RM470bil investment target for Northern Corridor Economic Region by 2030 [WATCH]

PUTRAJAYA: The government has set a target for cumulative realised investment in the Northern Corridor Economic Region (NCER) to reach RM470 billion by 2030, RM126.2 billion more than the RM343.8 billion realised to date.

Key sectors including electrical and electronics (E&E), automotive, high-value tourism and modern agriculture are expected to account for 70 per cent of the targeted investment.

Northern Corridor Implementation Authority (NCIA) chief executive Datuk Mohamad Haris Kader Sultan said the region is confident of achieving the target, backed by approved investments expected to materialise over the coming years.

"We are confident that all those approved investments will be realised by 2030," he said at the launch of the NCER Strategic Development Plan 2026-2030 here today.

EV INVESTMENTS IN THE PIPELINE

As part of the push, NCER is exploring opportunities in the electric vehicle (EV) and automotive sectors to diversify its investment base beyond its established strength in E&E and semiconductors.

Mohamad Haris said several potential automotive investments are being assessed, although NCER has yet to determine how much the sector could contribute to the RM470 billion target.

"Among them are high-technology vehicle projects in Kulim, Kedah, with potential investors in the EV sector undergoing due diligence," he said.

NCER is working with the Malaysian Investment Development Authority and the Investment, Trade and Industry Ministry to assess the potential investments.

So far, two investors have been identified in the EV battery segment, while three are being considered in the automobile segment.

E&E and semiconductors will remain the mainstay of investment in the region, particularly in Penang, where about 95 per cent of investments are expected to be concentrated in the sector.

In Kedah, Kulim Hi-Tech Park remains a key investment area, while semiconductor activities are also a major attraction at Chuping Valley in Perlis.

Mohamad Haris said the diversification push is aimed at spreading economic growth beyond established investment centres and into less-developed areas across Perlis, Kedah, Penang and Perak.

Programmes and projects will be implemented in these areas to create employment opportunities, including by ensuring that sites developed with allocations from the Economy Ministry are matched with approved investments.

Mohamad Haris said approved investments typically take between two and three years to translate into actual projects, although some could take up to five years.

"The target is higher than the previous plan, but the projection was supported by investment trends, and our targets for 2020 and 2025 had been exceeded," he said.

HIGH-SKILLED JOBS IN FOCUS

Beyond investment, NCER is targeting the creation of 310,000 jobs by 2030, with 45 per cent expected to be high-skilled positions.

Mohamad Haris said the focus is not merely on increasing the number of jobs, but on attracting higher-value industries that could generate greater productivity and value-added activities.

The region is also targeting the development of 8,000 talents through the NCER Technology Innovation Centre, alongside efforts to encourage participation in technical and vocational education and training (TVET).

NCIA is working with local universities, polytechnics, TVET institutions and industry players to identify the specific disciplines and skills required by investors.

The investment and employment push is expected to help lift the region's median household income to RM7,500 by 2030.

"To achieve the new targets, NCER would coordinate cross-government, ministry and agency cooperation to link investments with talent, technology, local enterprises and supply chains, creating broader economic value," Mohamad Haris said.

Meanwhile, Economy Minister Akmal Nasrullah Mohd Nasir said the strategic plan reflects the government's commitment to translating the 13th Malaysia Plan into regional development in a structured and high-impact manner.

He said the plan would serve as a catalyst to position NCER as a leader in high-value industrial investment and a global hub for research, development, commercialisation, technology and innovation.

"These targets are not merely numbers, but a reflection of our commitment to ensuring that every ringgit of investment coming into the region is translated into higher incomes, quality jobs and greater prosperity for the people of Perlis, Kedah, Penang and Perak," he said.

Under the plan, NCER is targeting regional gross domestic product of RM369 billion by 2030, compared with RM284.8 billion currently.

Among the long-term projects expected to transform the northern region's economic landscape are the Kedah Science and Technology Park, Sidam Logistics, Advanced Manufacturing and Aerospace Hub, Kedah Rubber City, Chuping Valley Industrial Area, Bagan Datuk industrial area, Penang Silicon Island and the Northern Peninsula border economic zone.