Prime Minister Dato Seri Ismail Sabri in his launch speech declared Kedah Rubber City is set to attract potential investments worth RM10 billion and create 15,000 job opportunities by 2025.
KRC is part of the larger Northern Corridor Economic Region strategic project which in itself attracted committed investments of RM4 billion that would possibly generate close to 7,000 job opportunities.
“For example, the strategic partnership between Mitsui & Co (Malaysia) and Hong Seng Consolidated Bhd involves an investment of about RM3 billion for KRC. The partnership will also strengthen the raw material supply chain in the manufacture of nitrile butadiene latex (NBL) polymers through Mitsui’s expertise in this industry. The investment will not only create 1,600 new job opportunities but will also help reduce the dependence on imported NBL polymers,” he said.
Ismail Sabri said the launch of the KRC project, one of the national strategic projects in NCER, was timely as the country was in the recovery process and its economic growth had been affected by the COVID-19 pandemic.
He noted that KRC was among the various game-changer projects implemented by the Northern Corridor Implementation Authority (NCIA) in collaboration with the Kedah government to transform Kedah into a developed state, thus narrowing the regional development gap.
KRC is developed with the aim of making it a leader in the development of Malaysia’s rubber industry, as well as a global hub for the high-value rubber industry. Located along the “Rubber Belt” of the Malaysia-Thailand border, the industrial city would cultivate stronger regional cooperation and integration between the two countries, as well as serve as a driver in connecting major rubber producers in the region under the Indonesia-Malaysia-Thailand Growth Triangle platform.
The industrial city will also be a rubber product innovation centre to support downstream and upstream activities for the sector. It covers an area spanning 503 hectares, consisting of 201 hectares under Phase 1 which is completed, and 302 hectares in Phase 2
KRC has the Federal Government support with an approved allocation of RM417.5 million for Phase 1 with Phase 2 of the project is scheduled to be implemented in 2023.
