12MP aims to spur, optimise growth in regional economies

KUALA LUMPUR: The potential of regional economies will be optimised to spur economic growth and address inter and intra regional imbalances.

According to the 12th Malaysia Plan (12MP) document released by Economic Planning Unit (EPU), initiatives would focus on accelerating development based on key growth "nodes" and hotspot areas, attracting quality investment, improving the business ecosystem, and enhancing strategic collaboration and coordination.

The government will also enhance cooperation under the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) as well as the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).

"These (growth areas) are crucial in reducing socio-economic gaps across regions and states to enable a more balanced and inclusive regional development," said the document.

Several niche economic activities will be promoted in key growth nodes and hotspot areas, where the areas will be developed in each region as hubs for economic activities, according to the plan.

States would also continue to play an important role in socio-economic development to achieve more balanced and inclusive growth.

"The development of new townships led by the private sector, including Setia Fontaines in Penang, as well as Seriemas in Ampangan and Rantau in Negeri Sembilan, is expected to provide additional job and business opportunities," it said.

Industry players, especially micro, small and medium enterprises (MSMEs) in the key growth nodes and hotspot areas will be encouraged to move up the value chain and participate in high value-added activities.

The document said efforts will be undertaken to facilitate industries to embrace the fourth industrial revolution through the adoption of technology, automation, and innovation, particularly in complex industrial processes.

The government will intensify its efforts to attract quality investments, particularly in less developed regions, with measures to expedite development.

"The focus will be on enticing high value-added, advanced technology and knowledge-intensive activities by enhancing competitive incentives packages as well as intensifying research, development, commercialisation and innovation," said the document.

Regional development will continue to leverage the sub-regional cooperation platform to promote and accelerate socio-economic growth.

The document said cross-border economic activities will be promoted through the diversification of production and supply chain activities across neighbouring countries.

"A strategic plan will be formulated to accelerate cross-border value chain development. In line with the project-centric approach of IMT-GT Vision 2036, and BIMP-EAGA Vision 2025, at least 30 catalytic projects with a strong focus on enhancing local economic activities will be identified," it added.

-- BERNAMA