4) Featured economic policies, cities and special economic zones

Malaysia is a rapidly developing country that is expected attain a developed country status by 2025.
The population is increasing, especially among young people, and income is increasing at approximately 5% yearly.
The economic policies, cities, and districts that are attracting particular attention in Malaysia are summarized below.

① Kuala Lumpur Metropolitan Area: Greater KL Plan

It is a bold plan to transform the capital city of Kuala Lumpur to an advanced city.
This masterplan is based on the idea that the development of the metropolitan area will greatly contribute to the economic development of the whole country.

As of 2020, the population of the metropolitan area is approximately 8 million, and the population is increasing by more than 200,000 every year.
In addition to the natural increase, there are many cases where young people migrate from rural areas.

The highlights of Greater KL is

1) Attracting multinational corporations:
Kuala Lumpur is a very attractive city for multinational corporations to set up office, compared with regional big cities such as Singapore and Hong Kong.
This is mainly attributed to human resource talent available who is highly skilled, multi-lingual (English, Chinese, and Mala) and an effective government policy which attracts multinational companies to set up regional head offices.

2) Railway network maintenance:
The railway networks and it’s related infrastructure is being expanded at a swift pace due the increase of the population trend in Kuala Lumpur.
54 new stations will be opened in 2016 and 2017, and 61 more stations will be opened between 2021 and 2024. More recently, a plan to build another 30 stations in the metropolitan area was announced.

3) Start of Special Financial Zone:
Malaysia is at the forefront of Islamic finance in the world, and by taking advantage of it, we have established the International Financial Zone (TRX) in the heart of Kuala Lumpur .
It attracts major domestic and foreign financial institutions to set up office in this location.
The Hongkong and Shanghai Banking Corporation (HSBC) and few major Western insurance companies have already begun to relocate their head office to TRX.

Click here for more information on Kuala Lumpur.

② Johor: Special Economic Zone of Iskandar

The Iskandar Economic Zone is an economic and infrastructure masterplan to greatly develop Johor to create a strong economic and social synergy between Johor and Singapore.

Construction of the Singapore subway plan (RTS) which directly connect Singapore’s MRT station to a station in Iskandar Zone has commenced, and it is scheduled to operate at the end of 2026.
This infrastructure project will allow the residents of Johor and Singapore to commute easily between each other. This mode of transportation will greatly reduce the commuting time , hence will enhance the appeal of investment in the Iskandar Economic Zone.
This offers a huge economic opportunity and will greatly enhance the real estate prices within the Iskandar Economic Zone.

Another location with a positive economic potential is the Medini Iskandar.
It is divided into 4 areas Medini North ( Urban wellness , hospitals) , Medini Business District , Medini Central ( Trade and logistics ) and Medini South ( Eco-park and wellness ). These 4 core areas in Medini aims to create a city within a city concept with all the conveniences of life within a close proximity.

Click here for more information on Johor.

③ Penang: Master Transportation Plan

Penang is famous as an Industrial Hub specializing in semiconductor and healthcare products.
Besides being economically vibrant, it’s also one of the most livable cities in the world according to awards given by CNN, Forbes, LA Times, The Guardian and many more.
In the old city of Georgetown, which is a UNESCO heritage area, it’s a world famous tourism spot with melting pot of various cultures.

Penang Island is connected to Butterworth on the opposite bank (peninsula side) by two long bridges and a ferry service.
Penang Transport Masterplan which consists of Light Rail Transit, few expressways and enhancement of the overall traffic infrastructure aims to make Penang a vibrant and livable city.

This project commenced in 2021 and the Light Rail Transit is expected to start in the end of 2023.

Click here for more information on Penang.