SEDC’s: Catalysts to Development or Under-Performing? Try ni.. Add ni

Background Incorporated in 1965 Established under State Enactment 5/1965 A government statutory body to: Initiate Plan Implement Promote Socio economic and industrial development projects in the state of Kedah

Role of KSDC “To spearhead the economic development through an integrated approach by adopting a work culture that emphasizes on integrity, creativity, discipline, and quality in order to provide an efficient and professional service with the realization of an overall socio-economic responsibility and the creation of future corporate leaders.”

Major Activities Plantation Industrial Investment Services Property Manufacturing Housing Tourism

Plantation Rubber estates: Laka Temin, Bukit Kayu Hitam Bukit Perak, Pendang Ladang Sungai Ular, Kulim Total plantation land – more than 8,000 hectares Factory: Kilang Hevea Bukit Perak, Pendang Provide more than 2,000 job opportunities

Plantation More than 4,000 hectares have been developed into townships, industrial and commercial development New areas are being acquired to replace and increase the plantation area

Industrial Industrial Parks 10 sites 1600 Hectares 1991 – 2005 BKT KAYU HITAM DARULAMAN MERGONG GURUN B.ARANG K. KETIL HI-TECH KULIM T. BATU SG PETANI Industrial Parks 10 sites 1600 Hectares 1991 – 2005 Approved investment: RM30.212 billion Employment opportunity: 112,000

Kulim Hi-Tech Park (KHTP) Location: Mukim Padang Cina Kulim, Kedah Darul Aman Area: 4,080 acres/ 1,651 hectares Status of Funding: PKNK, Federal Government and financial institutions

Total Investment in KHTP: RM 20 Billion Investment in KHTP - by Sectors 47% 53% RM4.0 B RM6.76B RM0.16 B RM2.07 B RM2.3 BM Manufacturing Sector – Investment by Country

Manufacturing Companies

Supporting Companies System Seiko Organo Asia Asiaco Movers QT | SERVICES QT | TECHNOLOGY Best Solution Provider System Seiko HEXATECH Organo Asia Asiaco Movers WinPac Technologies

Investment Total investment: RM 187 million Nos Equity Companies Wholly Owned Companies (100%) 26 100% Subsidiaries Companies (50% - 99%) 3 51% - 99% Associated Companies (30% - 49%) 10 30% - 50% Investment Companies (0% - 29%) 15 Below 30% Listed Companies 12 Unit Trust 1 67 Total investment: RM 187 million As at 31 December 2005

Investment Major activities of companies: Plantation Kumpulan Ladang-Ladang Perbadanan (Kedah) Sdn Bhd Gula Padang Terap Plantations Sdn Bhd Construction and Property Development Bina Darulaman Berhad Ideal Appraisal Sdn Bhd Medical Kedah Medical Centre Sdn Bhd Unomedical Sdn Bhd Tourism Kedah Resort Sdn Bhd Grand Central Enterprises Sdn Bhd

Investment Public listed companies: Bina Darulaman Berhad SPK-Sentosa Corporation Bhd EUPE Corporation Berhad

Property New Township: Bandar Amanjaya Bandar Darulaman Bukit Kayu Hitam

Tourism Gunung Jerai Resort Hotel Grand Continental, Alor Star Hotel SP Inn, Sungai Petani Gunung Jerai Resort Hotel Grand Continental, Alor Star Darulaman Golf and Country Club Kulim Golf and Country Resorts Telok Datai Resort, Langkawi Cinta Sayang Golf and Country Resort

Services KSDC Insurance Brokers Sdn Bhd Kedah Medical Centre Sdn Bhd

Restructuring of Society Industry Subsidized industrial land Entrepreneur Entrepreneurship Programmes through training, seminars and courses Property Shophouses at low rental for Bumiputeras Retailing outlets for Bumiputeras Ready-built factories for SMI’s entrepreneur Development of new township Tourism Development of hotels in new areas

Catalysts to Development Lead agency in Industrial development Development and promotion of new areas Capital Intensive Investments Undertaking important projects of the state Implementing social objectives of the Government

Performance: 2001 – 2005

Turnover – Sectorial 93% 93% 57% 57% 53%

Gross Profit - Sectorial

Accumulated Profit 1980 – (RM 6 million) 1990 – RM 36 million

Accumulated Profit

Assets

Constraints to Better Performance External Limited Resources Policies & Procedures Political Considerations Social Considerations Public Perceptions and Expectations Conflict of interest - eg: Naza. Limited Scope -

Constraints to Better Performance Internal Limited Internal Resources Government Policies and Procedures Social Obligations Conflict of interest - eg: Naza. Limited Scope -

Kedah: Economic Indicators 1990 2000 2004 GDP (RM million) 3,511 9,099 10,933 Per Capita GDP (RM million) 2,612 4,137 6,030 GDP Growth 9.6% (Annual Average 1990 - 1999) 6.4%

CATALYSTS TO DEVELOPMENT Conclusions PERFORMING and CATALYSTS TO DEVELOPMENT

Thank You