Malaysia launches massive northern uplift plan

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ALOR STAR, Malaysia, July 30 (AFP): Prime Minister Abdullah Ahmad Badawi today launched a US$ 51-billion development masterplan to spur economic growth and reduce poverty in northern Peninsula Malaysia.
The Northern Corridor Economic Region (Northern Corridor) is a government initiative to boost the economy and raise income levels in the northern states of Perlis, Kedah, Penang and Perak over 18 years.
"Projects and programmes to enhance human capital, infrastructure, and competitiveness in the region will involve about 177 billion ringgit public and private sector investments from 2007 to 2025," a government statement said.
"The focus will be to turn the Northern Corridor into a modern food zone of Malaysia, increase the value-add in the manufacturing sector and strengthen tourism," it said.
Of the 177 billion ringgit, one-third will be spent by the government, with the balance to be undertaken through private finance initiatives and private sector investments, the statement said.
"It will be led and driven by the private sector and market imperatives," it said, adding that the masterplan aims to create half a million jobs by 2012 and one million by 2018.
The government added that financial incentives will be given to promote agricultural transformation through economies of scale.
Abdullah launched the project in the Kedah state capital, Alor Star.
The masterplan includes key benchmarks, with the agriculture sector expected to increase its exports to 48 billion ringgit by 2012 from 32 billion ringgit in 2005.
For manufacturing, investments are projected to jump to 24.3 billion ringgit by 2012 from 16.5 billion ringgit in 2006, while the tourism sector aims to raise average spending per visitor to 3,034 ringgit by 2012 from 1,890 ringgit currently.