Federal Territories of Kuala Lumpur and Putrajaya solidified their position as economic powerhouses, contributing a substantial 15.9% to Malaysia’s gross domestic product (GDP) in 2023.
This figure ranks second only to Selangor, highlighting the vital role these territories play in the nation’s economic landscape, said Deputy Economy Minister Datuk Hanifah Hajar Taib.
In her speech at the engagement session on the 13th Malaysia Plan (RMK13) for the Federal Territories in Putrajaya, Hanifah Hajar said Kuala Lumpur’s 3.7% GDP was higher compared to the national GDP growth of 3.6%.
“This year, Kuala Lumpur was listed as the 18th best city in the world based on a UK survey, as well as being recognised as the eighth most liveable city for expatriates.
“We need to have a vision of placing Kuala Lumpur as a digital industry and startup hub as well as the top choice for investors to reside and do business in the region,” she said, adding that RMK13 was expected to be presented in Parliament next July.
The RMK13 engagement session at the Federal Territories level was held to identify issues and challenges in areas of socio-economic development.
The session aims to get input, feedback and aspirations from all parties, to ensure RMK13 is inclusive and takes into account views and needs of development planning at regional level.
Hanifah Hajar said Labuan was also a unique and distinctive functional territory.
Labuan International Business and Financial Centre (Labuan IBFC) contributed RM1.2bil to Malaysia’s fiscal revenue, passing the RM1bil level for the first time, she said.
“Creation of new jobs and spending helped increase local revenue, estimated at RM219mil.
“This shows the importance of Labuan IBFC in fostering socio-economic vitality.
“In terms of development allocation, the Federal Territory received a total of RM109bil for the first four years of the 12th Malaysia Plan.”
She said RM18mil was allocated in 2024 to ensure flood problems in the Federal Territories, especially Kuala Lumpur, could be resolved through comprehensive flood mitigation projects.
“The Federal Government is also committed to bringing prosperity to the community in Labuan,” she said.
“For example, the Patau-Patau 1 bridge upgrading project costing RM11.6mil has been approved to preserve the uniqueness of Kampung Air Patau-Patau 1 as a tourist site.”
Hanifah Hajar said the engagement session would continue by involving all states in Peninsular Malaysia, Sabah and Sarawak until the end of this year to get views and input in drawing up RMK13.
She said this would involve talks with not only the state government but also industries, academia, non-governmental organisations, the public and various stakeholders.
During the engagement session, Federal Territory of Kuala Lumpur and Putrajaya Health Department director Dr Nor’Aishah Abu Bakar revealed that the conditions at all 22 public clinics or Klinik Kesihatan and 20 public dental clinics in the state were in poor condition and overcrowded.
“While there are over 1,400 private clinics, visitors to Klinik Kesihatan reached 2.5 million in 2021 and over three million last year.
“There needs to be improvements in Klinik Kesihatan,” she said.