PUTRAJAYA, July 26 – Five government agencies and companies today promised to invest a total of RM835 million for several projects in Kedah, Penang, Perak and Perlis, the states that make up the Northern Corridor Economic Regions (NCER).
The main project is multinational Advanced Micro Devices Inc. (AMD) which will invest RM768.6 million ($240 million) in Malaysia over the next five years for a planned center to test microprocessor systems in Penang. Advance Micro will invest RM202 million on the center by 2012.
It is understood that the investments coordinated by the Northern Corridor Implementation Authority (NCIA) are a mix of government investments as well as foreign direct investments (FDI), which has plunged 81 per cent for the whole of Malaysia last year.
“The agreement documents to develop programmes in NCER states today alone amounts to RM835 million in investments… out of this, RM64 million (in investments) is from the government,” NCIA chief executive officer Datuk Redza Rafiq told reporters after Prime Minister Datuk Seri Najib Razak witnessed the investments signing ceremony.
The NCER was initiated by Najib’s predecessor Tun Abdullah Ahmad Badawi, who also launched economic corridors across the country.
Redza told reporters that the agreements today would not only be aimed at lessening the “socioeconomical gap” between the four states, but it will provide a host of new job opportunities.
“We are expecting 500 job opportunities… from foreign investments alone there will be 232 business opportunities,” said Redza.
The five government agencies and private companies involved are: the Kedah state fisheries department, Progressive Ocean Sdn Bhd, Ace Front Industries Sdn Bhd, Pens Holdings Sdn Bhd and multinational firm Advanced Micro Devices Sdn Bhd (AMD).
“The exchange of agreements today witnesses an agreement from parties involved to develop effective socio-economical programs and upgrade the overall economical chain with the creation of contract farms, job opportunities and (an) economic spillover effect,” said Redza.
Other guests who were present today included the chief ministers of the four respective states.
Pens Holdings have been appointed as contractors in charge of upgrading the infrastructure for Perlis’ Pauh Zone Industry. Ground work started on October 2009.
A total of RM23 million has been allocated for this programme under the Ninth Malaysia Plan, and the government is considering allocating RM27 million for the same programme under the Tenth Malaysia Plan (10MP).
Besides that, aquaculture development projects are also being planned for the states of Perak and Kedah, where Progressive Ocean will develop aquaculture farming in Sungai Menghulu, Kedah while Ace Front Fisheries will develop a “satellite pond” in Sungai Kerang, Perak.
The satellite pond is expected to produce 432 metric tonnes of white prawns per annum with a market price total of RM4.4 million.
