13MP: Promoting Investment In Underdeveloped Areas, Enhancing Regional Governance

KUALA LUMPUR, July 31 (Bernama) -- Promoting economic activities and investment in underdeveloped areas, along with enhancing urban development management, are among the main focuses of the MADANI Government to ensure balanced regional economic growth and strengthen rural development.

According to the 13th Malaysia Plan (13MP) document released by the Ministry of Economy today, improving access to infrastructure and public services is also a major focus in achieving 17 regional development balancing targets set for the 2026-2030 period.

“Balanced and inclusive economic development will support efforts to raise the ceiling in achieving the aspirations of the MADANI Economy. Improved economic outcomes will enhance the nation’s competitiveness and position Malaysia as a leading regional economic hub,” the document said.

It also emphasised the importance of strengthening the ecosystem that supports and drives investment beyond traditional focus areas, particularly in rural areas, as a means of unlocking broader access to resources at more optimal costs for industries.

To narrow the economic development gap between regions and bolster rural development, the 13MP outlines four key strategies aimed at achieving these objectives.

The first strategy focuses on accelerating the development of underdeveloped areas by attracting investments that leverage local resource advantages, adopting advanced technologies such as geospatial artificial intelligence (AI) and big data, and promoting large-scale investments in strategic industries, including rare earth elements (REE).

This approach includes enhancing the use of local resources by empowering local talent through stronger collaboration between Technical and Vocational Education and Training (TVET) institutions and industry to meet workforce demands. Additionally, efforts will be made to upgrade basic infrastructure, housing, and social amenities in settlements under the Federal Land Development Authority (Felda), the Federal Land Consolidation and Rehabilitation Authority (FELCRA), and the Regional Development Authority (LKW), to nurture a competitive and resilient generation in these regions.

The second strategy aims to enhance urban development and management, focusing on improving the efficiency of city planning to address challenges such as urban sprawl, population density, and traffic congestion.

Under this strategy, smart city development will be promoted in line with Sustainable Cities and Communities standards, with a target of 115 local authorities (PBTs) being recognised as early adopters of smart cities by 2030 - up from 41 currently.

Putrajaya’s Kota MADANI will be developed as a pioneering model of a future city. Additionally, transit-oriented development (TOD) will be expanded to better integrate housing, commercial, and recreational areas with the public transport network. At least 30 per cent of the housing developed under TOD projects will be designated as affordable housing.

“The competitiveness and functionality of urban areas will be improved by merging nearby small and medium-sized towns to strengthen the urban hierarchy. Development efforts will also focus on accelerating urbanisation in planned settlement areas, particularly those under Felda, FELCRA, and LKW.

The third strategy under 13MP is to enhance regional planning and governance efficiency. To identify and address development disparities between regions, states, and districts, the government will adopt the Malaysian Composite Development Index as a comprehensive measurement tool.

In support of rural development planning, the Malaysian Rural Spatial Characteristics System will be utilised as an integrated spatial database, enabling more data-driven and coordinated policy-making.

The fourth and final strategy is strengthening economic integration. Under this approach, investment activities in Greater Kuala Lumpur, Negeri Sembilan, and Melaka will be reinforced to form large-scale economic clusters that drive growth, create employment, and foster cross-sector entrepreneurship.

“The development of the Johor-Singapore Special Economic Zone (JS-SEZ) will be realised through strategic economic cooperation and joint investment promotion. This initiative will be supported by enhanced one-stop centres to facilitate business transactions, along with the use of advanced technological applications.

The document also stated that various initiatives were implemented throughout the 12th Malaysia Plan (12MP) period to maximise regional economic potential. These included efforts to promote sustainable urbanisation, transform rural areas, and improve access to basic infrastructure.

A total of RM82.4 billion was allocated to six states to bridge development gap between regions. Additionally, 113 towns were recognised as sustainable towns, contributing to local-level progress toward sustainable development.

Significant improvements in basic amenities were also achieved. Clean water access reached 97.5 per cent, electricity supply coverage increased to 98 per cent, and 2,436 kilometres of rural roads were constructed. Meanwhile, the implementation of the National Digital Network Plan (JENDELA) boosted internet access in populated areas to 98.7 per cent.

As of December last year, nine out of 11 work packages for the Sarawak Pan Borneo Highway and four out of 35 work packages for the Sabah Pan Borneo Highway had been completed. In addition, 148.9 kilometres out of the total 233 kilometres of the West Coast Expressway were completed.

-- BERNAMA