PETALING JAYA: Kedah Rubber City (KRC), a national project under the Northern Corridor Economic Region’s Strategic Development Plan 2021-2025, has been able to attract committed investments of over RM2.2 billion through a comprehensive supply chain ecosystem for advanced latex products development, production of feedstock, manufacturing, storage warehousing, and logistics.
Kedah Mentri Besar Muhammad Sanusi Md Nor said KRC is an attractive destination for businesses in the medical devices sector particularly medical glove manufacturers to expand their operations. The proximity to raw materials and the lucrative border trade with Thailand adds to the pull factor for rubber industry players to invest in KRC.
“I am happy with NCIA’s investment performance where RM6.8 billion in approved investments has been secured in Q1’21 exceeding the approved investment target for Kedah this year by more than 20%,” he said after chairing the state’s Jawatankuasa Pemandu Negeri meeting held today.
Strategically located within the “Rubber Belt” of the Malaysian-Thailand border, KRC will complete the rubber industry ecosystem and open more opportunities for investors in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) region.
NCIA is simultaneously developing partnerships with neighbouring countries through the IMTGT platform to support and accept products produced in KRC. Qualified KRC investors will be able to enjoy a comprehensive Special Incentives Package detailing allowance and exemptions by both federal and state governments.
“Spanning nearly 1,250 acres, KRC has a world-class infrastructure for high-value rubber industry players, and Phase One totalling 504 acres is now ready for investors to move in,” said NCIA CEO Datuk Seri Jebasingam Issace John.
“Linked with the Malaysian rubber industry value-chain, KRC is the first dedicated rubber industrial park in the country that will accelerate the Malaysian rubber industry to be the regional high-value rubber manufacturing hub in Asean and bring much needed economic activity for the state of Kedah,” added Issace.
Equipped with world accredited testing facilities, integrated talent ecosystem development to meet Industry 4.0 technical requirements, research and development in technological innovation and niche rubber production, KRC is also set to position Malaysia back as the global leader in the rubber industry.
KRC is now ready to accept investors with the completion of basic infrastructure works under Phase One. Investors will have access to critical feedstock to produce rubber products through the construction of a storage tank farm in Penang Port. A logistics hub complete with a depot and warehousing facility will be established in KRC to complement the storage tank farm.
Committed investors are expected to start construction of their facilities by around Q4’21 and commence operations by second half of 2023.
“With the influx of investments into KRC, more than 4,500 jobs will be created for locals in Kedah,” Muhammad Sanusi said.