Dato´ Seri Mahdzir Khalid Chief Minister of Kedah	Dato´ Kamarulzaman bin Abdul Ghani General Manager of LADA

Adding value and boosting core strengths
Known as the rice basket of Malaysia, the agrarian state of Kedah has become a magnet for foreign investment and tourists

The north-western state of Kedah has a pivotal role to play in the government’s Northern Corridor Economic Region initiative to transform the mainly agricultural north of Malaysia into a logistics, food processing and tourism powerhouse by 2025.

Kedah is the largest rice producer in Malaysia and supports numerous other agricultural products and agro-based industries. A state of exceptional natural beauty, it also has a thriving tourism industry. Sitting just off the coast is Langkawi Island, one of the most luxurious resort locations anywhere in southeast Asia.

Already, because of the Kulim Hi-Tech Park – recently elevated to cybercity status (see facing page) – the state is one of the biggest generators of foreign direct investment in Malaysia.

Chief Minister Dato’ Seri Mahdzir Khalid has big plans for the future development of the state economy by adding value and building up on the state’s core strengths. He wants to utilise new technologies and biotechnology to create a more mature and sophisticated agricultural-based economy and improve the living standards of local farmers. “Today, our people get RM20 per day, that’s about $10,” he says. “I want them to achieve $30 per day.”

The state authorities are heavily committed to boosting education and skills training. Despite its success in attracting highly advanced industries through the Kulim Hi-Tech Park, most of the local manufacturing capability remains small-scale.

Tourism is another focal point, with Langkawi serving as the sector’s flagship. An archipelago of islands in the Andaman Sea, some 16 miles off the mainland and adjacent to the Thai border, Langkawi boasts numerous hotels and resorts, making it one of Malaysia’s top travel destinations to rival Penang.

Langkawi Island itself was recognised by UNESCO in 2007 as a World Geo-park, a tag which suitably reflects its strong commitment to environmental sustainability. With a picture-perfect look featuring white sand beaches, lush jungle foliage and spiky mountain peaks, the area is understandably popular with visitors from all over the world.

Successful development has only taken place in the last 20 years or so since the island was granted tax-free status with the intention of promoting tourism. Specific attractions include the Langkawi Crocodile Club, a 20-acre farm with over one thousand crocodiles, and the Langkawi cable car which carries passengers high up into the mountains in the interior of the island.

Mainland Kedah has numerous places of its own to visit. Air Terjun Puncak Janing in Padang Terap, 13 miles from Alor Setar, is a favourite picnic area, located in the Janing Peak, with a waterfall spilling down directly from the mountain. Or, in contrast, there is duty-free shopping on the Thai border at the purpose built complex in Bukit Kayu Kayam.

The state’s natural resources provide a great backdrop for investors looking to take advantage of Malaysia’s strong economic growth. Dato’ Mahdzir hopes this combination will help drive growth inside Kedah in the years ahead.

He pledges to help any prospective investors to set up in the state with the minimum of fuss. “For instance, if there is an investor looking to build a factory here in Kedah, I would like to meet them immediately. I want to be able to speed up processing. We want to be a one-stop agency.”