Logo of Malaysian-German Chamber of Commerce and Industry

Kedah

The Rice Bowl State of Malaysia

Kedah
  • 2.1 mil Population

    Head of Government: Menteri Besar

  • 9,425 km Size

    Area code: 04

  • Alor Setar State Capital

    Region: Peninsular Malaysia

Business Opportunities

Automotive

The automotive industry has become one of the major industries supporting the Kedah economy. Key strategic sectors in this field include major parts, dies and moulds, materials, and design engineering. The introduction of green technology has been emphasized to enhance R&D and engineering capabilities and provide the relevant infrastructure.

Aquaculture & Horticulture

The fishery sector has for decades been playing an important role as a major supplier of animal protein to the Malaysian population. Majority of fish from the marine capture sector, is sold in fresh and chilled form; while those from aquaculture are marketed in live form, directly to restaurants, with higher price compared to other markets. With more wealth and understanding of the health benefits of fish, demand for fish is increasing.

Healthcare & Medical Devices

To attract investment on medical devices & equipment, pharmaceuticals, dental products, medicine & alternative medicine, drug development & biotechnology.

Tourism

Kedah has plenty to offer both in terms of business and lifestyle. Offering an optimal balance of modern urbanisation and natural conservation, Kedah is wildly popular among tourists and tourism investors alike. Blessed with spectacular natural beauty and a distinctive cultural heritage, the possibilities are endless for tourism investors. Potential investment points for tourism businesses include eco-tourism, hospitality, shopping, duty-free businesses, water-themed activities, sports & recreation, cruises, entertainment and many more. Such abundance of investment opportunities holds especially true in Kedah’s Langkawi Island, a UNESCO-recognized World Geopark and one of Malaysia’s most highly-regarded tourist destinations

Education & Training

Kedah offer a diverse pool of skilled as well as unskilled manpower to suit a wide range of industry needs. Home to prestigious tertiary educational institutions including UUM, UniKL MSI, UiTM, AIMST, UniMAP and a variety of polytechnic academies, employers in Kedah enjoy the distinction of having a consistent supply of well-trained talents to recruit from.

Working in collaboration with these institutions, Kedah has also implemented various specialized, industry-specific educational and training programs to produce industry-ready workforce to better meet the needs of companies. This ready supply of quality human capital serves as a powerful platform especially for human-intensive industries to set up and establish themselves quickly in the marketplace.

Rubber Activities

Rubber products are among the most versatile materials used in virtually all modern industries, including E&E, automotive, medical devices, construction, and industrial manufacturing, as well as for polymer modification and other applications. Tyres, latex products such as industrial gloves, and other general rubber products comprise common rubber products. Industrial rubber products including engineered rubber products are new rubber products that have been growing rapidly and is forecast to grow at over five per cent from 2021 to 2027.

Halal Products

Kedah Halal Park is located in Sungai Petani Industrial Area and it covers an area of 35 acres of land. This park is owned by State Economic Development Corporation (SEDC) and will be developed in 2 phases. 17 acres will be the phase 1 and another 18 acres will be developed for expansion of the park in the future (phase 2). Kedah has the comparative advantage to propel its halal food industry to the fore front and secure international recognition. The image as a progressive, moderate and dynamic Islamic state will enable it to become a hub for the halal food industry. In addition, there is a strong halal production base with good industrial and commercial infrastructure, as well as strong inter and intra-linkages between multinational corporations and small medium enterprise. Potential halal products that could be based and manufacture in Kedah are cosmetic, food and pharmaceutical products.

Agro Culture

Backed by a tested and proven set up and long-established infrastructure, Kedah is more than ready to support a diverse array of agricultural investments including agricultural production, processing of agro products, cultivation of vegetables, tubers, maize, essential oil crops as well as production of animal feed.

Green Technology

Powered by comprehensive energy infrastructure such as an extensive network of natural gas pipelines throughout the state, the potential for energy investments in Kedah is enormous. The state government has also implemented plans to develop reneries, tank farms as well as dedicated downstream industries in the maritime coastal area of Kedah to create a wholly harmonized energy ecosystem. A distinct advantage enjoyed only by Kedah as an energy investment destination is the fact that the widest span in the Straits of Malacca lies in Kedah waters.

Kedah’s strategic location not only promises a wealth of space and resources, but also outstanding opportunities for all related activities across the entire energy supply chain. With a keen focus towards sustainable industrialization and long-term development of the state, Kedah is also eyeing more strategic diversification of its energy sector into the lead of green technology with suitable investors.

Logistics

Kedah is a well-connected state with an established network of roads, highways, railroads, shipping ports and air ports to best suit every investor’s specific business needs. This also opens the doors to investment opportunities in areas such as ship maintenance and facilities, cargo and sea transport services, regional airlines as well as other support activities. Whether to leverage on the existing logistics network or to invest in other related activities, investors have everything to gain as Kedah is located at the very heart of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), which caters to a combined market population of over 150 million

Electric & Electronic

Electronic components are essential elements embedded in all electrical and electronic devices such as consumer electronics, industrial electronics and electrical appliances. This is reflected in its investment performance whereby the sub-sector contributed the lion’s share of investment in the electrical and electronics (E&E) industry were primarily driven by foreign investment.

This sub-sector provides vital growth to the E&E industry due to the wide range of products it covers from semiconductor devices such as wafers integrated circuits (IC) and IC design and packaging activities to passive components such as capacitors, resistors, connectors, inductors, crystal quartz and oscillators. It also covers components such as storage media, disk drive parts, printed circuit boards (PCB), LED substrates and epitaxy, microcontrollers and other metal and plastic parts for E&E applications.

Advanced Material

Advanced materials mean materials with engineered properties created through the development of specialized processing and synthesis technology, including ceramics, high value-added metals, electronic materials, composites, polymers, and biomaterials. This industry including high-performance optics, biocompatible devices, advanced battery components, and radiation detection materials. A key focus is additive manufacturing (AM), which is transforming manufacturing by producing materials with new structural, thermal, electrical, chemical, and photonic properties.

*Source: Invest Kedah