RM2.2 bil Kedah Rubber City a boon for future of natural rubber

KEDAH Rubber City (KRC), a national project under the Northern Corridor Economic Region’s Strategic Development Plan (2021-2025), is poised to elevate the stature of natural rubber as the country’s pioneering golden crop.

Following the completion of basic infrastructure works under its Phase One, FocusM learned that investors such as Hong Seng Industries Sdn Bhd (HSI), a wholly owned subsidiary of Hong Seng Consolidated Bhd, has already moved into this thematic industrial park.

Aside from HSI, an additional three other companies have committed and commenced the setting up of their manufacturing as well as logistics operations in KRC to take advantage of the booming rubber gloves market amid the COVID-19 pandemic.

Buoyed largely by the interest in gloves as a form of personal Protection equipment (PPE), KRC has attracted committed investments of over RM2.2 bil through a comprehensive supply chain ecosystem for advanced latex products development, production of feedstock, manufacturing, storage warehousing, and logistics.

Strategically located within the “Rubber Belt” of the Malaysian-Thailand border, KRC will complete the rubber industry ecosystem and open more opportunities for investors in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) region.

The Northern Corridor Implementation Authority (NCIA) is simultaneously developing partnerships with neighbouring countries through the IMT-GT platform to support and accept products produced in KRC.

Qualified KRC investors will be able to enjoy a comprehensive special incentives package detailing allowance and exemptions by both federal and state governments.

“Spanning nearly 1,250 acres, KRC has a world-class infrastructure for high-value rubber industry players, and Phase One totalling 504 acres is now ready for investors to move in,” commented NCIA CEO Datuk Seri Jebasingam Issace John.

“Linked with the Malaysian rubber industry value-chain, KRC is the first dedicated rubber industrial park in the country that will accelerate the Malaysian rubber industry to be the regional high-value rubber manufacturing hub in Asean and bring much needed economic activity for the state of Kedah.”

Most committed investors are expected to start construction of their facilities by around 4Q 2021 and commence operations by 2H 2023.

With the influx of investments into KRC, more than 4,500 jobs will be created for locals in Kedah, according to, Kedah Menteri Besar Muhammad Sanusi Md Nor. – April 19, 2021

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