Example of the font size Langkawi International Smart

Example of the font size Langkawi International Smart Green City Forum 2015 17 October 2015 1

Agenda • A Regional Approach To Economic Development • Playing The Role Of Enabler And Facilitator • Ensuring Inclusiveness And Sustainability 2

A Regional Approach To Economic Development 3

A Regional Approach To Economic Development Malaysia’s 5 year plans to head towards Vision 2020 Moving into the knowledge economy 4

A Regional Approach To Economic Development Five regional enablers to drive economic development Koridor Utara covers 7% of Malaysia’s land area but contributes over 20% of Malaysia’s GDP …of manufacturing exports

A Regional Approach To Economic Development Regional programmes cannot work unless they fit the cultural and social context in which they are being implemented. A region’s social and cultural aspects must be understood Three changing elements that influence regional development Historical Geographical Social/Cultural Regional Economic Development Nation Building Regional development is constantly evolving, owing to the changing needs and circumstances of the community. It is a dynamic process, not a goal.

Playing The Role Of Enabler And Facilitator NCIA’s Mandate: Created under Act 687, NCIA is the entity mandated to drive the Government’s regional strategies in the context of the economic development agenda Koridor Utara’s development is driven by four key thrust areas Enabling Eco-system Human Capital Development Programmes

Playing The Role Of Enabler And Facilitator NCIA’s Mandate: Created under Act 687, NCIA is the entity mandated to drive the Government’s regional strategies in the context of the economic development agenda Council members of NCIA

Playing The Role Of Enabler And Facilitator The private sector to spearhead economic development Government Businesses Enabler and facilitator for economic development Driver of economic opportunities Academia Knowledge transfer partners The Public Beneficiaries and partners in the delivery of economic initiatives

Government Playing The Role Of Enabler And Facilitator NCIA has been What happens in the background of positioned by each private sector engagement Ministries and Institutions are determined by laws Top-down Agencies written by political leaders. approach (including State and Local Institutions arise from social norms, Governments) customs, traditions and values of Bottom-up individuals and that written laws only as a regional approach serve to formalise what has already enabler for their been shaped by individuals. respective Members of NCIA Council and The NCIA programmes. Approach management committees comprise representatives of each of the 4 states. Committees at State level also include NCIA representatives

Businesses Playing The Role Of Enabler And Facilitator Deal flows to catalyse economic growth via private sector endeavour The Private Sector Assistance on building arrangements Why has the private sector been identified to spearhead economic development? Job Opportunities Business Opportunities Supporting Enablers 11

Businesses NCIA Phase 2 Strategy Driven By Key Growth Nodes The Growth Nodes Strategy is guided by six (6) strategic studies 12

Businesses Snapshot: Economic Impact From Key Growth Nodes Lembah Chuping Greater Kamunting Kedah Science & Tech Park Lembah Chuping Kedah Science & Technology Park 12, 674 49, 321 Total number of jobs created as of 2025 Total number of jobs created as of 2030 RM 2. 58 b RM 72. 68 b GNI contribution per year from Lembah Chuping’s proposed industries as of 2025 Total output impact from construction and operations from 2016 - 2030 Two New Green Initiatives in Koridor Utara 13

Businesses Snapshot: Chuping Valley Perlis exhibits high levels of solar radiation Average Annual Solar Radiation in Malaysia (MJ/m 2/day) An increase in the amount of renewable energy investment implies demand Solar Energy Generation RM billion 2 Malaysian Investments in Approved Renewable Energy Projects (RM bil) 42% se of a e r c In 1. 5 1 0. 5 0 2012 Green Materials Manufacturing There are varied industry applications for Green Materials Not all parts of the E&E value chain are extensively undertaken in Penang General E&E Value Chain Automotive Industrial E&E Property Green E&E Manufacturing There has been growing international demand for halal products R&D/Design Legend: RM RM billion (CAGR) ~ 16. 3% 80 20 Final Testing/ Packaging/ Assembly Distribution/ Installation Value Chain Focus of Penang Proposed Value Chain Focus of Lembah Chuping 0. 60 100 40 Testing/ Packaging/ Assembly Malaysian Value Add Per Gross Output (2012) 120 60 Raw/ Intermediate Component Production Pharmaceutical goods are higher value added compared to F&B Malaysian Halal Exports 2010 -2020 e (expected) Halal Industries 2013 (CAGR) ~ 12. 9% 0. 40 RM 0. 15 0. 20 0. 00 0 2013 2020 Pharmaceuticals F&B 14

Businesses Snapshot: Kedah Science And Technology Park KSTP’s Vision “To be world-class in the promotion and commercialisation of applied scientific research and technology” 15

Academia Ensuring Inclusiveness And Sustainability Collaborative Leveraging on the institutions of efforts with higher learning USM, Uni. MAP, UUM and also KUISAS have enabled NCIA Benefiting to set up communities in Koridor Utara knowledge receptacle and knowledge transfer initiatives in Koridor Utara 16

The Public Ensuring Inclusiveness And Sustainability The NCIA Getting the local communities Shared Value involved Concept (SVC): • When a company locates itself in a particular A new way area, we are presented with various avenues forward? for collaboration. • The normal view is “what is good for a company is also good for the community”, as the company would be able to create jobs and business opportunities. But SVC states that what is good for the community can also be good for the company.

The Public Ensuring Inclusiveness And Sustainability ECONOMIC IMPACT: a) Reduced urban-rural disparities b) Equitable distribution of sustainable economic opportunities c) Increased household incomes, job opportunities, business profitability, and standard of living SOCIAL IMPACT: a) Improved community wellbeing b) Enhanced collaborations with multiple stakeholders c) Improved relationships between the business community and the people Getting the local communities involved

The Public Ensuring Inclusiveness And Sustainability Getting the local communities involved Re-conceiving products & markets The Nestle Paddy Club represents a real game changer for paddy growing Re-imagining the supply chain Re-thinking engagement models (eg clustering) to ensure economic spillovers to local communities

The Public Nestle Paddy Club UPSTREAM DOWNSTREAM MARKETING SVC : Paddy straws to be processed intoorganic fertilizer UPSTREAM ‘Raw material/ paddy straw Contract farmers (150 pax) Workers (150 pax) i. Nestle will buy back all paddy production from farmers. ii. Nestle provide Agro Organica , an organic fertilizer to their farmers at discounted prices. DOWNSTREAM (Nestle products & organic fertilizer from paddy straws) MARKETING (Finished goods and ready for consumption) through milling company Nestleappointed Milling Co 1 Nestleappointed Milling Co 2 Nestlé has access to a reliable, traceable and controllable source of rice for infant cereals manufacturing

The Public Nestle Paddy Club § Location: Kerpan, Kedah § Farm size: 300 hectares § Project components: i. Upgrading Farm Infrastructure and Facilities ii. Purchasing Machinery and Equipment (I) Increase Farmers’ Income a) Current: RM 10, 400 (RM 2, 600. 00 x 2 Hectares x 2 seasons per year) b) Expected: RM 30, 800 (RM 7, 700 x 2 Hectares x 2 seasons per year) (II) Increase of RM 20, 400 per Contract Farmer per year a) 196% increase in income per Contract Farmer Paddy Production Kg / Hectare / Season Contract Buy. Back Price / Kg Estimate Production Cost / Hectare Profit/ Hectare / Season Before 4, 000 RM 1. 40 RM 3, 000 RM 2, 600 8, 000 RM 1. 40 RM 3, 500 RM 7, 700 After Note: Higher production cost due to compliance with Nestle’s SOP requirements. Creation of 150 contract farmers Public Funding = RM 2. 0 Mil Total Private Funding = RM 10. 0 Mil (to be invested in Koridor Utara) Timeline = From Year 2014 – 2018 ( 5 Years) * Proposed funding for infrastructure cost covering 300 hectares.

The Public Ensuring Inclusiveness And Sustainability Getting the local communities involved Re-conceiving products & markets Suria. KU project represents a real game changer for the solar industry Re-imagining the supply chain Re-thinking engagement models (eg clustering) to ensure economic spillovers to local communities

The Public 23

Suria. KU : Proof of Concept Owner : Pn Rupeah Bte Ali Address : No 414, Kampung Ulu Pauh, 02600 Arau, Perlis Date of Installion: 17 January 2014 Date of Fi. AH approved : 4 September 2014 Date of connection to national grid : 23 October 2014 The Public

And In Conclusion… • Shared value • CIC Come with us to the North of Malaysia – the Northern Corridor Economic Region is the key to your continued success. This is our commitment to you…

Example of the font size Reach for the Stars! 26