Rail Development Strategy

Development Strategy
CHAPTER 4
NATIONAL PHYSICAL PLAN

National Physical Plan-2
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CHAPTER 4
DEVELOPMENT STRATEGY
The development strategy has an important bearing on the economic performance and the quality
of life in Peninsular Malaysia. The preferred development strategy in Peninsular Malaysia seeks
to make the country an attractive place to live, work, play, invest, do business, and visit. To
achieve this, adequate and suitable land to support business initiatives, sustain economic growth
and provide key enabling infrastructure and utilities must be allocated. At the same time, liveability
must be enhanced, urban regeneration facilitated, the environment protected and natural
resources used prudently.
It is anticipated that around 75% of the total population in Peninsular Malaysia will be living in the
urban areas in 2020. In this respect, provision will be made for accommodating approximately 4.7
million additional people between 2010 and 2020. Approximately 1.92 million new jobs, mostly in
the tertiary services will need to be created over the next 10 years to support the increasing
proportion of people in the working age group, the likely reduction of jobs in the agriculture sector
and some labour-intensive including low value-added manufacturing industries. All in all, it is
estimated that about 200,000 hectares of urban land will be required to meet the future
development needs of Peninsular Malaysia over the next 10 years. In determining the preferred
strategy, the major global and national issues, opportunities and needs have been taken into
account which will provide the main basis for the formulation of the national spatial policies.
4.1 Conceptual Development Strategy
The development strategy from NPP (2005) was revised and fine-tuned to provide a
geographical expression and proactive spatial responses to changing circumstances
including the international conventions commitment such as biodiversity and climate
change. The prevailing global economic slowdown, government public expenditure
cutback, the 1Malaysia and high-income concept, regional growth corridors and other
national strategic development thrust , such as the OPP3, the 9
th
MP, the National
Urbanisation Policy (NUP), IMP3, NAP3 including forestry, tourism, environment
conservation and biodiversity, transportation, energy and green technology was also
reviewed and analysed.
To realise the national socio-economic objectives for global competitiveness, national
unity, sustainable development and high quality of life, the spatial expression of these
national sectoral policies and strategies requires the country:-
i. To rationalise and consolidate the national spatial planning framework supported
by key strategic infrastructure;
ii. To achieve a high–income economy;
iii. To promote more balanced regional development;

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iv. To optimise utilisation of land and natural resources;
v. To secure spatial and environmental quality and diversity; and
vi. To facilitate integrated inter-state connectivity and social integration.
NPP (2005)’s spatial policies and development proposals was based on a “Selective
Concentration Development Strategy” which is essentially a spatial planning response
to deal with the intense competition arising from the increasingly economic globalisation
and trade liberalisation. More importantly, the pre-requisite was to generate a high level of
sustainable growth, particularly through rapid industrialisation, in achieving Vision 2020.
In this connection, specific development focus is directed towards three distinct
geographic areassuch as such as West Coast, East Coast and the Central Highlands,
each exhibiting relatively similar characteristics, issues and development potentials.
The development strategy for the West Coast Region is to facilitate urban and industrial
expansion and to ensure the optimal use of infrastructure, thus concentrating
development in the three priority growth conurbations of Kuala Lumpur, George Town
and Johor Bahru. Key strategic infrastructures in designated international gateways and
national hubs, such as high-speed broadband ICT network, expressways, seaports and
airports, will be developed to support high value–added economic growth in each of the
main conurbations. The private sector, particularly direct foreign investment, will
spearhead this high accelerated growth.
The focus for the East Coast will be in the Kuantan Conurbation for industrial and service
sector development, whereas development initiatives in Kota Bahru will concentrate on
cross-border trade with Thailand. The tourism potential of the Region will also be fully
exploited and greatly enhanced with the population participating actively in the modern
economy through education and social development programmes. There is of course the
immense potential for positioning Kuala Terengganu as the international tourism gateway
for the East Coast Region in view of the vast and varied tourism products available in the
state, and the upgrading of the airport to an international status.
The development focus for the Central Highlands is to establish and protect a contiguous
Central Forest Spine through the integration of forest reserves for biodiversity
conservation, limit and control unsustainable urban and agriculture expansion, and
enhance the tourism potential of the highlands.
In line with economic structure transformation of the nation to a high-income tertiary-
based economy and promotion of the 1Malaysia concept, the national spatial structure
needs to be rationalised and realigned accordingly to facilitate the attainment of a high
sustainable economic growth and strong social cohesion. In this respect, the NPP (2005)
development strategy was further built upon and strengthened by introducing an
additional dimension of Concentrated Decentralisation in Development Corridors.
The Development Corridor concept was introduced in recognition of the current market-
driven development trends, the importance of efficient accessibility for the country highly
export-dependent economy, and the need to optimise the use of the existing and

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committed infrastructure and urban services in the strategic urban centres in the light of
likely financial constraint for new capital-intensive infrastructure provision.
The main thrust of the revised development strategy is to concentrate the nation’s scarce
resources to a few priority urban centres with the greatest growth potential for job creation
along the key economic corridors such as Bentong and Temerloh-Mentakab while
protecting the rural areas and natural environment. Spreading the limited resources thinly
all over the country will result in ineffective outcomes and detrimental environment
impacts. Future new urban development and regeneration will be focussed largely in
selected urban conurbations and key strategic urban nodes within the growth corridors to
avoid urban sprawl, to preserve the villages and rural areas and to accelerate
development in less-developed regions. As the main engines of growth, these selected
urban centres will generate spin-offs to catalyse the development of their surrounding
fledgling hinterlands, thus strengthening the urban-rural functional linkages and economic
synergies. As such, the government will endeavour to support the growth of the selected
strategic urban centres through implementing high-impact flagship project initiatives and
key infrastructure facilities. Some examples of the initiatives are Agriculture Collection,
Processing and Packaging Centre and Halal Industrial Park.
These Development Corridors will be promoted and developed as “Main Development
Corridors” and “Sub-Development Corridors” to serve different supply / producer chain
functions and markets. The main development corridors are characterised by
conurbations and key urban nodes linked by expressways and proposed high-speed
train, and served by major ports and airports. As international gateways and core
economic zones, major high technology-driven and knowledge-based initiatives and
enterprises, such as multimedia activities, biotechnology research, creative industries and
specialised market tourism development like MICE, will be promoted and supported to
serve niche national and specific export markets.
Sub-Development Corridors are important regional corridors to spread development and
improve the quality of life throughout the country, especially in economically lagging
regions. They involve primarily strategic small and medium-sized towns, including special
feature towns. Sub-Development Corridors will be served by highways which provide
easy connectivity between the conurbations and large towns with surrounding villages
and rural areas. They function essentially as local service centres, job centres, supply
and marketing gateways for exploiting and accessing the ecotourism and agricultural
resources in the interior hinterland (Table 4.1 and Figure 4.1).

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Table 4.1: Main Development Corridors and Sub Development Corridors.
Development Corridors Key Physical Characteristics Focal Development Initiatives
Main Development Corridors
1. North-South Corridor This corridor, which stretches from
Kangar in the north to Johor Bahru in the
south (875km), is the most developed
growth corridor in the Peninsular. It is
also the most urbanised part of the
country with most of the major towns and
the capital cities located in this corridor.
Focus Growth Sectors
Urban development, industrial
development, knowledge-based sectors,
services sector, agriculture:
Core Industrial Belt.
Most of the knowledge-based clusters
including Education Hubs.
Important Food Belt with four of the
main granary areas.
Supported by a Regional Rail, North-
South Expressway and three major
ports (Penang, Port Klang and Tg.
Pelepas) and major international
airports (KLIA, Penang, Langkawi and
Senai).
Conurbation Plans for the
conurbations of Kuala Lumpur,
George Town and Johor Bahru.
Manage urban growth to prevent
urban sprawl through sustainable
growth management strategies.
Promote and support high-tech and
knowledge-based economy.
Planned Industrial Belt for high value-
added industrial cluster development.
High Speed Rail to reinforce corridor.
New Coastal Highway to supplement
the North-South Expressway.
2. East Coast Corridor This corridor stretches from Kota Bahru
in the north to Johor Bahru in the south,
a distance of 689km.
Focus Growth Sectors
Tourism, oil, gas and petrochemical,
industrial clusters, knowledge-based
sectors, agriculture:
Potential to be the principal mainland
coastal and island tourism destination.
Oil, Gas and Petrochemical Hub.
Resource and agro-based industrial
cluster development in selected nodes.
Mainland coastal tourism focused in
Desaru, Rompin, Mersing, Kuala
Pahang, Kuantan, Dungun, Besut,
Merang and Tumpat.
Development of industrial clusters in
selected nodes in the conurbation of
Kuantan, Kuala Terengganu and Kota
Bahru.
Establishment of a SEZ to spearhead
regional development.
Development of Petrochemical Hubs
in Kertih and Gebeng.
Development of Education Hubs
including universities and centres of
higher learning (UMP, UMT and
UMK).
New Road Expressway (LPT2 and
LPT3 to the north).
High Speed Rail link from Kuantan to
Kota Bahru in the north
3. Central East-West
Corridor
This corridor stretches from Kuala
Lumpur to Kuantan in the East Coast
(260km) and is the main east-west
growth corridor.
Focus Economic Sectors
Industrial clusters, agriculture, tourism
development:
Important secondary industrial
corridor.
Major conduit to spread development
to the East Coast.
Potential logistics link between Asia-
Pacific countries and countries in West
and South Asia.
Focussed industrial cluster
development in selected nodes and
industrial spill-over from the Klang
Valley especially in Bentong.
Establishment of a SEZ in the
Kuantan Conurbation.
High speed rail network.
Development of District Conurbation
in Temerloh-Mentakab.
Controlled Development of the
Genting- Bukit Tinggi- Janda Baik
SMA.

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Entertainment City of Genting
Highlands.
Supported by the Federal Road 2 and
the East Coast Highway 1 (LPT1).
Sub-Development Corridors
4. North-South Sub-
Corridor
This sub-corridor extends from Kota
Bahru in the north to Segamat in the
south (584km).
Agriculture, tourism, industrial cluster
development (especially resource- and
agro-based industry):
Provides gateway towns and
connectivity to the main ecotourism
destinations (Taman Negara and the
Main Range).
Important agriculture zone especially
for fruits, crops, herbal biotechnology
centres and highland agriculture.
Connectivity to focal poverty areas of
western Pahang and south Kelantan.
Supported by Central Spine Link (FR
8 and FR 9) and a railway line.
Primary Ecological Link (PL1) has
been identified at Sg. Yu (north of
Kuala Lipis) for wildlife crossing
especially for tigers and elephants.
New major highway proposed under
the HNDP2 (Highway Network
Development Plan 2) to link Segamat
to Gua Musang (a need for animal
viaducts within the ecological links
identified in this Corridor).
The Special management Areas
(SMAs) involving Camerons-Lojing-
Kinta Highlands, Bukit Frasers, and
the Genting-Bukit Tinggi-Janda Baik
will be the focus of highland tourism
and agriculture.
Key towns identified for focussed
investment in ecotourism, livestock,
herbal parks, and crops under the
ECER Master plan will include Kuala
Krai, Tanah Merah, Gua Musang,
Kuala Lipis, Bentong, Raub and
Temerloh-Mentakab.
5. East West Sub-
Corridor
Stretches from Pulau Pinang to Kota
Bahru (386km).
Tourism, cross border trade:
Important road link for the Trans
National border towns.
Direct road link from Kota Bahru to
Penang.
Developed primarily as security
corridor to combat insurgencies.
Important ecological habitat and
wildlife reserves including the Royal
Belum State Park, Temenggor Forest
Reserve and ecotourism destinations
at Pulau Banding.
A Primary Ecological Link (PL2) has
been identified from Gerik to Jeli (a
need for animal viaducts especially for
elephants in selected locations and a
stay on agriculture development along
this corridor).
Major highway link from Penang-
Kulim-Pengkalan Hulu-Gerik-Jeli-
Rantau Panjang under the HNDP2.
Integrated Cross-Border Development
Initiatives involving Pengkalan Hulu,
Bukit Bunga, Rantau Panjang,
Pengkalan Kubur and the
corresponding Thai Towns.
6. Lumut-Gua Musang-
Kuala Terengganu
Sub-Corridor
Stretches from Lumut-Ipoh-Cameron-
Gua Musang-Kuala Terengganu (586
km).
Industrial cluster, tourism:
Lumut-Sitiawan-Manjung
Conurbation.
Important industrial local corridor
(Lumut-Ipoh).
Important highland eco-tourism
corridor (Ipoh-Tasik Kenyir).
Lumut Naval Base
Sri Iskandar New Town
PETRONAS University
Two Primary Ecological Links have
been identified in this corridor.
Key initiatives relating to highland
agriculture and township development
have been identified at Lojing, Gua
Musang (crops, livestock, herbs) and
Tasik Kenyir (tourism) under the ECER
Master plan.

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7. Kuantan-Muar Sub-
Corridor
Important sub-corridor connecting Muar-
Segamat-Muadzam Shah-Kuantan
(336km).
Agriculture, tourism, cluster industrial
development:
Agriculture development for oil palm,
crops and livestock.
Connectivity to Ramsar site of Lake
Chini and Tasik Bera and the Endau-
Rompin National Park.
Inland Port at Segamat.
Supported by Federal Route 12.
Potential to be developed as an
important Agriculture Belt in the
country.
Development of a new major highway
linking the towns of Kuantan-Muadzam
Shah-Segamat-Muar under the
HNDP2.

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Source: National Physical Plan-2, 2010
FIGURE 4.1 : ‘CONCENTRATED DECENTRALISATION’ DEVELOPMENT STRATEGY
State Growth Conurbation
District Growth Conurbation
National Growth Conurbation
Regional Growth Conurbation
Sub-Regional Growth Conurbation
Major Port
ICT Hubs
Forest Spine
National Park
Special Tourism Zone
Special Management Area (SMA)
Main Development Corridors
1. North-South Corridor
2. East Coast Corridor
3. Central East-West Corridor
Sub-Development Corridors
4. North-South Sub-Corridor
5. East West Sub-Corridor
6. Lumut-Gua Musang-Kuala
Terengganu
7. Kuantan-Muar Sub-Corridor
Development Corridors

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4.2 National Positioning and Future Economic Growth
Malaysia is closely integrated with the global economy, with the value of trade (exports
and imports) of goods and services being equivalent to twice the GDP. Export-oriented
industries contracted 24.7% in the beginning of 2009 as a result of the global financial
crisis and weakening global demand. Negative growth was recorded in major sub-
sectors, particularly in E&E, wood products, textiles and rubber products. The domestic-
oriented industries also contracted by 18.7% in January 2009 mainly due to the decline in
construction-related industries.
There has been a steady recovery in trade since the first half of 2009. Between January
and July 2009, exports have grown at an average of 5.4% month on month, and total
trade has grown by 6.6%. The worst month was probably January 2009 where trade was
almost 30% below its previous year level.
The total FDI in Malaysia over the period for the year 2003-2008 was RM146.4 billion for
the approved investments in the manufacturing sectors. FDI started to shift away from
Malaysia some 15 years ago; and the trend is continuing as other developing countries
compete to give more incentives.
Table 4.2 shows Malaysia’s position in the global competitiveness ranking based on the
World Competitiveness Scoreboard Ranking.
1
The global competitiveness index ranking
for Malaysia improved from 30
th
place in year 2000 to 21
st
place in 2008 amongst 134
economies ahead of several developed economies. Malaysia’s ranking however fell 3
places to 24
th
position in year 2009. In terms of the competitiveness scoreboard ranking,
Malaysia has become more competitive over the past 9 years becoming 18
th
position in
2009 as compared to 27
th
position in 2000. Its ranking also improved to 10
th
place in year
2010 and has overtaken several developed countries including Netherlands (12
th
place),
Denmark (13
th
place) Britain (22
nd
place), Thailand (26
th
place) and is even more
competitive than South Korea (23
rd
place). The top three pole positions are held by
Singapore (1
st
place), Hong Kong (2
nd
place) and the United States of America (3
rd
place).
To remain competitive, the country needs to strive and maintain this achievement by
continuing to implement policies, processes and procedures that are transparent and
streamlined that can reduce the cost of doing business.
Table 4.2: Malaysia Ranking of Global Competitiveness
Malaysia 2000 2005 2008 2009
Global Competitiveness Index rankings1
30 24 21 24
World Competitiveness Scoreboard Ranking2
27 28 19 18
Source: 1. Various Issues of Global Competitiveness Report.
2. IMD World Competitiveness Yearbook.
1
The World Economic Forum: Global Competitiveness Report discusses the microeconomic and macroeconomic foundations of
national competitiveness.

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The key economic issues in the next five years that will influence significantly Malaysia’s
economic planning are:
i. The global economic recovery and its impact on trade;
ii. The need to restructure the policy environment to remain competitive, and continue to
attract investments; and
iii. The measures and actions needed to ensure that development reaches those in
need, and maximise the potential for reaching the goals of Vision 2020.
Recognising the limits to the current policies, the Prime Minister announced the New
Economic Model which is expected to raise the productivity of workers through innovation
and knowledge in year 2009. This will hopefully result in higher incomes. Similarly, there
will be a greater emphasis on domestic consumption.
In June 2009, the government liberalised foreign investments in major sectors. Foreign
investment regulations were relaxed, while 27 service sectors were liberalised from
Bumiputera (indigenous) ownership requirements, as a means to improve its investment
climate. In this aspect, the Government has set up a private equity firm whose mandate is
to help to develop Bumiputera entrepreneurs.
These strategies have been detailed out in the Tenth Malaysia Plan (10
th
MP) and five (5)
National Mission Thrust (KRAs) were announced. The 10
th
MP strategies are expected to
raise GNI per capita of RM38,845 in year 2015, which puts Malaysia on track to become
a developed nation. The private sector will have a very important role to play in the New
Economic Model.
With these strategies, the Economic Planning Unit (EPU) has forecasted that the GDP
will grow at 6.0% p.a. for the 10
th
MP period. Given these trends, Peninsular Malaysia’s
GDP will reach about RM740.3 billion in 2020.
The IMP3 (2006-2020), aims to drive industrialisation to a higher level of global
competitiveness with an integrated approach towards industrial and economic
development. The IMP3 places significant emphasis on transformation and innovation of
the manufacturing and services sectors. The IMP3 strategy has moved beyond
manufacturing cluster-based strategy to include other sectors such as services, SMEs,
and etc. The IMP3 implementation plan has a regional component which seeks to
balance out the potential inequity in outcomes. Malaysia is also shifting towards the
services sector in order to stay ahead of the competition. Skilled workforce is needed to
support the shift. English is also an advantage in moving up the services sector. As such,
the development strategy and framework of the NPP-2 has undergone a spatial
makeover to integrate closely with the holistic manufacturing-services development
strategy adopted by the IMP3.

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4.2.1 Malaysia as a High Income Economy
The Government’s assessment of the current Malaysian economy is that it is in a middle
income trap, which means that it is squeezed between low wage manufacturers which are
experiencing slow growth, and the high skilled economies which Malaysia are hard
pressed to generate new growth drivers as efficiency gains are over. The current GDP
per capita for Malaysia is estimated at USD$6,970 in year 2008 (refer to Table 4.3) which
puts the country in the upper middle income bracket. This situation has come about
because other developing countries are also using the same strategies as Malaysia, and
they have comparative advantage in low wages or natural resources availability. The
Government has announced that they want to move toward a high income economy. In
this regard, it has tried to devise new strategies in new service sector areas, pursue
knowledge-based development strategies, encourage and support innovation and ideas
driven by talents in many economic sectors. This plan and strategy is supported by a
change in policies to support activities that create greater value added, generate new
sources of economic growth, and leverage knowledge based activities in traditional such
as economic sectors. Thus, the Government continues to build knowledge and skills in its
workforce, attract foreign investment that bring in new technology or new markets, and
support local firms that pursue innovation-based strategies. The IMP3 strategy seeks to
transform Malaysian industries into globally competitive firms. Malaysia has initiated the
Multimedia Super Corridor (MSC) and Biotechnology-Valley developments in order to
spearhead this direction. Vision 2020 articulates this strategy; and has been translated
into sectoral policies. The NEM released in April 2010 has provided a strategic direction
for Malaysia to escape the middle income trap.
Table 4.3: Income Group for ASEAN Countries
INCOME GROUPS GNI PER CAPITA (USD$) ASEAN COUNTRIES
High Income > 11,906 Brunei, Singapore
Upper Middle Income 3,856 – 11,905 Malaysia (USD$6,970 - 2008)
Low Middle Income 976 - 3,855 Indonesia, Philippines, Thailand
Low Income < 975 Cambodia, Laos, Myanmar, Vietnam
Source: World Bank, 2009
All these strategies are intended to give Malaysia a fillip to its economic growth. The
intended outcome is to propel Malaysia to become a developed nation with a high level of
income. A high income nation is estimated to have an annual income of US$13,426 per
capita by 2020 (RM46,991 at conversion rate of US$1 = RM3.50). To reach this level of
growth, the economy would have to grow at a much higher rate. Table 4.4 below shows
that the conservative per capita GDP (2000 prices) is estimated at RM27,000 by 2020 for
Peninsular Malaysia which is in the upper middle income range. It is imperative therefore,
that the objectives of the NEM and its roll out strategies are effectively implemented by
the government to achieve the target of USD15,000 per capita by 2020.

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Table 4.4 : Estimated Per Capita GDP Growth for Malaysia, 2020
Region
Per capita GDP (RM) in 2000 Prices Average Annual Growth (%)
2000 2010 2020 2000-2010 2010-2020
Northern Region 12,215 14,714 21,774 1.9 4.0
Central Region 20,767 24,883 32,887 1.8 2.8
Southern Region 13,294 15,322 21,483 1.4 3.4
Eastern Region 14,388 16,133 25,156 1.2 4.5
Pen. Malaysia 16,046 18,965 26,879 1.7 3.5
Malaysia 15,170 17,762 24,898 1.6 3.4
Source: Computed from unpublished state GDP data, EPU and MP circular
4.3 Urbanisation
In the last several decades, Malaysia has been experiencing accelerated urbanisation as
a result of the structural economic change from heavily dependent on mining and
plantation agriculture to manufacturing and services. There has, however, not only been
rapid urbanisation but also, in the census decade 1991-2000, a less obvious but highly
significant trend in urban development. There is the centripetal concentration of the urban
population in a small number of city-regions, namely the conurbations around Kuala
Lumpur, George Town and Johor Bahru.
Malaysia possesses a strong urban hierarchy which has been developed since the early
19
th
century. This hierarchy continues to provide a sustainable geographical base for
further industrialisation and economic modernisation of the country. Today, a pattern of
polycentric interdependent urban centres has emerged, with the Kuala Lumpur
conurbation being the ‘advanced’ city supported by the George Town, Johor Bahru and
Kuantan conurbations (Figure 4.1). To avoid the Kuala Lumpur conurbation emerging as
a single overwhelming primate city, pre-emptive actions should be taken to forestall any
further concentration of population and productive capacity into one single super
conurbation.
The NPP-2 recognises that these trends are part of the international processes
associated with globalisation and transformation into the K-economy. These processes, in
combination with the nation’s desire to achieve a high income economy, suggest that the
present trend for urban development to concentrate in the larger centres for higher
efficiency and high value-added growth sometimes at the expense, but not at the
exclusion, of rural areas and the smaller urban settlements will continue. At a
macroeconomic level, given the present stage of economic growth, enhanced economic
performance, particularly high technology and knowledge-based services, will also
continue to require that development generally be focused on core centres rather than be
spread thinly over a broad but relatively underdeveloped economic landscape.

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All evidences indicate towards a more rapid growth of urban areas in the future, and a
concentration of this growth on existing large urban centres of activities. As such, most of
the urban population is anticipated to be living and working in the four major conurbations
of Kuala Lumpur, George Town, Johor Bahru and Kuantan. The four growth conurbations
are seen as the main engines of growth to generate the required jobs and enhanced high
income, thus ensuring quality of life for all in living areas. The conurbations are expected
to contain almost 70% of the urban population of the Peninsular by 2020.
It should be noted that a special case is made of the Kuantan Conurbation. Although
clearly not in the same league as George Town and Johor Bahru conurbations, it was
selected for its infrastructural support which is at par with the other two conurbations. The
Kuantan Conurbation development strategy is intended to create a regional balance by
making it possible to develop a substantial ‘critical mass’ centre on the East Coast as a
base for an economic spread effect.
The National Urbanisation Policy (NUP) acknowledges the rapid rate of urbanisation that
is taking place in Peninsular Malaysia. Based on past and current trends, it is expected to
accelerate in the future to reach 75% urbanisation level in Peninsular Malaysia by 2020,
almost at par with other advanced countries.
For the NPP-2, enhanced performance of the economy, particularly with respect to
attracting foreign direct investment, suggests the need for a pattern of continuing
concentration of urban development in selected centres, particularly conurbations. With
the rapid expansion and spread of the conurbations, an ad-hoc non-sequential
development resulting in high infrastructure costs, loss of recreational space and green
lungs, as well as inner city decay, are some of the emerging imminent threats in urban
development.
The challenge for the national, state and local level planning authorities is to manage and
direct effectively the urban growth, both in the fast growing conurbations and in the slow
growing or declining urban areas. These planning authorities should maximise the
development benefits, control potential side effectssuch as. traffic congestion and
pollution, and play a positive role in achieving Vision 2020. Spatial planning should aim to
create urban centres offering all residents within urban areas a high quality of life and
acceptable levels of facilities such as schools, colleges, hospitals and parks as well as
good quality urban transport and utilities.
Urban centres outside of the four major conurbations are anticipated to grow slowly; and,
over time, lose their share of the urban population. Many major and minor settlement
centres, except for those lying within the sphere of influence of the conurbations, are
likely to decline in population. For local authority planners, this should be seen as a
challenge to enhance productivity and efficiency of the major and minor settlement
centres, and create small prosperous places to avoid more population loss. There are
presently a number of major and minor settlement centres that have shown strong
indications of becoming the nucleus of future conurbations. These include Mentakab-
Temerloh, Lumut-Sitiawan-Manjung and Muar-Batu Pahat-Kluang. There are also a

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number of small centres that possess special features, such as Rantau Panjang, a border
gateway town, which may provide a basis for the development of niche activities. At the
same time, the capabilities of state capitals to service their surrounding populations
should, also be supported.
Other challenges are addressing the problems of economically lagging regions including
urban and rural poverty. More efforts will be directed to catalyse and transform the rural
and urban settings to become more attractive, prosperous and liveable areas with
improved income levels and lifestyles. These factors essentially concern effective
planning and managing sustainable human settlements, both urban and rural.
The NPP-2 advocates the strategy of concentrated decentralisation in key economic
development corridors to achieve the over-arching regional development objectives of
growth, equity and sustainability. This strategy envisages a system of functional urban
hierarchy with efforts on the rejuvenation of intermediate towns (major settlements) which
will have sufficient levels of population and activity concentration for economic efficiency
and agglomeration economies. The future development of urban centres and
conurbations will be guided to and shaped into a compact poly-nucleated urban structure
where a cluster of urban centres are economically and functionally linked to each other,
thus generating significant interdependencies and synergistic growth for mutual benefits
(Figure 4.2). In drawing up the plans for the Conurbations, it is important that focus be
given to growth management strategies such as delineation of urban limits/ urban growth
boundaries, and moving towards TOD in ensuring sustainable urban development. Action
programmes, such as urban revitalisation and high impact strategic regional
infrastructure, must be initiated to spur accelerated development in economically
depressed regions and ‘focus poverty areas’.

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Figure 4.2 : Concentrated Dispersal Strategy
It is envisaged that a significant portion of the country’s GDP is produced within the urban
areas. The principal engines to drive growth and innovation will be found in the National
and Regional Growth Conurbations of Kuala Lumpur, George Town, Johor Bahru and
Kuantan. Besides regional functions, the Regional Growth Conurbations are expected to
play appropriate international and national roles to balance growth across the urban
hierarchy and keep the pace and level of urbanisation in the dynamic Kuala Lumpur
Conurbation manageable. For example, Kuantan Conurbation will serve as the premier
national petrochemical hub to cater for the demands of the Asia-Pacific markets. The
urban form of these conurbations will have a metropolitan core area that is linked to a
cluster of urban centres in the region by an efficient public transport system and high
speed broadband internet connectivity. Another example is Kuala Lumpur functions as
the core city linked closely to a ring of surrounding urban centres such as Petaling Jaya,
Putrajaya, Kajang, Rawang, Klang etc.
This city-region concept can also be adapted across the whole spatial scale of the
settlement pattern and hierarchy. The concept of functional urban hierarchy is important
not only to optimise the viable provision and utilisation of quality urban services and
infrastructure, but also an important tool to achieve regional balance and equitable
development, particularly ensuring the minimum acceptable level of services are provided
for in all urban areas.
As the country embraces towards higher urbanisation trends, there has to be greater
commitment from the government to be ready to meet up with any challenges and come
out with more innovative and creative strategies to combat the challenges. This should,
amongst others, include having a full Ministry for Sustainable Urban Development, the
setting up an Urban Research Institute and the establishment of an Urban Development
Programme and Funds to support Local Authorities in financing significant infrastructure
components of inner city redevelopment, brownfield regeneration and environment
conservation initiatives in special areas.

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4.4 Regional Balance
Regional balance is interpreted as equal access to equitable levels of real income and
personal development opportunities and not necessarily as equal opportunities or right to
the same forms of development. It is generally acknowledged that not all places have the
same opportunity for development and growth potential, such as establishing and
operating high-tech industry. The overriding aim is to narrow the gaps and growth rates
between regions in the country. High development potential areas will however be given
greater priority in the short term.
Land and natural resources of the less developed regions, which are not fully harnessed,
should be further developed to its full potential in order to move up the value chain and
productivity thus helping to reduce regional imbalances. Resource-based, forestry-based
activities and industries, downstream agriculture-based activities, resort/eco tourism,
craft-based industries and other niche activities must be encouraged and supported. In
other words, viable economic activities that built on inherent resource strength and
competitive edge of the specific region should be directed to the less developed regions.
Appropriate serviced SME enterprise parks, incentives and strategic infrastructure in
these regions, especially the provision of special economic zones as well as ICT and
transportation network in potential tourism areas, should be enhanced to facilitate their
development. This will expedite their integration into the K-economy activities to promote
regional balance. In particular, this includes an early extension of the national expressway
to Kelantan state.
Regional balance has also to be interpreted as setting the stage to enable future
sustainable development to be carried out to all potentials parts of the country. Hence,
the inclusion of the emerging Kuantan Conurbation as an urban-region that will be
promoted, along with George Town and Johor Bahru Conurbations. Kuantan will act as a
reception area for the emergent and advanced economic growth sectors.
The modernisation of agriculture and enhancement of agricultural incomes, however, will
remain a basic factor in the eradication of regional imbalance. Out-migration from the less
developed regions should be anticipated and desirable in the national development
strategy to facilitate farm consolidation and labour productivity improvement. There is an
urgent need to strengthen educational, technical training and social development
programmes into the less developed states to encourage these populations to integrate
more effectively into the urban economy of the conurbations.
The notion of achieving regional balance has been one of the cornerstones of national
development that has underpinned most of the FYMP. The 3-tier federal system of the
government has also contributed to regional balance with development funds being
allocated equitably amongst the states according to their respective needs, resources and
priority.
Presently, the federal government seeks to spearhead and enhance the economic
performance in the regions to support high and sustainable national growth. To enable

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accelerated regional economic development, specific strategies have been devised and
applied for the four economic regions in Peninsular Malaysia, that is, the Central Region,
Southern Region, Northern Region and the Eastern Region. This regional approach has
identified key local economic development corridors along the Growth Corridors for
implementing high impact catalytic initiatives. Examples of the economic development are
the agropolitan and special economic zones, in respect of NCER, ECER and South Johor
Economic Region (SJER) involving Iskandar Malaysia. To support the regional economic
initiatives of the nation, the NPP-2 has proposed the formulation and reinforcement of the
four main growth conurbations as international gateways and national cum regional hubs
for each of these Economic Regions, namely:-
Central Region - Kuala Lumpur Conurbation;
Northern Region - George Town Conurbation;
Eastern Region - Kuantan Conurbation; and
Southern Region - Johor Bahru Conurbation.
These conurbations are catalytic in spearheading development within the economic
regions. While the conurbations in the West Coast are more evident, the incipient
Kuantan Conurbation in the East Coast may need special Government assistance in
terms of both fiscal and non-fiscal incentives including the development of an integrated
social and physical infrastructure. One of the key economic instruments used is the
designation of the Special Economic Zone (SEZ) that would attract both public and
private investments in the region.
4.5 Rural Development Trend and Direction
Establishing strong urban-rural linkages is crucial in ensuring sustainable development of
the rural areas. Rural areas are normally characterised by poor accessibility to the urban
centres where the rural population is almost totally dependent on marketing farm produce
and income. Lack of technological innovation and support also will also result in low
productivity and low incomes. Poverty in the initial stages of development is often
associated with smallholding agricultural activities in rural areas (Scenario 1 in Figure
4.3).
To improve the attractiveness of rural areas, adequate non-farm job opportunities, higher
income, enhanced quality of living, better social facilities, improved access and
connectivity are essentially important and must be introduced. The symbiotic relationship
between rural and urban settlements must be strengthened through improved
connectivity and transportation routes so that the urban job opportunities in larger towns
can provide additional employment to farmers and village dwellers within travelling
distance from their homes. This situation will also allow workers to live in the rural areas
and work in nearby urban centres. This also will improve rural household income and
allow families to live in villages where the cost of living will be lower than in urban areas.

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The constant government investments in rural areas have resulted in improved
accessibility and personal skills. Improved rural roads have enabled rural residents to
commute to non-farm work in job centres which are mainly found in the nearby larger
urban centres. Non-farm incomes have been increased with the introduction of resource-
and agro-based industries, as well as job opportunities (part time and seasonal) in the
retail and services sector in the small- and medium-sized towns.
Commuting to work in the urban centres due to employment in the non-farm sector has
led to higher household incomes. However, small land holdings, inadequate local farm
workers, and technological support including low market prices for agriculture produce
have often resulted in the abandonment of farms and a general decline in farm income
(Scenario 2 in Figure 4.3).
The NPP-2 has proposed a need to move to Scenario 3 (see Figure 4.3) where there is
cross-sectoral convergence of economic activities (such as agro and industrial
biotechnology), and closer economic integration between the rural areas and urban
centres. Rural development programmes introduced must recognise the important roles
of small towns and Rural Growth Centres (RGCs) as integral components of successful
rural development. At the same time enhanced linkages between rural growth centres
and job centres in larger urban centres must be further strengthened.
The key strategies to create prosperous, thriving and sustainable rural communities are:-
a. Improving agricultural productivity and value-add in the supply and marketing
chain by consolidating farm smallholdings and introducing cooperative farming
with professional management.
b. Developing human resource which is the main driving force to productivity and
innovation.
c. The use of technology including access to broadband Internet and establishment
of rural community ICT centres should be greatly encouraged and facilitated.
d. Providing good accessibility, particularly regular public transport services, from
the minor settlement centres and rural growth centres to the job centres in larger
urban centres to facilitate off-farm work commuting.
e. Creating opportunities for a range of non-farm income through developing
competitive, diverse and thriving rural enterprises including agro- and eco-tourism
initiatives, rural industries, Collection, Processing and Packaging Centres (CPPC)
for agriculture produce and One-District-One-Product initiatives.
f. Incorporating rural settlements and villages into the local authority areas so that
basic standards of building, sanitation and infrastructure are adhered to. The lack
of control on building structure and renovations in the villages has often resulted
in an overall deterioration of the quality of the physical environment and overall
built environment of these villages.
g. Upgrading intermediate towns and rural growth centres for providing quality social
and business services as well as creating secondary and tertiary job
opportunities.

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Setting up of industries, particularly small and medium industries (SMI), would be the
most likely choice for the above purpose. The SMIs should capitalise on the strength of
the rural economic clusters prevalent in local areas. The Government must play a
facilitator role by providing the most conducive investment environment for private
initiatives and enterprises to grow and prosper. The most appropriate vehicle for this
programme is the government-related institutions and Government-Linked Companies
(GLCs).
In many rural settlements, including FELDA, the villagers are also involved in agricultural-
based downstream activities, such as the production of traditional cakes, sauces,
crackers, chips, handicraft and tailoring. The most successful example of the “One Village
One Industry” program or SAWARI, is the model carried out by FELDA, where one region
produces one type of product. Through this program, many FELDA settlers were able to
increase their income, while certain products are even exported. Some districts have
already been successful through this activity, such as Tumpat for sambal daging, Kuala
Kangsar for labu sayong and Marang for keropok lekor. These activities should be further
strengthened, developed and extended.

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Figure 4.3 : Conceptual Strategy for Urban-Rural Linkages
Minor
Growth
Centres /
RGCs /
Villages
Job
Centres
• Almost totally dependant on farm income
• Low productivity
• Low technical and professional skills
• Low income
SCENARIO 1
Initial
Relationship
Between Rural
& Urban Area
SCENARIO 2
Improved
Accessibility &
Personal Skills
SCENARIO 3
Future
Consolidation
of Farms &
Expansion of
Non-farm
Employment
Poor accessibility to urban centres
Improved accessibility to job opportunities
• Enhanced physical accessibility to
urban job centres
• Commuting to works to job centre
• Increase in non-farm income
• Increase in household income
• Static or decline in farm income
• Farms abandoned
• Decline in agriculture jobs
• Improved technical & professional skills
• Farm consolidation& other institutional changes
• Increase farm productivity and introduce CPPCs
• Increase both farm & non-farm incomes
• Create non-farm employment in, service sector, tourism, rural industries,
CPPC, One-District-One-Product, etc.
• Capitalising on the strength of rural economic clusters prevalent in the area.
• Integrated small towns / RGC development strategy by providing adequate
social facilities and infrastructure improvement
• Broadband access and Rural ICT Centres
Strengthening employment
opportunities in major centres
Continue strengthening of
manufacturing & service
sectors employment
opportunities
Good transport accessibility
Minor
Growth
Centres /
RGCs /
Villages
Job
Centres
Minor
Growth
Centres /
RGCs /
Villages
Job
Centres
Growth Conurbations
(National, Regional / State / Intermediate)
Major Growth Centres
Apart from providing equitable income, the rural areas should be upgraded and improved
to increase the quality of life and the surrounding environment. This can be achieved
largely by providing adequate social facilities, such as community centres and playfields,
infrastructure improvement, sanitation, solid waste disposal and drainage facilities.
Although most of the rural areas have been provided with these basic infrastructures,
more needs to be done to improve the quality whilst making sure that all rural settlements
have these minimum levels of basic facilities.
One of the most deprived rural areas is the Orang Asli (Aborigines) settlements. Most of
the Orang Asli people can be considered as hardcore poor. Although there is a major
government effort to provide each household with a decent house and agricultural land,
there are still however, many who are without proper houses and landless to generate a
decent living income.

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Further to this the Government has formulated a policy on the land alienation and
development of land for the Orang Asli through the National Land Council Meeting No. 65
(dated 4
th
Dec. 2009). The following terms were approved:
i. Two to six (2-6) acres of farm land (ladang) and a housing plot measuring
(5000sq. ft. - ¼ acre) according to the capability of the State Authority should be
given to each household.
ii. Alienation of land is to the Head of Household (Ketua Isi Rumah) as defined
under Section 3 Aboriginal Peoples Act 1954 (Act 134).
iii. Perpetuity tenure.
iv. The Restrictions in Interest on the land are:
The land cannot be rented, charged or be disposed except with the approval
of the State Authority in consultation with the Director General of the Orang
Asli Affairs Department
The first land owner may not transfer the land for a period of 15 years
The land can only be transferred to the Orang Asli
This policy is generally binding on all State Authorities in Peninsular Malaysia.
Notwithstanding this, this policy has received objections from the Peninsular Malaysia
Orang Asli Association (POASM) which has called for the recognition of a larger Cultural
Realm (Wilayah Adat Orang Asli) for the Orang Asli, which among others includes, the
settlement area, cemeteries, holy sites, subsistence farming areas, herbal areas, hunting
grounds, orchard areas, recreational areas and virgin jungle areas.
The NPP-2 proposed that the Orang Asli be provided with proper houses with land for
cultivation including land titles that must be safeguarded from falling into the hands of
non-Orang Asli. Agricultural land should be developed solely for their benefit and within it,
their settlement should be built. The spatial planning and economic model used in FELDA
and FELCRA schemes can be adapted and applied to develop the agricultural land for
Orang Asli. However, this land should be commercially managed by an appropriate
agency such as FELCRA or a suitable land cooperative. To ensure equitable income, the
land to family ratio should be at least 6-10 hectares per family.
4.6 Sustainable Use of Land
4.6.1 Available Land for Development
The land supply for development refers to the available land for further urban expansion
in the future. The Peninsular-wide land use analysis shows that built-up areas accounted
for a small proportion or about 3.3% of the total Peninsular’s land in 2000, and about
5.8% in 2008. The phenomenon of urban growth in the Peninsular, reinforced by the
significant contribution by urban-based economic activities to GDP, has resulted in an
impression of broad scale urban sprawl.

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An assessment was undertaken to establish not only the gross area of additional land
required for future urban growth and economic activity needs in Peninsular Malaysia up to
year 2020 but also to identify at state level the likely directions of urban growth. The land
use assessment took into considerations the findings and forecasts of the sectoral studies
made on agriculture, environment, utilities and transport aspects.
The land available for future development has taken into account the need for optimising
land use without compromising the conservation of all the precious national assets and
heritages, particularly ecologically valuable land. This appraisal utilised a map sieving
technique where four main constraint areas were filtered out in determining land available
for development, namely:-
i. Existing Built-up Area;
ii. Physical Constraint Area;
iii. Prime Agriculture Area (PAA) Rank 1 and 2; and
iv. Environmentally Sensitive Area (ESA) Rank 1, 2 and 3.
By placing an embargo on the above constraint areas for development, the remaining
land was classified as available land for urban development (Figure 4.4). Table 4.5
presents the total area of land available for future development by state. The result of the
sieving technique showed that about 820,960 hectares of total land in Peninsular
Malaysia are available land for future development.
Table 4.5 : Total Area of Land Availability for Future Development by States (‘000 ha)
State Area (ha)
Perlis 0.99
Kedah 20.07
Pulau Pinang 13.82
Perak 161.25
Selangor 73.21
W.P. Putrajaya 0.03
W.P. Kuala Lumpur 0.25
Negeri Sembilan 29.77
Melaka 37.88
Johor 314.75
Pahang 124.29
Terengganu 19.99
Kelantan 24.66
TOTAL 820.96
Source: National Physical Plan-2, 2010.

! !
!
"#$$!
#!$!
Areas with Physical Constraints
(Contour > 300m & Slope > 25 Degrees)
Existing Built-up Area
Environmentally Sensitive Areas (ESA) Rank 1, 2 and 3
Prime Agriculture Areas (Rank 1 and 2)
Constraint Land
Land Not Subject to
Development Limitations
Available Land
State Capital
State Boundary
FIGURE 4.4 : LAND AVAILABILITY FOR FUTURE DEVELOPMENT IN PENINSULAR MALAYSIA

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4.6.2 Agriculture Land
The Third National Agriculture Policy (NAP3) seeks to enhance the performance of the
rural sector through the optimal use of resources; and proposes to reduce the cost of food
imports. Among the measures incorporated into the NPP-2 to fulfil and support these
requirements is the designation of Prime Agriculture Areas (PAA).
Identification of PAAs is important to prioritise the agricultural land to be conserved based
on existing major food production areas. The established criteria from the first NPP were
utilised with further improvements imputed in this analysis. Below are the criteria and rank
used to identify the PAAs:-
i. Granary areas (eight existing granary areas).
ii. Paddy areas outside the granary areas.
iii. Agricultural areas designated as “Permanent Food Production Parks” which include
food crop, animal husbandry and aquaculture industry zones.
iv. Agricultural areas on peat or organic soils.
v. Agricultural areas on Class 1 and Class 2 soils.
vi. Agricultural areas on Class 3 soils.
vii. Agriculture areas in agro-ecological regions without dry season.
viii. Agricultural areas in agro-ecological regions with short dry season.
Table 4.6 provides the total area by state for PAA in Peninsular Malaysia and their
ranking. A total area of about 4.8 million hectares has been designated as PAA. The state
with the largest PAA is Pahang, followed by Johor and Perak.
Table 4.6 : Total Area of Prime Agriculture Areas (PAAs) by States (‘000 ha)
State Rank 1 Rank 2 Rank 3 Total
Perlis 13.4 14.3 27.7 55.4
Kedah 70.6 65.7 225.9 362.3
Pulau Pinang 11.8 2.9 18.5 33.2
Perak 40.3 70.7 627.0 738.0
Selangor 19.3 28.9 281.2 329.4
W.P. Putrajaya - - 0.6 0.6
W.P. Kuala Lumpur - - 0.3 0.3
Negeri Sembilan - 3.5 373.1 376.6
Melaka - 3.8 124.6 128.4
Johor - 101.1 998.3 1,099.4
Pahang - 56.8 1,064.0 1,120.8
Terengganu 5.7 28.6 323.9 358.2
Kelantan 29.8 41.4 168.3 239.6
TOTAL 190.9 417.7 4,233.4 4,842.2

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It is proposed that all PAAs should be conserved as part of the country’s need to be self-
sufficient in food production and for national security interest. In recognition of this, the
agriculture sector has been earmarked as the new third engine of growth for the nation.
As the PAAs are generalised locations, detailed studies at state and local levels should
further refine the precise delineation of these invaluable areas.
4.6.3 Environmentally Sensitive Areas
Environmentally Sensitive Areas (ESA) refer to areas that are of critical importance in
terms of the goods, services and life-support systems they provide such as water
purification, pest control and erosion regulation. In addition, they also refer to areas that
harbour the wealth of the nation’s biodiversity.
As such, it is important that these areas remain untouched by development, conserved or
sustainably managed depending on the type, characteristic and level of sensitivity/
importance involved. Based on these criteria, the ESA areas are ranked as ESA 1, 2 or 3.
Each rank is assigned the following management criteria:
ESA Rank 1 No development, agriculture or logging shall be permitted except
for low-impact nature tourism, research and education.
ESA Rank 2 No development or agriculture. Sustainable logging and low
impact nature tourism may be permitted subject to local
constraints.
ESA Rank 3 Controlled development whereby the type and intensity of the
development shall be strictly controlled depending on the nature of
the constraints.
A composite analysis is used to derive the ESA Categories, based on three broad ESA
criteria such as areas important for biodiversity; areas important for life support (although
it should be noted that areas important for biodiversity are almost always also important
for life support); and areas vulnerable to hazards (Table 4.7).

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Table 4.7: Environmentally Sensitive Area Composite
Rank Criteria
Protection of Biodiversity
1 Existing and proposed Protected Areas (PA).
Important small habitats outside the PA system: Turtle landing sites, salt licks, important plant
areas, limestone outcrops and natural wetlands of high conservation value.
2 All other forests and wetlands outside of Protected Areas.
3 Marine Park islands.
Life Support System
1 Catchments of existing and proposed dams.
3 Catchments of water intake and groundwater recharge zones.
Hazard Risk Area
1 Areas above 1,000m contour.
2 Areas between 300m – 1,000m contour.
3 Areas between 150m - 300m contour.
Areas with erosion risk above 150ton/ha/yr.
Areas experiencing critical or significant coastal erosion.
In addition, a 500m buffer zone is provided for around ESA Rank 1 and 2 areas.
The analysis process requires the entire data layer to be overlaid to produce an output
that contains the spatial combination of information with attributed data layer. In the
process of ranking, attribute databases are adjusted by setting the condition and linking
selected database to the spatial feature. The conditions are built by formulating queries
such as the highest rank value such as Rank 1, from respective data layer which will be
applied when both areas are overlapped. This process requires inputting the ranking
value inside the attribute for all sub-analysis data layer.
Using the same process, all completed sub-analysis data layers of biodiversity protection,
life support system and hazard risk were combined to form Environmental Sensitive
Areas (ESAs). The ranking values were inputted according to the sensitivity of the sub-
analysis data layer.
Table 4.8 gives the total area by rank for each state. Total areas of 4.7 million hectares as
Rank 1 ESA, 3.6 million hectares as Rank 2 ESA, and 3.8 million hectares as Rank 3
ESA have been identified. Pahang state possesses the most ESA, followed by Perak,
Johor and Kelantan states.

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Table 4.8 : Total Area of Environmentally Sensitive Areas (ESAs)
by States (‘000 ha.)
State Rank 1 Rank 2 Rank 3 Total
Perlis 32.6 9.2 27.6 69.4
Kedah 222.0 251.0 373.6 846.6
Pulau Pinang 3.8 19.1 39.6 62.5
Perak 1,087.0 320.2 471.9 1,879.1
Selangor 268.5 147.1 306.5 722.1
W.P. Putrajaya - - 3.9 3.9
W.P. Kuala Lumpur 0.4 3.3 7.2 10.9
Negeri Sembilan 115.6 184.6 352.9 653.1
Melaka 8.1 13.5 88.4 110
Johor 617.5 322.1 652.3 1,591.9
Pahang 1,192.2 1,468.9 814.1 3,475.2
Terengganu 403.1 533.8 316.6 1,253.5
Kelantan 784.3 351.2 313.0 1,448.5
TOTAL 4,735.1 3,624.0 3,767.6 12,126.7
4.6.4 Urban Land
i. Future Urban Land Needs
Future urban land required to meet the projected development needs involves various
policy decisions and planning standards, such as urban-rural population ratio, degree of
intensification of development, extent of mixed-development, desirable urban form and
pattern. In estimating the land required for urban purposes, two major factors were
considered. The first factor is the demand for land generated by the increase in urban
population such as housing and job needs; and secondly, urban land availability
assessment without jeopardizing priority and other key land uses such as agricultural
production for food security, biodiversity conservation or geo-hazard risk areas.
The additional urban land needed for new urban uses by each state in the NPP (2005)
was determined by using the projected urban population growth over the gross average
density of 25 persons/ha, which gave an estimated total of 768,610 ha. of urban land
required in Peninsular Malaysia up to year 2020.
The urban density in 2020 based on the State Structure Plans is lower than the average
urban density of 25 persons per hectare as proposed by the NPP (2005).
This implies an over allocation or inefficient use of future urban land resulting in wastage
of resources in providing unwanted or underutilised infrastructures. In this respect, it is
useful to carry out a review on the urban land required especially for those states which
show very low urban densities such as Perlis, Kedah, Negeri Sembilan, Pahang and
Terengganu. There is also a need to undertake a further comparative benchmark study

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and adopt accordingly a suitable higher urban density to ensure the optimal use of land in
an environmentally sustainable manner.
To cater the needs for the increase in urban population up to the year 2020, the NPP-2
has estimated that a total of around 959,700 ha. of land will be required for urban uses or
its equivalent, accounting to approximately 7.3% of Peninsular Malaysia’s total land area
(Table 4.9).
Table 4.9 : Estimated Urban Land Requirement by States, 2020
State
Additional Urban
Population 2008-2020
(’000)
Additional Urban
Land Required
(’000 ha)
Estimated Urban
Land/ Built-Up Area
2020
‘000 ha %
Perlis 20.0 0.8 6.6 8.1
Kedah 330.7 13.2 65.4 6.9
Pulau Pinang 470.9 13.9 50.0 47.9
Perak 488.8 19.6 97.9 4.7
Selangor 1,866.7 60.2 203.9 25.6
W.P. Putrajaya* 225.8 0.7 3.9 88.6
W.P. Kuala Lumpur* 569.7 0.1 22.5 93.0
Negeri Sembilan 128.7 5.1 62.2 9.3
Melaka 122.7 4.9 34.1 20.6
Johor 850.6 34.0 196.4 10.3
Pahang 511.5 20.5 100.7 2.8
Terengganu 283.9 11.4 61.5 4.7
Kelantan 384.2 15.4 54.6 3.6
TOTAL 6,254.2 199.8 959.7 7.3
Note : Designated urban density is estimated based on the existing and targeted urban density in State Structure Plans
and 1st
NPP whichever is higher. Design density of 25 ppha is used where the existing built up density in the state is
lower. For the States of Selangor, W.P. Putrajaya, W.P. Kuala Lumpur and Penang, the current density is used to
estimate the urban land requirement.
* The whole of W.P. Kuala Lumpur and W.P. Putrajaya are almost developed for urban use in 2008 (92.6% and
72.7%). Urban redevelopment with the same or higher urban density is needed to support the targeted urban
population in 2020.
ii. Supply of Land for Development
Land requirement for future urban use should be allocated without intruding into
specialised or specific use such as PAA or ESA. Much of these land requirements can be
met by redevelopment of ‘brownfield’ sites (such as previously developed land) or infill
development with higher densities and mixed-uses without sacrificing ‘greenfield’ sites
from the urban fringes.
Applying the same rigorous criteria at state level shows that five states namely Perlis,
Kedah, Pulau Pinang, Selangor and W.P. Kuala Lumpur, will need to utilise either land
designated as PAA or ESA.

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For Perlis, Kedah and Pulau Pinang, given the significance of the granary areas and the
enormous investment made in the irrigation schemes, the use of the lower ranked ESA
land may be given priority in favour to the use of the PAA lands to overcome the apparent
shortfall in land required for future urban use. However, considerable care must be taken,
particularly in the use of water catchments and water recharge areas.
With respect to Selangor, W.P. Kuala Lumpur and Putrajaya the analysis of land required
for future urban use and lands not subject to limitations reveals that even if some of the
lowest rank ESA lands were to be assigned for urban use, there is still a need to utilise
PAA lands for urban uses. Given the present pattern of urban land use development
within these states, priority should be given to urban land use consolidation over the use
of PAA in the interests of efficiency and effective use of national resources.
Innovative spatial planning measures must be taken to reduce further loss of PAA and
ESA Rank 3 lands including adopting higher gross densities, encouraging mixed-
development in town centres, infill development, rehabilitation and redevelopment of
under-utilised buildings sites particularly institutional uses such as railway land and
prisons. Other physical planning measures includes creating and sharing spaces, flexible
land use zoning in built-up areas, relocating non-central uses, and decentralising land-
extensive uses to land surplus states. Urban sprawl should be avoided while new
development, especially townships in greenfield sites, can only be permitted if such
development cannot be carried out in the existing town centres or urban fringes. Specific
Development Plans for the conurbations should indicate in greater detail, areas to be
consolidated, delineation of urban limits and the provision of green corridors and green
belts as part of the need to conserve and protect PAAs and ESAs.
iii. Housing
A general assessment of the projected needs for year 2020 shows that future housing
need can be accommodated within the designated urban centres without converting forest
lands or environmentally sensitive areas into housing. However, the shortage of
affordable housing in the conurbations and larger towns is a key issue that must to be
tackled urgently. Land speculation should be further reduced by exercising the lapse of
planning permission according to sec. 24 of the Act 172.
A major challenge in spatial planning is to change the mindset from the present
perception that all lands adjacent to urban areas are ‘ripe for development’. In reality,
considerable waste of resources can occur when approved land for conversion was made
without a thorough assessment of demand. As the urban areas expand, this process of
increasing supply versus maturing of demand will be exacerbated. Effective management
and dissemination of information to the appropriate authorities on supply and demand for
urban purposes, land suitability, incorporation of PAA and forest lands in conurbations
into green belts designation should be made to avoid housing mismatch, property
overhangs and inefficient use of lands adjacent to urban areas.

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Identification of routes, recognising long lead times and need for operational efficiencies
required by public transport, should also be assessed in the managed release of future
urban land and conurbations. Assessments must also be made in considering the
capacity and cost of upgrading existing infrastructure and utilities, such as water supply,
electricity and road space for future urban growth.
iv. Industry
The Third Industrial Master Plan (IMP3), 2006-2020, aims to drive industrialisation to a
higher level of global competitiveness with an integrated approach towards industrial and
economic development. The implementation plan for IMP3 has a regional component
which seeks to balance out the potential inequity in outcomes.
Within the industrial sector, the focus is to develop key industrial or economic clusters in
all locations with a competitive advantage. The key cluster areas are shown in IP5. They
will be developed further along with the necessary enabling factors such as infrastructure,
skills and conducive government policies to further enhance the attractiveness of these
clusters.
Industrial activities will be promoted along the main growth corridors identified in the Plan
where urban based industrial activities are located, and in selected industrial zones/
nodes within the conurbation areas. Adequate infrastructure, utilities and logistics support
should be provided within these industrial belts to further optimise their land use potential
as well as separation buffers for residential areas.
General manufacturing industries will be promoted in intermediate cities and secondary
urban centres to diversify the economic base of the region and provide opportunities for
non agriculture-based employment. Resource-based industries will be developed at
resource locations depending on the type of industry. Rural industries will be located in
minor local centres and RGCs to better serve the rural community and benefit from the
infrastructure and services already available in these small towns.
4.6.5 Tourism
Tourism will be promoted as the second engine of growth for the nation, particularly with
the recent liberalisation of the tourism sector to enhance its global competitiveness.
Malaysia, as a preferred attractive destination, is being packaged by type of attraction
product categories and aggressively promoted by all the states. Table 4.11 highlights the
states’ tourism attraction resources and their locational advantages. It is essential for
each state to ensure that these tourism resources are properly managed and preserved.

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Table 4.10: States’ Tourism Attractions
State Promotion Caption
Perlis: Little Northern
Gem
Perlis prides itself on natural beauty and quaint, tradition country charm.
Kedah: The Rice Bowl
of Malaysia
Kedah’s landscape takes on different hues depending on the seasons of the rice
fields. The countryside is greenest when the newly planted paddy is spouting,
turns a golden yellow at harvest time.
Pulau Pinang: The
Pearl Of The Orient
Penang attracts food enthusiasts and those who love exciting beaches and rich
cultural experiences.
Perak: The Silver State Perak’s Main Range mountains cut across the state, standing in dramatic
juxtaposition to the flat, steaming plains.
Melaka: Historical City Melaka is seen as one of Malaysia’s premier tourist destinations, with its unique
heritage and multitude of museums and delicious food.
Kuala Lumpur: The
Capital City
Kuala Lumpur is where the new embraces the old, where modern sophistication
meets colourful tradition.
Putrajaya: Intelligent
City
Putrajaya is the new Federal Government Administrative Centre. It is a modern
city, which is rapidly growing and practises the concept of intelligent garden city.
Negeri Sembilan: Land
of Quite Grace
Negeri Sembilan is well-known for its rich Minangkabau heritage which is still
evident in the unique architecture and matrilineal society here.
Pahang: Adventures off
the Beaten Track
Nearly two-thirds of Pahang is blanketed in ancient virgin rainforest, making in a
magnificent enclave of lush greenery and exotic wildlife.
Kelantan: The Cradle
of Malay Culture
Kelantan is a prime centre for Malay culture, crafts and religion.
Johor: Southern
Gateway
Johor’s vast landscape is characterized by plantations and is punctuated by
spectacular national parks and quaint fishing villages.
Terengganu: Beach
Paradise
Terengganu has a strong cultural personality and is blessed with some of the best
islands in the country.
Selangor: The Golden
Gates
Selangor is home to suburban ideals and highly developed infrastructure while still
preserving some of the finest nature reserves.
Source : Ministry of Tourism, 2009
Tourist arrivals to Malaysia have been growing between 3.5 to 14% since 2005-2007; and
have increased to 10 percent per annum, higher than the targeted growth of 6.9 percent
within 2001-2005. This highlights the strengthening effect of the sector and the emerging
importance of Malaysia as a preferred tourist destination in the world. The 9
th
MP has
forecasted that tourist arrivals to Malaysia will grow at an average annual rate of 8.4
percent per annum to reach 24.6 million arrivals by 2010.
The four tourism development zones identified by the National Tourism Policy will be
further emphasised in NPP-2. Integrated approach on planning and tourism
implementation for sustainable tourism is also highlighted in the 9
th
MP. At the state level,
identification of the main tourism products and potential tourism zone/ corridors is made
in the State Structure Plan. A balanced tourism development strategy aimed at both
international and domestic markets should be adopted. This strategy requires the federal
and all state governments including the private sector, to develop sustainably and
promote actively the tourism attraction products in line with visitors’ preferences, provision
of high quality support facilities and infrastructure both for domestic and international
markets, while ensuring that these resources are properly preserved and maintained.

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Fast depleting natural resources, such as pristine forests, hills and wetlands, the heritage
sites and cultural lifestyles need to be protected and managed properly in a sustainable
manner. Serious efforts should be taken by the government and tourism players to reduce
the development pressure exerted on the natural resources of the country. Diversifications
of products from natural to man-made will be a good option. High density urban and man-
made tourism development need to adopt focused and concentrated strategy in special
demarcated urban tourism areas, while rural tourism areas need to be further preserved
and protected from conflicting land uses. Tourism cities, towns and zones need to have
clear demarcated boundary.
Priority needs to be given to tourism within identified tourism towns and zones, according
to their potentials. Future development of designated tourism towns and zones requires
monitoring to ensure the sustainable protection of existing and potential tourist attraction
areas as national assets. Special tourism guidelines must be prepared within designated
tourist areas, taking into consideration of their carrying capacities. Controlled development
by means of land use zoning, land use classes restrictions, design guidelines and heritage
and culture preservations management plans need to be planned and adopted for all
tourism zones. Priority should also be placed on the following tourism activities, in line with
the recent sustainable tourism approaches and emerging tourists’ preferences:
i. International shopping for ASEAN region and other international visitors within
the main conurbations (Kuala Lumpur, Johor Bahru and Pulau Pinang) and
international gateway towns;
ii. Urban tourism including shopping, health, medical, educational, festivals, sports,
MICE tourism and others within the urban areas with readily available supporting
infrastructure, facilities and human resources. This also includes special roles
tourism cities/towns such as Putrajaya and Cyberjaya as intelligent cities;
iii. Coastal tourism within high and medium density tourism towns/zones, marine
parks, island gateways and rural coastal districts, such as Melaka, George Town,
Langkawi and Kuala Terengganu;
iv. Rural cultural tourism with an emphasis on the development and protection of
tangible and intangible assets within traditional kampongs, beaches and islands
such as Alor Gajah, Kuala Pilah and Kuala Lipis;
v. Development and protection of national tangible and intangible heritage zones,
routes and values such as World Heritage Cities, Perak heritage sites, Royal and
Heritage towns, Malaysian traditional and multicultural heritage lifestyles; and
vi. Development and protection of natural heritage assets such as National Parks,
State Parks, marine park islands, highlands and hill stations, wetlands and
RAMSAR sites, beaches, birds and turtle landing sites, firefly habitats and all
other eco-tourism sites.

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Table 4.11: Major Tourism Destinations Based on Locational Advantage
Tourisms Destination Categories Areas
Shopping Cities/Town Kuala Lumpur
Johor Bahru
Penang
Border Towns Bukit Kayu Hitam
Padang Besar
Rantau Panjang
Coastal Tourism Towns Kuah, Langkawi Geo-Park
Port Dickson
George Town - Tg. Bungah - Bayan Baru
Lumut
Kuala Terengganu
Kuantan
Eco-Tourism (Non-Coastal) Gateway
Towns
Jerantut
Gua Musang
Gerik
Kuala Lipis
Kuala Berang
Segamat - Bekok
Island Gateways Mersing/Kuala Rompin
Kuala Besut - Merang
Kuala Terengganu - Marang
Kuala Perlis - Kuala Kedah
Port Klang
Lumut
Rural Coastal Tourism Zone Cherating - Kijal
Alor Gajah
Yan - Seberang Perai Utara
Muar - Pontian
Mersing - Desaru
Sabak Bernam - Kuala Selangor
Kelantan and Terengganu Coastal Districts
Eco-Coastal Tourism Zone (islands and
wetlands)
Johor Marine Park
Kedah Marine Park
Terengganu Marine Park
Pulau Pinang National Park
Pulau Sembilan State Park
Klang Islands
Kukup Island
Tg. Tuan, Upeh Island
Setiu Wetland, South East Pahang Peat Swamp Forests
Kuala Gula - Matang - Segari - Melintang
Taman Alam Kuala Selangor

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Tourisms Destination Categories Areas
World Heritage City/National Heritage
Sites/Heritage Town/Royal Town
George Town and Melaka
Beruas, Lenggong, Sg. Lembing, Lembah Bujang
Taiping, Kota Bharu, Kuala Terengganu, Klang, Kuala Lipis
Kuala Kangsar, Pekan, Seri Menanti, Alor Setar
Hill stations Cameron Highlands
Genting Highlands and Bukit Tinggi
Fraser’s Hill
Penang Hill
Source : National Physical Plan-2, 2010
4.6.6 Transportation Network
The development of a comprehensive transportation network for the country is essential
as a means of integrating and maximising the various state economies’ comparative
advantages for the benefit of the nation as a whole.
IP 22 indicates the conceptual Integrated National Transportation Network for Peninsular
Malaysia to support the NPP-2 Development Strategy.
The transportation network strategies comprise the following aspects:-
i. Network Configuration
ii. National Gateways and Transportation Nodes
iii. Urban Transportation and Intelligent Transport Systems
i. Network Configuration
The road and rail networks should be appropriately linked to facilitate multi-
modalism, in order to achieve an integrated national transportation system.
a. High-Speed Rail System
Based upon the efficiency criteria, a 300 kph high-speed rail system is proposed
consisting of a West Coast line, an East Coast line and two cross lines spanning
and linking together the two coastal spines.
The high-speed rail system is proposed as a bulk mover both for people and for
goods servicing all existing conurbations and state capitals. It should also connect
all the major gateways and ports (seaports, inland ports and airports) in the
country.
As the high-speed train proposals along the West Coast, to the East Coast and
the East-West links have a long term horizon, corridor alignments need to be
identified and incorporated into lower tier plan to be protected as part of the
staged implementation of these programmes.

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b. Road Network
The expressway system is to be extended to ensure effective linkages between
the various states. A minimum of three highway crosslink will be provided to
bridge the West Coast and East Coast expressway systems.
The extensive network of lower hierarchy roads such as the federal and state
roads shall be upgraded to support and complement the national expressway
system. The present network of roads should be further strengthened leading to
the formation of a ladder pattern configuration (see IP 24).
ii. National Gateways and Transportation Nodes
a. Kuala Lumpur International Airport
The largest gateway for international arrivals into the country is the Kuala Lumpur
International Airport (KLIA).
With an annual throughput of 27.5 million passengers per annum (mppa), KLIA is
operating currently at about 60.0% of its existing capacity of 40 mppa. KLIA has
an expandable ultimate capacity of some 50 mppa. Given the availability of some
40.0% spare capacity, the most urgent task is for KLIA to create a critical mass
which is large enough to become self-generating.
Externally, KLIA is strategically situated midway of the international air routes
from Europe, Middle East and Indian Sub-Continent (at the north) to the
Australasia and Oceania countries (at the south), and is equally strategic for
travel from the East Asian countries (China, Japan, Korea and Taiwan) to the
South African Continent. Strategic alliances with airlines flying these routes may
accentuate its role and appeal as an international hub and attraction.
KLIA must be made into an integrated national transportation hub whereby
travellers bound for external destinations generated locally within the natural
hinterland and are channelled efficiently and multimodally through KLIA (IP 25).
KLIA must be made into an integrated national transportation hub whereby
travellers bound for international destinations either generated locally or within
the natural hinterland are channelled efficiently and multimodally through KLIA
(IP 25).
b. KL Sentral
KL Sentral shall be the national transportation hub linking the major
transportation nodes in the country with a range of multimodal services. Being the
central station, KL Sentral shall be the confluent point of the nation’s high-speed
rail system and the meeting point of the Express Rail Link, the KTM Commuter
Line, the Light Rail Transit and the KL Monorail.

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To be a truly effective urban transportation interchange, KL Sentral must be well
served by efficient feeder bus systems and be integrated with well-designed
network for non-motorised transport modes such as walking and cycling.
c. Airports
Five international airports are proposed to support the overall NPP-2 transport
development strategy (IP 25).
i. Kuala Lumpur International Airport (KLIA),
ii. Penang International Airport (Pulau Pinang),
iii. Sultan Ismail International Airport (Johor Bahru),
iv. Sultan Mahmud International Airport (Kuala Terengganu), and
v. Langkawi International Airport.
The development of Sultan Ismail International Airport in Johor Bahru is planned
to be integrated with the Port of Tanjung Pelepas as one of the cargo
transhipment mega hubs for the region.
d. Sea Ports
Existing sea ports and designated functions are (IP 25).
National Ports : Port Klang, Port of Tanjung Pelepas, Penang
Port, Kuantan Port
Regional Ports : Kemaman Port, Kertih Port
Coastal and Feeder Ports : Pasir Gudang Port, Tanjung Langsat Port,
Langkawi Port, Kuala Kedah Port, Lumut
Port, Tanjung Keling Port, Tok Bali Port
Port Klang, Port of Tanjung Pelepas (PTP), Penang Port and Kuantan Port are to
be the major national ports, albeit each with different focuses.
The Port of Klang, with its central location and proximity to the nation’s domestic
hinterland, is to be established as the national hinterland port with extensive inter-
modalism and efficient land bridging services to other ASEAN countries such as
Singapore, Thailand, Cambodia, Myanmar and Laos. PTP on the other hand, is to
concentrate on its development to be a regional transhipment hub for South-East
Asia with an extensive maritime feeder service to all ASEAN countries.
The maritime services by Port Klang and Port of Tanjung Pelepas should be
complemented and strengthened by the Ports of Penang and Kuantan. Main
shipping lines, which prefer to load and unload goods at the Northern Region of the
Peninsular Malaysia, can do so at Penang Port. Similarly, Kuantan Port could cater
for ships going to the Eastern Region of the Peninsular and from the Pacific Rim

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countries and the East Asia Region that do not navigate en route the Straits of
Melaka.
The development of an efficient and extensive intermodalism, feeder and hub port
system in freight transportation should be readily promoted. The setting up of a
National Commission on Intermodal Transportation (NATCIT) or equivalent to help
develop the intermodal development in the country to a globally competitive level is
therefore needed. This will certainly improve the competitive edge of the national
ports in their endeavours to become the leading top ports in the South-East Asian
region. While the ports of Port Klang and PTP have excellent growth in the
throughput, there is however a need for government support to strategise and
provide the necessary infrastructure and associated facilities for deep water port in
both Penang and Kuantan. The positioning of these four national ports will also
serve as a catalyst to develop the respective conurbation areas and their regional
hinterland.
iii. Urban Transportation and Intelligent Transport System
The urban transportation strategy will focus on the development of an integrated,
efficient and reliable urban transportation system in all major urban centres of
Peninsular Malaysia. The emphasis will be on the need to have a more efficient, safe
and comfortable public transport system to enable a modal shift from private car
usage.
It is proposed that for major urban centres in Malaysia, the modal split target of 30:70
by year 2020 between public and private transport and long term modal split ratio of
50:50 be adopted as a city mission. Kuala Lumpur presently has a modal split ratio of
20:80 in favour of private transport while the National Key Result Areas (NKRA) is
targeted to achieve 25:75 model split in Klang Valley by year 2012.
A fully integrated network system will require the creation of one single multimodal/
multifunction transportation authority to oversee public transportation including rail
systems, bus routing and other para transit modes. Detailed conurbation studies will
be required to prioritise provision of infrastructure to achieve the modal split and
coordinate the location of fixed track networks in areas of greatest demand. For the
lower order urban centres which are not likely to exceed the 500,000 population
mark, transport system should rely more upon buses.
The use of Intelligent Transport Systems (ITS) will complement the development of
modern urban public transport facilities. This system relying upon advanced
electronics communications and IT for monitoring and tracking real time information
on traffic flows and volumes is to better manage limited road space. The present
level of ITS infrastructure is to be expanded in the three main conurbations.

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4.6.7 Utilities and Services
The main physical aspects in providing appropriate Infrastructure and utilities involve the
following strategies:-
i. Supply/source - supply must be sufficient and secure to meet demands.
ii. Coverage/accessibility - infrastructure shall be accessible to meet demands.
iii. Reliability/quality - infrastructure shall be sufficiently reliable and of the quality to meet
the demands.
iv. Sustainability - infrastructure shall be developed in a sustainable manner to
safeguard the environment and to be able to meet future demands.
In addition to the above, infrastructure shall be provided in an equitable manner, where
access to appropriate levels of infrastructure shall be made available to all levels of the
population.
i. Water
Apart from conserving water resources, the development strategy for water supply
involves increasing supply and distribution systems to meet projected demands.
Production capacity for the whole of the country is expected to increase from 11,917
million litres per day (MLD) in the year 2000 to 18,482 MLD by the year 2010. New
dams, water intakes, water treatment plants and distribution systems will need to be
constructed to meet future demands.
To ensure an efficient water supply distribution system, measures such as reducing
non-revenue water, enforcement against water thefts, pipe and meter replacements,
the use of GIS for distribution systems, rehabilitation and upgrading works to
distribution systems and water treatment plants will need to be upgraded and
continually monitored.
To address anticipated water shortage and uneven distribution, inter-basin and inter-
state water transfers will be implemented. Interim measures to address water
shortages includes rain water harvesting, the use of storm water in ponds for non
potable use and groundwater development. Non-structural measures such as water
conservation and the use of water saving devices will also need to be encouraged.
Accessibility to potable water in remote and rural areas will also be a priority. Water
supply coverage to rural population will increase to 100% in the states of Johor,
Kedah, Melaka, Negeri Sembilan, Pahang, Perak, Perlis and Pulau Pinang. Coverage
to the rural population in Selangor, Terengganu and Kelantan is expected to be 99.5%,
98.0% and 70.0% respectively by year 2010. These figures are expected to improve
further in the future once additional rural water supply projects are implemented.
The most fundamental of these services is the provision of water to meet the varying
demands of the urban population, agriculture and industry. The National Water

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Resources Study up to year 2050 (NWRS) has estimated the demand for domestic,
industrial and irrigation in Peninsular Malaysia to increase from 10,833 million m
3
/year
of water in year 2000 to 13,900 million m
3
/year in year 2020, an increase of 22.0%
(Table 4.12).
Table 4.12 : Projected Water Demands for Peninsular Malaysia, 2020
Demand Sector Units
Year
2010 2020
Domestic million m3
/yr 2,987 3,862
Mld 8,184 10,582
Industrial million m3
/yr 2,592 3,561
Mld 7,101 9,756
Sub Total million m3
/yr 5,578 7,423
Mld 15,285 20,338
Irrigation million m3
/yr 6,517 6,517
Mld 17,857 17,857
Total
million m3
/yr 12,095 13,940
Mld 33,142 38,195
Source: NPP-2 Infrastructure and Utilities Technical Report, 2001
The per capita water availability for Peninsular Malaysia in year 2050 is projected to
decrease approximately 3,000 m
3
/year. It is projected that Negeri Sembilan will face
water shortage by year 2010, Pulau Pinang and Melaka by year2020. Selangor and
Perlis will be in the same category by year 2050. The water-rich states are Perak,
Johor, Pahang, Terengganu and Kelantan.
Serious consideration to the protection of water sources and to the future water needs
of both the urban and rural areas must be given top priority. Water surplus and water
stressed areas have been identified and these have been matched against water
source catchments, dams, and water recharge and aquifer areas (see IP 26).
Apart from the water transfer programmes, other specific proposals for water
management include the designation of thirty eight (38) dam sites and the protection
and rehabilitation of existing rivers and water bodies through the use of buffer zones
and conservation of wetlands, peat areas and lakes (inclusive of ex-mining ponds).
ii. Sewerage
In line with the need to create world-class cities, a major commitment to sewerage
treatment will be required. The thirteen (13) sewerage projects comprising ten
sewerage treatment plants and three central sludge treatment facilities will increase
service totals to 14.4 million people.

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The level of service of sewerage facilities will need to be upgraded with priority given
to densely populated areas within the main conurbations of Kuala Lumpur, George
Town, Johor Bahru and Kuantan. Within the main conurbations and major settlements
regional sewerage treatment plants and systems are required to increase efficiency of
the sewerage systems. Priority will also be given to the offshore islands and
Environmentally Sensitive Areas such as marine parks and nature reserves and tourist
destinations where appropriate sewerage systems shall be put in place to safeguard
their sensitive environments.
iii. Drainage
Under the NPP-2 development strategy, drainage and flood mitigation programmes for
the period up to 2020 are to address flood problems for the main conurbation areas of
Kuala Lumpur, George Town, Johor Bahru and Kuantan.
Traditional flood mitigation approaches shall be integrated with source control
measures based on Manual Saliran Mesra Alam (MSMA). Flood risk maps for
Peninsular Malaysia must be prepared to ensure that adequate provision and
consideration is given to this aspect for future physical and land use planning. To this
end, contemporary approaches in flood mitigation based on preventive measures
which focus on avoidance of flood prone areas for development are to apply. An
exception can be allowed for agricultural activities, for which a suitable risk must be
factored in for flooding. The principle is to curb intrusion of urban uses into wetlands
and flood plain areas that serve as natural flood storage facilities. This environment
friendly policy promotes conservation of wetlands whilst the flora and fauna provide
regional level active and passive recreational facilities for urban residents.
iv. Solid Waste Management
The National Strategic Solid Waste Management Master Plan provides various
strategies and measures to improve solid waste management. Among the physical
aspects of this Master Plan includes the construction of solid waste facilities to enable
the proper collection, treatment and disposal of solid waste.
Among the facilities that have been constructed include the transfer station at Kuala
Lumpur and the sanitary landfill at Bukit Tagar, Selangor and Selong, Johor. It is
expected that additional regional sanitary landfills and other facilities such as thermal
waste treatment plants, transfer stations and sanitary landfills will also be built.
Upgrading of existing unsanitary landfills will also be carried out. In addition, old
unused dumping sites will be properly closed.
Apart from the construction of physical facilities, public awareness campaigns will be
carried out. Efforts will also be carried out to achieve waste minimisation, reuse,
recovery and waste recycling target of 22% by 2010.

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v. Electricity
The peak demand for electricity supply is expected to increase steadily in tandem with
the increase in domestic, commercial and industrial consumers.
To meet the electricity demand growth, more new efficient power plants will be built
and proposed to be located at the peripheries of the main conurbations of Kuala
Lumpur, George Town, Johor Bahru and Kuantan. In line with the national aspirations
of green energy, more hydro power plants will be constructed to reduce the use of
fossil fuels. Two new hydroelectric power plants at Ulu Jelai and Hulu Terengganu are
currently being implemented. In addition renewable energy solutions such as solar
power, wind, wave and biomass will also be promoted. Energy Efficiency systems and
Energy Demand Management systems will also be implemented to ensure efficient
and productive use of energy.
The steady growth in demand will require the transmission and distribution of
electricity being strengthened to improve the adequacy and reliability of supply. 500kV
and 275kV transmission will form the backbone of transferring large amounts of power
from the power plants to the load centres in Peninsular Malaysia, where the power is
distributed to the consumers via an extensive distribution network. Amongst the
completed transmission projects are the 500kV line from Gurun-Air Tawar in the north,
Air Tawar to Kapar in the central region, Pasir Gudang-Yong Peng in the south and
the connections from three large power stations namely Manjung Power Station,
Tanjung Bin Power Station and Jimah Power Station. More 500kV transmission lines
will be added as the power station expands to cater for the electricity demand growth.
Cross-border power interconnections with neighbouring ASEAN countries have been
in place since 1981 and today the power systems of Peninsular Malaysia, Singapore
and Thailand are interconnected to enable exchange of power. The high voltage direct
current (HVDC) transmission links between Peninsular Malaysia and Sarawak and
also between Peninsular Malaysia and Sumatra will ultimately pave the way for the
establishment of the ASEAN power grid.
vi. Natural Gas
The Peninsular Gas Utilisation Pipeline (PGU) and the Natural Gas Distribution
System (NGDS) have enabled many areas within Peninsular Malaysia to be served by
piped natural gas. The main consumer of natural gas is the power sector, followed by
the non-power sector. A small amount is exported to Singapore.
The NGDS will be further expanded by another 640 km to 2,005 km by 2010 to meet
the demand of new growth areas. In addition to the expansion of the NGDS, measures
to promote the use of natural gas for vehicles (NGV) will also be made. Additional
NGV stations are expected to be constructed to support the use of NGV.

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4.6.8 Information and Communications Technology (ICT) Development
The National Information Technology Agenda (NITA) is a strategic framework for IT
programme development at federal, state and local government level. It is intended to
draw in the participation of the private and non-government sectors as well as the
community at large. The thrust of NITA is seen as a triangle in which infrastructure,
software applications and people are inextricably linked. The goal is to create a
stimulating working and living environment that provides all Malaysians with equal access
to information and knowledge.
While the Multimedia Super Corridor (MSC) located within the Kuala Lumpur conurbation
serves as a catalyst to expand IT-related industries and to provide an enabling
environment for the orderly development of IT industry in the country, other IT centres will
include George Town Conurbation and Johor Bahru Conurbation in its linkages to
Singapore. The use of ICT should be encouraged in areas where there is concentration of
activities rather than dispersed. This is primarily due to the need for sophisticated back up
services in urban centres which would not be available in the more remote locations.
Within the context of the NPP-2, the National and Regional Growth Conurbations of Kuala
Lumpur, George Town, Johor Bahru and Kuantan are to be developed as intelligent
cities. The programme shall be followed by all capital cities in the country to form a
nationwide network of intelligent cities linked to the global information highway.
Internet and wireless technologies represent two of the fastest developing technologies in
the telecommunications field. A backbone network such as the one covering the MSC’s
386 route km high speed broadband fibre optic cable linking Kuala Lumpur City Centre
(KLCC), Putrajaya, Cyberjaya and KLIA have been completed.
An extensive fibre optic network of 62,600 km has been installed linking states and major
towns across the country enabling high capacity broadband transmission capable of
carrying data, audio and video. With the four satellite gateways at Kuantan, Melaka in
Peninsular Malaysia and Labuan, Semantan (Kuching) in East Malaysia, connections to
countries around the Indian and Pacific Oceans are available. The migration to third
generation (3G) mobile communications technology will free up Internet access without
limitations to physical constraints.
Adoption of Internet-based services such as e-commerce and provision of broadband
access on flat rate bandwidth-based pricing mechanism will promote Internet usage and
the uptake of Internet-based applications. These facilities will allow Malaysia to compete
in the higher order high-value services at the international level.
4.6.9 Community Facilities
The nationally significant community facilities are the public universities and hospitals.
These are due largely to the comparatively large land area involved, large capital
investment and maintenance costs required, and the important contribution they make to

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