Malaysia’s Regional Growth Centres To Drive Next Phase Of High-Value Economic Development - RHB IB

KUALA LUMPUR, July 17 (Bernama) -- Malaysia's regional growth centres are well-positioned to drive the next phase of high-value economic development, according to RHB Investment Bank Bhd (RHB IB).

In a research note, it said the country’s high-value economic activities are concentrated in five regional growth centres.

These comprise Selangor as the advanced manufacturing and innovation hub, Penang (semiconductor and electronics hub), Johor (regional investment and logistics hub), Sarawak (energy transition and green industrial hub), and Kuala Lumpur (nation's knowledge-intensive services hub).

“Continued investment in infrastructure, innovation, human capital and industrial upgrading will be essential to sustain Malaysia's competitiveness and strengthen its integration into regional and global value chains,” it said.

RHB IB said these five states account for nearly 70 per cent of Malaysia's gross domestic product (GDP), about 71 per cent of manufacturing and services output, almost 94 per cent of merchandise exports, and more than 70 per cent of approved investments.

It said sustaining the growth of these regional economies will require continued investment in enabling factors that support high-value activities.

“Beyond physical infrastructure, greater emphasis should be placed on talent development, research and development, innovation, digital infrastructure and stronger industry-academia collaboration.

“Continued implementation of the New Industrial Master Plan 2030 (NIMP 2030), National Semiconductor Strategy (NSS), National Energy Transition Roadmap (NETR) and other regional initiatives will be crucial in strengthening Malaysia's industrial capabilities and supporting the transition towards a more innovation-driven economy,” it said.

-- BERNAMA