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Friday March 31, 2006

Reducing regional imbalance

STATES placed below the national average on the Development Composite Index (DCI) will be given extra attention to reduce regional imbalance.

There will be specific programmes and also increased allocations to boost development.

Steps will also be taken to reduce disparities in per capita and household incomes, incidence of poverty in the less developed states, and disparities in infrastructure and utilities between Sabah and Sarawak and the states in the peninsula.

To ensure higher economic growth, development efforts will focus on growth centres in the respective states as well as trans-border areas involving two or more states.

Among the trans-border areas are the Northern Terengganu-Southern Kelantan-Western Pahang zone, identified as the Eastern Corridor, as well as Kedah, Perlis, Seberang Prai in Penang and northern Perak, identified as the Northern Peninsular Development Zone (NPDZ).

Set to receive a development allocation of RM23.8bil under the 9MP, compared with RM20.8bil under the Eighth Plan, the NPDZ will spearhead the development of food industries, including halal hubs.

Infrastructure projects include the Trans-eastern Kedah Hinterland Highway, an integrated halal hub and permanent food production parks in Kedah, expansion of the Kulim Hi-Tech Park and the Penang Outer Ring Road.

The Central region, which is the most developed region in the country, continues to require projects to meet its development needs.

The Central Region, the most developed in the country, continues to require projects to meet its development needs.

Johor will receive an allocation of RM10.2bil, compared with RM9.2bil under the previous plan.

The Kuala Terengganu airport will also be upgraded while the main campus of a new university will be located in Besut.

Sarawak will receive RM13.4bil and Sabah RM15.7bil for development projects.

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