Kedah secured RM1.4 billion in approved investments through 50 projects in early 2026, boosting rural economies in Sik, Baling and Padang Terap.
KUALA LUMPUR: Kedah has attracted RM1.4 billion in approved investments through 50 projects from January to March 2026, Deputy Investment, Trade and Industry Minister Sim Tze Tzin said.
This underscores the government strategy of positioning key industrial development areas such as Kulim Hi-Tech Park, Kedah Rubber City, and the Kerian Integrated Green Industrial Park as economic catalysts.
Surrounding districts such as Sik, Baling, and Padang Terap will benefit economically through employment opportunities and local vendor development, he said at the Dewan Rakyat’s question-and-answer session today.
“The government remains committed to strengthening comprehensive economic and industrial development throughout the northern region to ensure that the economic benefits generated by high-technology industries are shared inclusively with residents in rural areas,” he said.
He was responding to Ahmad Tarmizi Sulaiman’s (PN–Sik) question on the government’s specific strategy to ensure that the economic benefits from high-technology industrial development in the north reach rural districts such as Sik, Baling, and Padang Terap through high-income employment opportunities and the development of local vendors.
On proposals to expand industrial development inland, Sim said Baling, Sik and Padang Terap are strong in agriculture-based industries, including food processing and agro-industries, which are also among the ministry’s priority sectors.
He added that the government is upgrading infrastructure to support such development, including the widening of Federal Route FT004 from the Kulim Hi-Tech Park interchange to Bukit Karangan. This is expected to be completed by April 2028 to improve access to major industrial areas.
“Once this infrastructure is completed, it will help extend industrial spillover into Baling, while also strengthening the development of food processing and agro-industries in the area,” he said.
Sim also said that the New Incentive Framework (NIF), effective March 2026, will encourage foreign investors to increase the use of local vendors and supporting services within their supply chains by offering more attractive incentives.
Under the NIF, investors who raise their level of localisation, including using local vendors and locally manufactured goods, will be eligible for higher government incentives.
This approach ensures that high-technology investments create employment opportunities, accelerate technology transfer and strengthen local companies’ capabilities to participate in global supply chains.
