Sub-Sectors
In addition to the key programmes described above, the promotion of the targeted manufacturing sectors – namely E&E, biotechnology, sustainable materials, agriculture downstream, oil and gas and automotive – will be strengthened by sub-sector specific and cluster-specific initiatives.
Electrical and Electronics Cluster
The NCER initiative aims to help Malaysia maintain its ranking of Asia’s third largest electronics production centre and to leverage the E&E zone as the enabler for other manufacturing clusters such as electronic auto components, medical products, and electronic consoles. The value add for E&E sector is targeted to increase from 15% in 2005 to 30% by 2012.
Electrical & Electronics Cluster
Additional initiatives supplementing the key programmes shall include:
- Benchmarking Malaysia and the NCER’s incentives for E&E against countries competing for the same type of FDI, and introducing desired changes, to remain the premier E&E FDI destination
- Creating an E&E cluster from Bayan Baru-Gurun to Taiping, and aggressively promoting the cluster to attract investment
- Leveraging the Multimedia Super Corridor situated in Pulau Pinang and Meru Valley as additional opportunities to commercialise E&E innovations and high technology
Biotechnology Cluster
Biotechnology Cluster
Additional initiatives supplementing the key programmes shall include:
- Bio-fertilisers and bio-pesticides will be promoted to increase yield, reduce dependency on chemicals and promote organic farming
- Agricultural waste (e.g. Empty Fruit Bunches (EFB) and rice husks) will be collected for downstream processing e.g. fibre
- Working with Malaysian Biotech Corp to encourage and regulate bio-prospecting activities (discovery of active pharmaceutical / cosmetic ingredients) based on bio-diversity assets in Royal Belum Forest
- Such species will then be sustainably farmed in the NCER and production of standardised extracts will be one of the anchors within the Pulau Pinang (contract) manufacturing cluster
- In addition to existing NCER incentives, special funding allocations can be negotiated
Agriculture Downstream Clusters
One of the goals of the NCER initiative is to transform the Northern Corridor into a modern food zone for Malaysia. Apart from paddy, animal husbandry, aquaculture, fruit orchards and cash crops will be modernised and promoted on an economic scale. This will support food processing centres involved in preparing, cooking, preserving and canning food products. As halal certification is an important requirement to enable the NCER to export its food products to Islamic countries, Sungai Petani and Tasik Gelugor have been designated as halal food processing parks.
Agriculture Downstream Clusters
Additional initiatives supplementing the key programmes shall include:
- Developing market-driven production programmes for each identified food segment in order to ensure that quality, frequency and quantity of supply is guaranteed
- Supporting this programme by creating suitable transport and storage infrastructure to ensure freshness of perishable item
- Identifying suitable locations in northern Sumatera and southern Thailand where food plantations can be grown or sourced for supply to the NCER for downstream processing
- Expanding greater R&D in food technologies
- Helping to develop and promote world-class brands
Automotive Industry Cluster
The Northern Corridor is host to 2 major assembly plants namely, Inokom in Kulim and Naza Motors in Gurun. Gurun is also the site for the assembly of Yamaha motorcycles. In line with the National Automotive Policy, the Northern Corridor initiative aims to attract investors who establish operations at the right level of scale, enabling linkage with the domestic industry. It will also provide a platform for local vendors to be connected to global supply chains and be part of international design teams.
Automotive Industry Cluster
Additional initiatives supplementing the key programmes shall include
- Potential investors shall qualify both for NCER incentives and existing incentives provided for under the National Automotive Policy such as the Industrial Adjustment Fund
- Existing vocational centres shall be enhanced to become centres for skills excellence to ensure the necessary human capital for the success of the industry
Sustainable Materials Cluster
The sustainable materials industry will be made up of centres situated nearby main agricultural production centres, to ensure ease of transporting raw materials, particularly agricultural waste such as empty fruit bunches (waste2wealth initiatives).
Sustainable Materials Cluster
Commercialisation of technologies in sustainable materials that leverage the NCER’s crops shall be promoted through specially negotiated incentives. Promoted areas include
- Bio-plastics from corn, potatoes and oil palm
- Packaging materials from EFB, corn starch and sugar cane
- Speciality paper (e.g. speaker cones, medical paper and battery paper) from EFB
- Fibre-plastic composites from sustainable fibre and plastics