1. Country Analysis exercise SEZs design, Implemetation and M&E Workshop
Malaysia
Country Analysis exercise SEZs design, Implemetation and M&E Workshop

2. Rationale and Justification for Setting Up SEZs
Enhancing inclusiveness towards equitable society
- To address regional imbalances in terms of economic development
and income gap

3. Type of SEZs Regional Economic Corridors Industrial Parks
Free Trade Zone (FTZ) and Free Industrial Zone (FIZ)
Reason for adoption
Subject to the needs of the proposed SEZ - attracting FDI - creating employment - poverty eradication

4. Location of Regional Economic Corridors (RECs)
Northern Corridor Economic Region (NCER)
Iskandar
Malaysia (IM)
Sabah Development Corridor (SDC)
East Coast Economic Corridor (ECER)
Sarawak Corridor of Renewable Energy (SCORE)
The map shows the location of 5 growth corridors that have been identified to be developed and achieved its specific objective:
Iskandar Malaysia
at South Johor consist of Johor Bahru District and part of Kulai and Pasir Gudang district
is to be developed into world-class metropolis and attracting investments in new industry clusters such as private higher education & healthcare.
NCER
covers states in the northern region– Perlis, Kedah, Pulau Pinang & Northern Perak (Includes Hulu Perak, Kerian, Kuala Kangsar & Larut-Matang-Selama)
was earmarked as Malaysia’s zone for commercial agriculture, agro-based & high-tech industries.
ECER
covers 3 states in the east coast region Pahang, Kelantan, Terengganu & district of Mersing in Johor
focus on downstream industries based on petrochemicals, agriculture & tourism.
SDC
covers whole state of Sabah
focus on improved infrastructure to develop the agro based sector & tourism.
SCORE
Covers central region of Sarawak with 5 growth nodes identified to fast-forward development in this area
will focus in energy-intensive industries such as metal, aluminum and alloy industries. 4

5. Regional Economic Corridors (RECs)
Northern Corridor Economic Region (NCER)
Key Thrust Areas: Agriculture, Manufacturing, Tourism, Logistics and Enablers
Iskandar Malaysia
The Core sectors: Electrical & Electronics; Petrochemical, Oil & Gas; Food & Agro processing; Logistics; and Tourism.
The Emerging sectors: Healthcare; Education; Creative; and Financial & Business Services.
Sarawak Corridor of Renewable Energy (SCORE) 2 1
Industries: aluminium, glass industries, oil-based industry, steel, palm oil, fishing and aquaculture, livestock, timber-based industries, marine and tourism.
Sabah Development Corridor (SDC) 3 5
Key focus areas: agriculture, tourism, logistics and manufacturing; oil, gas and energy; higher education, and palm oil
The Iskandar Development Region (IDR) is a Malaysian Special Economic Zone established in 2006.
The zone covers 2,217 square kilometers and includes the Senai Airport and the ports of Tanjong Pelepas and Pasir Gudang.
The IDR is administered by Iskandar Development Region Authority (IDRA), a Malaysian Federal Government statutory body.
Value-added and knowledge intensive industries are a key target of the IDR. Six service based sectors are targeted for exemptions:
I. Creative industries
II. Educational services
III. Financial advisory and consulting services
IV. Healthcare services
V. Logistic services
VI. Tourism related activities
Incentives provided:
Exemption from Foreign Investment Committee rules
Freedoms relating to foreign employment
Exemption from corporate income tax for a period of 10 years from commencement of activities
Exemptions from withholding tax on royalty and technical fee payment to nonresidents for a period of 10 years from commencement of activities
Skilled foreign workers are exempt from tax on car purchases
Like Shenzen, the IDR has a unique geographical location which makes it highly suited to rapid growth, located just 50 minutes drive from Singapore’s Changi International Airport, and positioned on international sea lines of communication. Just as Shenzen was heavily reliant on investment from Hong Kong, the IDR has been heavily reliant on investment from Singapore.
The Wall Street Journal reported that as Singapore runs out of land to expand, it is joining forces to develop IDR into Singapore's new hinterland, with space for multinational companies, industry and housing. So far more than 3,500 Singaporean businesses have set up in Iskandar in the past six years. Over 70 per cent of businesses established have been small and medium sized enterprises. 4
East Coast Economic Region (ECER)
Five key economic clusters: Manufacturing, Oil, Gas & Petrochemicals, Tourism, Agriculture and Human Capital Development

6. Other policy features Tax incentives Facilitation grant
Low carbon society
Smart city
Freedom to source Foreign Knowledge Worker

7. SEZs Implementation 1. Regulator
Managed by respective Economic Corridor Authority (ECAs): IRDA, NCIA, ECERDC, RECODA, SEDIA
2. Developers
It varies from corridor to corridor by authorities, GLC or private companies
3. Operators It varies from corridor to corridor by authorities, GLC or private companies

8. Implementation issues
Lack of coordination between Federal, State and Local Council
Political intervention
Land acquisitions
Limitation of budget and resources

9. Monitoring and Evaluation of SEZs
Yes monitoring and evaluation is done
Lack of coordination of data between Federal and Regional Authorities
Yes statistics are generated via Annual report and publicly available

10. Success factors Quality and dedicated staff
Each region focuses on certain sectors based on their competitive advantages
Continuous engagement with the local stakeholders
Federal Government provide funding for key infrastucture

11. Critical Challenges Land acquisition Political intervention
Lack of skilled workers

12. Recommendations Skills training institute run by the industries
Reduce red tape for government approval
Centralized repository for key statistical data