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Govt increasing incentives to attract quality investments to underdeveloped states, Dewan Negara told

Govt increasing incentives to attract quality investments to underdeveloped states, Dewan Negara told

04 Apr 2023

The government will intensify its efforts to attract quality investments, and continue to improve the business ecosystem in regions or states that are still underdeveloped, in an effort to promote equitable growth between regions and states.

According to the Ministry of Economy, the strategic development programme at the regional and state levels will be implemented through initiatives driven by state governments and projects led by the private sector.  

“These efforts are expected to reduce the socio-economic gap across regions and states, and subsequently help to boost economic growth,” the ministry said in a written reply for the Dewan Negara published on Parliament’s website on Tuesday (April 4).

It said the government will continue to focus on increasing its efforts to accelerate development based on key growth nodes and focus areas.

“Measures to encourage coordinated and integrated regional development planning will also be implemented through better collaboration with agencies at the federal and state government levels, including corridor authorities.

“The government will continue to pay attention to the development in the five economic corridors by focusing on attracting quality investments, especially involving economic activities with high added value, which in turn can create employment and entrepreneurship opportunities,” it said.

As for the distribution of development allocations, the ministry said that the government is committed to distributing at least 50% of the total basic development allocation to the six underdeveloped states, namely Perlis, Kedah, Terengganu, Kelantan, Sabah and Sarawak.

The total basic development allocation approved under Rolling Plan 3 for 2023 for all six states is RM17.94 billion.

Some of the development projects being implemented in the states include the Northern Corridor Economic Region’s infrastructure facilities project in the Chuping Valley development area in Perlis (project cost: RM724 million), the development of an industrial area and logistics hub in Sidam, Kedah (RM700 million), and the Kemaman Hospital construction project in Terengganu (RM450 million).

Other projects are the expansion and upgrading of the Sultan Ismail Petra Airport, Kota Bharu, Kelantan (RM483 million), the People’s Housing Project in Pitas, Sabah (RM84.8 million), as well as the Sarawak Corridor of Renewable Energy project for the “Integrated Agropark With Dynamic Modern Farming” in Mukah, Sarawak (RM20 million).

The ministry added that the government is confident that all the planning and implementation of the development projects will contribute to the growth of the underdeveloped states, and provide various benefits to the people’s well-being.

Source: Bernama