Saturday 8 November 2008

THE ROLES OF URBAN GOVERNANCE IN CORRIDOR ECONOMIC REGIONS DEVELOPMENT OF MALAYSIA

In line with Malaysia’s vision of becoming a developed nation by the year 2020, the time has come for us to accelerate the regional development plans that have been put in place. The most important objective of regional development is to achieve a balanced, focused regional growth by spreading economic development to embrace all states and regions. In 2007, we have witnessed the birth of 3 corridor development master plans in Peninsular Malaysia i.e Iskandar Development Region (IRDA), Northern Corridor Economic Region (NCER) and East Corridor Economic Region (ECER). The master plans are long term plans and are aimed to unleashed the economic potential of the corridors and enhances the people's quality of life and their income level.This was partly the resultant of the identification of growth conurbations in the National Physical Plan and the call for a more balanced development growth in the country. All three corridors of the Peninsular Malaysia will bring about great change to development and allocation of funds and budget is based on these master plans projects.

This is especially true for the Corridor Economic Regions where tremendous opportunities await. The states of Malaysia are endowed with a wealth of natural resources. Thus far, the nation has benefited tremendously from the optimal use of the oil and gas resources which the region is blessed with. However, the region’s other natural assets have gone relatively untapped. With its beautiful islands, pristine beaches, and unique culture and heritage, the tourism potential in this region remains enormous. Strategically located in Malaysia, facing towards the East Asian countries, the region has an excellent prospect to become the Eastern Gateway to serve the vast Far East markets in terms of trade, resource-based manufacturing, logistics and services.

Agriculture, the mainstay of the region’s economy, is gradually taking on a new face thanks to commercialisation and integration, while human capital development is gradually taking centre stage with the establishment of new tertiary institutions.Hence, the formation of the Corridor Economic Regions Development Council to spearhead the implementation of the plan in the region is a positive move which will fast track the socio-economic development for the states of Malaysia. While the Government will spearhead major infrastructural initiatives in this region, the private sector must play its role to drive the investment in this region, and at the same time cultivate smaller businesses and entrepreneurs.

Potential investors can look forward to an attractive package of incentives, tailor-made especially for this region, with the aim of transforming the Corridor Economic Regions into a cost-competitive and vibrant business hub, poised for future growth. The Government, on its part will ensure that the physical infrastructure will be in place to provide a sound foundation for future growth. The new and enhanced land, sea and air transportation projects as outlined in the Corridor Economic Regions Master Plan will significantly improve the connectivity and linkages between the region and the Kuala Lumpur Conurbation and other demand centres locally and internationally.With the full commitment of both the public and private sectors, the Government is confident that we can all work together to realise the vision of Corridor Economic Regions to become a developed region by the year 2020.


The urban governance plays a leading role in setting the direction, policies and strategies in relation to the Region’s development. It also plays the coordinating role between Government entities in the promotion of trade, investment, tourism and development activities in the Corridor Economic Regions . Among others, the Council acts on behalf of the Government agencies within the Corridor Economic Regions to receive, process and expedite approvals for trade, investment and development in the Corridor Economic Regions . The Council also promotes and stimulates economic and social development in the Region, as well as private sector investment. The urban governance also establishes policies, direction, strategies and initiatives in relation to sustainable development, including environmental protection, management and conservation in the Corridor Economic Regions .

Function of Urban Governance

· Sets direction, policies and strategies in relation to the Corridor Economic Regions 's development

· Coordinates role between Government entities in the promotion of trade, investment, tourism and development activities

· Acts on behalf of Government agencies with the Corridor Economic Regions to receive, process and expedite approvals for trade, investment and development in the Corridor Economic Regions

· Promotes and stimulates economic, social development and private sector investments in the Region

Establishes policies, direction, strategies and initiatives for sustainable development. An Implementation and Coordination Committee (ICC) for each of the state of Malaysia will be established by the Corridor Economic Regions. Among others, the ICCs will identify major or strategic development and investment in the Corridor Economic Regions with regard to their respective states, monitor the status of all related applications and coordinate the roles and activities of relevant government entities to expedite the implementation of such identified major or strategic development and investment in the Corridor Economic Regions .

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