Assignment Title: The Development Of EconomicCorridors Will Increase Malaysian Competitiveness In The Next 10 Years

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TABLE OF CONTENTS Page

1.0 INTRODUCTION 2 - 5

2.0 DISCUSSION

2.1 Economic Performance 6 - 9

2.2 Government & Business Efficiency 9 - 14

2.3 Infrastructure 14 - 17

3.0 CONCLUSION 18

4.0 APPENDIX 19 - 26

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1.0 INTRODUCTION

What is in the basis of development? Based on the Oxford Advanced Learner’s

Dictionary, development gives a meaning of growing larger or having to mature in all

senses. While, increase on the other hand is to become or to make something greater in

amount, number value and so on.

What is Economic Corridor? According to Asean Development Bank, Economic

Corridors have 3 Characteristics which are the following;

1) A well-defined geographic space.

2) Emphasizes bilateral rather than multilateral initiatives, having focused on

strategic borderline between 2 countries.

3) Highlights physical planning of the corridor and its surrounding area, to

concentrate infrastructure development and achieve the most positive benefits. 1

Malaysia has 5 economic corridors which have the above characteristics, namely

Iskandar Malaysia, East Coast Economic Region, Northern Corridor Economic Region,

Sabah Development Corridor and the Sarawak Corridor of Renewable Energy. On a brief

introduction, Iskandar Malaysia (IM) which is also formerly known as Iskandar

Development Region (IDR) and South Johor Economic Region (SJER) is the core

southern development corridor in Malaysia. It was initially established on the 30 th of July

2006.The project is administered by the Iskandar Regional Development Authority

(IRDA) and it also named after the Sultan of Johor, Sultan Iskandar.2

East Coast Economic Region (ECER) on other hand covers certain states in Malaysia

namely, Kelantan, Terengganu, Pahang and the north of Mersing district of Johor.

1 Development and Economic Corridor Definition Retrieved from: http://www.wikipedia.org/2 Economic Drivers and Incentives. Retrieved from: http://www.iskandarmalaysia.com.my/investing-in-iskandar-malaysia

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The ECER has an initiation of development having a time span for 12 years starting from

2007. Petronas, the Malaysia owned oil and gas company is the primary core importance

and master planner for the ECER.3

The Northern Corridor Economic Region (NCER) is being expected to be a world-

class economic region by the year 2025, in which it will be amongst the world’s best in a

number of its key economic sectors, such as Electrical and Electronics, Agriculture,

Tourism, and Bio-technology. It will also be a destination of choice for foreign and local

investment of business’s in which the main

aspect will be on social development, community infrastructure, and environmental

integrity.4

The Sabah Development Corridor (SDC) was launched on the 29th of January 2008.An

approximate figure of 900,000 jobs are expected to be created with the projects along

with a waterfront city, tourism sub project and a Sabah Railway terminal. The key

objectives of the SDC was to make Sabah a getaway for trade, investment and tourism, to

impact on a harmonious religion factors, create job opportunities, having the state more

tech savvy and improve the quality of life style.5

The Sarawak Corridor of Renewable Energy (SCORE) was launched on the 11th of

February 2008. Their major initiative is to develop the Central Region and be able to

transform the Sarawak state in Malaysia by the year 2020. Their main focus is to achieve

goals through accelerating the state’s economic growth whilst improving the quality of

life for the residence in Sarawak. 6

3 The Easy Coast economic Clusters. Retrieved from: http://www.ecerdc.com.my/ecerdc/

4 Infrastructure & Analyst of Koridor Utara. Retrieved from:http://www.ncer.com.my/

5 SDC Project relative industry. Retrieved from: http://www.sedco.com.my/index.php?option=com_content&view=article&id=9&Itemid=19

6 Sarawak SCORE Plans and strategies. Retrieved from: http://www.sarawakcore.com.my/

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The economic corridors challenge can be expressed through Michael Porters five forces7.

Porter’s five forces analysis determine the competitive intensity from external sources

and internal threats. The threat of substitute products can be in relation to having foreign

markets taking hold of our economy which gives the local market to be negatively driven

due to depreciation in quality as compared to other tech savvy countries which has a

positive demand growth. However the local market will be competitively drive when they

gauge new technology which increases local markets and improve the quality of the local

life style.

The threat of entry of new competitors on the other hand results in new entrants which

decreases profitability within the local markets. However this can be reduced through

barrier of entries and certain laws and restrictions may be imposed. The local market has

an advantage in terms of capital requirements, absolute cost advantages, etc.

The intensity of competitive rivalry in the local market can also boost the economy

through various mode namely through media innovation, between online and offline

contacts, and having to advertise at a reasonable cost but efficient output.

The bargaining power of customers may cause hurt in the local markets are compared to

foreign adversities but the local markets may reap its benefits when it comes to aspects of

realizing the buyers price sensitivity, the uniqueness of product, volume and indulge in

various analysis to better understand the market behaviour.

When we look at the bargaining power of suppliers, the costs of the firm reflects on the

supplier’s reaction. Therefore the firm will have to realize their cost at a reasonable

sustaining level in order to purchase goods at a level which would maximize their wealth.

7 Micheal Porter’s five forces.A model for Industry Analysis. Retrieved from: http://www.quickmba.com/strategy/porter.shtml (See Appendix of Micheal Porter five forces diagram.)

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The development of these economic corridors will increase the Malaysian

competitiveness in the next 10 years. Based on World Competitiveness Yearbook, 4

factors that shape a country’s competitiveness are as follows:

a. Economic Performance

b. Government Efficiency

c. Business Efficiency

d. Infrastructure

Following our discussion in the next chapter, let’s expound further on each factors of the

economic corridors that impact Malaysia’s growth and benefited Malaysian’s

competitiveness.

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2.0 DISCUSSION

2.1 Economic Performance

Look at our Iskandar Malaysia, up to December 2009, we have attracted RM 55.56

billion of cumulative investment as shown at Table 18. This figure surpasses the RM

44.75 billion target of 2009.

Table 1: Committed Investment

Iskandar Malaysia was launched on 4th of November 2006. And this figure shows that the

first three years have been good, not only in term of investment value, but also in terms

of the contents of the developments, because there is a good mix of investors from

Europe, the Middle East and locals. As we can see, a brand new state administrative

centre, a plush yachting marina and several up-market gated housing estates have already

8 Sources of IRDA, Khazanah, IIB , MIDA &corporate announcements

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been built and construction has begun on the site of a new LEGO land theme park and a

medical school to be operated by the UK’s Newcastle University.

On the other hand, Iskandar Malaysia and Singapore constitute one corridor of an

economic hub within an economic region of concentrated growth, which is Asean. To

some extent, Johor and Singapore have been growing, and the two are actually

complementing each other. There is always a constant flow of investments from

Singapore to Malaysia. Singapore investments come to Johor not because of our close

proximity, but because Johor also offers comparative advantage in term of space and

lower costs of doing business. Iskandar Malaysia is no longer Singapore’s hinterland. For

instance Singapore has two integrated resorts with casinos, but we have LEGOland and

the Indoor Theme Park in Nusajaya. Fathers who want to gamble can go to Singapore and

families with younger children can come to our theme parks. While, mothers can go to

the Malaysian Premium Outlet in Kulai, which sell branded items at discounted prices.9

Look at East Coast Economic Region, 4 halal products have successfully penetrated the

fast growing United Kingdom halal market, which is worth around 2.8 billion pounds.10

The 4 companies are Muslim Best Food Industries, GT Herb Industries, Maduria

Industries and RMZ Marketing. By promoting food in UK, this will attract more UK

citizen to travel in Malaysia as tourist. Meanwhile, East Cost Economic Region is

focusing on mainland coastal development, sustainable island tourism, eco-tourism,

cultural & heritage and agro-tourism. There will be additional promotion to increase

participation in homestay programs and hallmark events. The development of the tourism

at East Cost Economic Region would be just nice for the demand of the tourists which

will be discussed later.

Besides, the vision Northern Corridor Economic Region is to be world class economic

region by 2025, where it is amongst the world’s best in a number of its key economic

9 Zazali. M (no date). The Star Newspaper (Johor MB’s views on Iskandar) , Retrieve from http://biz.thestar.com.my/news/story.aspfile=/2010/1/23/business/5509985&sec=business

10 ECER Enters UK Halal Market. (No date). Sources of Malaysia National News Agency Bernama.com, Retrieve from: http://www.bernama.com/bernama/v5/newsindex.php?id=411222

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sectors, such as E&E (Electrical and Electronic), agriculture, tourism and biotechnology.

It is planned that a total investment of RM 177 billion from both public and private

sectors in the period to 2025. It aims to create 500, 000 jobs by 2012, rising to one

million by 2018, besides increasing the region’s GDP from RM 52.7 billions in 2005 to a

targeted RM 214 billion by 2025.11

Let us look at our eastern side of Malaysia. In Sarawak Corridor of Renewable Energy,

USD 11 billion investment committed by 1 Malaysia Development Berhad and State Grid

Corporation of China, for their venture in the Sarawak Corridor is actually a boost to the

state economy. The locals are to tap the business and job opportunities steaming from the

investments. Besides, the state government had also taken steps to send the local

workforce to undergo skills training in high technological fields in Australia to prepare

them for the industries to be set up in Sarawak Corridor of Renewable Energy.

The other corridor at our eastern Malaysia is Sabah Development Corridor. As we know,

the economy of Sabah has always been heavily dependent on the export of its primary

and minimally processed commodities. These major export items include santimber,

crude petroleum, plywood, crude and processed palm oil, cocoa beans, methanol and hot

briquetted iron. The main imports of which include machinery and transport equipment,

manufactured goods, mineral fuels and lubricants and chemicals. Under the Sabah

Development Corridor, Sabah will be transformed into regional gateway for trade,

investment and tourism. By 2025, Sabah Development Corridor initiative aims to triple

Sabah’s GDP per capita, and increase its GDP by four times through the implementation

of the prioritized programmes. In total, more than 900,000 new jobs are expected to be

generated during the Sabah Development Corridor implementation period.

Projected GDP and GDP Per Capital during SDC Period

11 Malaysia unveils $51.2 billion plan to boost northern development.(No date) Sources of Kyodo News.

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  2006 2010 2015 2020 2025

GDP RM (billion) 16.0 21.9 32.0 45.7 63.2

GDP Per Capita RM 5,331 6,685 8,862 11,571 14,784

Source: Institute for Development Studies (Sabah) 12

2.2 Government & Business Efficiency

Government’s role in providing incentives, attractive packages and policies, will spur

new ventures through foreign as well as local investors and operators, benefiting both the

people and government. Investment will be followed by a number of projects being

established. Investment could be in various ways, for example, education institutions, R

& D in petrochemical and energy terminals, manufacturing plant, tourism, infrastructure

etc. Development of projects needs physical buildings, infrastructure13, man power,

telecommunications and transportation14 to support the strategies. All the above brings

advancement, demands labour and creates wealth to the location where the corridor is

aimed.

Labour requires wages. Having acquired job, the income received helps to sustain a better

living standards. Plus, when an area has job employment vacancies, more people will

migrate to a location thus forcing development for that region. Rather than concentrating

12 The German Chamber Network. (No date). Retrieve from: http://www.giessenfriedberg.ihk.de/Geschaeftsbereiche/International/Anlagen/Brandt,_Malaysia-Praesentation-G.pdf

13 ECERDC Key Enablers, Infrastructure, Retrieved from http://www.ecerdc.com.my/ecerdc/infrastructure3.htm;

SDC, Proposal Projects, Retrieved From http://www.sedco.com.my/index.php?option=com_content&view=article&id=9&Itemid=19

SCORE, Three Phases for Corridor Development Retrieved from http://www.sarawakscore.com.my/modules/mbr/components/phase/?mainpageid=phase

14 ECERDC(2008),Air,Maritime,Road and Railway connections from one of the corridors. Retrieved from: http://www.ecerdc.com.my/ecerdc/transport.htm; (See Appendix III (a) & (b) ).

Walking The Talk” on International Standing Safety Emphasis for RMK-9 Projects, Iskandar Malaysia. Retrieved from: http://www.iskandarmalaysia.com.my/pdf/RMK9-Importance-of-Safety.pdf

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in KL, now the population is available in every state. Population will be evenly spread

across Malaysia.

Further, the employment wages and salary result in contribution to tax payments,

employee / employers provident fund, and savings, part of which becomes country’s

revenue. Foreign and local investment brings revenue to the government as well after the

time period for “tax holiday” is over. Across the ocean, the west Malaysia under the

Sarawak Corridor of Renewable Energy (SCORE), the Deputy Minister of International

Trade and Industry, Datuk Jacob Dungau Sagan stated that within the first 10 months of

2009, the state received the highest investments in the manufacturing sector with

approved investments of RM8.3 billion, of which RM5.7 billion came from foreign

investors. Sabah on the other hand has managed to attract some RM30 billion in

investments mainly in tourism, agriculture, manufacturing and infrastructure since the

launch of the Sabah Development Corridor15.

When a foreign investor sets up a plant in Malaysia, it enables diffusion of knowledge

and introduces new technology to the local labour to the company and vice versa. It

develops many areas of “know-how” in areas where expertise or training is needed. For

instance when Multimedia Super corridor was announced in Cyberjaya, HSBC employed

many locals for outsourcing their calls and services. Many of the HSBC staff is able to

shift between jobs and they are much sought after by Shell, Dell, DHL and EDS. The

reason for this according to inside sources is that HSBC’s training is one of the best for

the service industry.

Investments results in trade stimulation, especially when Malaysia is a country that

encourages trade business. In 2008 total trade was 1.2 trillion16. Trade businesses are able

to bridge the gap between capital demand and supply. More investors mean an increase in

the production capacity. The economy becomes active. A country must be aggressive in

15 Sarawak poised to bring in more investors, (2010, February 2) Retrieved from http://www.mida.gov.my/en_v2/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=674&cntnt01origid=107&cntnt01returnid=357.

16 Measuring up – Productivity Performance of Malaysia, Key Productivity Statistics 2008 Retrieved from http://www.mpc.gov.my/v1/files/KPS2008(1).pdf

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the economy to enable more spending to experience growth rate. The various investments

will spur growth rates in the coming years in many areas like manufacturing, real estate,

petrochemical and food processing sectors.

Education is the pillar of any country. It is the most powerful instrument for reducing

poverty. Only education is able to create knowledge. A leader creates vision but a good

work force is necessary to bring the vision into reality. The economic corridor requires

people who can work in tandem with the accelerated needs. The government has taken

measures to meet this technological, global and regional competitiveness. In Johor,

through the Iskandar Corridor, the EduCity, a 600 acre knowledge based education hub

which has the full facility of a city catering to a world class education resource center.

Universities are encouraged to build their campuses here. Newcastle University from UK

will set up a branch in Iskandar. Eighteen other universities from UK have expressed

their interest to set up their institutes in our country and the notable one is from Al-

Bukhary International University as well17. The development in the field of education is

to equip people to meet the needs and challenges of the changing industry. Programmes

are incorporated to train and equip students to growing needs of the economy within the

next few years. The EduCity is also established in Besut, Terengganu. The Educity also

aims to promote tourism with its advanced education facilities and world class appeal.

Plus being of international standard, the universities will have enrolment from students

all over the world which is also the government’s aim18.

There are new universities established in line with the economic corridor like Universiti

Darul Iman Malaysia (UDM), Universiti Malaysia Kelantan (UMK), Universiti Malaysia

Pahang (UMP) and Universiti Malaysia Terengganu (UMT). These universities are built

with an entrepreneurial, research and technological focus. These universities are designed

to cater as the centre of Industry-Academia Collaboration, Regional Centre for Halal

Products, Centre for Innovativeness and Product Creativeness, Centre for Heritage and

17 What about my children,sources of Iskandar Malaysia homepage. Retrieved from http://www.iskandarmalaysia.com.my/what-about-my-children

18 Page 158, Report By The Committee to Study, Review, and Make Recommendations Concerning the Development and Directions of Higher Education in Malaysia, Ministry of Higher Education. Retrieved from http://www.mohe.gov.my/images/Report.pdf

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Culture and many others. There are polytechnics built as well and to name a few are

Kota Bharu Polytechnic, Kuala Terengganu Polytechnic, Dungun Polytechnic, Kuantan

Polytechnic and Muadzam Shah Polytechnic.

One of the aims of these corridors is to eradicate poverty by ensure education reaches the

poor as well and they be not neglected. From North to the South schools have adopted

PINTAR19 (Acronym for Promoting Intelligence, Nurturing Talent & Advocating

Responsibility) programme initiated by Khazanah National Berhad. 140 primary schools

are sponsored by Government Link Companies. Among other efforts by the government

In November 2008, the government of Terengganu declared that students will be able to

pursue their education abroad using Terengganu’s oil royalty via Yayasan Terengganu20.

Northern Corridor Economic Region (NCER) has identified that their region’s education

is almost equal to Vietnam, Thailand, Indonesia and other developing countries. The

findings from this corridor created an awareness that the human capital in Malaysia and

especially in the northern region needs to be more knowledge based education for the

coming years. Having identified the number of higher learning institutions and schools,

NCER is now working on ways to add more value to the content to the education that the

people produced from the states can meet the needs of the present and future industry21.

Education is not only restricted in the areas of schools. There are training programs to

enhance the skills of the low social background. Under the East Coast Economy Corridor

(ECER), the region focused on training to better the manage agriculture such as crops,

livestock and fisheries within the states. For example, 140 orang asli families were

trained to look after the Australian breed sheep and palm oil estates under the Pekan

Agropolitan Project. In another instance the Northern Corridor Economic Region

(NCER), Kedah adopted the Integrated Childcare and Services Centre (“Centre”) to help

19 PINTAR Programmes, Number of Adopted Schools under PINTAR ,(February 2008), Retrieved from:

http://www.ecerdc.com.my/ecerdc/education2g.htm (See Appendix IV : Pintar programs in Malaysia)

20 Terengganu State will use oil money for students' overseas education, (2008, August 25), Retrieved from http://www.ssig.kpkk.gov.my/ssig/news/fullnews.php?news_id=21118&news_cat=rn

21 Education Human Capital Development, Northern Corridor Economic Region (NCER) Retrieved from: http://www.ncer.com.my/sites/all/themes/ncer/html/img/government/educhart6.jpg

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single mothers or women to learn on child care management and exposure to skilled work

such as laundry, tailoring and beauty shops. At the end of the course, those from low

socio economy can also become entrepreneurs in their own fields and be independent22.

All these are intended to reduce poverty.

Tourism has been one of the contributors to the Malaysian Economy since 1990 and has

been on the increase ever since. It is the second largest foreign exchange earner23 after

manufacturing sector, reaping a profit of RM49.6bil in 2008. Being a country of 27

million populations with different heritage, history, religion, good infrastructure,

education, natural resources and attraction, Malaysia is a haven for foreign investors and

tourists. In order to meet the requirements of this sector, a country needs to preserve the

natural heritage, as well as enhance country’s accessibility, infrastructure and services.

By concentrating on each state’s strength and propelling them under corridor initiatives,

Malaysia will be able to bring in further influx of visitors not only from abroad but also

locals who look for get-away during holidays.24 This in return will increase Malaysia’s

competitiveness in terms of job creation, Gross Domestic Product, capital investments

especially in the area of construction and manufacturing industry, government fund,

development and progress to an area, increase demand for local products, and local

activities. According to a research by World Travel and Tourism Council25, Malaysia’s

tourism will boom in the coming years. Local tourism market like handcrafts, textiles,

and tourist spots will benefit from this surge.

2.3 Infrastructure

Infrastructure means the basic physical and organizational structures needed for the

operation of a society or enterprise, or the services and facilities necessary for an 22 Social Development, Northern Corridor Economic Region (NCER).(No date) Retrieved from http://www.ncer.com.my/?q=social_development/projects

23 Tourism in Malaysia, Source from Ministry of Tourism Malaysia.(No date) Retrieved from http://www.motour.gov.my/en/siaran-media-surat-kepada-editor-koleksi-ucapan/26-siaran-media/363-initiatives-to-think-and-act-tourism.html

24 Chart showing the increase in tourism over the years (See Appendix V)

25 Travel and Tourism Impact, Malaysia 2009. Retrieved from: http://www.wttc.org/bin/pdf/original_pdf_file/malaysia.pdf , World Travel and Tourism Council.

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economy to function. The term typically refers to the technical structures that support a

society and economy.26

Malaysian government has always put its effort in enhancing and developing new

infrastructure under these five economic corridors. This is because the government is

strongly believes that a strong and solid infrastructure will lead to an attractive

environment.

For instance, a great synergy has been created among all our main seaports located in

these five economic regions. Today, more than 90% of the country's trade is by sea via

Malaysia's seven international ports that are Penang Port, Port Klang, Johor Port, Port of

Tanjung Pelepas, Kuantan Port and Kemaman Port in Peninsular Malaysia and Bintulu

Port in Sarawak.

The Malaysia's biggest port, Port of Tanjung Pelepas (PTP), located at the southern tip of

Peninsular Malaysia is one of the very few ports in the world which is integrated with a

Free Trade Zone. The port and free-zone provides shippers and shipping lines with a very

attractive business environment. Being a world class port in the Malaysia's southern

corridors new economic growth area, Iskandar Development Region (IDR), PTP with its

state-of-the-art port facilities is capable of servicing new generation of vessels being

deployed by shipping lines today. Besides the physical infrastructure being in place, the

electronic data interchange (EDI) in Port Klang, Penang Port and Johor Port has allowed

speedy clearance of cargo with the electronic transfer of documentation. 27

To support the operations of this kind of high technology sea ports, a highly talented

Information Technology (IT) graduates are required. This eventually will create a

pressure on the locals to acquire more IT knowledge or to become more IT savvy in order

to be competitive enough to secure a job market. On top of that, this sort of infrastructure

26 Infrastructure, Sources of Wikipedia. Retrieved from:http://en.wikipedia.org/wiki/infrastructure

27 Why Malaysia-Developed Infrastructure, Sources of Malaysian Industrial Development Authority, Retrieved from: http://www.mida.gov.my/en_v2/index.php?page=developed-infrastructure

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is very much contributing to an increase of efficiency and productivity of the sea ports

operation.

Secondly, realizing that Penang is one of Malaysia’s economic hub, the government has

gone into the construction of second Penang bridge with a estimation cost of 4.3 billion

ringgit. The link between the mainland and Penang will be 23km long and linking Batu

Kawan in Seberang Prai with Batu Maung on the south-eastern corner of the island.

The construction of this longest bridge in South-East Asia is expected to be completed in

year 2012. It will be built under a joint-venture between UEM Builders Bhd and China

Harbour Engineering Co Ltd.

China will provide a US$800mil (RM2.8billion) loan to the project, the largest amount

given by China for a single project in a foreign country.28

The interest shown by a rapidly developing country like China to work together with our

country certainly will benefit both countries and more precisely our country. This join

venture project will open up opportunities for our local talents to engage themselves to be

a part of this huge project.

More job market will be created from this project especially for our local engineers. This

kind of mega projects will also motivate Malaysian students in taking up professional

courses in future with a hope that they can secure a highly paid job in our own country.

Recently, during our Prime Minister Datuk Seri Najib Tun Razak’s in his two-days visit

to Chennai, India has witnessed the memorandum of agreement for a joint venture

between our local company “The Red Snappers (M) Sdn Bhd” also known as TRS and

India based company, Rocking Pixels Inc.

28 Cost Of 2nd Penang Bridge Stays RM4.3 Billion.(2009, March 03) Sources of Malaysia National News Agency Bernama.com Retrieved from: http://www.bernama.com/bernama/v5/newsbusiness.php?id=393704

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The Red Snappers (M) Sdn Bhd the Perak State Economic Development Corporation's

flagship telecommunications and animation initiatives, has entered into a 70:30 percent

joint venture with a leading animation company, Rocking Pixels Inc.

The joint venture company named Rocking Pixels MSC (M) Sdn Bhd would design,

build and manage a state-of-the-art studio specialized in producing Hollywood-class 3D

animation for TV, feature film and gaming.

The studio, to be located in Perak, would take advantage of competitively cost skilled

manpower locally as well as from India, China and the Philippines, leveraging the world

class infrastructure that Malaysia provides.

The combined investment of almost US$15 million would ensure the studio to have

cutting edge technology and infrastructure and make Malaysia the preferred destination

for the production of 3D animation for film, television and gaming for international

markets.29

The positive competition among our locals and other ASEAN countries will intensify and

eventually will open up a new market segment for Multimedia and Animation graduates.

With this, local graduates need not to worry in finding a job in this specific field which is

seen as unattainable dreams this far. Not only that this transfer of technology will benefits

our Malaysian youngsters to become more competent in this 3D animation and we are

able to see more and more young entrepreneur venturing into this field in future.

As a booster for transforming into a knowledge based society, Telekom Malaysia (TM)

has gone into a five-year partnership agreement with five state-backed

telecommunication tower operators which will benefit mobile, wireless and WiMAX

operators in rolling out their broadband services for wider coverage.

29 Perak Becomes 3D Animation Hub .(2010, January 22) Sources of Malaysia National News Agency Bernama.com Retrieved from: http://www.bernama.com/bernama/v5/newsbusiness.phpid=470434

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The TM’S deal with Kelantan’s Infra Quest Sdn Bhd, Perak Integrated Network Services

Sdn Bhd, Perlis Comm Sdn Bhd, Negeri Sembilan’s Rangkaian Minang Sdn Bhd and

Kedah’s Yiked Bina Sdn Bhd entailed linking their towers with TM's high-speed fibre

optic-based technology and for fast, high-capacity network connectivity.

The deal also provides for mobile and wireless operators to leverage on TM's expertise,

core competencies and future-proof infrastructures in providing backhaul connectivity

and telecommunications tower facility services in supporting large capacity requirements

and wider coverage for the telecommunications industry. 30

With this enhanced infrastructure, Malaysians from almost every corner of peninsular

Malaysia would be able to enjoy an access to a high speed of telecommunications. This

would really benefits students, private and government industries in improving their

services. This enables them to be more accessible to all up to date information around the

world and to be more equipped to face the challenges.

3.0 CONCLUSION

The five economy corridors are ambitious projects aimed at using the strengths and

opportunities in each concentrated region by making use of idle and existing resources of

land, natural reserves and labour to revive each location through different economic

approaches. In the past too, the government introduced the high tech IT Park called

Multimedia Super Corridor in Cyberjaya region in 1997 modelled after the Silicon

Valley, America. The progress in Cyberjaya is evident that the government’s efforts are

fruitful and there are progress not only within Cyberjaya but also neighbouring towns like

Dengkil, Putrajaya and Sri Kembangan. The reasonable success of Multimedia Super

Corridor has sparked the creation of IT Hub called Cyberabad31 in Hyderabad, India.

30 TM Inks Accord With Five State-Backed Telcos For Wider Broadband Coverage .(2010, January 22) Sources of Malaysia National News Agency Bernama. Retrieved from: http://www.bernama.com/bernama/v5/newsbusiness.phpid= 470324

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However, to compare the five new economy corridors to Multimedia Super Corridor

would be unfair at this stage, because the projects are still running and hasn’t completed

its development period. Among all the five economy corridors, Iskandar Johor seems to

take the lead and is ahead of the rest. Policy makers have considered all the necessary

measures, strengths and weaknesses, and the benefits that can be enjoyed from the

corridors. The necessary ingredients are made available by the government to make the

five corridors a success. It is the people that now need to embrace the opportunities

offered to them to leap into the future. Plenty of investment and incentives are given by

the government to invite foreign multinationals and local companies into restructuring

and developing the regions. A quality force work is also needed to meet the new industry

requirements. Fresh graduates need to embrace a different mind set of innovation,

creativity, invention and risk taking approach. We are not advanced like the West.

Nevertheless we must try to emulate good countries like Singapore, New Zealand or

Sweden.

The study on this paper is to show the various competitive outcomes which would benefit

Malaysia by introducing Economy Corridors. Malaysia has proven to a certain extent by

its ranking place from the 19th in 2008 to the 18th position in 2009 among 57 countries in

the World Competitiveness Yearbook (WCY) 200932. The ranking showed that Malaysia

is ahead of several advanced countries like China, UK and Belgium. How far the

corridors would be a success remains still unknown and requires more research to prove

its credibility and stability which is also a prime task for the Government.

3131 Putrajaya: Malaysia’s New Federal Administrative Capital Cities, In Press, Corrected Proof, 27 November 2009 Sarah Moser

32 The World Competitiveness Scoreboard 2009, Institute of Management Development (IMD). Retrieved from http://www.imd.ch/research/publications/wcy/World-Competitiveness-Yearbook-Results.cfm

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4.0 APPENDIX

Appendix I: Michael Porter Five Forces

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Appendix II: Key infrastructure projects under ECER in various stages of planning and development:

Project Category Key Projects

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Supply of potable water Lebir Dam (Kelantan)

Telecommunication network Upgrading & laying of fiber optic cables in major towns

Sewerage Kota Bharu City Centre (KBCC)Kuala Terengganu City Centre (KTCC)Kuantan & Kuantan Port City Construction of treatment plants on islands and other major towns

Treatment of solid and toxic waste

Sanitary landfill, KelantanSanitary landfill, TerengganuSanitary landfill, Pahang

Installation of incinerator on islands of Redang, Perhentian and Kapas

Upgrading of existing incinerator on Pulau Tioman

Feasibility study for a toxic waste site

Flood mitigation Sg Kelantan flood mitigation inclusive of construction of Lebir Dam

Sg Golok

River Basin study of Sg Pahang

River improvement works in Dungun, Setiu/Merang and Chukai (Terengganu)

Protection against coastal erosion

Integrated Shoreline Management Studies in Kelantan & Terengganu Protection works in Pantai Sabak & Pantai Cahaya Bulan (Kelantan)

Healthcare Jeli, Bachok and Kuala Krai (Kelantan)

Key infrastructure projects under Sarawak Development Corridor:=Project Categories Key ProjectsPhase I (2008-2015): Building the Corridor Foundation

9MP(MTR) and 10MP

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To build basic infrastructure for the CorridorTo grab pioneer industries for the Corridor

Key infrastructure projects under Sabah Development Corridor :=Project Categories Key ProjectsKinarut South Satellite

· New township

· Residential

· Educational, sport & recreation

· Tourism & CommercialSandakan Integrated Exchange Terminal

· Passenger Ferry Terminal, shipping and transportation

· Commercial complex

· Hotel

· Duty free centre

· Shop lots

· CIQS complex

· Farming product storage, bunkering area, equipment

· Trade exchange centre, dedicated grain terminal

Limau-Limauan New Township & Agropolitant Development

· New growth centre

· Marine & jetty

· Hotels & golf course

· Residential

· Commercial

· Educational & sport recreation

· SME ParkApas Industrial Estate · Port and Jetty

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· Ferry Terminal

· Commercial Centre for Cross-Border Trade

· Industrial land lots and buildings

Bum Bum Marine Industrial Park

· Dedicated fisheries port

· Freeze & cold storage

· Cannery & packaging

· Shopping centre

· C.I.Q

· Wharf & jetty

· Residential, Hostels, Recreational & Factory lots Bandar Baru Titingan · Centralized Commercial & Office Center

· Bio-Technology & Integrated Medical Center

· International Islamic Research & Studies Center

· Commercial & Business Center ,Residential Titingan Village,

Homes & Souk

· Condominium & Apartments

· Sports Academy & Central Park, Recreation Center, Five Star

Hotel & Budgeted Hotel

· Marina Yacht and Water Resort,Seafront Food court / Cultural

Village & Fisherman’s wharf

Tourism · 2 hotels

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Development At Semporna

· Business Convention and Exhibition Centre

· Water theme park

· Commercial center

· Jetty

Sandakan Sme Park · Industrial estate and infrastructural development

· Technology development vis-a-vis barter trading

Appendix III(a): Development of infrastructure for the planned Economy Corridor

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Appendix III (b): Further improvement on road networks under the Iskandar Corridor

Appendix IV: PINTAR Programmes In Malaysia

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Appendix V: Chart from East Coast Economy Region (ECER) projecting growth in tourism in Malaysia as well as growth expected from ECER projects

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