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Kedah Rubber City: Choice Investment Destination for Rubber Industry Players

MIDA Insights - Special Feature

Feb 2020 - Sf

Kedah Rubber City (KRC) is the first dedicated Rubber Industrial Park in Kedah, covering an area of 1,244 acres (54 million sq.ft). KRC is envisioned to accelerate the development of the Malaysian rubber industry and is positioned to be the regional high-value rubber industrial hub in ASEAN. Strategically located within the “Rubber Belt” of the Malaysian-Thailand border, KRC is designed to leverage on the abundance of raw rubber supply and develop a complete ecosystem for the rubber industry in the Indonesia-Malaysia- Thailand Growth Triangle (IMT-GT) area.

Feb 2020 - Sf

The development of this high-impact strategic project in the Northern Corridor Economic Region (NCER) will link the value chain of the rubber industry to become a global growth hub that is led by the private sector.

To date, the Malaysian Government has approved a budget of RM417 million for the development of KRC, including a world-class infrastructure for high-value rubber industry players.

KRC will leverage on Malaysia’s position as the global leader in the rubber industry with research skills in technological advancement and niche rubber production. Upon completion, the industrial park will provide a conducive ecosystem for sustainable rubberbased industry development in NCER through the provision of high-technology, innovation and specialised knowledge content with an emphasis on high value-added products.

Feb 2020 - Sf

Feb 2020 - Sf

KRC will specifically focus on 7 clusters:

  • Cluster 1: Advanced Latex Products 
  • Cluster 2: Tyre and Tyre-Related Products
  • Cluster 3: Automotive Rubber Products 
  • Cluster 4: Engineering Rubber Products 
  • Cluster 5: Advance Rubber Products and Rubber 
  • Cluster 6: Biotechnology 
  • Cluster 7: Service and Support

These clusters are selected based on their impact in providing investors with exposure to growing world markets and maximum commercial success with the potential to transform regional and global players in their respective fields. Investors in KRC will have wide market potential, including the IMT-GT and ASEAN.

Feb 2020 - Sf

They will also have technical support such as world accredited testing facilities, up-skilling employees to meet Industry 4.0 technical knowhow, as well as R&D support either on a fully outsourced approach or on project specific bases.

The regional development authority, Northern Corridor Implementation Authority (NCIA), is developing partnerships with neighbouring countries through the IMT-GT platform to support and accept products produced in KRC.

With the first phase of development in KRC ready to receive investors by June 2020, the Malaysian Government welcomes large and medium-scale investors from domestic and foreign companies to invest in the KRC that would link the region’s major rubber producers in IMT-GT. Investors can look forward to supporting in terms of supervising and managing their specific needs within KRC in terms of infrastructure as well as support services. A comprehensive Special Tax Incentives Package detailing allowance and exemptions is also available for KRC investors.

For more information on Kedah Rubber City, please contact: 


Fajaffri Mohd. Fadzil 

Senior Director, Investment Division

[email protected] 


Dr Wan Abdul Rahaman 

Head, Kedah Rubber City

[email protected] 


Drop your enquiries at:

[email protected] https://bit.ly/38D1cAT

Feb 2020 - Sf

Earthworks and infrastructure work in progress.

Feb 2020 - Sf

Working visit of Mukhriz Mahathir, The Hon. Chief Minister of Kedah to assess progress at KRC site on the 6th of February 2020.

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Last Updated : Friday 25th September 2020