Chuping Valley to generate RM1b for Perlis infrastructure
Zone will boost state’s transition from agricultural-based economy to industry-driven growth model
THE massive Chuping Valley Industrial Area (CVIA), spanning 1,214ha, has sparked excitement among industr y players, in particular investors in the renewable energy sector.
Perlis Menteri Besar Datuk Seri Azlan Man said some 200 captains of industr y and their representatives had expressed an interest to invest in the biggest industrial zone ever created in Perlis.
”We had a pre-launch session with local and foreign potential investors, on Sunday evening and have received positive feedback.
”I am happy to note that once the infrastructure is ready, the investments will start to come in, particularly in the large-scale solar-power generation niche,” he said after the launch ceremony by Raja of Perlis Tuanku Syed Sirajuddin Putra Jamalullail yesterday.
The development of CVIA, which is under the joint auspices of the Perlis government and the Northern Corridor Implementation Authority (NCIA), has been identified as one of the initiatives to be implemented under the 11th Malaysia Plan.
Present were Tuanku Raja Muda Perlis Tuanku Syed Faizuddin Putra Tuanku Syed Sirajuddin Jamalullail, Thai ambassador Damrong Kraikruan, consul-general of Japan in Penang Kiyoshi Itoi, first secretary of the Finnish embassy in Kuala Lumpur Laakkonen Teemu, Prime Minister’s Department deputy secretary-general (Financial and Development) Datuk Zainal Abidin Abu Hassan, special adviser to the prime minister on the Northern Corridor Economic Region (NCER) Datuk Seri Zainal Abidin Osman, Economic Planning Unit deputy director-general (policy) Datuk Nik Azman Nik Abdul Majid, Sustainable Energy Development Authority Malaysia (SEDA) chief executive officer Catherine Ridu and the NCIA chief executive Datuk Redza Rafiq.
Azlan said he was confident that CVIA would generate over RM1 billion investment for infrastructure, as the project enters its new phases by 2020 and beyond.
“That figure is yet to include the enormous potential private sector investment because the gross investment for a single large-scale solar farm, with the production capacity of 50 mega watts, will attract about RM300 million in investment.
“We are confident that the first batch of solar renewable energy, capable of producing 35 mega watts of energy, will attract a large number of bidders in the sector,” he said.
Azlan said his administration had projected CVIA would create over 25,000 jobs by 2030, taking into account skilled and semi-skilled job creations in industries directly and indirectly related to CVIA.
”This project fits the three core new growth criteria set by the state government: large-scale, high-impact and sustainable projects that will increase the gross domestic product (GDP) of Perlis by three fold upon completion of all phases.
”More importantly, CVIA is a greenbased catalyst economic development that will transform the economic landscape of Perlis, in line with the state government’s vision to transform Perlis into a high-income city state by 2030,” he said, while expressing his appreciation to the Federal Government and NCIA for the support given to the state.
Redza said the project was one of the seven new growth nodes for the northern region.
“CVIA is seen as a game changer for Perlis‘s economy, and is seen as one of Perlis’s key socioeconomic catalysts. As one of the proposed high-impact projects under the Perlis Strategic Development Plan, CVIA is expected to boost the state’s transition from an agricultural-based economy to a modern, industry-driven growth model.
“We are confident that once CVIA is operational, we shall see the spillover effect in terms of economic development in the surounding areas, which will strengthen and empower the economy. This is also in line with NCIA’s agenda of growth with social equity”.
He said NCIA had crafted the project with the state government to create an industrial ecosystem that suited current and future investment preferences, in line with changes in the global industrial landscape.
”This project reflects the new industrial area concept where we will have a Research and Development (R&D) Centre, a Centre of Excellence, aside from engaging institutions of higher learning in Perlis to play their part in CVIA‘s development.
”CVIA is a manifestation of the new era where we create an ecosystem that integrates value-added services, not just the physical attraction of the area, since the concept of ‘we build and they will come’ is no longer relevant to investors‘ preference,” he said.
Redza added that the project had taken off with the construction of the first phase of CVIA’s Integrated Business Centre (IBC), and will operate in October.
CVIA, a greenfield development on a 1,012ha in Chuping Valley, will comprise various initiatives, including the 202ha Perlis Inland Port (PIP), which will serve as its logistic hub, and an industrial park for the focus clusters of renewable energy generation (REG), green manufacturing and halal industries.
“This initiative takes into account regional cooperation through the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), and is listed under the IMT-GT Implementation Blueprint 2017-2021. Due to its strategic location at the border of Malaysia and Thailand, CVIA is expected to increase trade and economic ties between the two nations,” he added.
As one of the new growth nodes under NCIA, CVIA will be developed in several stages. This includes building an integrated business centre (IBC), which will serve as a catalyst for the development of CVIA. IBC will provide transit offices and temporary accommodation for project investors.
“We have tailor-made incentives to attract investments to CVIA and Perlis. NCIA will boost its efforts to work with agencies, such as the Malaysian Investment Development Authority and the Malaysia Digital Economy Corporation to create awareness and promote CVIA to investors as part of the agenda to turn Malaysia into a RM2 trillion economy,” said Redza.
“We are confident CVIA will attract more private sector investments to the region, thus leading to more economic activities. This is also in line with the 2050 National Transformation (TN50) objective to create a thriving and vibrant economic environment,” he added.
As part of the occasion, the Raja of Perlis planted a time capsule to be opened in 2050.