase entails the broadening and deepening of private sector involvement in the economic development of the region.

"This includes the establishment of dynamic business networks via foreign and domestic linkages," said its Chief Executive, Datuk Redza Rafiq.

He said the NCIA was successful in implementing the first phase of the Northern Corridor's development blueprint from 2007 to 2012 by securing anchor investors and building priority infrastructure.

"The NCIA is confident of the continued interest of foreign direct investors in the region because of the complete eco-system in the Northern Corridor, namely the right business culture, the right skills, an efficient and comprehensive logistics network, and excellent facilities.

"At the same time, we want to carve out business opportunities for the local small and medium enterprises arising from the FDIs," Redza told Bernama in an interview today.

Last year, the Northern Corridor attracted investments worth RM9.91 billion, of which 90.4 per cent were foreign investments mainly from the United States, Europe, and Japan in the manufacturing and agriculture sectors.

Redza said the NCIA would promote tourism as the next growth area to further augment the region's burgeoning economic growth.

He added that tourism, particularly medical and nature tourism are promising sectors, given the rising demand from the China and India markets, which have yet to be adequately harnessed.

He said plans and programmes are being formulated to set a firm footing for the Northern Corridor to move into the second phase of its evolution.

Key initiatives include the formulation of the Perlis Strategic Development Plan, the Belum-Temengor Rainforest Integrated Master Plan, a Strategic Plan to Reposition the Kulim Hi-Tech Park and an economic transformation blueprint for the Greater Kamunting region.

Commenting on the challenging and uncertain external economic environment, Redza said the NCIA was well aware of the economic challenges confronting the region.

In this regard, the NCIA has taken several steps to mitigate the adverse impact of an economic slowdown in the region, including the engagement with Frutania Industry in Kangar (Perlis) and World Micro Components in Batu Maung (Penang).

Frutania is involved in downstream activities, particularly in the production of mango juice and pulp.

This initiative has created 180 contract-farming opportunities through the Federal Agriculture Marketing Authority (FAMA) and the Muda Agricultural Development Authority, with 400 farmers benefiting as suppliers.

It has also ensured the creation of a new source of income for farmers in Perlis and Kedah.

World Micro, meanwhile, is expected to improve Malaysia's ability to rid the global supply chain of counterfeit electronic parts through various training programmes, and provide the electronics industry with excess inventory disposition programmes to local and regional businesses.

This programme has since become a value-added component that has further augmented the Northern Corridor's business eco-system.

-- BERNAMA