Negri Sembilan on track to becoming developed state - MIDA | Malaysian Investment Development Authority
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Negri Sembilan on track to becoming developed state

Negri Sembilan on track to becoming developed state

31 Aug 2021

Negri Sembilan is on track to becoming a developed state as it is supported by various factors, including investments that are increasing every year.

Other factors include its strategic position close to the Klang Valley as well as being the gateway from the south, and its efficient infrastructure.

Negri Sembilan is now one of the destinations of choice for domestic and international investors.

The state’s leadership is taking steps to bring rapid progress through of careful, strategic and energetic planning.

Menteri Besar Datuk Seri Aminuddin Harun said projects such as Malaysia Vision Valley 2.0 (MVV2.0) were among the economic drivers that were significant to the state’s growth.

He said the investment value achieved by the state in the last three years had been very encouraging despite the slow growth of the national economy.

Although 2020 was a challenging year in terms of politics and the economy, the state recorded an excellent total investment of RM7.93 billion with RM3.83 billion being foreign investment.

“If we look specifically at investments for selected manufacturing and services sectors approved by the Malaysian Investment Development Authority (Mida), Negri Sembilan recorded a total of RM6.3 billion, which is the best ever recorded.

“Of that amount, investment in the manufacturing sector alone amounted to RM6.18 billion, which is the highest compared with previous years,” he said.

Aminuddin said as a result of the high investment value, the state had created 5,823 job opportunities through 167 projects.

In terms of economic composition, the services and manufacturing sectors dominate the state’s economy, with a total contribution of 87.5 per cent.

The services sector contributed 51.4 per cent while the manufacturing sector contributed 36.2 per cent in 2020.

Meanwhile, the agriculture sector contributed 7.2 per cent, while the construction, and mining and quarrying sectors contributed 3.0 per cent and 0.5 per cent respectively.

Aminuddin said the state government was very proud of these achievements, which placed Negri Sembilan sixth among other states in terms of economic performance.

He said several proactive measures had been taken, including offering some special incentives to investors through the NS Invest 2021 programme.

The incentives offered include joint promotions, comprehensive facilitation or end-to-end handholding, reducing bureaucracy and middleman involvement as well as a special approval process with immediate rates and staggered land premium payments.

He said the state government had set an investor-friendly policy with the target of multiple investments.

“However, the investment target we set for this year of RM10 billion was affected following the Covid-19 pandemic which not only hit the country but also the world.

“The state government has changed the target to a more realistic RM5 billion, which is believed to be achievable through the available indicators.

“In fact, as of the first quarter of this year, the state has recorded an impressive investment value of RM1.63 billion, covering the manufacturing, real estate, finance, services, trade, distribution, utilities, telecommunications and transportation sectors.

“This investment provides 1,165 job opportunities to the people through 48 projects. This is a good performance when we are still facing the constraints of the pandemic,” he said.

Among the incentives are a 25 per cent discount on land ownership and land development premiums to applicants who pay the premium in one payment within 21 days and 15 per cent for a period of 60 days from the date of receiving Notice 5A or 7G from the district land administrator.

“Deferment of payment is also given for up to five years from the date of approval by the land office, besides no development charges.

“We have also established strategic partnerships between the public and private sectors to encourage investment and facilitate investors,” he said.

Aminuddin, who is assisted by state Investment, Industrialisation, Entrepreneurship, Education and Human Capital Committee chairman Datuk Dr Mohamad Rafie Ab Malek, said the state government’s focus was on high-tech investments that would increase the state’s economic growth, as well as provide jobs to locals.

The Sikamat assemblyman said the state government aimed to bring in quality investments to generate better income for the people.

He said this would involve the use of skilled manpower as well as investment in biodiversity that does not damage the environment.

“This means that we are no longer interested in investments that use a lot of workers and damage the environment but instead we will emphasise investments that improve the quality of life for the people.”

To maintain high competitiveness and boost the economy, the menteri besar said the state government had outlined a knowledge-based economy in line with the Industrial Revolution (IR) 4.0.

“These elements will be given emphasis in the Negri Sembilan Structure Plan 2045 to achieve the standard of a modern and developed city,” he said.

Acknowledging that the Covid-19 pandemic had impacted the world’s economy, Aminuddin said the state’s gross domestic product (GDP) was also affected, showing a decline of 3.6 per cent last year compared with a growth of 5.1 per cent in 2019.

However, the state’s economic performance was better than the country as a whole, which had recorded a drop of 5.6 percent.

He said most of the investments approved last year were in the manufacturing and services sectors, which amounted to 90 projects.

Aminuddin said the tourism sector, which had been a source of income to the state, had also been affected by the pandemic.

He said efforts to minimise the negative impact on the state’s economy had been done through the state Tourism Board in collaboration with government agencies and the local authorities.

These efforts include increasing the promotion of local tourism products that could attract tourists such as beaches, eco-tourism and culture and heritage.

The state government has also implemented the ‘Jom Teghojah Nismilan’ tourism promotional campaign, which was introduced on June 10 last year.

Aminuddin, who is also the chairman of the state Tourism Committee, said the campaign included updating locations, products, photos as well as holding competitions to create awareness on the existence and availability of the state’s tourism products.

He said agriculture and biodiversity had been earmarked for future focus in the Negri Sembilan Economic Master Development Plan, which currently covers the industrial sector.

He said the master plan was crucial as it would enable the state’s development to be charted in a planned, orderly and proactive manner.

“Seremban and Port Dickson have been identified as part of the Malaysia Vision Valley 2.0. while Jempol, Kuala Pilah, Tampin and Rembau will be strengthened as agropolis and tourism areas,” he said.

“In the presentation of the 2021 Budget last November, the state government allocated RM560 million to show its commitment to stimulate the economy.

“The state government will not compromise on the needs and welfare of the people by ensuring that the agenda continues to be given priority in every state development plan,” he said.

Source: NST