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Economic Corridors and Regional Development: The Malaysian Experience

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  • Athukorala, Prema-chandra

    (Australian National University)

  • Narayanan, Suresh

    (Universiti Sains Malaysia)

Abstract

This paper examines prerequisites for a successful interstate economic corridor development program in a country with a federal system of government through an in-depth study of the design, implementation, and the developmental impact of the Northern Corridor Economic Region (NCER) in Malaysia that encompasses the states of Penang, Kedah, Perak, and Perlis. The analysis suggests that the NCER has the potential to leverage on the core strengths of the state of Penang—global connectivity, mature business ecosystem with a strong presence of multinational enterprises, and sizable talent pool—in order to redress the widening interregional and urban–rural development divide. While it is too early to assess the full outcome of NCER initiative, a potential problem looms in the future. The Northern Corridor Implementing Authority (NCIA), charged with implementing projects in the NCER, is structured with no formal positions allotted to planning officials from the member states. This will not pose problems in implementing projects that are in broad alignment with the interest of the states. Conflicts will arise, however, when state and NCIA views on projects differ. This potential problem can be overcome by restructuring the NCIA to allow for the formal inclusion of planning representatives from member states.

Suggested Citation

  • Athukorala, Prema-chandra & Narayanan, Suresh, 2017. "Economic Corridors and Regional Development: The Malaysian Experience," ADB Economics Working Paper Series 520, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0520
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    2. Zainizam Zakariya & Kristinn Hermanssons & Kho Yin Yin & Noor Fazlin Mohamed Noor, 2019. "Regional Economic Growth in Malaysia: Does Aggregate Overqualification Matter?," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(5), pages 139-156, December.
    3. Anthony E. Boardman & Mark Moore & Aidan Vining, 2020. "Financing and Funding Approaches for Establishment, Governance and Regulatory Oversight of the Canadian Northern Corridor," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 13(25), October.
    4. Goldmann, Kathrin & Wessel, Jan, 2020. "TEN-T corridors – Stairway to heaven or highway to hell?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 240-258.
    5. A S M Abdul Quium, 2019. "Transport Corridors for Wider Socio–Economic Development," Sustainability, MDPI, vol. 11(19), pages 1-23, September.
    6. Ieva Meidutė-Kavaliauskienė & Gitana Dudzevičiūtė & Nijolė Maknickienė & Aidas Vasilis Vasiliauskas, 2020. "The relation between aging of population and sustainable development of EU countries," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 2026-2042, March.
    7. Peter Warr & Archanun Kohpaiboon, 2018. "Explaining Thailand’s Automotive Manufacturing Success," Departmental Working Papers 2018-02, The Australian National University, Arndt-Corden Department of Economics.
    8. Jain, Manisha & Jehling, Mathias, 2020. "Analysing transport corridor policies: An integrative approach to spatial and social disparities in India," Journal of Transport Geography, Elsevier, vol. 86(C).
    9. Chenxi Li & Kening Wu & Xiangyu Gao, 2020. "Manufacturing industry agglomeration and spatial clustering: Evidence from Hebei Province, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 2941-2965, April.
    10. Jain, Manisha & Korzhenevych, Artem & Basu, Anurima Mukherjee, 2021. "Integrating spatial development with infrastructure provision along an envisioned transport corridor: A conceptual framework and its application to India," Land Use Policy, Elsevier, vol. 104(C).
    11. Navid Khan & Riaz Ahmad & Ke Xing, 2018. "China Pakistan Economic Corridor (CPEC): Regional Development, Employment Opportunities and Policy Challenges," Global Economics Review, Humanity Only, vol. 3(1), pages 12-23, June.
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    13. Kui Ming Tiong & Ming Yu Cheng & Chee Keong Choong, 2021. "Investment climate and foreign direct investment in Malaysia: firm‐level evidence," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 35(1), pages 108-119, May.

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    More about this item

    Keywords

    economic corridor; Malaysia; regional development;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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