The Development Of Economic Corridors Will Increase Malaysian Competitiveness In The Next 10 Years

28,714 views

Published on

a group debate and submission

0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
28,714
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
535
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

The Development Of Economic Corridors Will Increase Malaysian Competitiveness In The Next 10 Years

  1. 1. Assignment Title: The Development Of Economic Corridors Will Increase Malaysian Competitiveness In The Next 10 Years 1
  2. 2. TABLE OF CONTENTS Page 1.0 INTRODUCTION 2-5 2.0 DISCUSSION 2.1 Economic Performance 6-9 2.2 Government & Business Efficiency 9 - 14 2.3 Infrastructure 14 - 17 3.0 CONCLUSION 18 4.0 APPENDIX 19 - 26 2
  3. 3. 1.0 INTRODUCTION What is in the basis of development? Based on the Oxford Advanced Learner’s Dictionary, development gives a meaning of growing larger or having to mature in all senses. While, increase on the other hand is to become or to make something greater in amount, number value and so on. What is Economic Corridor? According to Asean Development Bank, Economic Corridors have 3 Characteristics which are the following; 1) A well-defined geographic space. 2) Emphasizes bilateral rather than multilateral initiatives, having focused on strategic borderline between 2 countries. 3) Highlights physical planning of the corridor and its surrounding area, to concentrate infrastructure development and achieve the most positive benefits. 1 Malaysia has 5 economic corridors which have the above characteristics, namely Iskandar Malaysia, East Coast Economic Region, Northern Corridor Economic Region, Sabah Development Corridor and the Sarawak Corridor of Renewable Energy. On a brief introduction, Iskandar Malaysia (IM) which is also formerly known as Iskandar Development Region (IDR) and South Johor Economic Region (SJER) is the core southern development corridor in Malaysia. It was initially established on the 30th of July 2006.The project is administered by the Iskandar Regional Development Authority (IRDA) and it also named after the Sultan of Johor, Sultan Iskandar.2 East Coast Economic Region (ECER) on other hand covers certain states in Malaysia namely, Kelantan, Terengganu, Pahang and the north of Mersing district of Johor. 1 Development and Economic Corridor Definition Retrieved from: http://www.wikipedia.org/ 2 Economic Drivers and Incentives. Retrieved from: http://www.iskandarmalaysia.com.my/investing-in-iskandar- malaysia 3
  4. 4. The ECER has an initiation of development having a time span for 12 years starting from 2007. Petronas, the Malaysia owned oil and gas company is the primary core importance and master planner for the ECER.3 The Northern Corridor Economic Region (NCER) is being expected to be a world- class economic region by the year 2025, in which it will be amongst the world’s best in a number of its key economic sectors, such as Electrical and Electronics, Agriculture, Tourism, and Bio-technology. It will also be a destination of choice for foreign and local investment of business’s in which the main aspect will be on social development, community infrastructure, and environmental integrity.4 The Sabah Development Corridor (SDC) was launched on the 29th of January 2008.An approximate figure of 900,000 jobs are expected to be created with the projects along with a waterfront city, tourism sub project and a Sabah Railway terminal. The key objectives of the SDC was to make Sabah a getaway for trade, investment and tourism, to impact on a harmonious religion factors, create job opportunities, having the state more tech savvy and improve the quality of life style.5 The Sarawak Corridor of Renewable Energy (SCORE) was launched on the 11th of February 2008. Their major initiative is to develop the Central Region and be able to transform the Sarawak state in Malaysia by the year 2020. Their main focus is to achieve goals through accelerating the state’s economic growth whilst improving the quality of 6 life for the residence in Sarawak. 3 The Easy Coast economic Clusters. Retrieved from: http://www.ecerdc.com.my/ecerdc/ 4 Infrastructure & Analyst of Koridor Utara. Retrieved from:http://www.ncer.com.my/ 5 SDC Project relative industry. Retrieved from: http://www.sedco.com.my/index.php?option=com_content&view=article&id=9&Itemid=19 6 Sarawak SCORE Plans and strategies. Retrieved from: http://www.sarawakcore.com.my/ 4
  5. 5. The economic corridors challenge can be expressed through Michael Porters five forces7. Porter’s five forces analysis determine the competitive intensity from external sources and internal threats. The threat of substitute products can be in relation to having foreign markets taking hold of our economy which gives the local market to be negatively driven due to depreciation in quality as compared to other tech savvy countries which has a positive demand growth. However the local market will be competitively drive when they gauge new technology which increases local markets and improve the quality of the local life style. The threat of entry of new competitors on the other hand results in new entrants which decreases profitability within the local markets. However this can be reduced through barrier of entries and certain laws and restrictions may be imposed. The local market has an advantage in terms of capital requirements, absolute cost advantages, etc. The intensity of competitive rivalry in the local market can also boost the economy through various mode namely through media innovation, between online and offline contacts, and having to advertise at a reasonable cost but efficient output. The bargaining power of customers may cause hurt in the local markets are compared to foreign adversities but the local markets may reap its benefits when it comes to aspects of realizing the buyers price sensitivity, the uniqueness of product, volume and indulge in various analysis to better understand the market behaviour. When we look at the bargaining power of suppliers, the costs of the firm reflects on the supplier’s reaction. Therefore the firm will have to realize their cost at a reasonable sustaining level in order to purchase goods at a level which would maximize their wealth. 7 Micheal Porter’s five forces.A model for Industry Analysis. Retrieved from: http://www.quickmba.com/strategy/porter.shtml (See Appendix of Micheal Porter five forces diagram.) 5
  6. 6. The development of these economic corridors will increase the Malaysian competitiveness in the next 10 years. Based on World Competitiveness Yearbook, 4 factors that shape a country’s competitiveness are as follows: a. Economic Performance b. Government Efficiency c. Business Efficiency d. Infrastructure Following our discussion in the next chapter, let’s expound further on each factors of the economic corridors that impact Malaysia’s growth and benefited Malaysian’s competitiveness. 6
  7. 7. 2.0 DISCUSSION 2.1 Economic Performance Look at our Iskandar Malaysia, up to December 2009, we have attracted RM 55.56 billion of cumulative investment as shown at Table 18. This figure surpasses the RM 44.75 billion target of 2009. Table 1: Committed Investment Iskandar Malaysia was launched on 4th of November 2006. And this figure shows that the first three years have been good, not only in term of investment value, but also in terms of the contents of the developments, because there is a good mix of investors from Europe, the Middle East and locals. As we can see, a brand new state administrative centre, a plush yachting marina and several up-market gated housing estates have already 8 Sources of IRDA, Khazanah, IIB , MIDA &corporate announcements 7
  8. 8. been built and construction has begun on the site of a new LEGO land theme park and a medical school to be operated by the UK’s Newcastle University. On the other hand, Iskandar Malaysia and Singapore constitute one corridor of an economic hub within an economic region of concentrated growth, which is Asean. To some extent, Johor and Singapore have been growing, and the two are actually complementing each other. There is always a constant flow of investments from Singapore to Malaysia. Singapore investments come to Johor not because of our close proximity, but because Johor also offers comparative advantage in term of space and lower costs of doing business. Iskandar Malaysia is no longer Singapore’s hinterland. For instance Singapore has two integrated resorts with casinos, but we have LEGOland and the Indoor Theme Park in Nusajaya. Fathers who want to gamble can go to Singapore and families with younger children can come to our theme parks. While, mothers can go to the Malaysian Premium Outlet in Kulai, which sell branded items at discounted prices.9 Look at East Coast Economic Region, 4 halal products have successfully penetrated the fast growing United Kingdom halal market, which is worth around 2.8 billion pounds.10 The 4 companies are Muslim Best Food Industries, GT Herb Industries, Maduria Industries and RMZ Marketing. By promoting food in UK, this will attract more UK citizen to travel in Malaysia as tourist. Meanwhile, East Cost Economic Region is focusing on mainland coastal development, sustainable island tourism, eco-tourism, cultural & heritage and agro-tourism. There will be additional promotion to increase participation in homestay programs and hallmark events. The development of the tourism at East Cost Economic Region would be just nice for the demand of the tourists which will be discussed later. Besides, the vision Northern Corridor Economic Region is to be world class economic region by 2025, where it is amongst the world’s best in a number of its key economic 9 Zazali. M (no date). The Star Newspaper (Johor MB’s views on Iskandar) , Retrieve from http://biz.thestar.com.my/ news/story.aspfile=/2010/1/23/business/5509985&sec=business 10 ECER Enters UK Halal Market. (No date). Sources of Malaysia National News Agency Bernama.com, Retrieve from: http://www.bernama.com/bernama/v5/newsindex.php?id=411222 8
  9. 9. sectors, such as E&E (Electrical and Electronic), agriculture, tourism and biotechnology. It is planned that a total investment of RM 177 billion from both public and private sectors in the period to 2025. It aims to create 500, 000 jobs by 2012, rising to one million by 2018, besides increasing the region’s GDP from RM 52.7 billions in 2005 to a targeted RM 214 billion by 2025.11 Let us look at our eastern side of Malaysia. In Sarawak Corridor of Renewable Energy, USD 11 billion investment committed by 1 Malaysia Development Berhad and State Grid Corporation of China, for their venture in the Sarawak Corridor is actually a boost to the state economy. The locals are to tap the business and job opportunities steaming from the investments. Besides, the state government had also taken steps to send the local workforce to undergo skills training in high technological fields in Australia to prepare them for the industries to be set up in Sarawak Corridor of Renewable Energy. The other corridor at our eastern Malaysia is Sabah Development Corridor. As we know, the economy of Sabah has always been heavily dependent on the export of its primary and minimally processed commodities. These major export items include santimber, crude petroleum, plywood, crude and processed palm oil, cocoa beans, methanol and hot briquetted iron. The main imports of which include machinery and transport equipment, manufactured goods, mineral fuels and lubricants and chemicals. Under the Sabah Development Corridor, Sabah will be transformed into regional gateway for trade, investment and tourism. By 2025, Sabah Development Corridor initiative aims to triple Sabah’s GDP per capita, and increase its GDP by four times through the implementation of the prioritized programmes. In total, more than 900,000 new jobs are expected to be generated during the Sabah Development Corridor implementation period. Projected GDP and GDP Per Capital during SDC Period 11 Malaysia unveils $51.2 billion plan to boost northern development.(No date) Sources of Kyodo News. 9
  10. 10. 2006 2010 2015 2020 2025 GDP RM (billion) 16.0 21.9 32.0 45.7 63.2 GDP Per Capita RM 5,331 6,685 8,862 11,571 14,784 Source: Institute for Development Studies (Sabah) 12 2.2 Government & Business Efficiency Government’s role in providing incentives, attractive packages and policies, will spur new ventures through foreign as well as local investors and operators, benefiting both the people and government. Investment will be followed by a number of projects being established. Investment could be in various ways, for example, education institutions, R & D in petrochemical and energy terminals, manufacturing plant, tourism, infrastructure etc. Development of projects needs physical buildings, infrastructure13, man power, telecommunications and transportation14 to support the strategies. All the above brings advancement, demands labour and creates wealth to the location where the corridor is aimed. Labour requires wages. Having acquired job, the income received helps to sustain a better living standards. Plus, when an area has job employment vacancies, more people will migrate to a location thus forcing development for that region. Rather than concentrating 12 The German Chamber Network. (No date). Retrieve from: http://www.giessenfriedberg.ihk.de/Geschaeftsbereiche/International/Anlagen/Brandt,_Malaysia-Praesentation-G.pdf 13 ECERDC Key Enablers, Infrastructure, Retrieved from http://www.ecerdc.com.my/ecerdc/infrastructure3.htm; SDC, Proposal Projects, Retrieved From http://www.sedco.com.my/index.php? option=com_content&view=article&id=9&Itemid=19 SCORE, Three Phases for Corridor Development Retrieved from http://www.sarawakscore.com.my/modules/mbr/com- ponents/phase/?mainpageid=phase 14 ECERDC(2008),Air,Maritime,Road and Railway connections from one of the corridors. Retrieved from: http://www.ecerdc.com.my/ecerdc/transport.htm; (See Appendix III (a) & (b) ). Walking The Talk” on International Standing Safety Emphasis for RMK-9 Projects, Iskandar Malaysia. Retrieved from: http://www.iskandarmalaysia.com.my/pdf/RMK9-Importance-of-Safety.pdf 10
  11. 11. in KL, now the population is available in every state. Population will be evenly spread across Malaysia. Further, the employment wages and salary result in contribution to tax payments, employee / employers provident fund, and savings, part of which becomes country’s revenue. Foreign and local investment brings revenue to the government as well after the time period for “tax holiday” is over. Across the ocean, the west Malaysia under the Sarawak Corridor of Renewable Energy (SCORE), the Deputy Minister of International Trade and Industry, Datuk Jacob Dungau Sagan stated that within the first 10 months of 2009, the state received the highest investments in the manufacturing sector with approved investments of RM8.3 billion, of which RM5.7 billion came from foreign investors. Sabah on the other hand has managed to attract some RM30 billion in investments mainly in tourism, agriculture, manufacturing and infrastructure since the launch of the Sabah Development Corridor15. When a foreign investor sets up a plant in Malaysia, it enables diffusion of knowledge and introduces new technology to the local labour to the company and vice versa. It develops many areas of “know-how” in areas where expertise or training is needed. For instance when Multimedia Super corridor was announced in Cyberjaya, HSBC employed many locals for outsourcing their calls and services. Many of the HSBC staff is able to shift between jobs and they are much sought after by Shell, Dell, DHL and EDS. The reason for this according to inside sources is that HSBC’s training is one of the best for the service industry. Investments results in trade stimulation, especially when Malaysia is a country that encourages trade business. In 2008 total trade was 1.2 trillion16. Trade businesses are able to bridge the gap between capital demand and supply. More investors mean an increase in the production capacity. The economy becomes active. A country must be aggressive in the economy to enable more spending to experience growth rate. The various investments 15 Sarawak poised to bring in more investors, (2010, February 2) Retrieved from http://www.mida.gov.my/en_v2/in- dex.php?mact=News,cntnt01,detail,0&cntnt01articleid=674&cntnt01origid=107&cntnt01returnid=357. 16 Measuring up – Productivity Performance of Malaysia, Key Productivity Statistics 2008 Retrieved from http://www.mpc.gov.my/v1/files/KPS2008(1).pdf 11
  12. 12. will spur growth rates in the coming years in many areas like manufacturing, real estate, petrochemical and food processing sectors. Education is the pillar of any country. It is the most powerful instrument for reducing poverty. Only education is able to create knowledge. A leader creates vision but a good work force is necessary to bring the vision into reality. The economic corridor requires people who can work in tandem with the accelerated needs. The government has taken measures to meet this technological, global and regional competitiveness. In Johor, through the Iskandar Corridor, the EduCity, a 600 acre knowledge based education hub which has the full facility of a city catering to a world class education resource center. Universities are encouraged to build their campuses here. Newcastle University from UK will set up a branch in Iskandar. Eighteen other universities from UK have expressed their interest to set up their institutes in our country and the notable one is from Al- Bukhary International University as well17. The development in the field of education is to equip people to meet the needs and challenges of the changing industry. Programmes are incorporated to train and equip students to growing needs of the economy within the next few years. The EduCity is also established in Besut, Terengganu. The Educity also aims to promote tourism with its advanced education facilities and world class appeal. Plus being of international standard, the universities will have enrolment from students all over the world which is also the government’s aim18. There are new universities established in line with the economic corridor like Universiti Darul Iman Malaysia (UDM), Universiti Malaysia Kelantan (UMK), Universiti Malaysia Pahang (UMP) and Universiti Malaysia Terengganu (UMT). These universities are built with an entrepreneurial, research and technological focus. These universities are designed to cater as the centre of Industry-Academia Collaboration, Regional Centre for Halal Products, Centre for Innovativeness and Product Creativeness, Centre for Heritage and Culture and many others. There are polytechnics built as well and to name a few are 17 What about my children,sources of Iskandar Malaysia homepage. Retrieved from http://www.iskandarmalaysia.- com.my/what-about-my-children 18 Page 158, Report By The Committee to Study, Review, and Make Recommendations Concerning the Development and Directions of Higher Education in Malaysia, Ministry of Higher Education. Retrieved from http://www.mohe.gov- .my/images/Report.pdf 12
  13. 13. Kota Bharu Polytechnic, Kuala Terengganu Polytechnic, Dungun Polytechnic, Kuantan Polytechnic and Muadzam Shah Polytechnic. One of the aims of these corridors is to eradicate poverty by ensure education reaches the poor as well and they be not neglected. From North to the South schools have adopted PINTAR19 (Acronym for Promoting Intelligence, Nurturing Talent & Advocating Responsibility) programme initiated by Khazanah National Berhad. 140 primary schools are sponsored by Government Link Companies. Among other efforts by the government In November 2008, the government of Terengganu declared that students will be able to pursue their education abroad using Terengganu’s oil royalty via Yayasan Terengganu20. Northern Corridor Economic Region (NCER) has identified that their region’s education is almost equal to Vietnam, Thailand, Indonesia and other developing countries. The findings from this corridor created an awareness that the human capital in Malaysia and especially in the northern region needs to be more knowledge based education for the coming years. Having identified the number of higher learning institutions and schools, NCER is now working on ways to add more value to the content to the education that the people produced from the states can meet the needs of the present and future industry21. Education is not only restricted in the areas of schools. There are training programs to enhance the skills of the low social background. Under the East Coast Economy Corridor (ECER), the region focused on training to better the manage agriculture such as crops, livestock and fisheries within the states. For example, 140 orang asli families were trained to look after the Australian breed sheep and palm oil estates under the Pekan Agropolitan Project. In another instance the Northern Corridor Economic Region (NCER), Kedah adopted the Integrated Childcare and Services Centre (“Centre”) to help single mothers or women to learn on child care management and exposure to skilled work 19 PINTAR Programmes, Number of Adopted Schools under PINTAR ,(February 2008), Retrieved from: http://www.ecerdc.com.my/ecerdc/education2g.htm (See Appendix IV : Pintar programs in Malaysia) 20 Terengganu State will use oil money for students' overseas education, (2008, August 25), Retrieved from http://www.ssig.kpkk.gov.my/ssig/news/fullnews.php?news_id=21118&news_cat=rn 21 Education Human Capital Development, Northern Corridor Economic Region (NCER) Retrieved from: http://www.ncer.com.my/sites/all/themes/ncer/html/img/government/educhart6.jpg 13
  14. 14. such as laundry, tailoring and beauty shops. At the end of the course, those from low socio economy can also become entrepreneurs in their own fields and be independent22. All these are intended to reduce poverty. Tourism has been one of the contributors to the Malaysian Economy since 1990 and has been on the increase ever since. It is the second largest foreign exchange earner23 after manufacturing sector, reaping a profit of RM49.6bil in 2008. Being a country of 27 million populations with different heritage, history, religion, good infrastructure, education, natural resources and attraction, Malaysia is a haven for foreign investors and tourists. In order to meet the requirements of this sector, a country needs to preserve the natural heritage, as well as enhance country’s accessibility, infrastructure and services. By concentrating on each state’s strength and propelling them under corridor initiatives, Malaysia will be able to bring in further influx of visitors not only from abroad but also locals who look for get-away during holidays.24 This in return will increase Malaysia’s competitiveness in terms of job creation, Gross Domestic Product, capital investments especially in the area of construction and manufacturing industry, government fund, development and progress to an area, increase demand for local products, and local activities. According to a research by World Travel and Tourism Council25, Malaysia’s tourism will boom in the coming years. Local tourism market like handcrafts, textiles, and tourist spots will benefit from this surge. 2.3 Infrastructure Infrastructure means the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an 22 Social Development, Northern Corridor Economic Region (NCER).(No date) Retrieved from http://www.ncer.com.my/?q=social_development/projects 23 Tourism in Malaysia, Source from Ministry of Tourism Malaysia.(No date) Retrieved from http://www.- motour.gov.my/en/siaran-media-surat-kepada-editor-koleksi-ucapan/26-siaran-media/363-initiatives-to- think-and-act-tourism.html 24 Chart showing the increase in tourism over the years (See Appendix V) 25 Travel and Tourism Impact, Malaysia 2009. Retrieved from: http://www.wttc.org/bin/pdf/original_pdf_file/malaysia.pdf , World Travel and Tourism Council. 14
  15. 15. economy to function. The term typically refers to the technical structures that support a society and economy.26 Malaysian government has always put its effort in enhancing and developing new infrastructure under these five economic corridors. This is because the government is strongly believes that a strong and solid infrastructure will lead to an attractive environment. For instance, a great synergy has been created among all our main seaports located in these five economic regions. Today, more than 90% of the country's trade is by sea via Malaysia's seven international ports that are Penang Port, Port Klang, Johor Port, Port of Tanjung Pelepas, Kuantan Port and Kemaman Port in Peninsular Malaysia and Bintulu Port in Sarawak. The Malaysia's biggest port, Port of Tanjung Pelepas (PTP), located at the southern tip of Peninsular Malaysia is one of the very few ports in the world which is integrated with a Free Trade Zone. The port and free-zone provides shippers and shipping lines with a very attractive business environment. Being a world class port in the Malaysia's southern corridors new economic growth area, Iskandar Development Region (IDR), PTP with its state-of-the-art port facilities is capable of servicing new generation of vessels being deployed by shipping lines today. Besides the physical infrastructure being in place, the electronic data interchange (EDI) in Port Klang, Penang Port and Johor Port has allowed speedy clearance of cargo with the electronic transfer of documentation. 27 To support the operations of this kind of high technology sea ports, a highly talented Information Technology (IT) graduates are required. This eventually will create a pressure on the locals to acquire more IT knowledge or to become more IT savvy in order to be competitive enough to secure a job market. On top of that, this sort of infrastructure 26 Infrastructure, Sources of Wikipedia. Retrieved from:http://en.wikipedia.org/wiki/infrastructure 27 Why Malaysia-Developed Infrastructure, Sources of Malaysian Industrial Development Authority, Retrieved from: http://www.mida.gov.my/en_v2/index.php?page=developed-infrastructure 15
  16. 16. is very much contributing to an increase of efficiency and productivity of the sea ports operation. Secondly, realizing that Penang is one of Malaysia’s economic hub, the government has gone into the construction of second Penang bridge with a estimation cost of 4.3 billion ringgit. The link between the mainland and Penang will be 23km long and linking Batu Kawan in Seberang Prai with Batu Maung on the south-eastern corner of the island. The construction of this longest bridge in South-East Asia is expected to be completed in year 2012. It will be built under a joint-venture between UEM Builders Bhd and China Harbour Engineering Co Ltd. China will provide a US$800mil (RM2.8billion) loan to the project, the largest amount given by China for a single project in a foreign country.28 The interest shown by a rapidly developing country like China to work together with our country certainly will benefit both countries and more precisely our country. This join venture project will open up opportunities for our local talents to engage themselves to be a part of this huge project. More job market will be created from this project especially for our local engineers. This kind of mega projects will also motivate Malaysian students in taking up professional courses in future with a hope that they can secure a highly paid job in our own country. Recently, during our Prime Minister Datuk Seri Najib Tun Razak’s in his two-days visit to Chennai, India has witnessed the memorandum of agreement for a joint venture between our local company “The Red Snappers (M) Sdn Bhd” also known as TRS and India based company, Rocking Pixels Inc. 28 Cost Of 2nd Penang Bridge Stays RM4.3 Billion.(2009, March 03) Sources of Malaysia National News Agency Bernama.com Retrieved from: http://www.bernama.com/bernama/v5/newsbusiness.php?id=393704 16
  17. 17. The Red Snappers (M) Sdn Bhd the Perak State Economic Development Corporation's flagship telecommunications and animation initiatives, has entered into a 70:30 percent joint venture with a leading animation company, Rocking Pixels Inc. The joint venture company named Rocking Pixels MSC (M) Sdn Bhd would design, build and manage a state-of-the-art studio specialized in producing Hollywood-class 3D animation for TV, feature film and gaming. The studio, to be located in Perak, would take advantage of competitively cost skilled manpower locally as well as from India, China and the Philippines, leveraging the world class infrastructure that Malaysia provides. The combined investment of almost US$15 million would ensure the studio to have cutting edge technology and infrastructure and make Malaysia the preferred destination for the production of 3D animation for film, television and gaming for international markets.29 The positive competition among our locals and other ASEAN countries will intensify and eventually will open up a new market segment for Multimedia and Animation graduates. With this, local graduates need not to worry in finding a job in this specific field which is seen as unattainable dreams this far. Not only that this transfer of technology will benefits our Malaysian youngsters to become more competent in this 3D animation and we are able to see more and more young entrepreneur venturing into this field in future. As a booster for transforming into a knowledge based society, Telekom Malaysia (TM) has gone into a five-year partnership agreement with five state-backed telecommunication tower operators which will benefit mobile, wireless and WiMAX operators in rolling out their broadband services for wider coverage. 29 Perak Becomes 3D Animation Hub .(2010, January 22) Sources of Malaysia National News Agency Bernama.com Retrieved from: http://www.bernama.com/bernama/v5/newsbusiness.phpid=470434 17
  18. 18. The TM’S deal with Kelantan’s Infra Quest Sdn Bhd, Perak Integrated Network Services Sdn Bhd, Perlis Comm Sdn Bhd, Negeri Sembilan’s Rangkaian Minang Sdn Bhd and Kedah’s Yiked Bina Sdn Bhd entailed linking their towers with TM's high-speed fibre optic-based technology and for fast, high-capacity network connectivity. The deal also provides for mobile and wireless operators to leverage on TM's expertise, core competencies and future-proof infrastructures in providing backhaul connectivity and telecommunications tower facility services in supporting large capacity requirements and wider coverage for the telecommunications industry. 30 With this enhanced infrastructure, Malaysians from almost every corner of peninsular Malaysia would be able to enjoy an access to a high speed of telecommunications. This would really benefits students, private and government industries in improving their services. This enables them to be more accessible to all up to date information around the world and to be more equipped to face the challenges. 3.0 CONCLUSION The five economy corridors are ambitious projects aimed at using the strengths and opportunities in each concentrated region by making use of idle and existing resources of land, natural reserves and labour to revive each location through different economic approaches. In the past too, the government introduced the high tech IT Park called Multimedia Super Corridor in Cyberjaya region in 1997 modelled after the Silicon Valley, America. The progress in Cyberjaya is evident that the government’s efforts are fruitful and there are progress not only within Cyberjaya but also neighbouring towns like Dengkil, Putrajaya and Sri Kembangan. The reasonable success of Multimedia Super Corridor has sparked the creation of IT Hub called Cyberabad31 in Hyderabad, India. 30 TM Inks Accord With Five State-Backed Telcos For Wider Broadband Coverage .(2010, January 22) Sources of Malaysia National News Agency Bernama. Retrieved from: http://www.bernama.com/bernama/v5/newsbusiness.phpid= 470324 18
  19. 19. However, to compare the five new economy corridors to Multimedia Super Corridor would be unfair at this stage, because the projects are still running and hasn’t completed its development period. Among all the five economy corridors, Iskandar Johor seems to take the lead and is ahead of the rest. Policy makers have considered all the necessary measures, strengths and weaknesses, and the benefits that can be enjoyed from the corridors. The necessary ingredients are made available by the government to make the five corridors a success. It is the people that now need to embrace the opportunities offered to them to leap into the future. Plenty of investment and incentives are given by the government to invite foreign multinationals and local companies into restructuring and developing the regions. A quality force work is also needed to meet the new industry requirements. Fresh graduates need to embrace a different mind set of innovation, creativity, invention and risk taking approach. We are not advanced like the West. Nevertheless we must try to emulate good countries like Singapore, New Zealand or Sweden. The study on this paper is to show the various competitive outcomes which would benefit Malaysia by introducing Economy Corridors. Malaysia has proven to a certain extent by its ranking place from the 19th in 2008 to the 18th position in 2009 among 57 countries in the World Competitiveness Yearbook (WCY) 200932. The ranking showed that Malaysia is ahead of several advanced countries like China, UK and Belgium. How far the corridors would be a success remains still unknown and requires more research to prove its credibility and stability which is also a prime task for the Government. 3131 Putrajaya: Malaysia’s New Federal Administrative Capital Cities, In Press, Corrected Proof, 27 November 2009 Sarah Moser 32 The World Competitiveness Scoreboard 2009, Institute of Management Development (IMD). Retrieved from http:// www.imd.ch/research/publications/wcy/World-Competitiveness-Yearbook-Results.cfm 19
  20. 20. 4.0 APPENDIX Appendix I: Michael Porter Five Forces 20
  21. 21. Appendix II: Key infrastructure projects under ECER in various stages of planning and development: Project Category Key Projects 21
  22. 22. Supply of potable water Lebir Dam (Kelantan) Telecommunication network Upgrading & laying of fiber optic cables in major towns Sewerage Kota Bharu City Centre (KBCC) Kuala Terengganu City Centre (KTCC) Kuantan & Kuantan Port City Construction of treatment plants on islands and other major towns Treatment of solid and toxic Sanitary landfill, Kelantan waste Sanitary landfill, Terengganu Sanitary landfill, Pahang Installation of incinerator on islands of Redang, Perhentian and Kapas Upgrading of existing incinerator on Pulau Tioman Feasibility study for a toxic waste site Flood mitigation Sg Kelantan flood mitigation inclusive of construction of Lebir Dam Sg Golok River Basin study of Sg Pahang River improvement works in Dungun, Setiu/Merang and Chukai (Terengganu) Protection against coastal Integrated Shoreline Management Studies in Kelantan & erosion Terengganu Protection works in Pantai Sabak & Pantai Cahaya Bulan (Kelantan) Healthcare Jeli, Bachok and Kuala Krai (Kelantan) Key infrastructure projects under Sarawak Development Corridor:= Project Categories Key Projects 22
  23. 23. Phase I (2008-2015): 9MP(MTR) and 10MP Building the Corridor Foundation To build basic infrastructure for the Corridor To grab pioneer industries for the Corridor Key infrastructure projects under Sabah Development Corridor := Project Categories Key Projects Kinarut South · New township Satellite · Residential · Educational, sport & recreation · Tourism & Commercial Sandakan Integrated · Passenger Ferry Terminal, shipping and transportation Exchange Terminal · Commercial complex · Hotel · Duty free centre · Shop lots · CIQS complex · Farming product storage, bunkering area, equipment · Trade exchange centre, dedicated grain terminal Limau-Limauan New · New growth centre Township & Agropolitant · Marine & jetty Development · Hotels & golf course · Residential · Commercial · Educational & sport recreation · SME Park 23
  24. 24. Apas Industrial Estate · Port and Jetty · Ferry Terminal · Commercial Centre for Cross-Border Trade · Industrial land lots and buildings Bum Bum Marine · Dedicated fisheries port Industrial Park · Freeze & cold storage · Cannery & packaging · Shopping centre · C.I.Q · Wharf & jetty · Residential, Hostels, Recreational & Factory lots Bandar Baru Titingan · Centralized Commercial & Office Center · Bio-Technology & Integrated Medical Center · International Islamic Research & Studies Center · Commercial & Business Center ,Residential Titingan Village, Homes & Souk · Condominium & Apartments · Sports Academy & Central Park, Recreation Center, Five Star Hotel & Budgeted Hotel · Marina Yacht and Water Resort,Seafront Food court / Cultural Village & Fisherman’s wharf 24
  25. 25. Tourism · 2 hotels Development At Semporna · Business Convention and Exhibition Centre · Water theme park · Commercial center · Jetty Sandakan Sme Park · Industrial estate and infrastructural development · Technology development vis-a-vis barter trading 25
  26. 26. Appendix III(a): Development of infrastructure for the planned Economy Corridor Appendix III (b): Further improvement on road networks under the Iskandar Corridor Appendix IV: PINTAR Programmes In Malaysia 26
  27. 27. Appendix V: Chart from East Coast Economy Region (ECER) projecting growth in tourism in Malaysia as well as growth expected from ECER projects 27

×