NATIONAL PHYSICAL PLAN-2

Federal Department of Town and Country Planning Ministry of Housing and Local Government

13 August 2010

The Malaysian vision of becoming a developed nation and high income economy by 2020 is just ten years away. In dealing with the issue, several changes have to be expedited to change this country towards a developed nation thus resulting a more enjoyable, favorable and sustainable quality of life.

The second National Physical Plan (NPP-2) is prepared in tandem with the Five Year Malaysia Plan. It sets out the national strategic spatial planning policies and measures in respect to the general direction and broad pattern of the land use and physical development and conservation in Peninsular Malaysia by the year 2020. In this context, the NPP-2 will facilitate the government in strategising the implementation of national physical development and proper channelling of resources to ensure the continuous national growth of the country.

In line with the current transformations occurring in the country today, the NPP-2 ensures that the physical land use of the country will be at its optimum level; with emphasis given to the achievements of the initiatives provided under the national transformation programmes that is the 1Malaysia Concept, the Government and Economic Transformation Programmes and the 10th Malaysia Plan. The NPP-2 acts as the main guideline that will hold together all the strategies and policies of the nation’s physical development in order to create a conducive environment for investment, housing, trade and tourism.

The success of the policies and strategies of the NPP-2 will depend greatly on how efficient these policies are translated and interpreted during its implementation stage. Towards this end, all federal and state agencies, non-governmental agencies and the private sector shall take proactive actions in order to translate the NPP-2 into more detailed physical development and action plans thus achieving sustainable development and a developed nation with high income economy status.

Dato’ Sri Hj. Mohd. Najib bin Tun Haji Abdul RazakPrime Minister of Malaysia

FOREWORDPrime Minister of Malaysia

The NPP-2 sets out the national strategic spatial planning policies and measures in respect to the general direction and broad pattern of land use in Peninsular Malaysia for the year 2020. It is also the product of many negotiations and consultations with other federal agencies and all state governments in order to ensure the sustainable, national physical development framework of the country is achieved. It is the general duty of all federal and state agencies involved in plan-making to ensure that all the objectives of the NPP-2 are realised as required by the Town and Country Planning Act 1976, (Act 172).

The NPP-2 is intended to become the main reference document on the nation’s future physical planning and development. The spatial planning vision, policies, measures and land allocations of the NPP-2 will be translated primarily through the State Structure and Local Plans; and eventually through the Action Area Plans and programmes. In this respect, the Ministry is committed to have close working cooperation with all state governments and other federal agencies to ensure that the development activities from the NPP-2 are coordinated effectively. Efforts will also be upgraded to ensure that both urban and rural development will be dynamic and sustainable.

The Federal Department of the Town and Country Planning is responsible for monitoring the effective implementation of all the policies and programmes under the NPP-2 thus ensuring the successful achievement of a developed nation by 2020.

Dato’ Wira Chor Chee HeungMinister of Housing and Local Government, Malaysia

FOREWORDMinister of Housing and

Local Government

The National Physical Plan-2 (NPP-2) will complement the Five Year Economic Development Plan as it provides the spatial dimension to the sectoral distribution of national resources. The Plan provides the coordination platform for the various sectoral plans and policies. The NPP-2 is also a response to the impact of globalisation which requires the country to establish a national physical framework that will enhance the country’s global competitiveness.

The Ministry Of Housing and Local Government and Federal Department of Town and Country Planning have assured that the policies and strategies suggested in NPP-2 are relevant and in line with the aspirations of the Government Transformation Programme and the New Economic Model, premised on high income, inclusiveness and sustainability.

The implementation of NPP-2 will require the support of the various Federal and State agencies that have a duty to adhere to the policies of the NPP-2. In this respect, it is hoped that the agencies concerned will translate the policies and proposals of NPP-2 into plans of action and include in the subsequent Five Year Malaysia Plan.

Dato' Ahmad bin Hj. KabitSecretary GeneralMinistry of Housing and Local Government, Malaysia

FOREWORDSecretary General

Ministry of Housing and Local Government, Malaysia

The Second National Physical Plan (NPP-2) was approved by the National Physical Planning Council on August 13th 2010. The Town and Country Planning Act, 1976 (Act 172) and its amendments provide the legal basis for the preparation of the National Physical Plan. Sub-section 6B (4) of the Act stipulates that the National Physical Plan, be reviewed every five years in tandem with the review of the Five Year Malaysia Plan.

The goal of NPP-2 is the establishment of an efficient, equitable and sustainable national spatial framework to guide the overall development of the country towards achieving developed and high-income nation status by 2020. The goal was formulated after taking into consideration several main issues and challenges facing physical planning today such as climate change, sustainable urban structure – compact cities, decline in biodiversity, geo-hazards, food security and green technology. It was also formulated to support the National Key Results Areas which emphasizes on solving issues pertaining to crime, education, low income households, corruption and basic infrastructure in the rural areas. The NPP-2 consists of 41 development policies that will assist in overcoming all the perceived issues and achieve the national objective of becoming a developed nation and high income economy by 2020.

The development strategies in the NPP-2 also emphasizes on inclusive development through the physical relationship between urban and rural areas so that Malaysians can enjoy a development that is sustainable, whole, fair and balanced. The NPP-2 is the main reference document by all related agencies involved in physical planning and development in Peninsular Malaysia.

Dato’ Mohd. Fadzil bin Hj. Mohd KhirDirector General Federal Department of Town and Country Planning, Malaysia

FOREWORDDirector General

Federal Department of Town and Country Planning

i

CONTENTS

CHAPTER 1National Physical Planning Framework 1-1

1.1 Development Planning in Peninsular Malaysia 1-11.2 The Second National Physical Plan (NPP-2) 1-71.3 Functions of The NPP-2 1-81.4 Form and Content 1-81.5 Consultation Process 1-91.6 Plan Area 1-101.7 Plan Period 1-101.8 Users Of The NPP-2 1-11

CHAPTER 2Goal, Objectives and Principles 2-1

2.1 Goal 2-12.2 Objectives 2-22.3 Principles 2-10

CHAPTER 3Plan Context 3-1

3.1 Global and National Strategic Issues and Challenges 3-1

3.2 Global Setting and Development Trends 3-83.2.1 World Trade 3-83.2.2 International Collaboration 3-93.2.3 Regional Cooperation 3-93.2.4 Climate Change and Impacts to Malaysia 3-10

3.3 National Setting 3-123.3.1 National Population Growth 3-123.3.2 Economic Performance 3-173.3.3 Land Use Pattern 3-193.3.4 Current Settlement Pattern 3-24

ii

CHAPTER 4Development Strategy 4-1

4.1 Conceptual Development Strategy 4-1

4.2 National Positioning and Future Economic Growth 4-84.2.1 Malaysia as a High Income Economy 4-10

4.3 Urbanisation 4-11

4.4 Regional Balance 4-15

4.5 Rural Development Trend and Direction 4-16

4.6 Sustainable Use of Land 4-204.6.1 Available Land for Development 4-204.6.2 Agriculture Land 4-234.6.3 Environmentally Sensitive Areas 4-244.6.4 Urban Land 4-264.6.5 Tourism 4-294.6.6 Transportation Network 4-334.6.7 Utilities and Services 4-374.6.8 Information and Communications Technology (ICT) Development 4-414.6.9 Community Facilities 4-414.6.10 Green Technology 4-43

CHAPTER 5Policies 5-1

5.1 Setting A National Spatial Framework 5-25.2 Enhancing National Economic Competitiveness 5-55.3 Conserving Agriculture Resources and Promoting Rural Development 5-155.4 Sustainable Tourism Development 5-285.5 Managing Changing Human Settlements 5-355.6 Conserving Natural Resources, Biodiversity and the Environment 5-515.7 Integrating the National and Urban Transportation Network 5-705.8 Providing Appropriate Infrastructure 5-82

CHAPTER 6Implementation Mechanism 6-1

6.1 Institutional Mechanism for Implementing the NPP 6-16.1.1 Key Issues on Implementation 6-16.1.2 Existing Agencies Involved in Spatial Planning 6-56.1.3 Integrated National Development Planning System 6-66.1.4 National Physical Planning Structure 6-6

iii

6.1.5 National Physical Planning Institutional Structure 6-106.1.6 Public Consultation in the Preparation of the National Physical Plan 6-15

6.2 Plan Implementation 6-166.2.1 State Structure Plans to Conform with the NPP-2 6-216.2.2 Advise on Strategic Infrastructure, Large Townships and Development

in ESA Areas 6-226.2.3 Town Planning Rules 6-236.2.4 Coordinating with the Economic Development Plans and Regional

Planning Initiatives 6-236.2.5 National Spatial Planning Policy Guidelines 6-246.2.6 Linking NPP Policies with Socio Economic Development Planning and

Budgetary Allocation 6-246.2.7 Establishing Linkages with Sector Councils 6-256.2.8 Establishing Linkages with Other Planning Authorities 6-25

6.3 National Physical Plan Action Programme 6-256.3.1 Principles 6-266.3.2 Components of the Action Programme 6-266.3.3 Implementation Model 6-356.3.4 Implementing Agencies 6-376.3.5 Implementation Approach 6-396.3.6 Funding Model 6-40

6.4 Plan Monitoring 6-456.4.1 Scope of Monitoring 6-456.4.2 Monitoring Agencies 6-466.4.3 The Monitoring Process 6-46

6.5 Review of the NPP 6-576.5.1 Evaluating the effectiveness of the Policies 6-58

6.6 Proposals 6-59

ABBREVIATION

GLOSSARY

iv

List of Figures

Figure 1.1 National Development Planning Framework 1-1Figure 2.1 Conceptual Model of Sustainable Development 2-3Figure 2.2 Building Blocks for Liveable Cities and Sustainable Communities 2-6Figure 3.1 Economic Transition Model 3-4Figure 3.2 Fragmentation of Natural Forest Cover in Peninsular Malaysia (1954-2000) 3-5Figure 3.3 Natural Resources in the Exclusive Economic Zone (EEZ) 3-6Figure 3.4 Population Target by States, 2020 3-14Figure 3.5 Percentage of Population in Urban and Rural Areas by States, 2020 3-16Figure 3.6 Existing Land Use, 2008 3-22Figure 3.7 Urban Hierarchy Linkages 3-27Figure 4.1 ‘Concentrated Decentralisation’ Development Strategy 4-7Figure 4.2 Concentrated Dispersal Strategy 4-14Figure 4.3 Conceptual Strategy for Urban – Rural Linkages 4-19Figure 4.4 Land Availability for Future Development in Peninsular Malaysia 4-22

IP 1 National Spatial Framework 2020 5-4IP 2 Concentration of Development in Conurbations 5-8IP 3 Development and Economic Regions 5-10IP 4 ASEAN Economic Cooperation 5-12IP 5 Industrial Growth Centres and Potential Industrial Centres 5-14IP 6 Prime Agriculture Areas 5-19IP 7 Strategic Granary Areas 5-21IP 8 Paddy Land Outside Granary Areas 5-23IP 9 Rural Settlements and Potential Rural Economic Clusters 5-25IP 10 Orang Asli Settlements 5-27IP 11 Natural Tourism Resources 5-32IP 12 Man-Made Tourism Resources 5-33IP 13 Conurbations and Urban Hierarchy 5-41IP 14 Major and Minor Settlement Centres 5-48IP 15 Environmentally Sensitive Areas 5-57IP 16 Ecological Corridors and Central Forest Spine 5-59IP 17 Sensitive Coastal Ecosystems 5-62IP 18 Highlands and Special Management Areas 5-64IP 19 Water Catchment Areas 5-66IP 20 Ground Water Resources 5-67IP 21 Potential Affected Coastal Areas Due To Climate Change 5-69IP 22 Integrated National Transportation Network 5-74IP 23 National Rail Network 5-76IP 24 National Road Network 5-78IP 25 National Airports and Seaports 5-80IP 26 Water Supply Resources and Water –Stressed Areas 5-85IP 27 Solid Waste Management 5-88IP 28 Flood Prone Areas 5-90

v

IP 29 Power Supply Grid 5-92IP 30 Area Supplied by Natural Gas Distribution System 5-94IP 31 Cyber Cities 5-96

Figure 6.1 Integrated National Development Planning System 6-7Figure 6.2 Proposed National Physical Planning Structure 6-9Figure 6.3 Implementation Model for NPP-2 Initiatives 6-40Figure 6.4 Development Programme for Special Area Plans and Funding Model 6-43Figure 6.5 Vertical Information Flows 6-54Figure 6.6 Major Data Providers in iPLAN (Horizontal Information Flows) 6-54Figure 6.7 Vertical and Horizontal Linkages Land Use Planning Information System, 2020 6-56Figure 6.8 The Conceptual Framework of NPPMS 6-57Figure 6.9 Economic and Land Use Planning Cycle 6-58

List Of Tables

Table 3.1 Predicted Impacts of Climate Change in Malaysia 3-11Table 3.2 Estimated Population by States, 2020 3-13Table 3.3 Population (‘000) in Urban and Rural Areas by States, 1991, 2000 and 2020 3-15Table 3.4 GDP by Regions, 2000 – 2020 3-17Table 3.5 Projected State GDP Sectoral Shares (%), 2000 – 2020 3-18Table 3.6 Malaysian Labour Force and Employment, 1990 – 2010 3-18Table 3.7 Malaysian Employment (‘000) by Occupational Groups, 1995, 2000 and 2020 3-19Table 3.8 Existing Land Use by States, 2008 (‘000 ha) 3-21Table 4.1 Main Development Corridors and Sub Development Corridors 4-4Table 4.2 Malaysia Ranking of Global Competitiveness 4-8Table 4.3 Income Group for ASEAN Countries 4-10Table 4.4 Estimated Per Capita GDP Growth for Malaysia, 2020 4-11Table 4.5 Total Area of Land Availability for Future Development by States (‘000 ha) 4-21Table 4.6 Total Area of Prime Agriculture Areas (PAAs) by States (‘000 ha) 4-23Table 4.7 Environmentally Sensitive Area Composite 4-25Table 4.8 Total Area of Environmentally Sensitive Areas (ESAs) by States (‘000 ha) 4-26Table 4.9 Estimated Urban Land Requirement by State, 2020 4-27Table 4.10 States’ Tourism Attractions 4-30Table 4.11 Major Tourism Destination Based on Its Locational Advantage 4-32Table 4.12 Projected Water Demands for Peninsular Malaysia, 2020 4-38Table 5.1 Agriculture Land Use in Peninsular Malaysia (Hectare) 5-15Table 5.2 Population Projection of Main Conurbations 5-35Table 5.3 Biodiversity and Ecosystem Services 5-51Table 6.1 Members of the NPPC 6-10Table 6.2 Members of the NPPC Working Committee 6-11Table 6.3 Members of the National Physical Planning Advisory Panel 6-12Table 6.4 Implementing the NPP-2 Policies 6-16Table 6.5 NPP-2 Specific Actions 6-27

vi

Table 6.6 NPP-2 Spatial Initiatives 6-30Table 6.7 NPP-2 Demonstration Projects 6-33Table 6.8 The NPP-2 Spatial Initiatives, Key Implementing Agencies 6-37Table 6.9 NPP-2 Policy Indicators 6-47Table 6.10 Institutional Responsibility for Plan Preparation, Implementation, Monitoring

and Review of NPP-2 6-59

National Physical Planning Framework

CHAPTER 1

NATIONAL PHYSICAL PLAN

1-1

CHAPTER 1

NATIONAL PHYSICAL PLANNING FRAMEWORK

1.1 Development Planning in Peninsular Malaysia

Development planning is practised in all three tiers of the Government in Peninsular Malaysia. At the national level, development planning is guided by the Five-Year Malaysia Plans (FYMP), the National Physical Plan (NPP) and other sectoral national policies thatare passed by the Cabinet. They address the strategic issues of national importance and provide the overall framework for subsequent drawing up of the other more detailed Development Plans. Contextually, development planning in the country operates within the stated goals outlined in Vision 2020 and the Third Outline Perspective Plan 2001-2010 (Figure 1.1). Similarly at the state level, development is guided by the Regional andState Development Plans, and other national sectoral policies that are formulated from time to time by the respective state governments. Local level physical planning is carried out and regulated through the statutory development plans, in the form of Local Plans and Special Area Plans, prepared by the local planning authorities. It deals primarily with more detailed and site specific land use allocations and spatial development of each locality and community needs.

Figure 1.1 : National Development Planning Framework

LEVEL 1 : NATIONAL PLANNING

NATIONALPHYSICAL PLAN

5 - YEARMALAYSIA PLAN

SECTORALPOLICIES/ PLANS

VISION 2020

LEVEL 3 : LOCAL PLANNING

SPECIAL AREAPLAN

LOCALPLAN

LEVEL 2 : REGIONAL / STATE PLANNING

REGIONAL / STRUCTURE PLAN

REGIONAL / STATEDEVELOPMENT PLAN

SECTORAL POLICIES/PLANS

1-2

An effective national physical planning system should necessarily involve both top-down and bottom-up approaches and it is also crucial that the national spatial policies are incorporated into and integrated with the other sectoral policies, strategies and programmes. While the NPP sets out the general directions and priorities of the overall physical development of the nation, the Regional, State Structure and Local Plans will in turn provide significant more detailed strategic thrusts and targets on the states’ aspirations in respect to the future development of the State and Local Authority areas. In the event of any policy or major issue conflicts, discussions will be held with stakeholders concerned to rationalise and reconcile any discrepancies inconsistent with national interests and state aspirations, particularly the achievement of Vision 2020 and the 1Malaysia concept.

Malaysia practices a plan-led development system. This means that any development of land and buildings, require planning approval from the Local Planning Authority. Planning permission will be granted if the development is in conformity with the statutory Local Plan, such as technical agencies requirements and public objections. In general, the town planning system has served the country well in facilitating rapid development and enhancing the quality of life without compromising the environmental quality and heritage resources of the locality. The planning system is however continuously evolving to respond positively to new emerging trends and changes, such as increasing demand for more public engagements and appropriate spatial adaptations to combat climate change, to face the wider uncertainties of the 21st century.

In preparing the national spatial framework for Peninsular Malaysia, account has been taken into consideration of the global commitments of the Malaysian government for concerted local plans actions as a signatory to the various international conventions and agreements. The relevant ones with spatial implications are:

Habitat II: Habitat II seeks to ensure the provision of adequate shelter for all as well as to strive for sustainable human settlement development in an urbanising world. In this respect, these objectives, principles and strategies have been integrated into the development plans prepared according to the requirements of the Town and Country Planning Act 1976 (Act 172).

Agenda 21: Agenda 21 represents a global partnership in promoting sustainable development. Towards this end, Malaysia has endeavoured to implement the commitments largely through the Local Agenda 21 initiatives by all the local authorities in their respective areas.

Convention on Climate Change: The Convention on Climate Change essentially targets at lowering the industrial and other greenhouse gases emissions, especially carbon dioxide, which adversely affect and change the climate system, particularly global warming. As such, the principal spatial strategy adopted by the Malaysian government is to maintain an effective sustainable forest management program, decreasing the urban footprint and to encourage the use of public transport.

1-3

Convention on Biological Diversity: The Convention on Biological Diversity primarily aims at conserving the biological diversity and promoting sustainable use of genetic resources while carrying out economic development. To contribute to biodiversity conservation, substantial efforts have been made by the Malaysian government to protect ecosystems, to maintain natural habitats particularly the tropical rainforest and wetlands, and to establish wildlife corridors.

WTO Trade Agreements: Continuous and increasing economic globalisation and trade liberalisation pose both opportunities and challenges to every nation, including intense pressure to open up markets for more competition and privatisation. To meet this challenge, sustainable growth in Malaysia needs to be driven by enhancing productivity, innovativeness and competitiveness in which the creation of a K-economy is crucial.

ASEAN Free Trade Agreements (AFTA): The most important regional trade bloc for Malaysia is AFTA as it directly affects her trade relations with her immediate neighbouring countries. AFTA aims to liberalise trade between member countries by bringing tariff ratesdown to 0 - 5 percent by 2008.

Plans and Policies used in the country to guide and shape developments consist of the following:

i. Vision 2020

The long-term vision statement for the country, Vision 2020, states the aspiration of the nation. The nation shall become, by the year 2020, “fully developed along with all the dimensions: economically, politically, socially, spiritually, psychologically and culturally.” At the same time, the country also seeks to achieve a high income nation status by year 2020.

The strategy to achieve this Vision is by transforming the economic structure and facilitating a high level of economic growth through an accelerated development of the service sector in generating economic activities. Emphasis is given on promoting innovation, creativity and high value-added elements in niche areas such as Islamic banking and finance, tourism including health and education, shared services and outsourcing, information and communication technology and professional services. It will also involve an accelerated industrial development and an export-based manufacturing sector. The manufacturing industry will create significant multiplier effects on the other sectors of the economy, including supporting logistics and business services. Collateral development will entail the accelerated development of science and technology. At the same the private sector is expected to provide the main engine of growth to achieve this Vision.

In delivering Vision 2020, the Malaysian government is vigorously promoting the “1Malaysia” concept aimed to foster national unity through mutual respect and tolerance amongst the different ethnic communities with diverse religious beliefs and cultural practices. Towards this end, spatial planning can contribute significantly in

1-4

creating an inclusive society through facilitating ethnically-mixed residential development as well as the provision of public common users’ space, such as sport facilities and parks to encourage more social interactions and interpersonal relationships.

ii. The Third Outline Perspective Plan (OPP3)

The Third Outline Perspective Plan 2001-2010 (OPP3) provides broad strategic economic directions and development priorities of the country towards achieving Vision 2020. The OPP3 essentially forms the framework for the preparation of theFYMP.

A central objective of OPP3 is to enhance the spirit of ethnic and social integration for all the communities of Malaysia. Its concentration is at forging a united nation consisting of a progressive and dynamic “Bangsa Malaysia” (Malaysian nation) that “lives in harmony and engages in full and fair partnership”. OPP3 also focuses on enhancing regional balance through rapid development in the less-developed states. Efforts will be taken to diversify the economic base of the slower growing states into manufacturing and services. Emphasis will be given to the development of downstream activities in the agriculture sector, such as in handling, processing, packaging and marketing of agro-products, and the development of agro-based industries. Another aim of the OPP3 is to reduce urban-rural disparities and to strengthen the linkages between the urban and rural economies. The OPP3 also seeks to address the rising urban poverty which is a recent phenomenon within the conurbation areas of the country.

iii. Five-Year Malaysia Plan

The current Five-Year Malaysia Development Plan is the Ninth Malaysia Plan, 2006-2010 (9th MP). The Plan will intensify efforts to enhance the strength of the domestic and foreign sectors by developing new sources of growth, improving the competitiveness and resilience of the economy, and increasing the participation of the private sector.

The major thrusts of the 9th Malaysia Plan are to facilitate growth and higher value-added economic activities, increasing the capacity for knowledge and innovation, reducing inequalities, improving the quality of life and strengthening institutional capacity. The Plan identifies the growing sectors of the economy as services and manufacturing, besides increasing value-added downstream activities in the agricultural sector, such as the biotechnology industry. The government will continue to facilitate the development of existing and new industrial clusters, besides promoting direct foreign investments in order to face the intensifying competition amongst countries for investments, production and markets. The implementation and further elaboration of free trade agreements among nations will result in the deepening of globalisation and make competition more intense.

1-5

iv. National Physical Plan

The National Physical Plan (NPP) sets out the national strategic spatial planningpolicies and measures taken to implement them in respect to the general direction and broad pattern of the land use and physical development and conservation in Peninsular Malaysia.

The first NPP prepared in 2005 was made under the provision of Section 6B of the Act 172. It has been approved by the Cabinet on the 20th April 2005 and by the National Physical Planning Council (NPPC) on the 26th April 2005. In addition, Section 6B(4) of Act 172 states that the NPP shall be reviewed every five years in tandem with the review of the National Five Year Development Plans, or as and when directed by the NPPC.

The spatial planning vision, policies, measures and land allocations of the NPP will be implemented primarily (i.e. delivery vehicle) through the State Structure Plans. In. addition, the Federal Government shall implement the NPP through the control of development budgeting i.e. granting financial allocation to development programmes, particularly key national infrastructure project, of public implementing agencies on the basis of NPP spatial policies. Under section 6B (5) of Act 172, it is incumbent upon the implementing agencies of the Federal Government and all State Governments to assist in ensuring that the objectives of the NPP are realised.

v. Regional Plans

Sub-section 6A(5)(b) of the Act 172 requires the Regional Planning Committee (RPC) to prepare a Regional Plan for areas situated in two or more states where there is an urgent need to tackle significant strategic issues of regional importance, particularly pertaining to cross-border development and joint-facility provision. Each Regional Plan consists of spatial policies and broad development strategies to guide and coordinate development including key regional infrastructure provision, such ashighways and airports.

Regional Planning Committees serves to inform and assist the State Planning Committees and the Local Planning Authorities within the region on appropriate development measures for the region aimed at sharing and optimising the use of capital-intensive infrastructure and social facilities, coordinate development, avoid duplication of investments and promote the conservation of natural resources. Regional plan / sub-regional plan may also be prepared for the conurbation coveringa number of local authority areas identified in the NPP-2.

To reduce the wide income disparities between the less-developed and more-developed regions as well as between the rural and urban areas, Corridor Development Plans (CDP) for the various designated regional growth corridors that is, the Eastern Corridor Economic Region (ECER), the Northern Corridor Economic Region (NCER) and Iskandar Malaysia, have been prepared and completed recently.

1-6

These CDPs are essentially socio-economic orientated and project based. Currently, the Federal Government has committed additional financial allocations, particularly for key regional infrastructure provision, to spur accelerated development in these economically-lagging regions. This regional development strategy is seen as a new source of economic growth for the nation by fully exploiting the inherent potentials and competitive strengths of the different parts of Peninsular Malaysia, for example,beach and island resort tourism along the pristine East Coast. However, there is a need for the integration of these regional economic master plans with the development plan system under the Act 172. Greater emphasis should be given to the development of regional growth centres, such as Kuantan, and strategic urban centres within each economic region to attract higher investment, thus creating more jobs and to catalyst economic spin-offs in developing the rural hinterlands.

vi. Structure Plans

The Structure Plan (SP) sets out the policies and general proposals for the development and other use of land within each state; thus providing guidance for spatial development on states’ issues of structural importance. The SPs interpretsnational spatial policies and framework (NPP-2) as well as regional spatial policies and development proposals (Regional Plan) at state-wide level in terms of cities, towns, villages and countryside areas.

In essence, the SP distributes the expectations of future development within each state; and proposes major economic and infrastructure projects for the states. The SPalso acts as a guide to investment, both by public agencies and private sectors, the allocation / use of resources, and for the coordination of their decisions. The time perspective for SP is normally 20 years. The current set of SPs however,commensurate with the time horizon of Vision 2020. Except for the State of Perlis and the Federal Territory of Putrajaya, which are in the final stage of preparation, all other states in Peninsular Malaysia and Federal Territory Kuala Lumpur are covered with statutory SPs. The SP for each state will provide the framework and basis for the preparation of a statutory Local Plan covering each district of the state.

vii. Local Plans

The Local Plans (LP) are considered as an important component of the Development Plan according to the Act 172; and serve as vehicles for more detailed and site specified development facilitation and control at local level. In addition, the Local Plans by their consultative process of preparation acts as contractual agreements on the use of all land within the planning areas between the Local Planning Authorities,the local residents and land owners. Besides being guides for development, Local Plans also offer a basis of democratic governance and the protection of citizen development rights. In a nutshell, LPs have direct and high impact to the daily lives and property values of the residents at neighbourhood level.

1-7

viii.Special Area Plans

The Special Area Plan (SAP) is part of the statutory Development Plan. It is prepared following the same procedures of the Local Plan and has the same effect as a Local Plan. It is an action-orientated Plan detailing out intensive and major changes in the near future for implementation, such as redevelopment of the inner city areas. It also includes detailed information on the type of treatment, implementing agencies, phasing, costing and funding of a certain proposed project.

1.2 The Second National Physical Plan ( NPP-2 )

The Act 172 and its amendments provide the legal basis for the preparation of the NPP. Sub-section 6B(1) of the Act 172 makes it a statutory duty for the Director General of the Town and Country Planning to prepare and submit to the National Physical Planning Council (NPPC) a Draft National Physical Plan for its approval. In this respect, the first NPP was approved by NPPC in 2005. This framework Plan is an advisory planning policy document and is not gazetted as a Development Plan.

To ensure its relevancy and suitability in the fast changing physical, economic, social and natural environment, Sub-section 6B(4) of the Act 172 also stipulates that the National Physical Plan be reviewed every five years in tandem with the review of the Five-Year Development Plan, or as and when directed by the NPPC.

The Malaysian government recognises the importance of a quick and flexible response to changing circumstances in the continuous national spatial planning process. Implicit in this planning view is the need to monitor and review the performances of NPP (2005) and the social, economic, physical, and environmental forces, including global mega trends,such as the prevailing global financial crisis and economic downturn which may change and undermine the basis on which the first NPP was prepared. Changing needs and conditions of an area and its community may result in the invalidity of assumptions, forecasts and objectives, thus requiring policy reviews and shifts.

Not all aspects of the NPP (2005) will be changed at the review stage as certain aspects of the Plan will require permanency. This is due primarily to the long term gestation period for spatial policies to be fully materialised as well as the need to fulfil Malaysia’s commitments as a signatory to many international conventions, such as Habitat II. These include areas designated for conservation or set aside for the protection of water resources. Other development proposals, such as major national infrastructure constructions may also require continual implementation over decades and follow-up phases.

In view of this, this NPP-2 report is the product of the review undertaken on NPP (2005).This is important as it ensures that the national spatial planning policies and strategies remain up-to-date and relevant in keeping abreast with the fast changing economic, social, physical and technological changes and trends as well as capable in responding

1-8

proactively to the emerging international issues and future challenges like climate change, biodiversity and conservation. Thus, an up-to-date realistic NPP-2 will accurately reflect national spatial goals and strategies and will provide positive planning guidance to what is required of planning at the federal, state and local level.

1.3 Functions Of The NPP-2

The main functions of the NPP-2 are:

i. To strengthen national development planning by incorporating spatial dimensions in tandem with the national socio-economic policies;

ii. To establish a national spatial framework for Regional, State and Local planning;iii. To provide physical planning policies for ensuring sustainable development as well

as mitigating and adapting the natural environment and human settlements to climate change;

iv. To coordinate decisions of sectoral agencies by providing spatial expressions to sectoral policies;

v. To advocate sectoral measures for implementing agencies in supporting national spatial policies and framework; and

vi. To identify key action programmes to demonstrate and further improve innovative spatial planning and design concepts.

1.4 Form and Content

The NPP-2 sets out the national long-term strategic spatial planning policies and measures needed to implement them in respect to the general direction and broad pattern of the land use, and physical development to year 2020 in Peninsular Malaysia as a whole. The planning policy statements will be accompanied by the necessary indicative plans, including the future national sectoral planning indicative maps and the national spatial framework key diagram, to support and clarify the strategic spatial policies formulated.

More specifically, the NPP-2 will determine an achievable future long term spatial planning goal for Peninsular Malaysia including identifying strategic national spatial issues and opportunities as well as proposing the key drivers and priorities to realise the goal. The main physical components of the NPP-2, involves the creation of an efficient hierarchy of settlements (such as international gateways and strategic urban hubs /centres), an integrated national transportation network (such as national and regional expressways, high-speed railways, and ports) as well as key infrastructure systems including basic utilities and facilities (such as broadband communication, IT, energy, water, knowledge, schools and health facilities). At the same time, environmentally sensitive areas (such as forests and wetlands) and countryside (such as rural agriculture areas) will also be conserved and preserved. The national spatial framework also intends to indicate to the Federal Government and public agencies on the commitments to future

1-9

spending and infrastructure investment priorities to support sustainable growth, job creation and income generation in focused areas. As such, it will contribute significantly towards facilitating private initiatives and enterprises to accelerate long-term economic growth with equity, enhancing global competitiveness, promoting sustainable physical development and conserving biodiversity.

This NPP-2 Report consists of six (6) main chapters. Chapter One (1) introduces the global and national context with spatial implications, the planning system as well as the legal provision and the functions of NPP-2. Chapter Two (2) sets out the goals, objectives and principles for the spatial planning of the nation. Chapter Three (3) outlines the planning framework and examines the current physical development context. Chapter Four (4) highlights the proposed physical development strategy. The current NPP “Selective Concentration Development Strategy” is further accentuated by the concept of “Concentrated Decentralisation in Development Growth Corridors”.

Chapter Five (5) consists of a set of physical development policies supported by Indicative Plans. All NPP-2’s 41 policies have been grouped into eight (8) themes. Thecurrent first NPP’s thirty six (36) policies, have been amended, seven (7) new policies have been added while four (4) policies have been combined into two (2) policies in NPP-2. The Policy NPP 22 and NPP 31 in the first NPP relating to water resources has been incorporated into policy NPP 26 in NPP-2, while policy NPP 9 and NPP 11 in first NPP relating to conurbations has been incorporated into policy NPP 14 in NPP-2. Chapter Six (6) highlights the issues of the NPP-2 plan implementation and proposed measures to further enhance implementation mechanism of the NPP-2.

1.5 Consultation Process

When preparing the NPP, the Director General of Town and Country Planning is required by law to consult the State Authority and such other authorities or bodies as the NPPC may direct. However, a discursive and consultative approach with all relevant public agencies and interested stakeholders at significant stages throughout the plan making process of NPP-2 was adopted and applied.

A central feature of the strategic planning process during the review of NPP (2005) was to encourage and enhance urban governance and participatory plan-making. National spatial planning is a complex process as it involves a wide range of cross-sectoral policies relating to many diverse participants and stakeholders, both horizontally and vertically, such as the NGOs, state governments, public agencies, utility service providers and private sector. It often is positively discriminatory between different groups and areas, such as who to gain and lose, how much and where. For example, given the limited resources available and need for sustainable development, many states want more population, more federal funds for infrastructure development, opening up of more forested areas for agriculture development, sea reclamation for urban development.Similarly, there are sometimes multiple competing uses for the same piece of land for

1-10

example, agriculture versus forestry or urban development. These situations are reflected in the various Corridor Development Plans, Structure Plans and Local Plans prepared.

In this context, a series of wide ranging dialogues were carried out with Technical Working Groups (TWG), Federal and State agencies, interested organisations and expert groups. This is vital to afford an opportunity for discussing resource allocation and re-allocation with the federal and state governments; and to trade-off conflicts and set priorities between the different stakeholders based on the guiding principles andobjectives established.

Information gathered from this discursive approach has proven to be very valuable to rationalise and improve the quality of the policies and measures. In particular, this consultative process ensures that the state and local aspirations as well as private sector requirements are taken into account into the NPP-2, thus fostering a sense of ownership and commitment to the Plan.

1.6 Plan Area

The NPP-2 is currently confined to Peninsular Malaysia. For the purpose of analysing and describing the strategy and relevant policies, four spatial regions, that is, the northern, central, southern and eastern regions are applied similar to the economic regions used by the FYMP. Each of these regions reflects distinctive characteristics and problems, for example, less-developed region. The NPP-2 however does not apply to Sabah and Sarawak as they are governed by different planning legislations.

1.7 Plan Period

Once the NPP-2 is approved, the policies of the Plan will take effect and be read together with subsequent new addition, alteration or replacement by the NPPC. In line with Vision 2020, a ten-year timescale up to 2020 will continue to be maintained. The NPP-2 shall have both a short term perspective in accommodating the socio-economic objectives and project budget allocation of the FYMP and the long term perspective of Vision 2020.

However, 2020 is not intended to represent the end-date by which all national spatial issues identified in the NPP-2 will be resolved. Within the 10-year timescale, the Plan will at best solve the most urgent critical national issues while ameliorating the less pressing minor ones. In addition, the planning for different sectors may require different time horizons. Certain sectoral land allocations for example water supply system and infrastructure network alignment such as high-speed rail, need to be set aside now and safeguarded for development beyond the year 2020.

1-11

1.8 Users Of The NPP-2

The main users of the NPP-2 will be the Federal and State agencies responsible for forward planning, development and financial allocations as well as local agencies responsible for development control and land administration. However, all other agencies are expected to study and elaborate the implications of the NPP on their particular sectors, such as education, public health and so on. Private sector property developers will also find the projections of population distribution as well as the disclosure of future national infrastructure a reliable guide for making informed investments. This will help avoid speculative development in the private sector and future mismatch between property development and demand. The public will also have access to the report once it is published and made available on line on the Federal Department of Town and Country Planning (FDTCP) website.

Readers are advised to read the report as a whole so as to get a clear understanding of the National Physical Planning’s Objectives, Strategies and Policies. Notwithstanding this, the main contents of the NPP-2 report are the 41 Policy Statements and the Measures as contained in Chapter 5 of the report. These policies will automatically supersede the earlier 36 Policies contained in the NPP (2005).

Goals, Objectives and Principles

CHAPTER 2

NATIONAL PHYSICAL PLAN

2-1

CHAPTER 2

GOAL, OBJECTIVES AND PRINCIPLES

The goal, objectives and principles of NPP-2 reflect the desire of the nation, as interpreted from the Town and Country Planning Act 1976 (Act 172), to promote in the improvement of the physical environment towards the achievement of sustainable development in the country. In this context, physical planning acts as an effective instrument to create an efficient spatial settlement pattern, an integrated infrastructure network, a sustainable rural environment and supported by effective implementing institutions. Concurrently, spatial planning guidelines are necessary to support the national socio-economic planning for long-term accelerated economic growth and more balanced regional development. The technical findings and stakeholders’ consultative feedbacks on the existing key issues, future major challenges, the potentials and threats assist in refining the goal, objectives and principles thus providing the basis for formulating the strategies and policies that, in turn, provide tangible set of actions for implementing the NPP-2.

2.1 Goal

The fundamental goal of the NPP-2 is the country’s aspiration of attaining a developed and high-income nation status as encapsulated in Vision 2020 and the New EconomicModel (NEM). A particular onus placed on physical planning is its ability to create a betterquality and efficient physical environment in the cities, towns and rural areas that will be the foundation for the higher quality of life and better place to live in. This is supported byeconomic prosperity, environmental stability, social vibrancy and integration asenvisioned in Vision 2020. Subsumed within this overall objective is the integral need to increase competitiveness, productivity, innovativeness, social inclusiveness, regional balance, sustainability and a strong global positioning of the country. The NPP-2 will provide the translation of the national sectoral policies and strategies into the physical and spatial dimension. By developing each part of the country to its full potential, it is envisaged that the creation of safer, greener and liveable places inhabited by healthier, smarter, richer and sustainable communities will be achieved.

The goal of NPP-2 is:

THE ESTABLISHMENT OF AN EFFICIENT, EQUITABLE AND SUSTAINABLE NATIONAL SPATIAL FRAMEWORK TO GUIDE THE OVERALL DEVELOPMENT OF

THE COUNTRY TOWARDS ACHIEVING A DEVELOPED AND HIGH-INCOME NATION STATUS BY 2020

2-2

2.2 Objectives

Arising from this Goal are five (5) mutually supportive objectives as identified below:

i. To rationalise and consolidate the national spatial planning framework supported by key strategic infrastructure for economic efficiency and global competitiveness.

ii. To optimise utilisation of land and natural resources for sustainable development and biodiversity conservation.

iii. To promote more balanced regional development for national economic integration and social unity.

iv. To enhance spatial and environmental quality, diversity and safety for a high quality of life and liveability.

v. To facilitate efficient integrated inter-state connectivity and public common users’ space provision for social interaction and sustainable communities in line with the 1Malaysia concept.

Objective 1: To rationalise and consolidate the national spatial planning framework supported by key strategic infrastructure for economic efficiency and global competitiveness

In order to sustain the high level of economic growth of around 5.5 % per annum over the next 10 years, it is necessary to achieve a developed nation and high-income economic status by 2020, as the country must be economically efficient and globally competitive over the plan period. Being a small and open economy, Malaysia will continue to be dependent on foreign direct investments as well as exports for high sustainable economic growth. However, it is envisaged that global competition for foreign investments as well as for export markets will become increasingly competitive in the light of the likely sloweconomic growth and low consumption in developed countries arising from the current economic downturn and financial crisis.

From the spatial planning perspective, this strive for efficiency and investment attractiveness would involve the need to focus on development activities in selected areas that offer the best growth potential. Urban regeneration or new development onbrownfield (previously developed) sites within existing large urban centres and key economic development corridors will provide opportunities to use optimally the existing and committed infrastructure, thus enabling the use of scarce resources efficiently and the reduction of the cost of doing business / production. Within such strategic development areas, it is therefore crucial for physical planning to create a quality living environment with an integrated and efficient infrastructure, particularly public transport.

2-3

Objective 2 : To optimise utilisation of land and natural resources for sustainable development and biodiversity conservation

Sustainable development is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (Bruntland Report1). Contemporary conceptualisation of the sustainable development concept considers the economic and societal elements of sustainable development to be subsets of the environment (Figure 2.1). In short, society is dependent on the well-being of the economy; and in turn, both society and the economy are dependent on the well being of the environment.

The model places strong emphasis on the importance of “ecosystem services”, which simply put are the benefits that people obtain from ecosystems. The term implies that the services are of value to people and that the degradation or loss of the services brings about harmful impacts. These services are classified as (Table 5.2): provisioning, regulating, cultural and supporting2.

Biodiversity, which is the variety and interactions of life on earth, is essential for the functioning of ecosystems (ecosystem processes) and therefore the provision of ecosystem services. Although there is no simple relationship between biodiversity and ecosystem services, it is important to note that high levels of biodiversity (at the genetic, species and ecosystem level) are important to ensure the resilience of ecosystem processes. In these terms, environmental sustainability, and hence social and economic sustainability, means that critical resource stocks (biodiversity) and ecological processes must be safeguarded. At the same instance, depletion must be kept within acceptable levels and losses of natural capital must be compensated for.

The core objective of land use planning is to contribute to the achievement of sustainable development. Most activities occur on land. For the same piece of land, there are normally many competing uses. The many economic sectors, human social activities and environmental protection concerns vie for the limited suitable land available. The NPP-2must seek not only to allocate adequate land for the various uses to meet their

anticipated needs but also, through sensitive calibration of the quantum of land allocated foreach sector, seek to achieve overall efficiency and optimum sustainable use of land such as, the right use/ development at the right place and at the right time. Wastage in the form of idle and low productivity lands in any of the economic sectors should be eliminated. Land use allocation will, however, be very largely constrained by the existing land use pattern, infrastructure availability and natural topographical conditions.

1 WCED. 1987. Our Common Future. World Commission on Environment and Development. Oxford University Press. 2 NRE. 2008. A Common Vision on Biodiversity in Government and the Development Process. The Ministry of Natural Resources and

Environment, Putrajaya.

Figure 2.1 : Conceptual model of sustainable development

EEnnvviirroonnmmeenntt

EEccoonnoommyy

SSoocciieettyy

2-4

Each economic sector is faced with a different set of problems and opportunities that will indicate, in broad terms, its future land requirements. Agriculture for example, faces the necessity to increase productivity rather than expansion in acreage while the forestry sector is faced with the need to increase the acreage of forest plantations in order to meet global demand for tropical timber, in view of declining timber stocks in natural forests. The establishment of forest plantations however must never be at the expense of existing natural forests.

The greatest demands for land during the NPP-2 planning period will however, come from urban expansion. Approximately 6 million additional populations has been estimatedto live in the urban areas of Peninsular Malaysia during the 2010-2020 period, accounting for an urbanisation rate of 75% in 2020 or equivalent to the total of 20.9 million urban population. However, the total amount of land necessary to house this population and its related activities in 2020 is only about 0.96 million hectares, or 7.3% of the total land area of Peninsular Malaysia.

Within the existing built-up areas, there is still much room for infill development as well as redevelopment for mixed-uses (non-pollutive live-work-play activities in a building) and higher densities. In principle therefore, there is no necessity for urban expansion to encroach into rural land that should be protected or conserved for one purpose or another, e.g. recreation, nor is there any necessity for carrying out large scale land reclamation works except for key strategic infrastructure development. A more compact urban footprint as opposed to current urban sprawl is most desirable to promote viable public transport and to protect the open countryside and forested areas as carbon sink in combating climate change. A majority of the financial, business and services sectors will be concentrated within the Town Centre for greater synergy and critical mass. Local planning may however, need to be adjusted towards a more flexible land use zoning and intensification using ‘impact-based zoning’ approach to suit the location of available land.

An important role of the NPP-2 is to consolidate and standardise the categorisation and ranking of land for example, ESA Rank 1; and to apply land categorisation and ranking to land use control, particularly in guiding conversion of land for urban uses.

Objective 3 : To promote more balanced regional development for national economic integration and social unity

Due to historical and physical reasons, Peninsular Malaysia has developed with a palpable disparity between the west and east coasts. National plans in particular Third OPP3 have set the reduction of imbalance and the inducement of more equitable development between regions and states as a primary objective.

Improvements in the transportation network, ICT linkage and development of petroleum and natural gas related industries have to a certain extent, improved the economically lagging East Coast States. However, the imbalance still persists. Unequal development is not just between the east and west coasts but also between sub-regions within the west coast, e.g. the highly developed Klang Valley as against southern Perak or northern

2-5

Kedah, both of which generally exhibit similar socio-economic characteristics as the east coast region.

Balance should be perceived as equal opportunity to comparable incomes and economic growth rates, and not necessarily as similar forms of development. Each region needs to develop based largely on its inherent strengths and comparative advantage of theregional economy and resources, particularly human capital, in relation to the national and global economy. As such, while the less developed regions may, because of their relative remoteness and isolation, be less competitive to certain forms of development, their possession of pristine lush forested highlands, lakes, beaches, scenic beauty, cultural richness and abundant agricultural and forest products could be further exploited to enhance tourism including resort eco-tourism, agricultural and forestry downstream activities, resource-based and craft-based industries. Enhanced investments in infrastructure specifically to support such activities, such as in transportation and communications, should be directed to the less-developed regions.

Rural-urban migration should be anticipated which will also manifests itself as inter-regional migration and will continue as part of the larger national phenomenon of industrialisation, urbanisation as well as agriculture modernisation. Skills training forpotential migrants will be important to ensure that they integrate gainfully into the urban economy.

Objective 4 : To enhance spatial and environmental quality, diversity and safety for a high quality of life and liveability

The environment includes the built-environment of cities and towns, the rural environment of farms and plantations, and the natural environment of forests and wetlands. The country must protect and conserve the quality of its environment in all these three areas.

The government is vigorously driving performance through the National Key Result Areas(NKRA) which reflects national issues of public importance and interests in need of urgent resolution. The six (6) NKRAs identified are: reducing crime, fighting corruption, expanding access to quality and affordable education, raising the standard of living of the low income groups, strengthening infrastructure in the rural and remote areas, and improving public transport in the medium term. As such, the planning for the 2011 Budget and the formulation of the Tenth Malaysia Plan (2011-2015) will give focus and priority to the NKRA. This massive and challenging government initiative is a major step forward in realising the people’s high expectation for spatial quality and diversity including safety,particularly crime free environment in the country.

2-6

Figure 2.2: Key Building Blocks for Liveable Cities and Sustainable Communities

Talent & Skill Workers

Quality Knowledge

Centres

Efficient Public

Transport

Affordable Decent

Housing

Distinctive Attractive

Environment

Supporting Infrastructure

& Utilities

Liveable Cities & Sustainable

Communities

Compact city planning with mixed- uses and higher density Urban regeneration in brownfield sites High quality of life

Economic growth and prosperity Vibrancy and innovative Social inclusiveness Good urban governance

High speed broadband networkClean technology facilities Recycling wasteRenewable energyWater conservation

More high qualification and high paying job opportunitiesBetter intellectual- stimulating environment and merit-based reward system Attract well-trained migrant workersRetain home grown intellectuals and professionals Quality education

Enhanced global economic competitivenessAttract FDI and MNCHigh value-added business and financial servicesHigh technology industries Specialised public infrastructure investment in business parks and high-tech park

Choices of alternative transportation particularly MRT and LRT Ease traffic congestion Integrated land use and transportation planning Low green house gas emissionTransit- orientated development (TOD)

Housing opportunities and choices Walkable neighbourhoodMixed communities Cleaner, safer and greener environment Common user space for social interaction and cohesion

Low street crime rateClean air and water Public space and green spaceEducation and health facilities Art and leisure amenities

2-7

The primary objective of the Habitat II agenda calls for the creation and maintenance of “liveable and sustainable cities”. Presently, the liveability agenda comes under increasing interest and attention worldwide. Liveable cities are engines of growth and innovations that attract and retain creative and talented workers, thus driving high income economic growth in the country. Empirical evidences indicate that good liveability of cites is positively related to their GDP per capita, such as in New York, London and Singapore. However, the concept of liveability is interpreted and acted upon differently by practitioners, policy makers and the general public. In a broad sense, liveability has the common notions of enhancing “quality of life”, ”well being”, “economic competitiveness and growth” and choosing the “preferred place to live”.

As shown in Figure 2.2, liveability is a wide ranging and multi-faceted cross cutting issue. It involves essentially six (6) key building blocks for creating liveable cities and sustainable communities. These are as follows:

i. Promoting Efficient Public Transport by integrating land use and transportation planning to reduce the need to travel and minimise journey to work. Also important is the need to promote a coordinated and efficient public transportation system particularly multi and inter modal transportation hubs in major urban areas.

ii. Access to Affordable Decent Housing in cities through facilitating the provision of a mixture of dwelling sizes, types and tenure in all new residential development to meet the various needs of households of different size, income and character. Efforts should also be made in expediting planning approvals for residential development, improving accessibility of public transport regeneration ofbrownfield sites in town centres and older suburbs, encouraging mixed-uses and higher densities including promoting a strong sense of community in neighbourhoods.

iii. Facilitating Distinctive Attractive Environment in cities that promote clean air and water, safety and security particularly low crime rate and less car accidents.Cleanliness and hygiene especially litter and vandalism including attractive green spaces and public spaces for families to work, play and relax, together with arts and leisure opportunities should also be enhanced.

iv. Providing Supporting Infrastructure and Utilities by concentrating the increasingly scarce public financial resources in a few large conurbations particularly Kuala Lumpur, George Town and Johor Baharu. This will provide thenational strategic infrastructure, such as high tech parks and international seaports, necessary to gain global competitive edge with the aim of enhancing local private initiatives as well as attracting foreign direct investments and multinational corporations.

2-8

v. Attracting and Retaining Talent and Skill Workers by nurturing a high quality of life in cities which in turn acts as magnets to draw in high value-added industries and business services, thus providing more and better wage job opportunities.

vi. Establishing Quality Knowledge Centres in conurbations that will provide economies of scale in sharing common specialised facilities and services in an industry cluster, such as the petrochemical hub. The agglomeration of economies and synergies in the value supply chain will in turn reduce the cost of doing business and generating higher returns on investments made.

Creating Liveable Cites and Sustainable Communities will see the government playing the facilitating role in providing the most conducive investment climate, the strategic infrastructure and incentives for private initiatives and enterprises to take the lead and flourish. Transforming local governance to provide better urban services and land use management at local levels is another important facet of liveable cities and sustainable communities. Delivery systems at the local authority levels shall be improved to ensure that national and state level policies are effectively implemented. In this respect the government has introduced ‘One Stop Centre’ (OSC) to shorten the time taken for the approval processes for both licences and planning permission. Local plans will be prepared for all local planning authority areas to provide a statutory basis for land use management. The competencies of local authority staff and officials shall be improved in return for greater accountability. Greater community participation and social inclusiveness will be encouraged to ensure more inclusive planning at the local levels. Liveable cites attract and retain knowledge and innovative workers who in turn draw in cutting edge firms that will drive high income economic growth. A critical spatial planning component of achieving liveable cities is to embrace the compact city form and building design as opposed to current haphazard urban sprawl. As the community knows their needs and aspirations best, citizens and private sector engagement is crucial. In a nutshell, the incorporation and combination of the six key building blocks, as enunciated above, will mutually reinforce each other to create more liveable cities and sustainable communities, thus contributing significantly towards realising the 1Malaysia concept and NEM.

In particular, the people have expressed a strong desire for wanting distinctive identity in different parts of the physical landscape such as, creative high and low density development, open and enclosed concepts, convenient city living and spacious suburban living rather than, the current monotonous and uniform building designs and place layouts. Unique landmarks include natural features of outstanding beauty such asthe rivers, mangrove swamps and trees, iconic buildings, activity nodes, focal points, heritage routes with rich memories and gathering places, which people can easily identify and be proud of. In this context, the Kampung Baru Malay Agriculture Settlement, the Old Chinatown and Little India, should be retained selectively and integrated seamlessly into the new Plans of the area. In addition, it is vitally important to bring back the peace of mind and confidence of the public on security of life and properties, particularly house burglary and street crimes, by making them feel safe again

2-9

through proper ‘defensible’ residential and safe city planning, thus eradicating the need to barricade themselves with high walls, close circuit televisions and private security guards patrol.

As with advanced economies in the developed countries worldwide, it is anticipated that a large majority of the total population in Peninsular Malaysia will live in urban areas in 2020. With the current trend of cities and towns rapid expansion, the built-environment is in danger of deteriorating into urban sprawls as well as inner urban core decay, rising traffic congestion, environment pollution and urban poverty. It will therefore, be essential to re-examine urban forms, limits and standards as well as the institutions of local planning and development control processes to ensure that a quality urban environment will be in place. The character and integrity of individual cities need to be protected and regenerated and appropriate measures should be introduced to ensure the separation with good connectivity between cities within conurbations as well as measures to guide and control the outward expansion of conurbations. Thus, cities and towns will be a dynamic vibrant place where people choose to live in, work, invest, do business, visit and play.

The onset of climate change is predicted to have major impacts on the nation within the span of this century. Left unmitigated, the impacts are expected to be wide ranging, and will have consequences on the health and safety of the human population, as well as on the economy. As much of the impacts, such as rising sea levels, increased storm surge, flooding and change in rainfall patterns are spatially related, there is no doubt that addressing them in the context of spatial planning will be crucial to ensure that the nation is able to cope with climate change. As such, the NPP-2 aims to take pre-emptive measures by ensuring that national land use planning incorporates the appropriate adaptation and mitigation measures to combat climate change.

For the rural environment, the shrinking rural population will have a potentially disruptive impact and planning for the depleting rural population will need to be carried out. At the same time, assurance that the conversion of agricultural land for urban uses should be orderly, transparent and efficient must be emphasised. Findings of the studies carried out indicate that there is no shortage of poor quality agriculture land for conversion to urban uses. There is, therefore, every reason to conserve what remains of the natural environment for the edification and survival of the present and future generations and for the overall enhancement of the national environment.

Objective 5 : To facilitate efficient integrated inter-state connectivity and public common users’ space provision for social interaction and sustainable communities in line with 1Malaysia concept

The Malaysian government believes that Malaysia’s future as a successful country depends on the ability of Malaysians of different races, religions or culture to work and live together in peace and harmony. While 'Bangsa Malaysia' (Malaysian nation) outlined in Vision 2020 is the ultimate objective of this journey, 1Malaysia concept provides the key approach towards achieving the stated objective. The government enunciates

2-10

succinctly that "1Malaysia is a concept to foster unity in Malaysians of all races based on several important values which should become the practice of every Malaysian”. It emphasises the acceptance and respect amongst the people of various races and the diversity of the nation with uniqueness and inherent strengths in each ethnic group. An important core element of unity stresses that all the people irrespective of race and creed will be taken care of and no one will be marginalised (social inclusiveness).

Physical planning can contribute significantly to forge closer social integration and stronger national unity through the provision of common facilities and mass rapid transport system, particularly high speed train, linking all the state capitals to enable people to meet and come together quickly, easily and affordably. In addition, spatial planning should seek to create and maintain mixed-communities, green and common spaces in living areas e.g. sport facilities, public parks and schools which all Malaysians regardless of race and religion can share comfortably and happily. The provision of green and common facilities will promote more social interaction and inter-personal relationship at ease for all. Malaysians staying cohesive will inevitably solve all problems together including overcoming Malaysian economic challenges, growing together, and improving lives.

2.3 Principles

The NPP-2 was evolved from certain guiding principles; the most important being national unity which is a prerequisite in contributing to the achievement of the sustainable development objective. All NPP-2’s policies must be acceptable with the expressed principles. Appropriate mitigating measures and safeguards must be in place to ensure spatial policies are consistent with the set principles. Generally, the more compatible, the principles are to a policy, the higher the weightage and priority are likely to be given.

In making decisions about the spatial strategies and policies of NPP-2, the following principles have been applied:

P1 Develop The Country As A Single Integrated Unit

It is important for national unity as well as efficient for global competitiveness that the country be developed as an integrated unit rather than for states to unhealthily compete with one another. In the interest of the nation all resources whether, natural, manpower or financial - should be used in the most efficient and effective manner to enable the country to focus on niche areas and activities where the country has the competitive advantage.

P2 Deliver Sustainable Land Use Planning And Development

The core principle underpinning spatial planning is sustainable development. It is a fundamental determinant of the quality of places and people’s lives. It shapes the liveable human settlements, creates sustainable communities which recognises the

2-11

needs of everyone, protects the productive rural areas and unspoiled natural environment. Sustainable development also supports a vibrant and prosperous economy which is important to generate growth and jobs.

In shaping the cities, towns, villages and countryside, this sustainable development principle must be promoted and integrated into all sectoral policies and operational measures as set out in NPP-2:

i. Enhancing high economic growth, employment and income;ii. Providing an integrated transportation network and key strategic infrastructure; iii. Creating cohesive communities and social inclusion; iv. Protecting effectively the environment and using prudently the natural resource; v. Developing and conserving agricultural and tourism resources.

A sustainability appraisal was made to eliminate any spatial policies found violating and undermining the principle of sustainable development.

P3 Promote Areas Of Greatest Growth Potential

The magnets for investments in East Asia are the city-regions such as Shanghai, Shenzhen, Hong Kong, Singapore and Bangkok. Only the areas of greatest growth potential in Malaysia, that is, the conurbations around Kuala Lumpur, George Town, Johor Bahru, and Kuantan have the capabilities to rival these international city-regions, particularly for investments in the emergent high technology-based and knowledge-based growth sectors, particularly ICT, biotechnology, health and educational services, financial and business services, and outsourcing and creative services. In the context of increasingly fierce global competition for investments, trade and markets it is judicious to focus quality infrastructure support in generating high impact tertiary economic activities in these high priority conurbation areas, thus creating the much needed job opportunities and high-income level earners to realise the Vision 2020.

P4 Maximise The Use Of Existing And Committed Infrastructure

Government resources are likely to be very limited and insufficient to solve all the national spatial issues, particularly major infrastructure network, in the short term. In order to utilise infrastructural investments efficiently, urban expansion should be directed to where adequate infrastructure and social facilities are in place, committed to be put in place or can be most economically provided and maintained. The upgrading of existing infrastructure may be possibly explored. Cheaper alternatives to existing policies for example, the use of public transport, should also be sought.

Efforts should also be taken to encourage more urban regeneration and infill development to reduce the speculative opening up of greenfield sites. This move will reduce greenhouse gas emission and protect forested ‘carbon sink’ in combating

2-12

climate change. At the same time, maintenance culture of the infrastructure should be inculcated in urban administration.

P5 Protect National Heritage Areas And Avoid Disrupting Ecological Stability

Sustainable development is also the bottom line underlying spatial planning. There should be greater resolve from all quarters to conserve the fast depleting natural resources and biodiversity of the country such as the environmentally sensitive areas and marine ecosystems; and manage them in a sustainable manner. In particular, a sense of value and national pride for areas of natural beauty and ecological richness, historical sites and areas of cultural association should be fostered. Such areas and sites may include pristine forests, hills and wetlands, habitats for the Malaysian wildlife and fauna, rural landscapes, particular sites and locations as well as individual buildings of architecture merits and historical interests. Conservation must be in tandem with the promotion of such areas, locations, sites and buildings as attractions for international and local tourism.

The rich biodiversity (the array of ecosystems, habitats, plants and animals and their genes) found throughout the country is an integral part of our survival and natural heritage and also provides the country with a competitive edge in such fields as tourism and biotechnology. More importantly, there is now a growing acceptance that biodiversity underpins ecosystem services, which are the essential goods and services provided by healthy ecosystems. The loss or disruption of the ecosystemservices, which include the provision of fresh and clean water, food supply and fibre, climate regulation and pest control, is liable to incur dire and grave consequences to human survival and the economy as well as the security and quality of life of human populations. While the true value of these ecosystem services have yet to be adequately incorporated into the cost of development (these are currently viewed as “externalities” by economists), it is essential that spatial planning serves to maintain biodiversity, ecological stability and consequently, its ability to provide ecosystem services. In general, this can be achieved through integrating spatial planning and development with the best available data as well as comprehensive and stringentPlans and Guidelines produced by the Ministry of Natural Resources and Environment (NRE) and its line agencies.

Guidelines on new development should be incorporated into spatial strategies and policies. Sustainable forest management approaches, water resources management based on the concept of Integrated River Basin Management (IRBM) and shoreline management through Integrated Coastal Zone Management System (ICZM) should be exercised and enforced.

Pockets of natural and rural landscapes located close to urban areas should also be conserved for the supply of oxygen, recreation and enjoyment of the expanding urban population, particularly the increasing number of urban children, and generally to enhance the spatial diversity and overall quality of the living environment.

2-13

P6 Encourage The Development Of Regions Based On Their Potentials

Regions should be developed and promoted on the basis of their potentials and comparative advantage; and public investments in infrastructural support should be directed to reinforce these regional potentials. The east coast region, which has been identified to possess great potential for coastal and eco-tourism, forestry-and-agriculture-based activities, should receive public investments in the type of infrastructure necessary to boost these forms of development while duplication of infrastructure for forms of development more suitable for the west coast should be avoided.

P7 Favour Public Transport Over Private Vehicle Use For Inter-Urban And Intra-City Movement

Spatial planning should play a positive role in assisting not only to reduce carbon emissions but also to use more green technology, like renewable energy, in mitigating and adapting to climate change. An important adaptation measure is to encourage the higher use of public transport over private vehicle. This will require the development of an efficient integrated inter-urban public transport system featuring high speed trains, low fare domestic flights, public buses on highways and city centre transportation hubs. For intra-city travel, more efforts shall be made to develop further the coverage and efficiency of trains, taxis and buses and their inter-connectivity. Wherever possible, walking and cycling at local level must be promoted.

For public transportation to be economically viable, cities and towns should be in the form of more compact development and in the higher density nodes, such as TransitOriented Development (TOD). Convenient multi-modal and inter-modal transportation, such as feeder buses to LRT station, must also be in place.

P8 Strive Towards Compact, Energy-Efficient Urban Forms With Clear Identity

“Impact-based” land use zoning and intensification approach in plan-making and “sequential test” for processing development should be adopted. Priority should be given to the regeneration of brownfield sites in preference to the development on greenfield areas which will likely damage the environment. In the existing city and suburban centres, the integrated, multi-functional and higher density projects can increase the efficiency, convenience, vibrancy and the image of the urban areas. Transport hubs combined with office, living and shopping uses as well as TOD are examples. This will also lead to an energy-efficient compact city form that will help to curb urban sprawl and to reduce greenhouse gas emissions and is amenable to rail-based public transport systems.

The spatial distribution, location and design of new development and townships should be planned wisely to minimise the future vulnerability of climate change. Appropriate mitigation and adaptation considerations in a changing climate should be

2-14

integrated in all spatial planning strategies and in the formulation process ofdevelopment proposals.

In the expansion of the conurbations, the integrity and functional cohesion of existing communities should be maintained and shall not be disrupted.

Submission of rigorous justifications regarding incompatible development proposals outside of designated city limits to the Local Planning Authority should be made mandatory and subjected to public scrutiny and objections in line with the statutory requirements for a Local Plan.

P9 Facilitate The Development Of The Knowledge-Based Economy

In line with the Government’s move towards a high-income nation, the service sector is expected to play a more prominent and aggressive role in generating economic activities. To transform successfully the Malaysian economy into the knowledge-based and technology-driven tertiary sector, it is necessary to focus and promote innovation, creativity and high value-added elements. In this respect, conurbation and large urban centres offer the most conducive environment in terms of infrastructure facilities, skilled labour, market and supporting business and professional services to attract and establish operational bases including regional headquarters, R&D centres, innovation centres, service and outsourcing centres, procurement centres, cyber centres, biotechnology parks and high-tech parks.

To create an impetus for national growth and increase national competitiveness, ICT linkages and connectivity should be expanded to all parts of the country. Efforts should be made to promote the development of a first class ICT infrastructure network particularly high-speed broadband, throughout the country and steps taken to develop a large pool of highly skilled ICT workers.

P10 Strengthen Urban And Rural Linkages

The government should institute programmes to support new and existingentrepreneurs in small and medium scale enterprises (SME) from the rural growth centres, traditional kampong, the new villages and the small and intermediate towns to initiate agricultural projects to supply food and raw materials to the urban areas; as well as small and intermediate industries to service the larger industries of the urban areas.

In addition, good connectivity from key villages to job centres in small and medium sized towns shall be provided for rural residents to earn off-farm income in order to enhance their household income.

Plan ContextCHAPTER 3

NATIONAL PHYSICAL PLAN

3-1

CHAPTER 3

PLAN CONTEXT

The national spatial framework is an important physical guide in realising the national objective of sustainable growth with high income and employment. This framework together with Vision 2020, 1Malaysia concept, the 10th Malaysia Plan and other sector policies will become the thrust in moving Malaysia forward to become more competitive with the other global economies of the world. The framework consisting of the economy, social and environmental aspects will becomethe foundation of the country’s physical setting thus achieving the best results for national spatial development. These 3 aspects of national development have been assessed in a holistic, integrated and balanced approach by NPP-2 in order to achieve the desired goal.

Peninsular Malaysia is made up of the West Coast, the East Coast and the Central Highlands, that is the Banjaran Titiwangsa, Banjaran Nakawan and Banjaran Bintang. The land use patternof the country is affected by the historical and economical factors where the more productive urban economic activities and concentration of population are found in the west coast areas. The Kuala Lumpur, George Town and Johor Bahru Conurbations in the west coast are the most developed as compared to the other urban areas of the Peninsular. As for the eastern coast area, the unique potentials for nature, beach and island tourism may provide a significant growth catalyst.

Malaysia, which has its own recognised strengths and potentials in the global setting, will look forward in seeking every opportunity to promote and attract more Foreign Direct Investments (FDI), adopt new national growth strategies, venture into new sources of economic growth and accelerate the rate of transformation to knowledge and high technology-based economies. At the same time, the production of quality human capital that will enhance the country’s capability to compete in the global market will be maximised. In resolving internal development issues, the government must take cognisance of the world current economic financial crisis and international convention commitments such as biodiversity and climate change.

The NPP-2 shall provide a spatial planning strategy for enhancing international competiveness and a framework for strengthening national developmental cohesion and discipline. It added aspatial or geographic dimension to the more purely economic and social-biased aspects of the development plans. The spatial aspect of the NPP-2 will guide more effective national development planning to ensure that the national resources are used efficiently and sustainably, in particular making optimum use of existing capital and human resources.

3.1 Global and National Strategic Issues and Challenges

The spatial strategy, policies and measures of the first NPP (2005) have been subsequently reviewed and adjusted accordingly to address the national emerging issues identified and the future challenges faced. These are elaborated below and in the ensuing

3-2

policy themes. In shaping the national spatial strategy and framework, the emerging strategic issues and key future challenges for all the policy themes and their spatial implications have been taken into account and summarised as follows:-

i. Promoting the Government’s 1Malaysia Concept

Malaysia is a multi-racial society with many different religions and cultures. High sustainable growth depends largely on the ability of all Malaysians to live and work harmoniously together. In this respect, the 1Malaysia concept is aimed to promote more social interaction and national unity through fostering mutual respect and trust among the various communities and improving connectivity between different states/ areas in Malaysia. For example, there is a need to innovate and develop integrative community planning concepts and approaches, including the creation of socially and ethnically-mixed residential communities and provision of common users’ space, such as sport facilities and community centers.

ii. The Government’s New Economic Model towards a High Income Economy

The World Bank Report has highlighted Malaysia’seconomic structure weakness, resulting in it being caught in a middle-income trap. Malaysia is unable to remain competitive as a high volume, low-cost producer, yet unable to move up the value chain in the fast-growing markets for knowledge and innovation-based products and services.

To meet this challenge, the New Economic Model (NEM) is geared towards moving up the economic value chain to the high value-added tertiary sector, helping the nation to generate a high, balanced and sustainable economic growth thus achieving a high-income economy by 2020.According to the Prime Minister of Malaysia, it is “predicated more on innovation, high value searching for new sources of growth, strengthening domestic demand and the long-term integration with East Asian economies”. An example of this phenomenon is a need to produce more skilled and knowledge workers in attracting and establishing the Islamic financial and outsource services in the conurbations; and a need to protect and enhance nature-based touristic areas, such as scenic beaches and pristine forests, in drawing more tourist arrivals.

iii. Accelerating Economic Growth Rates in Economically Lagging Regions

There is a wide income and development disparities between the east coast and the west coast areas in Peninsular Malaysia. To realise inclusiveness and more regional balance,

1 MALAYSIAPEOPLE FIRST

PERFORMANCE NOW

3-3

efforts and resources are directed to exploit the full potentials of different parts of the country in particular, the key economic development corridors through implementing high impact projects based on the various regional economic master plans prepared. For example, there is a need to upgrade the Port of Kuantan to perform national port functions and to support the designated ‘Special Economic Zone’ in Kuantan’s Growth Conurbation in order to accelerate growth in the less-developed ECER hinterland.

iv. Enhancing Economic Globalisation, Local Trade Liberalisation and International Competitiveness

As Malaysia has a small domestic market and an open economy, it is essential for the country to remain outward-looking and export-orientated. As such, the strategic economic thrust is targeted mainly to capture the increasing international trade flow and export markets, to draw higher direct foreign investment and to stimulate more home-grown private enterprises in capitalising the various multilateral and bilateral trade agreements entered such as ASEAN-China Free Trade Agreement and AFTA.

At the same time, the government has identified several strong emerging clusters as new sources of growth including tourism in particular medical and education, Islamic finance, biotechnology, renewable energy, logistics, and ICT. A competitive and innovative private sector is expected to act as the main engine of growth. The government will serve as an effective facilitator and enabler through the creation of the most conducive economic investment environment for private initiatives and enterprises to thrive and grow. For example, tax incentives are provided for promoted activities in Iskandar Malaysia in Johor state for the setting up of creative industries and regional headquarters outsourcing/ off shoring services, thus enhancing its growth potential.

v. Adoption of New Innovative Technologies

The Malaysian government is also striving to transform the economic structure into a knowledge-based economy which will be driven primarily by creativity, quality and productivity. Innovative technologies are indispensable productive tools, particularly ICT and biotechnology, to enhance economic efficiency and quality of life; and have impacts on people, places and potentials. As an example, the application of high speed broadband makes it possible for certain businesses and industries to operate competitively in the current geographic remote areas far away from the mainstream activity centres. A case in point is the feasible option to locate Halal industry cluster in medium-sized towns in the less-developed east coast states. The knowledge based economy must also be productivity driven which also requires the development of key enablers in ICT, investments in public transport infrastructure and a talent pool of skilled workers. The country will eventually progress to the innovation era which is knowledge driven and producing knowledge based goods and services (see Fig 3.1).

3-4

Figure 3.1 : Economic Transition Model

Export of rubber, tin, palm oil & timber

Manufacture of import substitution goods

Export textile & electronic goods

Export high value added electrical & electronic goods

Knowledge-based goods & services

Agriculture Era

Industrial Era

Technology Era

Knowledge Era

Innovative Era

Labour driven

Labour driven

Investment driven

Productivity driven

Knowledge driven

Innovative & Human Capital driven

Source: Malaysia Institute of Management, April 2008.

vi. Threats of Climate Change

Changing climate phenomenon is considered the greatest long-term potentially catastrophic threat to the world. Evidences indicate that uncontrolled human activity is changing the global climate, particularly man-made carbon emissions which havecontributed to global warming resulting not only in permanent detrimental changes to the natural environment, but also significant challenges to worldwide economic growth and social stability.

To address this global environmental issue, appropriate spatial policies and measures must be taken to adapt to and mitigate its adverse effects on Malaysia. For example, impact of climate change is a key consideration in preparing all development plans including incorporating policy measures to ensure that no urban development be allowed in low lying coastal areas vulnerable to marine flooding due to rising sea-level. At the same instance, the protection of forested areas to act as carbon sink, and the promotion of energy efficient and eco-friendly urban development must not be neglected.

vii. Deteriorating Sustainability, Biodiversity and Avoiding Geo-Hazards

Peninsular Malaysia has suffered substantial loss in forested areas and wetlands including forest fragmentation. Only 45% of the total land area in Peninsular was forested in 2008. They provide valuable ecosystem services valuable for supporting human life and well-being, especially clean water, oxygen including ecotourism. Many forested areas have steep slopes which are geo-hazard risk areas and are landslide prone. Nevertheless, Malaysia still remains as one of the 12 mega-diverse countries in the world with rich biodiversity. To date, the Peninsular has lost a substantial area of forest cover from 9.5 million hectare (1954) to 6 million hectare (2000) but somewhat stabilised to about 5.9 million hectare (2008) which is an indication of a positive trend (see Figure 3.2).

3-5

It is imperative, therefore, to address the need for conserving or restoring ecologically valuable natural resource and environmentally sensitive areas, and their implications to urban form and pattern. For example, in order to stop urban sprawl and encroachment into forest and wetlands areas, smaller urban footprint development with higher densities and more mixed-uses/ multiple-uses development must be encouraged. It is alsoimportant to give higher priority on the use of public transport, cycling and walking to reduce greenhouse gas emissions and establishing ecological linkages to reconnect fragmented forest complexes.

Figure 3.2 : Fragmentation of Natural Forest Cover in Peninsular Malaysia (1954-2000)

1954 1969 1972 1990 2000

Source : 1954, 1969 & 1972 – Jomo et al. (2004) after Aitken et al. (1982: 161).1990 – Jomo et al. (2004) after Anon (1992), 2000 – Stibig et al. (2002: 11).

viii. Protecting the Natural Resources within the Exclusive Economic Zone

Malaysia is also a maritime country with a long coast line with several islands, shoals and rock outcrops in the territorial waters off the mainland of the Peninsular Malaysia. Under the United Nations Convention on Law of the Sea (UNCLOS) any island within 12 nautical miles from the mainland is within the territorial waters of the country and 200 nautical miles as Exclusive Economic Zone (EEZ). The EEZ, gives the right to a country to explore, exploit and manage the natural resources within the zone for economic purposes (like fisheries and tourism), scientific researches, environment protection and conservation such as maritime park (see Figure 3.3).

3-6

The country’s recent loss of Pedra Branca to Singapore has created a new awareness on the need to carry out activities on the islands to assert sovereignty. The resources within the EEZ include oil and gas resources, deep sea fishing areas and sunken ships and treasures that portray historical and heritage significance. There is inevitably a need to map these resources, develop supply bases and have contingency plans in case of emergencies and security responses in the event of shipping disasters, piracy or off shore oil spills. The environmental impact of an offshore oil well spillage can be quite significant on the coastline of the East Coast States as is evident in the recent accident involving the British Petroleum oil facility in the Gulf of Mexico.

Figure 3.3 : Natural Resources in the Exclusive Economic Zone (EEZ)

Territorial of Waters

Exclusive Economic Zone

Marine Parks Oil Fields

Gas Fields

Source : WWF, PETRONAS, USGS, 2008.

ix. Inadequate National Food Security

Malaysia as a net food importer is highly exposed to external forces such as rising food prices and volatile supply of rice in the international market due to adverse climate conditions, natural disasters and hostilities. To achieve national food security, it is crucial for the country to protect existing farm areas and enlarge prime agriculture land, particularly the granary areas for rice cultivation. The challenge is for the authority concerned to come out with acceptable fiscal incentives to offset the potential loss of development rights and revenues of the affected states in meeting national needs to protect and enlarge granary and prime agriculture areas in the states.

x. Low Level of Renewable Energy and Green Technology Utilisation

Until recently, the core of urban planning in the country revolved around the use of fossil fuel private vehicles, which emit a large amount of carbon. The application of green technology (such as renewable and low-carbon energy) in the spatial planning of urban form and pattern as well as integrated land uses and transportation network planning is relatively new and limited.

In the face of increasingly high oil prices and climate change concerns today, it is critical to place a high priority on sustainable patterns of urban and rural growth. New development/redevelopment, in terms of housing, jobs, services and infrastructure provision, must secure the highest viable resource and energy efficiency and reduce

3-7

greenhouse gas emissions. For example, compact towns with high-density and mixed-uses have better functional linkages and optimum space utilisation, thus are more energy efficient compared to low-density ribbon development. Eco-towns and transit-oriented towns are also more sustainable alternative township development. Urban forms andpatterns should seek to reduce the need to travel and to minimise long journey to work and activities. In addition, incentives should be given to encourage the adoption of green energy technology in buildings and development layouts.

xi. Declining Inner City Areas and Rising Urban Poverty

In general, certain groups of people living in the inner cities and large towns, especially the low income households living in private rented flats, suffer from multiple and severe social, economic and environmental problems and deprivations. They are also faced with high unemployment, low income, inadequate affordable housing, poor public transportation, decaying environment, high incidence of crime, drug abuse, and lack of open spaces. A large proportion of the inner city population are rural migrant workers andforeign labourers with low urban work skills and knowledge such as shifting of rural poverty to become urban poverty trapped in urban slums. As such, urban regeneration and inner city programmes for the disadvantaged people and deprived areas must be undertaken to expand and improve opportunities for employment, housing, education and leisure.

xii. Changing Demographic Structure and People’s Lifestyles

The changing demographic structure, such as declining fertility of the population, higher proportion of aging people and more new household formation, in the country has significant spatial implications on jobs creation, housing needs and in the provision of social amenities. As people become more educated, their income increase and they have smaller size families. They expect a better standard of life and quality of environment, including a more liveable city, a wide choice of housing locations and housing types, and better amenities and facilities. For example, an increased number of older people implies the need for building more old folks home and geriatric care facilities in the rural areas; and lower labour force means the need to shift from labour-intensive to mechanised industries and activities.

xiii. Scarcity of Future Government’s Financial Resources

In the near future, government financial resources for development are likely to be scarce, particularly for mega-infrastructure facilities and social amenities due to the slow and volatile global economic recovery. Cutbacks in public expenditure are also likely to occur. In addition, it is envisaged that this budgetary constraint will be further aggravated by the people’s higher expectation of spatial quality and diversity, such as better homes and environment. As such, the government has indicated a ceiling of RM180 billion for the total development expenditure under the 10thMP (2011-2015), which is 21.7 percent,lower than 9th MP‘s allocation.

3-8

In view of this, it is imperative to concentrate on the limited resources available for enhancing growth in existing strategic towns in order to maximise the use of existing and committed infrastructure, and to locate new development in areas where facilities can be provided and maintain economically. In addition, it is essential for adjoining states to jointly plan, develop and share the key regional infrastructure facilities, amenities and services, including major seaports, airports, power, water, ICT, waste management and industrial location, which are usually capital-intensive and require economies of scale. “Outcome-based” and “best value” evaluation selection and management approaches for every project need also be adopted.

3.2 Global Setting and Development Trends

3.2.1 World Trade

Between 2000 and 2008, world merchandise trade grew at 12 percent per annum, reaching US$15,775 billion in exports and US$16,120 billion in imports in 2008. Malaysia was ranked 21st among the exporters and 28th among the importers in 2008.

In terms of trade performance, Malaysia occupies the 28th position in the 2009 Enabling Trade Index rankings. Efficient import procedures, a low cost regime for imports and exports, and the quality of transport infrastructure and related transport services all contribute to this good rating.1

The 2008-2009 global economic crises had weakened the demand for goods and services. Economic confidence waned and the trade sector was severely crippled. At the end of 2008 and the beginning of 2009 due to the weaker demand in developed economies, trade flows contracted compounded by a reduction of trade finance and shock from the then rapidly deteriorating economic situation.

World merchandise trade expanded by only 2 percent in 2008 compared to 6 percent in 2007. The growth in 2008 was below the 5.7 percent average attained during the period of 1998-2008.

The first quarter of 2009 saw the worst trade declines in Malaysia’s history, estimated atalmost 25 percent decline.

The decline in trade was reversed in mid-2009. Malaysia External Trade Corporation (MATRADE) reported that Malaysia’s exports grew by 8.4% in July 2009 from June 2009. This was the highest monthly export value ever recorded in the first seven months of 2009, an evidence of the nation's export recovery. Independently, Bank Negara also reported a lower contraction of 3.9 percent in the country's GDP compared with a 6.2 percent decline in the first quarter of 2009. This is mainly influenced by the higher public spending and positive growth in private consumption during the second quarter period. All

1 Source: World economic Forum, “The Global Enabling Trade Report 2009”. The ETI measures the countries’ institutions, policies,

and services facilitating the free flow of goods over borders and to destination.

3-9

major economic sectors also registered improved performance in the supply side for the second quarter of 2009.

3.2.2 International Collaboration

The US financial crisis that started in September 2008 very quickly became a global crisis. Malaysia’s major trading partners were deeply affected. Despite a reasonable growth for the first seven months of 2008, developed economies registered at 0.8 percent growth in 2008 compared with 2.5 percent in 2007. By contrast, developing Asia2 grew at 5.7 percent, led by China, which registered the strongest growth of any major economy. In 2008, world output, measured by real GDP, slowed to 1.7 percent in 2008 from 3.5 percent a year earlier, the lowest levels since 2001.

Realising a potential global economic meltdown, the multi-lateral agencies as in the International Monetary Fund (IMF), World Bank and their regional counterparts, sought cooperation from governments to revitalise their economies through economic stimulus packages. All major developed countries, led by the US, stepped in with emergency funding. In Asia, China and Japan also put in very significant amounts in the same direction.

These international organisations played an important role to persuade governments to coordinate their economic stimulus plans. Without coordinated efforts, the prognosis was a global economic depression.

By mid-2009, the global economic decline had slowed down. Although the economic news was still bad (example unemployment rates were still rising), the sentiment in the stock exchanges around the world had turned from bleak to bullish. Trade declines had also slowed and the prospects of an economic recovery have been better than they were forecasted in the first half of 2009.

Malaysia introduced two stimulus packages valued at about one-third the size of the 9thMP budget as part of the programme to revitalise the economy. The timing of the NPP-2 presented an opportunity to review the recent economic downturn and to reassess the capacity of the Malaysian economy to achieve the economic targets of Vision 2020 and the NEM.

3.2.3 Regional Cooperation

At the regional level, Malaysia continues to support the pace of economic integration of ASEAN and in promoting trade and investment. The sub-regional development is through the triangles growth (IMT-GT, IMS-GT and BIMP-EAGA) to promote economic growth in the less developed areas of the sub-region. The Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) envisions a seamless, progressive, prosperous and peaceful sub-region with improved quality of life, i.e. an ASEAN Economic Community by 2020. To realise this vision, the IMT-GT aims to accelerate private sector-led economic growth; and

2 Developing Asia - excluding Japan, Australia and New Zealand.

3-10

help to facilitate the development of the sub region as a whole. Its objective, as stated in the Roadmap for Development 2007-2011, is to increase intra-IMT-GT and inter-IMT-GT trade and investment.

The Indonesia-Malaysia-Singapore Growth Triangle (IMS-GT) is geared towards increasing competitiveness, integration and growth through comparative advantage, economics of scale and productivity linkages. With two direct road links to Singapore and sea links to Batam, Iskandar Malaysia is in an excellent position to take advantage of the IMS-GT, which allows for international cooperation, human mobility and tourism.

The vision of Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) is the realisation of socially acceptable and sustainable economic development, which leads to the full participation of EAGA in the ASEAN development process. Its immediate goal is to increase trade, investments and tourism in the sub region by facilitating;

i. The free movement of people, goods and services; ii. Development of vital infrastructure in the sub region; and iii. Coordination of the management of ecosystems and common resources to ensure

sustainable development.

3.2.4 Climate Change and Impacts to Malaysia

The Inter-governmental Panel on Climate Change (IPCC) predicts that without further action to reduce greenhouse gas emissions, the global average temperature will rise by a further 1.8 to 4.0 °C in this century3. Global warming is predicted to have serious consequences on humanity, including a rise in sea levels of between 18 and 59 cm, which will endanger coastal areas and small low lying islands, as well as greater frequencies and severity of extreme weather events. Climate change is also likely to impact agriculture, water resources and biodiversity (Table 3.1).

As a Non-Annex 1 Party to the United Nations Framework Convention on Climate Change (UNFCCC), Malaysia’s main obligations include formulating programmes containing measures to mitigate climate change and promote sustainable management, conservation and enhancement of sinks; and preparing for and developing plans for adaptation to impacts of climate change. While an improved understanding of the likely range of climatic conditions and consequent associated impacts is imperative for the formulation of more specific measures, it is widely agreed that early pre-emptive adaptation measures are critical to limit the damage and economic costs of these impacts.

A national framework for combating climate change is in place, headed by the Cabinet Committee on Climate Change chaired by the Prime Minister, a Project Steering Committee and three Working Groups. The National Policy on Climate Change is in thefinal stages of being drafted.

3 IPC. 2007. Climate change 2007: Synthesis Report. Intergovernmental Panel on Climate Change.

3-11

Table 3.1: Predicted Impacts of Climate Change in Malaysia

Sector Impacts

Settlements & infrastructure

Expansion of flood prone areas and increased intensity of flooding.Increased coastal erosion and infrastructure damage in low lying coastal zones.Loss of coastal mangrove belt if sea level rise occurs at a rate of 0.9 cm/year. However, landward migration of the mangrove belt can happen at lower rates of sea level rise, where there is no constraint of hinterland development.Reduced efficiency of tidal gates and downstream drainage control.Increased operational and maintenance costs of electricity producers due to storm surge.For every 1°C rise in the ambient air temperature, gas and hydro turbines will lose about 2% of power output respectively (translated to an estimated annual loss of RM 40 million for a total of 6,600 MW of installed capacity running on gas turbines).

Agriculture Increase of mean annual temperature to 31°C will cause drought conditions to affect 273,000ha (or 15%) of current rubber land, resulting in a crop decrease of 3% to 15%. Perlis, Kedah, Kelantan and Terengganu are likely to be most affected.Increased rainfall will cause rubber yield losses of between 13% and 30%. Kelantan and Terengganu are likely to be most affected. Drought conditions may affect 208,000ha of the present oil palm areas, particularly in parts of Kelantan, Terengganu, Pahang, Johor, Kedah, Perak, Negeri Sembilan and Melaka.Paddy grain yields may decline by 9% to 10% for each 1°C rise in temperature. Prolonged drought conditions are unfavourable to rice production.Sea level rise of 0.9 cm per year would have serious implication on some large agricultural projects such as the Western Johor Agricultural Development Project.Sea level rise could affect coastal aquaculture, in particular aquaculture ponds within riverine mangrove belts. A loss of 20% of mangroves is predicted to result in a RM300 million loss in the prawn industry.Susceptibility of agriculture crops to pest and infestation of diseases may increase due to changes in temperature and rainfall.

Biodiversity Increased risk of forest fires (especially in peat soils) due to prolonged dry spells. Increased risk to natural ecosystems such as coral bleaching. However, the long term impacts on biodiversity and ecosystem services are difficult to predict due to the complexity of ecological processes.Extinction of plant and animal species which are sensitive to changes in the micro-climate.

Water resources

Warm spells may cause increased water demand/ water stress and algal blooms.Saline intrusion into surface and groundwater may decrease freshwater availability, especially in Kelantan and Terengganu.Large storms increase the rate of sedimentation of rivers and reservoirs, loss of soil nutrients and risk of slope failures of riverbanks and hills.

Source: Malaysia’s Initial National Communication to UNFCCC (MOSTI, 2000) and Study of the Impact of Climate Change on the Hydrologic Regimes and Water Resources of Peninsular Malaysia (NAHRIM, 2006)

3-12

3.3 National Setting

3.3.1 National Population Growth

Between 2000 and 2008, Malaysia’s population was estimated to have increased from 23.3 million to 27.7 million, at an annual growth rate of 2.2% per annum.

For Peninsular Malaysia, there has been a slowing of population growth rates from 2.5% per annum between 1991-2000 to 2.2% per annum during the 2000-2010 period; and the future growth rate is expected to decline further at 2.1% per annum between 2000-2020. By the year 2020, it is projected that Peninsular Malaysia will have an estimated 28million people (Table 3.2).

The slowing population growth is similar to other rapid urbanising countries, and is attributable to a declining fertility rate. This decline is due largely to more people staying single longer to further their tertiary education, resulting in fewer or delayed marriages, and having fewer children as they pursue their careers. The rising cost of raising a family may also have contributed to the declining population growth.

i. Regional Population Pattern

With Malaysia’s population estimated at the national level, an important issue is its distribution to regions and states. As population is a critical parameter for planning, it is important to ensure that it is accurately estimated in order to avoid misallocation of public investments and improve the effective utilisation of public resources.

Although the 2020 population forecasts of most State Structure Plans comply with the NPP population targets, a few did not. To meet the aspiration of States, the NPP-2 adopted the population forecasts of State Structure Plans that have adhered to the NPP targets. A population forecast review has been undertaken and adjustments were consulted with the stakeholders concerned.

The strategic population target issue is “What level of population can the state economic structure support?” Job opportunities, affordable housing, conducive living environments, low cost of living, friendly communities and neighbourhoods are the major determinants that influence the level of population. Without employment opportunities in the state, outmigration of the labour force can be expected. Similarly, people will migrate to a state if there are better job opportunities available.

The Central Region is forecasted to have the highest rate of population growth at 2.5% per annum between 2000 and 2020. The high growth rate is due mainly to the inter-state migration where people would move to the Central Region for the reasons mentioned earlier. Table 3.2 shows the population by states for the past three censuses and the forecasted population for 2020. Map 3.1 shows the 2020 estimated population.

3-13

Table 3.2: Estimated Population by States, 2020

State/ RegionPopulation Size % Distribution Annual Population

Growth Rate (%)

1980 1991 20002020(mil)

1980 1991 2000 2020 1980-1991

1991-2000

2000-2020

Perlis 148,276 190,182 204,450 0.26 1.3 1.3 1.1 0.9 2.29 0.81 1.21

Kedah 1,116,140 1,364,504 1,649,756 2.36 9.8 9.2 8.9 8.4 1.84 2.13 1.81

Pulau Pinang 954,638 1,116,801 1,313,449 1.99 8.4 7.5 7.1 7.1 1.44 1.82 2.10

Perak 1,805,198 1,974,893 2,051,236 2.72 15.8 13.3 11.1 9.7 0.82 0.42 1.42

Northern Region 4,024,252 4,646,380 5,218,891 7.33 35.2 31.4 28.2 26.2 1.32 1.30 1.71

Selangor1,515,537 2,413,567 4,188,876

7.0513.3 16.3 22.6

25.24.23 6.32 2.84

W.P. Putrajaya 0.28 1.0

W.P. Kuala Lumpur 977,102 1,226,708 1,379,310 2.20 8.6 8.3 7.4 7.9 2.09 1.31 2.36

Negeri Sembilan 573,578 722,017 859,924 1.17 5 4.9 4.6 4.2 2.11 1.96 1.55

Melaka 464,754 529,199 635,791 0.90 4.1 3.6 3.4 3.2 1.19 2.06 1.75

Central Region 3,530,971 4,891,491 7,063,901 11.60 30.9 33.1 38.1 41.5 3.01 4.17 2.51

Johor 1,638,229 2,162,357 2,740,625 4.18 14.3 14.6 14.8 14.9 2.56 2.67 2.13

Southern Region 1,638,229 2,162,357 2,740,625 4.18 14.3 14.6 14.8 14.9 2.56 2.67 2.13

Pahang 798,782 1,081,148 1,288,376 1.82 7.0 7.3 7.0 6.5 2.79 1.97 1.74

Terengganu 540,626 808,556 898,825 1.28 4.7 5.5 4.9 4.6 3.73 1.18 1.78

Kelantan 893,753 1,207,684 1,313,014 1.75 7.8 8.2 7.1 6.3 2.77 0.93 1.45

Eastern Region 2,233,161 3,097,388 3,500,215 4.85 19.5 20.9 18.9 17.3 3.02 1.37 1.64

Peninsular Malaysia 11,426,613 14,797,616 18,523,632 27.96 100 100 100 100.0 2.38 2.53 2.08

% of Peninsular Malaysia 83.1 80.5 79.6

East Malaysia 2,318,628 3,582,039 4,751,058 16.9 19.5 20.4 4.03 3.19

MALAYSIA 13,745,241 18,379,655 23,274,690 100 100 100 2.68 2.66Source: (1) 1980 & 1991 - General Report of the Population Census, Volume 1 and 2, Census 1991, DOS

(2) 2000 - Population Distribution and Basic Demographic Characteristics, Census 2000, DOS(3) 2020 - National Physical Plan-2, 2010

National Physical Plan-2

3-14

- 2

Source: National Physical Plan-2, 2010

FIGURE 3.4 : POPULATION TARGET BY STATES, 2020

2000 (‘000)

2020 (‘000)

Northern Region

Central Region

Southern Region

Eastern Region

3-15

ii. Urban-Rural Population

The level of population in urban areas will continue to intensify and urbanisation is expected to reach about 75% by the year 2020. The Central Region will be the most urbanised region in the country. It is already the most developed and industrialised region with a concentration of large urban centres in the Klang Valley. The urban population in Peninsular Malaysia would increase by 8.86 million from year 2000 to 2020, expected to reach about 21 million in year 2020.

By year 2020 half of the Eastern Region population would still be located in rural areas (Table 3.3). Kelantan will still have more people in rural areas than in urban areas by year2020. Kedah and Perlis will have almost equal numbers of rural and urban population, whereas the rest of the states will have more urban than rural population. W.P. Kuala Lumpur and W.P. Putrajaya, by definition, do not have any rural population.

Table 3.3: Population (‘000) in Urban and Rural Areas by States, 1991, 2000 and 2020

State/ Region1991 2000 2020

Urban % Rural % Urban % Rural % Urban % Rural %

Perlis 48.8 26.6 135.0 73.4 70.1 34.3 134.4 65.7 104.4 39.8 158.1 60.2

Kedah 423.3 32.5 879.0 64.5 648.0 39.3 1,001.8 60.7 1,118.2 47.3 1,245.7 52.7

Pulau Pinang 798.3 75.0 265.9 25.0 1,052.1 80.1 261.4 19.9 1,711.5 86.0 278.5 14.0

Perak 1,006.8 53.6 870.6 46.4 1,203.9 58.7 847.4 41.3 1,890.5 69.5 829.7 30.5

Northern Region 2,277.2 51.4 2,150.5 45.6 2,974.0 57.0 2,244.9 43.0 4,824.5 65.8 2,512.1 34.2

Selangor1,726.6 75.2 570.6 24.8 3,667.5 87.6 521.4 12.4

6,304.3 89.4 744.8 10.6

W.P. Putrajaya 281.5 100.0 - -

W.P. Kuala Lumpur 1,145.3 100.0 - - 1,379.3 100.0 - - 2,200.0 100.0 - -

Negeri Sembilan 290.8 42.0 402.1 58.0 459.3 53.4 400.7 46.6 697.0 59.8 468.2 40.2

Melaka 196.0 38.7 310.3 61.3 427.3 67.2 208.5 32.8 669.2 74.0 235.1 26.0

Central Region 3,358.7 72.4 1,283.0 27.6 5,933.3 84.0 1,130.6 16.0 10,152.0 87.5 1,448.1 12.5

Johor 989.9 47.8 1,079.8 52.2 1,787.5 65.2 953.1 34.8 3,076.4 73.6 1,103.9 26.4

Southern Region 989.9 47.8 1,079.8 52.2 1,787.5 65.2 953.1 34.8 3,076.4 73.6 1,103.9 26.4

Pahang 317.2 30.4 727.8 69.3 540.9 42.0 747.5 58.0 1,179.6 65.0 635.5 35.0

Terengganu 340.7 44.5 425.6 55.5 437.5 48.7 461.3 51.3 831.9 65.0 448.1 35.0

Kelantan 395.5 33.5 785.8 66.5 448.9 34.2 864.1 65.8 919.5 52.6 829.8 47.4

Eastern Region 1,053.3 35.2 1,939.2 64.8 1,427.2 40.8 2,073.0 59.2 2,931.0 60.5 1,913.4 39.5

Peninsular Malaysia 7,679.1 54.3 6,452.5 45.7 12,122.1 65.4 6,401.5 34.6 20,983.9 75.0 6,977.5 25.0

Source: (1) 1991 - Preliminary Count Report for Urban and Rural Areas, Census 2000, DOS(2) 2000 - Population Distribution and Basic Demographic Characteristics, Census 2000, DOS(3) 2020 –National Physical Plan-2, 2010

National Physical Plan-2

3-16

- 2

Source: National Physical Plan-2, 2010

FIGURE 3.5 : PERCENTAGE OF POPULATION IN URBAN AND RURAL AREAS BY STATES, 2020

Urban

Rural

Northern Region

Central Region

Southern Region

Eastern Region

3-17

3.3.2 Economic Performance

i. Gross Domestic Product (GDP)

The global economic and political problems since 1997 have had a profound impact on the Malaysian economy. By 2010, Peninsular Malaysia’s GDP will reach RM436 billion (in 2000 prices), up from about RM297 billion in 2000. The economic growth of the 9MP was forecasted at 6% p.a., but actual performance is estimated at only 2.7%. Compared to the Vision 2020 target, this is a shortfall of 26%. Between 1991 and 2010, the real economy grew at 5.4% p.a. compared to the Vision 2020 target of 7% p.a.

The government launched two economic stimulus packages in 2008-2009; and announced new economic measures in the second half of 2009 (see section 4.2). To achieve a developed and high income nation status by 2020, the EPU has forecasted an annual average growth rate of GDP at 5.5% for Malaysia between 2010 and 2020. Hence, by 2020, the estimated GDP for Peninsular Malaysia will be RM744 billion in 2000 prices, using the 10thMP economic growth estimates.

The states in the Central Region will grow faster than the country as a whole, while Selangor and W.P. Kuala Lumpur will have the largest GDP by 2020. The east coast states will also grow moderately over this period and will be faster than the country as a whole.

Table 3.4: GDP by Regions, 2000-2020

RegionGDP RM million in 2000 Prices Average Annual Growth

Rate (%)

2000 2005 2010 2015 2020 2000-2005

2000-2010

2000-2020

Northern Region 63,748 80,663 93,300 122,100 159,600 4.8 3.9 4.7

Central Region 146,694 186,738 218,700 285,900 373,600 4.9 4.1 4.8

Southern Region 36,435 46,090 53,000 68,700 89,800 4.8 3.8 4.6

Eastern Region 50,361 65,148 71,000 92,700 121,000 5.3 3.5 4.5

Pen. Malaysia 297,238 378,639 436,000 569,400 744,000 5.0 3.9 4.7Note : GDP at 2000 prices for 2000, 2005 and 2010 are extracted from EPU unpublished data. Beyond 2010, GDP estimates are based on overall growth and the 2010 share, rounded to nearest 100. Economic growth 2010-2020 is estimated at 5.5% p.a.Source : Computed from unpublished state GDP data, EPU and 10MP Circular.

3-18

ii. Sectoral Contributions and Projections

Table 3.5 shows the estimated figures for the projected state GDP by sectoral shares.

Table 3.5: Projected State GDP Sectoral Shares (%), 2000-2020

StatePrimary (%) Secondary (%) Tertiary (%)

2000 2020 2000 2020 2000 2020

Perlis 12.6 4.3 33.3 32.9 54.1 62.8

Kedah 18.3 8.1 22.5 26.2 59.2 65.7

Pulau Pinang 1.0 0.3 45.5 44.5 53.5 55.2

Perak 19.9 7.9 27.3 28.2 52.8 63.9

Selangor 3.2 0.8 59.7 62.6 37.1 36.6

W.P. Kuala Lumpur 0.0 0.0 19.7 13.1 80.3 86.9

Negeri Sembilan 9.8 5.4 42.6 46.2 47.6 48.4

Melaka 4.4 1.5 36.4 34.9 59.2 63.6

Johor 11.9 5.0 40.7 46.5 47.4 48.5

Pahang 21.3 10.4 19.3 22.9 59.4 66.7

Terengganu 56.3 9.5 18.7 39.4 25.0 51.1

Kelantan 16.5 8.1 16.1 12.4 67.4 79.5Note: (1) The shares of economic shares to GDP by states are based on Table 1, unpublished GDP by sectors from EPU

for the period 2001–2010. GDP estimates are not adjusted for bank charges and import duties.(2) Estimates for 2011-2020 are based on trends in sectoral growth for period 2001-2010 and adjusted for implied of sectoral development at national level.(3) Selangor includes W.P. Putrajaya

Source: Unpublished data, EPU 2001-2010

iii. Malaysian Employment

In terms of the labour force and employment scenario, the unemployment rate will remain low for the planning period, estimated at about 3.5%. By 2020, the labour force will have reached 12.4 million and total employment will have reached almost 12 million (Table 3.6).

Table 3.6: Malaysian Labour Force and Employment, 1990 – 2010

1990 1995 2000 2005 2010

AAGR (%)

1990-

1995

1995-

2000

2000-

2005

2005-

2010

Labour Force (‘000) 7,042.0 8,254.0 9,571.6 11,290.5 12,406.8 3.23 3.0 3.4 1.9

Total Employment (‘000) 6,686.0 7,999.2 9,274.6 10,894.8 11,976.0 3.65 3.0 3.3 1.9

Employment-Population Ratio 0.37 0.39 0.39 0.41 0.41 - - - -

Workers-household Ratio 1.43 1.78 1.89 - - - - - -

Unemployment (‘000) 356 254.8 297.0 395.7 430.8 - - - -

Unemployment Rate (%) 5.1 3.1 3.1 3.5 3.5 - - - -Source: 7thMP, 8thMP & 9thMP

3-19

The occupational structure in 2020 would have more knowledge workers related to management,professional and technical expertise. The largest proportional change is expected in the service industry as well as the craft and related retail trade. Occupations expected to decline include plant and machine operators and assembly workers (Table 3.7).

Table 3.7: Malaysian Employment (‘000) by Occupational Groups1,1995, 2000 and 2020

Occupational Group2000 2005 2020

(‘000) % (‘000) % (‘000) %

Senior Officials & Managers2 639.9 6.9 777.4 7.7 1,157.1 8.2

Professionals3 537.9 5.8 555.1 5.5 693.5 4.9

Technicians & Associate Professionals4 1,112.9 12.0 1,266.8 12.6 2,073.1 14.7

Clerical Workers5 890.4 9.6 992.3 9.9 1,354.4 9.6

Service Workers & Shop & Market Sales Workers6 1,205.6 13.0 1,483.7 14.8 3,120.5 22.1

Skilled Agricultural & Fishery Workers7 1,391.2 15.0 1,268.6 12.6 1,199.5 8.5

Craft & Related Trade Workers8 844.0 9.1 1,145.5 11.4 2,153.8 15.3

Plant & Machine Operators & Assemblers9 1,493.2 16.1 1,427.5 14.2 1,145.4 8.1

Elementary Occupations10 1,159.5 12.5 1,128.3 11.2 1,212.9 8.6

Total 9,274.6 100.0 10,045.2 100.0 14,110 100.0Notes: 1 This classification is based on Malaysia Standard Classification of Occupations 1998.

2 Includes general managers, department managers and senior government officials.3 Includes graduate teaching professionals, accountants and auditors and computer system designers and analysts.4 Includes non-graduate teachers, supervisors and engineering and computer support technicians.5 Includes administrative clerks, accounting and finance clerks and telephone operators.6 Includes cooks, travel guides and waiters.7 Includes farm workers, plantation workers and forestry workers.8 Includes mechanics and fitters, carpenters and tailors.9 Includes equipment assemblers, drivers and machine operators.10 Includes street vendors, domestic helpers and cleaners and construction and maintenance labourers.For year 2010-2020 - Estimates based on past trends from 2000-2007.Source: 9th.MP and DOS, Labour Force Survey report Malaysia, 2007.

3.3.3 Land Use Pattern

The land use pattern for Peninsular Malaysia in 2008 was categorised into four major land uses:

Land Use Area (ha.) %

Built-up areas 759,900 5.8

Agriculture 6,268,300 47.5

Forests 5,902,000 44.8

Water Bodies 251,500 1.9

Total Land Area 13,181,700 100Source : GIS data, National Physical Plan-2, 2010

3-20

i. Built-up Areas

Built-up areas are defined in the NPP-2 as areas under predominantly urban use comprising a variety of land uses such as residential, commercial, industrial and institutional uses together with their supporting facilities such as roads, public utilities, open spaces, parks and vacant lands.

Peninsular Malaysia’s existing built-up areas account for 759,900 hectares or 5.8% of the total land area. Out of these, most of the built-up areas are located in the Central Region where the large urban centres of W.P. Kuala Lumpur, Selangor, Port Dickson, Seremban and Melaka are found (Table 3.8 and Figure 3.6). Urban centres are essentially activity nodes and population concentrations.

W.P. Kuala Lumpur and W.P. Putrajaya have the most heavily built-up areas; and out of its total acreage, built-up areas represent about 92.6% and 72.7% respectively. At the other end, Kelantan has only 2.6% classified as built-up.

3-21

Table 3.8: Existing Land Use by States, 2008 (‘000 ha)

State Built-Up % Agriculture % Forest % Water Bodies % TotalPerlis 5.8 7.1 62.2 76.4 11.6 14.3 1.8 2.2 81.4% 0.8 1.0 0.2 0.7 0.6Kedah 52.2 5.5 531.1 56.1 344.7 36.4 18.7 2.0 946.7% 6.9 8.5 5.8 7.4 7.2Pulau Pinang 36.1 34.6 58.0 55.6 7.8 7.5 2.4 2.3 104.3% 4.8 0.9 0.1 1.0 0.8Perak 78.3 3.7 903.1 43.1 1,050.2 50.1 65.0 3.1 2,096.6% 10.3 14.4 17.8 25.8 15.9NORTHERNREGION 172.4 5.3 1,554.4 48.1 1,414.3 43.8 87.9 2.7 3,229.0

% 22.7 24.8 24.0 35.0 24.5Selangor 143.7 18.1 384.0 48.3 247.8 31.1 20.3 2.6 795.8% 18.9 6.1 4.2 8.1 6.0W.P. Putrajaya 3.2 72.7 0.7 15.9 0.0 0.0 0.5 11.4 4.4% 0.4 0.0 0.0 0.2 0.0W.P. KualaLumpur 22.4 92.6 1.2 5.0 0.1 0.4 0.5 2.1 24.2

% 2.9 0.0 0.0 0.2 0.2N. Sembilan 57.1 8.6 446.3 67.1 158.1 23.8 3.9 0.6 665.4% 7.5 7.1 2.7 1.6 5.0Melaka 29.2 17.7 129.5 78.3 5.3 3.2 1.4 0.8 165.4% 3.8 2.1 0.1 0.6 1.3CENTRALREGION 255.6 15.4 961.7 58.1 411.3 24.8 26.6 1.6 1,655.2

% 33.6 15.3 7.0 10.6 12.6Johor 162.4 8.5 1,202.0 63.0 508.5 26.7 34.8 1.8 1,907.7% 21.4 19.2 8.6 13.8 14.5SOUTHERNREGION 162.4 8.5 1,202.0 63.0 508.5 26.7 34.8 1.8 1,907.7

% 21.4 19.2 8.6 13.8 14.5Pahang 80.2 2.2 1,450.5 40.4 2,024.8 56.4 36.8 1.0 3,592.3% 10.6 23.1 34.3 14.6 27.3Terengganu 50.1 3.9 537.9 41.5 656.3 50.7 50.6 3.9 1,294.9% 6.6 8.6 11.1 20.1 9.8Kelantan 39.2 2.6 561.8 37.4 886.8 59.0 14.8 1.0 1,502.6% 5.2 9.0 15.0 5.9 11.4EASTERNREGION 169.5 2.7 2,550.2 39.9 3,567.9 55.8 102.2 1.6 6,389.8

% 22.3 40.7 60.5 40.6 48.5TOTAL 759.9 5.8 6,268.3 47.5 5,902.0 44.8 251.5 1.9 13,181.7% 100 100 100 100 100

Note : The total area of each states might be different with the actual area caused by the slight inaccuracy of GIS data. However, the variation is marginal and acceptable for this macro spatial analysis.

Source : GIS data, National Physical Plan-2, 2010Total forest land is based on data from Forestry Dept., 2008

National Physical Plan-2

3-22

- 2

FIGURE 3.6 : EXISTING LAND USE, 2008

Source: National Physical Plan-2, 2010

Built-up Area

Agriculture

Forest

Water Bodies

Highway

Federal Road

State Road

Railway

State Capital

Major River

3-23

ii. Agriculture

Agricultural areas, especially those surrounding urban centres, are threatened by urban sprawl. With population increase and rapid economic growth, agriculture lands are increasingly encroached and converted to meet the additional housing needs as well as commercial floor space and industrial land demands. Although continuous loss of agriculture land occurs, planned growth must be adopted to ensure that wastage of other valuable agricultural land does not happen or are at least reduced to a minimum.

Identification of Prime Agriculture Areas (PAAs) is important in order to prioritise the agricultural land to be conserved and supported based on existing and potential major food and primary commodities production areas. PAAs identified by NPP-2 that must be conserved are as follows:-

a. Granary areas comprising Muda (MADA), Kemubu (KADA), IADA Kerian-Sungai Manik, IADA Barat Laut Selangor, IADA Pulau Pinang, IADA Seberang Perak, IADA Terengganu Utara (KETARA) and IADA Kemasin-Semerak;

b. Paddy land outside granary areas;c. Agriculture areas designated as “Permanent Food Production Park (PFPP)”;d. Agriculture areas without dry season and with short dry season;e. Agriculture areas on Class 1, Class 2, Class 3 and peat/ organic soils.

In 2006, the overall PAA areas have increased by 18.9% as compared to the Agriculture Land Use Map of 2000. This is mainly due to the increase in oil palm cultivation in the Rank 1 and Rank 2 areas. Oil palm cultivation in Rank 1 areas has increased by 34.9% and those in Rank 2 areas have increased by 40.4%. Agriculture areas identified under Class 1 and Class 2 soil also have increased by 7.64%. However, paddy areas, including granary areas, have decreased by 7.9% from 2000 to 2006.

iii. Forest

According to the statistics from the Forestry Department of Peninsular Malaysia, 5.9 million hectares or 45% of the total land area of Peninsular Malaysia was forested in 2008. Of this, about 4.8 million hectares was forest reserves managed under sustainable forest management, with 2.0 million hectares classified as protection forest and the remaining 2.8 million hectares as production forests.

Forest loss and fragmentation of forest cover is a major issue. While the protected areas are relatively secure, forest reserves are easily de-gazetted into state land forests, and subsequently converted to agriculture. Between 2001 and 2005, over 40,000 hectares of forest reserves were excised in Peninsular Malaysia. In addition, the area within forest reserves planted with rubber, oil palm and other crops jumped from 4,686 hectares in2005 to 38,387 hectares in 2007.

The largest remaining blocks of lowland dipterocarp forests, which are prime habitats for large mammals such as the elephant, tiger, wild ox and rhinoceros, include Taman

3-24

Negara and its surrounding forest reserves, Endau-Rompin National Park, Krau Wildlife Reserve, as well as forest reserves such as Ibam Forest Reserve (Pahang) and Lenggor Forest Reserve (Johor). Most other remaining lowland forests occur in patches, too small or isolated to sustain viable populations of large mammals in the near future.

While significant portions of the two major peat swamp forest complexes in North Selangor and South-east Pahang have been severely degraded or converted for agriculture, there is now a noteworthy effort to sustainably manage and rehabilitate these important carbon sinks.

Forest ecosystems in the coastal zones are probably the most severely threatened due to high development pressure. As a result, only remnants of unique coastal forests remain,such as Gelam Forests on the east coast, coastal hill dipterocarp forests in Terengganu and Perak as well as freshwater swamp forests in the Sedili area of Johor.

iv. Water Bodies

Water bodies, which include major rivers, reservoirs and ponds, account for about 1.9% of Peninsular Malaysia. This category also includes ex-mining ponds which are strongly represented in Perak.

There are relatively small areas ascribed to ‘water bodies’ for Melaka (1.4 ha.), Perlis (1.8 ha.), Pulau Pinang (2.4 ha.) and Negeri Sembilan (3.9 ha.).

Areas attributed to water bodies in Kedah and Selangor at 2.0% and 2.6% of the two states’ area respectively, is a minuscule 18,700 hectares and 20,000 hectares comparedto the 65,000 hectares for Perak and 50,600 hectares for Terengganu.

3.3.4 Existing Settlement Pattern

The existing settlement pattern is a product of the country’s past and present economic and socio-political changes where the various modes of production and transportation have determined the geographical spread of activities, and hence of the people.

Along the development process of Malaysia, changes in the political settings, consumer preferences, lifestyles and technology have resulted in new and evolving economic circumstances. These circumstances bring about changes in the centres of production, urban form and also in settlement patterns. Owing to social factors, reluctance of the people to adjust and the desire for full recovery of the costs of infrastructure and other heavy investments, the changes take its pace slowly.

The emergence of a new economic regime does not necessarily wipe out the settlement pattern generated by a previous regime but rather, in some circumstances, modifies and builds upon it. Changes in the economic regime can, however, occur very rapidly, a process likely to be enhanced with the rapid spread and adoption of technology. This

3-25

process has and is likely to continue to impact upon the present settlement pattern in Peninsular Malaysia.

The present pattern for the Peninsular includes a dominant zone of relatively well-developed cities and towns, plantations and commercial farms along the West Coast from the foothills of the central mountain range to the coast. The larger cities and towns are mainly engaged in manufacturing and the provision of services. The smaller towns provide local retail services and government-sponsored services to the public, with scattered incidences of manufacturing. However, there remain pockets of subsistence farming within this zone as well as a concentration of such subsistence farming within the northern periphery of the zone in eastern Kedah and in Perlis.

To the east of the main Mountain Range, there is no clear zone of development and human settlements. The population centres are generally scattered but with concentrations in the Kelantan delta, the Terengganu estuary area and the western foothills of Pahang, along the East Coast and along the rivers. Most of the settlements still engage in semi subsistence farming. Within the same area are also the more recenthuman settlements from the previous Regional Development Authorities of southern Kelantan (KESEDAR), central Terengganu (KETENGAH), JENGKA, south-east Pahang (DARA) and south-east Johor (KEJORA).

Industrial activities have penetrated into Kuantan, Southern Terengganu and Central Pahang. Tourism has also become important to the coastal zone and offshore islands. However, the East coast of the Peninsular is generally less well developed than its western half.

A system of roads, rails, ports and airports supports the settlement pattern of the country.Generally, however, the communication and transportation network is better developed on the West Coast than on the East Coast. A highway (North-South Expressway) runs the length of the West Coast while another highway (East Coast Expressway) to the East Coast is now a reality. A railway also runs the length of the West Coast, while the railway on the East Coast runs only half its length and through the middle of the country rather than along the coast. The three major ports (that are Port Klang, Port of Tanjung Pelepas and Penang Port) and Kuala Lumpur International Airport (KLIA) are located on the West Coast. The infrastructure system reflects the economic dominance of the West Coast.

Over the past few decades, Peninsular Malaysia has been experiencing rapid urbanisation with the proportion of the Peninsular’s population living in urban areas increasing from 26.7% in 1970 to 65.4% in year 2000. Not only has the population shifted towards urban areas but the urban population itself has also become more concentrated into a small number of conurbations, namely the towns and urban areas around Kuala Lumpur, George Town and Johor Bahru. These three conurbations account for almost 54% of the Peninsular’s population and likely to increase to 75% by year 2020.

Urbanisation is characterised not only by rural-urban migration but also in-migration to the conurbations resulting a vast decrease in the population economies of the villages and

3-26

rural areas. Although most villages retain their older residents, remote villages are likely to atrophy and disappear. With a few notable exceptions, major and minor urban centres outside the conurbations are also losing their share of the urban population in favour of the conurbations.

The settlement pattern as envisaged in the National Urbanization Policy is as follows:

i. National Growth Conurbation: Kuala Lumpur Conurbation

The Kuala Lumpur Conurbation, which encompasses Kuala Lumpur, Putrajaya, Shah Alam, Klang, Nilai and Seremban, is proposed as the National Growth Conurbation. Effectively, the Kuala Lumpur Conurbation stretches from Kuala Selangor in the north to Port Dickson in the south. The Kuala Lumpur Conurbation is to provide for a potential population of 10.37 million or 37% of the Peninsular Malaysia population by year 2020.

A major issue for the Kuala Lumpur Conurbation is the need for further in-depth studies to address the need for creating and sharing of more space, particularly mixed-uses and higher density in previously developed areas as well as a mass rapid transit system in view of environmental aspects and implications on the quality of life within the conurbation. This review should also establish zones of green lungs to provide for identity of communities as well as regional recreational space.

ii. Regional Growth Conurbation

The strengthening of the Regional Growth Conurbations is aimed to spread effectively the opportunities in realising a more balanced social, economic and physical development across Peninsular Malaysia. At the same time, this is intended to counterbalance the tendency of over-concentration of economic activities and people in Kuala Lumpur Conurbation. Regional Growth Conurbations are of city-region spatial scale where the core urban areas draw people for work and services, such as shopping and leisure. To drive the development of the surrounding regions, the areas must be of sufficient size and critical mass. In this respect, the economic performance of the city-region will improve significantly through stronger functional linkages in the supply chain and agglomeration economies. In addition, the Regional Growth Conurbations, like Kuantan, will link out to the wider regional hinterland in ECER, to catalyst and support the development of the smaller towns, villages and rural areas.

National Physical Plan-2

3-27

- 2

FIGURE 3.7 : URBAN HIERARCHY LINKAGES

Source: National Physical Plan-2, 2010

National Growth Conurbation

Regional Growth Conurbation

Sub-regional Growth Conurbation

State Growth Conurbation

District Growth Conurbation

Major Trasportation Linkages

3-28

The Regional Growth Conurbations are as follows:

Northern Region – George Town Conurbation

This is an area which is based in Pulau Pinang and the adjacent areas of southern Kedah and northern Perak. This conurbation has been referred to as the George Town Conurbation for the Northern Region.

In the case of George Town Conurbation, the proposed conurbation area will extend into three states, namely: Pulau Pinang, southern Kedah, and northern Perak. The George Town Conurbation is expected to provide a support population of about 2.4 million by year 2020.

Southern Region – Johor Bahru Conurbation

The Johor Bahru Conurbation is expected to provide for a population of 2.4 million by 2020. The area is envisaged to cover the southern part of the state stretching from Tanjung Pelepas in the west to Pasir Gudang in the east.

Eastern Region – Kuantan Conurbation

The strategic location, infrastructural facilities and comparative advantage has warranted Kuantan as a Regional Growth Conurbation, although on size alone it functions at a lower level. It is expected the Kuantan Conurbation extending into southern Terengganu will emerge with a population of about 1.4 million by year 2020; and will function as a focus point for the East Coast growth.

iii. Sub-Regional Growth Conurbations

Ipoh and Melaka will play the role as Sub-Regional Growth Conurbations to support the Regional Growth Conurbations. In the post-2020 period subject to development of high-speed rail connections, Melaka could potentially represent a southern growth (connective) conurbation to the Kuala Lumpur Conurbation.

iv. State Growth Conurbations

The remaining state capitals, namely: Kota Bahru, Alor Setar, Kuala Terengganu and Kangar perform the next layer of the hierarchical functions of central importance. They functions as the main administrative, commercial, financial, social and cultural centre serving the whole state. However, many state capitals are not likely to grow economically in the current fierce global competitive climate.

3-29

v. District Growth Conurbations

Within the Peninsular context, there exist a number of distinct lower order conurbations which are manufacturing and service centres in their own right. These conurbations cater not only to the international markets but also to local rural areas. Examples of these well-established towns are Muar-Batu Pahat-Kluang Conurbation and the emerging centres of Temerloh Conurbation and the Lumut-Setiawan-Manjung Conurbation.

vi. Major and Minor Settlement Centres

Towns between 10,001 to 100,000 populations are classified as Major and Minor Settlement Centres. Some of the these settlement centres except for those towns located within the spheres of influence of the conurbation and special features towns like Temerloh-Mentakab, Lumut-Sitiawan-Manjung or bigger towns like Muar-Batu Pahat-Kluang are diminishing. This is a result of the impact of the changing structure of the Malaysian economy.

Major and Minor Settlement Centres which are also known as Small and Intermediate towns had developed based on trade with and services to their hinterlands, including administrative services. The hinterland economies which are mainly based on agriculturehowever, have not expanded. Either such towns industrialise like those within the sphere of influence of the conurbations, or expand their economies based on a special feature, their growth will remain constrained. At the same time, due to rising incomes in the major urban centers, these smaller towns are faced with the pressure of out-migration of the younger population. The result is generally a population decline, although the total economies of the towns may not decline.

The process of decline is likely to be slow as the older generation of shopkeepers will cling on to their businesses in spite of the continuous marginalisation that they face. But their children would be unlikely to continue their businesses and are more likely to migrate out, contributing to the out flow of population into the conurbations.

On the other hand, major and minor settlement centres that are located within the expansion sphere of the conurbations are likely to be absorbed and become satellite towns or suburbs to the main metropolis of the conurbation. They are likely to experience very rapid population growth and dramatic changes in their employment base. In the last decade, several towns, such as Nilai, Rawang, Balakong, Senai and Ulu Tiram have gone through this experience. As transportation facilities such as highways and fast train connections from the conurbations extend further out, more major and minor settlement centres will benefit from development expansion from the urban cores.

Artificial injection of investments into those towns that are declining does not make for economic efficiency. Government policies should not aim at stemming the demographic changes but in helping the major and minor settlement centres become small prosperous places. They are still needed by the rural population even if the rural areas can only sustain a limited trading population. Entrepreneurs from these towns should provide the

3-30

linkage between the urbanised economy of the cities and the rural areas. They should be supported in their agricultural, service and other enterprises. Educational and training programmes to help prepare the younger population to migrate and integrate into the urban economy must be encouraged.

vii. Rural Growth Centres

Rural Growth Centres (RGC) and rural settlements are areas whose settlements have with a population of less than 10,000 people. RGCs are key central villages that could conveniently serve a rural hinterland made up of several rural settlements. They are provided with basic social facilities and local services to serve the surrounding settlements. These settlements include traditional villages, new villages outside urban areas, fishing villages, agricultural estates settlements, Orang Asli settlements, FELDAand FELCRA settlements. At present, rural settlements are nested with the category of land identified as ‘agriculture’.

The main source of income for these settlements is farming, mainly the cultivation of oil palm, rubber, paddy and fruits orchards. Vegetable farming are carried out at specific locations such as Cameron Highlands, Lojing, Johor Bharu, Muar, Batu Pahat, Tumpat and Sepang; while other crops such as field crops, spices and herbs are grown in small areas. To supplement their income, they also rear livestock and aquaculture production. For the fishermen, most are involved in coastal fishing.

In the process of urbanisation and rural out-migration, many of the rural settlements are likely to become depopulated and are no longer economically viable. It may become necessary to consolidate the rural population at the RGCs, which will also make it possible for the services provided to be improved and enhanced. Rural services especially education and health should be re-examined to match them with the emergent new structure of the rural population.

The biggest issue or challenge in the rural settlements is relatively low income of the rural population which is mainly dependent on farm income. The main reason for this is that the size of agricultural land owned or worked by each farmer is too small to enable them to earn a decent income. Even the FELDA farmers who are considered to be the best example of farmers with good income only has 3.2 hectares of land per family, while RISDA reported that the average holdings for small holders is 2.3 hectares Many farmers in the traditional villages only work on farms with less than 2 hectares of land.

Development StrategyCHAPTER 4

NATIONAL PHYSICAL PLAN

4-1

CHAPTER 4

DEVELOPMENT STRATEGY

The development strategy has an important bearing on the economic performance and the quality of life in Peninsular Malaysia. The preferred development strategy in Peninsular Malaysia seeks to make the country an attractive place to live, work, play, invest, do business, and visit. To achieve this, adequate and suitable land to support business initiatives, sustain economic growth and provide key enabling infrastructure and utilities must be allocated. At the same time, liveability must be enhanced, urban regeneration facilitated, the environment protected and natural resources used prudently.

It is anticipated that around 75% of the total population in Peninsular Malaysia will be living in the urban areas in 2020. In this respect, provision will be made for accommodating approximately 4.7 million additional people between 2010 and 2020. Approximately 1.92 million new jobs, mostly in the tertiary services will need to be created over the next 10 years to support the increasing proportion of people in the working age group, the likely reduction of jobs in the agriculture sector and some labour-intensive including low value-added manufacturing industries. All in all, it is estimated that about 200,000 hectares of urban land will be required to meet the future development needs of Peninsular Malaysia over the next 10 years. In determining the preferred strategy, the major global and national issues, opportunities and needs have been taken into account which will provide the main basis for the formulation of the national spatial policies.

4.1 Conceptual Development Strategy

The development strategy from NPP (2005) was revised and fine-tuned to provide a geographical expression and proactive spatial responses to changing circumstances including the international conventions commitment such as biodiversity and climate change. The prevailing global economic slowdown, government public expenditure cutback, the 1Malaysia and high-income concept, regional growth corridors and other national strategic development thrust , such as the OPP3, the 9th MP, the National Urbanisation Policy (NUP), IMP3, NAP3 including forestry, tourism, environment conservation and biodiversity, transportation, energy and green technology was also reviewed and analysed.

To realise the national socio-economic objectives for global competitiveness, national unity, sustainable development and high quality of life, the spatial expression of these national sectoral policies and strategies requires the country:-

i. To rationalise and consolidate the national spatial planning framework supported by key strategic infrastructure;

ii. To achieve a high–income economy;iii. To promote more balanced regional development;

4-2

iv. To optimise utilisation of land and natural resources;v. To secure spatial and environmental quality and diversity; andvi. To facilitate integrated inter-state connectivity and social integration.

NPP (2005)’s spatial policies and development proposals was based on a “Selective Concentration Development Strategy” which is essentially a spatial planning response to deal with the intense competition arising from the increasingly economic globalisation and trade liberalisation. More importantly, the pre-requisite was to generate a high level of sustainable growth, particularly through rapid industrialisation, in achieving Vision 2020. In this connection, specific development focus is directed towards three distinct geographic areassuch as such as West Coast, East Coast and the Central Highlands, each exhibiting relatively similar characteristics, issues and development potentials.

The development strategy for the West Coast Region is to facilitate urban and industrial expansion and to ensure the optimal use of infrastructure, thus concentrating development in the three priority growth conurbations of Kuala Lumpur, George Town and Johor Bahru. Key strategic infrastructures in designated international gateways and national hubs, such as high-speed broadband ICT network, expressways, seaports and airports, will be developed to support high value–added economic growth in each of the main conurbations. The private sector, particularly direct foreign investment, will spearhead this high accelerated growth.

The focus for the East Coast will be in the Kuantan Conurbation for industrial and service sector development, whereas development initiatives in Kota Bahru will concentrate on cross-border trade with Thailand. The tourism potential of the Region will also be fully exploited and greatly enhanced with the population participating actively in the modern economy through education and social development programmes. There is of course the immense potential for positioning Kuala Terengganu as the international tourism gateway for the East Coast Region in view of the vast and varied tourism products available in the state, and the upgrading of the airport to an international status.

The development focus for the Central Highlands is to establish and protect a contiguous Central Forest Spine through the integration of forest reserves for biodiversity conservation, limit and control unsustainable urban and agriculture expansion, and enhance the tourism potential of the highlands.

In line with economic structure transformation of the nation to a high-income tertiary-based economy and promotion of the 1Malaysia concept, the national spatial structure needs to be rationalised and realigned accordingly to facilitate the attainment of a high sustainable economic growth and strong social cohesion. In this respect, the NPP (2005)development strategy was further built upon and strengthened by introducing an additional dimension of Concentrated Decentralisation in Development Corridors.The Development Corridor concept was introduced in recognition of the current market-driven development trends, the importance of efficient accessibility for the country highly export-dependent economy, and the need to optimise the use of the existing and

4-3

committed infrastructure and urban services in the strategic urban centres in the light of likely financial constraint for new capital-intensive infrastructure provision.

The main thrust of the revised development strategy is to concentrate the nation’s scarce resources to a few priority urban centres with the greatest growth potential for job creation along the key economic corridors such as Bentong and Temerloh-Mentakab while protecting the rural areas and natural environment. Spreading the limited resources thinly all over the country will result in ineffective outcomes and detrimental environment impacts. Future new urban development and regeneration will be focussed largely in selected urban conurbations and key strategic urban nodes within the growth corridors to avoid urban sprawl, to preserve the villages and rural areas and to accelerate development in less-developed regions. As the main engines of growth, these selected urban centres will generate spin-offs to catalyse the development of their surrounding fledgling hinterlands, thus strengthening the urban-rural functional linkages and economic synergies. As such, the government will endeavour to support the growth of the selected strategic urban centres through implementing high-impact flagship project initiatives and key infrastructure facilities. Some examples of the initiatives are Agriculture Collection, Processing and Packaging Centre and Halal Industrial Park.

These Development Corridors will be promoted and developed as “Main Development Corridors” and “Sub-Development Corridors” to serve different supply / producer chain functions and markets. The main development corridors are characterised by conurbations and key urban nodes linked by expressways and proposed high-speed train, and served by major ports and airports. As international gateways and core economic zones, major high technology-driven and knowledge-based initiatives and enterprises, such as multimedia activities, biotechnology research, creative industries and specialised market tourism development like MICE, will be promoted and supported to serve niche national and specific export markets.

Sub-Development Corridors are important regional corridors to spread development and improve the quality of life throughout the country, especially in economically lagging regions. They involve primarily strategic small and medium-sized towns, including special feature towns. Sub-Development Corridors will be served by highways which provide easy connectivity between the conurbations and large towns with surrounding villages and rural areas. They function essentially as local service centres, job centres, supply and marketing gateways for exploiting and accessing the ecotourism and agricultural resources in the interior hinterland (Table 4.1 and Figure 4.1).

4-4

Table 4.1: Main Development Corridors and Sub Development Corridors.

Development Corridors Key Physical Characteristics Focal Development Initiatives

Main Development Corridors

1. North-South Corridor This corridor, which stretches from Kangar in the north to Johor Bahru in the south (875km), is the most developed growth corridor in the Peninsular. It is also the most urbanised part of the country with most of the major towns and the capital cities located in this corridor.

Focus Growth SectorsUrban development, industrial development, knowledge-based sectors, services sector, agriculture:

Core Industrial Belt. Most of the knowledge-based clusters including Education Hubs. Important Food Belt with four of the main granary areas. Supported by a Regional Rail, North-South Expressway and three major ports (Penang, Port Klang and Tg.Pelepas) and major international airports (KLIA, Penang, Langkawi and Senai).

Conurbation Plans for the conurbations of Kuala Lumpur, George Town and Johor Bahru. Manage urban growth to prevent urban sprawl through sustainable growth management strategies. Promote and support high-tech and knowledge-based economy.Planned Industrial Belt for high value-added industrial cluster development. High Speed Rail to reinforce corridor. New Coastal Highway to supplement the North-South Expressway.

2. East Coast Corridor This corridor stretches from Kota Bahru in the north to Johor Bahru in the south, a distance of 689km.

Focus Growth SectorsTourism, oil, gas and petrochemical, industrial clusters, knowledge-based sectors, agriculture:

Potential to be the principal mainland coastal and island tourism destination.Oil, Gas and Petrochemical Hub. Resource and agro-based industrial cluster development in selected nodes.

Mainland coastal tourism focused in Desaru, Rompin, Mersing, Kuala Pahang, Kuantan, Dungun, Besut, Merang and Tumpat.Development of industrial clusters in selected nodes in the conurbation of Kuantan, Kuala Terengganu and Kota Bahru.Establishment of a SEZ to spearhead regional development.Development of Petrochemical Hubs in Kertih and Gebeng.Development of Education Hubs including universities and centres of higher learning (UMP, UMT and UMK).New Road Expressway (LPT2 and LPT3 to the north).High Speed Rail link from Kuantan to Kota Bahru in the north

3. Central East-West Corridor

This corridor stretches from Kuala Lumpur to Kuantan in the East Coast (260km) and is the main east-west growth corridor.

Focus Economic SectorsIndustrial clusters, agriculture, tourism development:

Important secondary industrial corridor. Major conduit to spread development to the East Coast. Potential logistics link between Asia-Pacific countries and countries in West and South Asia.

Focussed industrial cluster development in selected nodes and industrial spill-over from the Klang Valley especially in Bentong. Establishment of a SEZ in the Kuantan Conurbation.High speed rail network. Development of District Conurbation in Temerloh-Mentakab.Controlled Development of the Genting- Bukit Tinggi- Janda Baik SMA.

4-5

Development Corridors Key Physical Characteristics Focal Development InitiativesEntertainment City of Genting Highlands.Supported by the Federal Road 2 and the East Coast Highway 1 (LPT1).

Sub-Development Corridors

4. North-South Sub-Corridor

This sub-corridor extends from Kota Bahru in the north to Segamat in the south (584km).

Focus Economic SectorsAgriculture, tourism, industrial cluster development (especially resource- andagro-based industry):

Provides gateway towns and connectivity to the main ecotourism destinations (Taman Negara and the Main Range).Important agriculture zone especially for fruits, crops, herbal biotechnology centres and highland agriculture. Connectivity to focal poverty areas of western Pahang and south Kelantan. Supported by Central Spine Link (FR 8 and FR 9) and a railway line.

Primary Ecological Link (PL1) has been identified at Sg. Yu (north ofKuala Lipis) for wildlife crossing especially for tigers and elephants. New major highway proposed under the HNDP2 (Highway Network Development Plan 2) to link Segamat to Gua Musang (a need for animal viaducts within the ecological links identified in this Corridor).The Special management Areas (SMAs) involving Camerons-Lojing-Kinta Highlands, Bukit Frasers, and the Genting-Bukit Tinggi-Janda Baik will be the focus of highland tourism and agriculture.Key towns identified for focussed investment in ecotourism, livestock, herbal parks, and crops under the ECER Master plan will include Kuala Krai, Tanah Merah, Gua Musang, Kuala Lipis, Bentong, Raub and Temerloh-Mentakab.

5. East West Sub-Corridor

Stretches from Pulau Pinang to Kota Bahru (386km).

Focus Economic SectorsTourism, cross border trade:

Important road link for the Trans National border towns.Direct road link from Kota Bahru to Penang.Developed primarily as security corridor to combat insurgencies. Important ecological habitat and

wildlife reserves including the Royal Belum State Park, Temenggor Forest Reserve and ecotourism destinations at Pulau Banding.

A Primary Ecological Link (PL2) has been identified from Gerik to Jeli (aneed for animal viaducts especially for elephants in selected locations and a stay on agriculture development along this corridor).Major highway link from Penang-Kulim-Pengkalan Hulu-Gerik-Jeli-Rantau Panjang under the HNDP2.Integrated Cross-Border Development Initiatives involving Pengkalan Hulu, Bukit Bunga, Rantau Panjang, Pengkalan Kubur and the corresponding Thai Towns.

6. Lumut-Gua Musang-Kuala Terengganu Sub-Corridor

Stretches from Lumut-Ipoh-Cameron-Gua Musang-Kuala Terengganu (586 km).

Focus Economic SectorsIndustrial cluster, tourism:

Lumut-Sitiawan-ManjungConurbation.Important industrial local corridor (Lumut-Ipoh).Important highland eco-tourism corridor (Ipoh-Tasik Kenyir).Lumut Naval BaseSri Iskandar New TownPETRONAS University

Two Primary Ecological Links have been identified in this corridor.Key initiatives relating to highland agriculture and township development have been identified at Lojing, GuaMusang (crops, livestock, herbs) and Tasik Kenyir (tourism) under the ECER Master plan.

4-6

Development Corridors Key Physical Characteristics Focal Development Initiatives

7. Kuantan-Muar Sub-Corridor

Important sub-corridor connecting Muar-Segamat-Muadzam Shah-Kuantan (336km).

Focus Economic SectorsAgriculture, tourism, cluster industrial development:

Agriculture development for oil palm, crops and livestock.Connectivity to Ramsar site of Lake Chini and Tasik Bera and the Endau-Rompin National Park. Inland Port at Segamat. Supported by Federal Route 12.

Potential to be developed as an important Agriculture Belt in the country.Development of a new major highway linking the towns of Kuantan-Muadzam Shah-Segamat-Muar under the HNDP2.

National Physical Plan-2

4-7

- 2

Source: National Physical Plan-2, 2010

FIGURE 4.1 : ‘CONCENTRATED DECENTRALISATION’ DEVELOPMENT STRATEGY

State Growth Conurbation

District Growth Conurbation

National Growth Conurbation

Regional Growth Conurbation

Sub-Regional Growth ConurbationMajor Port

ICT Hubs

Forest Spine

National Park

Special Tourism Zone

Special Management Area (SMA)

Main Development Corridors1. North-South Corridor2. East Coast Corridor3. Central East-West Corridor

Sub-Development Corridors4. North-South Sub-Corridor5. East West Sub-Corridor6. Lumut-Gua Musang-Kuala

Terengganu7. Kuantan-Muar Sub-Corridor

Development Corridors

4-8

4.2 National Positioning and Future Economic Growth

Malaysia is closely integrated with the global economy, with the value of trade (exports and imports) of goods and services being equivalent to twice the GDP. Export-oriented industries contracted 24.7% in the beginning of 2009 as a result of the global financial crisis and weakening global demand. Negative growth was recorded in major sub-sectors, particularly in E&E, wood products, textiles and rubber products. The domestic-oriented industries also contracted by 18.7% in January 2009 mainly due to the decline in construction-related industries.

There has been a steady recovery in trade since the first half of 2009. Between January and July 2009, exports have grown at an average of 5.4% month on month, and total trade has grown by 6.6%. The worst month was probably January 2009 where trade was almost 30% below its previous year level.

The total FDI in Malaysia over the period for the year 2003-2008 was RM146.4 billion for the approved investments in the manufacturing sectors. FDI started to shift away from Malaysia some 15 years ago; and the trend is continuing as other developing countries compete to give more incentives.

Table 4.2 shows Malaysia’s position in the global competitiveness ranking based on the World Competitiveness Scoreboard Ranking.1 The global competitiveness index ranking for Malaysia improved from 30th place in year 2000 to 21st place in 2008 amongst 134 economies ahead of several developed economies. Malaysia’s ranking however fell 3 places to 24th position in year 2009. In terms of the competitiveness scoreboard ranking, Malaysia has become more competitive over the past 9 years becoming 18th position in 2009 as compared to 27th position in 2000. Its ranking also improved to 10th place in year2010 and has overtaken several developed countries including Netherlands (12th place), Denmark (13th place) Britain (22nd place), Thailand (26th place) and is even more competitive than South Korea (23rd place). The top three pole positions are held by Singapore (1st place), Hong Kong (2nd place) and the United States of America (3rd place). To remain competitive, the country needs to strive and maintain this achievement by continuing to implement policies, processes and procedures that are transparent and streamlined that can reduce the cost of doing business.

Table 4.2: Malaysia Ranking of Global Competitiveness

Malaysia 2000 2005 2008 2009

Global Competitiveness Index rankings1 30 24 21 24

World Competitiveness Scoreboard Ranking2 27 28 19 18Source: 1. Various Issues of Global Competitiveness Report.

2. IMD World Competitiveness Yearbook.

1 The World Economic Forum: Global Competitiveness Report discusses the microeconomic and macroeconomic foundations of national competitiveness.

4-9

The key economic issues in the next five years that will influence significantly Malaysia’s economic planning are:

i. The global economic recovery and its impact on trade; ii. The need to restructure the policy environment to remain competitive, and continue to

attract investments; and iii. The measures and actions needed to ensure that development reaches those in

need, and maximise the potential for reaching the goals of Vision 2020.

Recognising the limits to the current policies, the Prime Minister announced the New Economic Model which is expected to raise the productivity of workers through innovation and knowledge in year 2009. This will hopefully result in higher incomes. Similarly, there will be a greater emphasis on domestic consumption.

In June 2009, the government liberalised foreign investments in major sectors. Foreign investment regulations were relaxed, while 27 service sectors were liberalised from Bumiputera (indigenous) ownership requirements, as a means to improve its investment climate. In this aspect, the Government has set up a private equity firm whose mandate is to help to develop Bumiputera entrepreneurs.

These strategies have been detailed out in the Tenth Malaysia Plan (10th MP) and five (5) National Mission Thrust (KRAs) were announced. The 10th MP strategies are expected to raise GNI per capita of RM38,845 in year 2015, which puts Malaysia on track to become a developed nation. The private sector will have a very important role to play in the NewEconomic Model.

With these strategies, the Economic Planning Unit (EPU) has forecasted that the GDP will grow at 6.0% p.a. for the 10th MP period. Given these trends, Peninsular Malaysia’s GDP will reach about RM740.3 billion in 2020.

The IMP3 (2006-2020), aims to drive industrialisation to a higher level of global competitiveness with an integrated approach towards industrial and economic development. The IMP3 places significant emphasis on transformation and innovation of the manufacturing and services sectors. The IMP3 strategy has moved beyond manufacturing cluster-based strategy to include other sectors such as services, SMEs, and etc. The IMP3 implementation plan has a regional component which seeks to balance out the potential inequity in outcomes. Malaysia is also shifting towards the services sector in order to stay ahead of the competition. Skilled workforce is needed to support the shift. English is also an advantage in moving up the services sector. As such, the development strategy and framework of the NPP-2 has undergone a spatial makeover to integrate closely with the holistic manufacturing-services development strategy adopted by the IMP3.

4-10

4.2.1 Malaysia as a High Income Economy

The Government’s assessment of the current Malaysian economy is that it is in a middle income trap, which means that it is squeezed between low wage manufacturers which are experiencing slow growth, and the high skilled economies which Malaysia are hard pressed to generate new growth drivers as efficiency gains are over. The current GDP per capita for Malaysia is estimated at USD$6,970 in year 2008 (refer to Table 4.3) which puts the country in the upper middle income bracket. This situation has come about because other developing countries are also using the same strategies as Malaysia, and they have comparative advantage in low wages or natural resources availability. The Government has announced that they want to move toward a high income economy. In this regard, it has tried to devise new strategies in new service sector areas, pursue knowledge-based development strategies, encourage and support innovation and ideas driven by talents in many economic sectors. This plan and strategy is supported by a change in policies to support activities that create greater value added, generate new sources of economic growth, and leverage knowledge based activities in traditional such as economic sectors. Thus, the Government continues to build knowledge and skills in its workforce, attract foreign investment that bring in new technology or new markets, and support local firms that pursue innovation-based strategies. The IMP3 strategy seeks to transform Malaysian industries into globally competitive firms. Malaysia has initiated the Multimedia Super Corridor (MSC) and Biotechnology-Valley developments in order to spearhead this direction. Vision 2020 articulates this strategy; and has been translated into sectoral policies. The NEM released in April 2010 has provided a strategic direction for Malaysia to escape the middle income trap.

Table 4.3: Income Group for ASEAN Countries

INCOME GROUPS GNI PER CAPITA (USD$) ASEAN COUNTRIES

High Income > 11,906 Brunei, Singapore

Upper Middle Income 3,856 – 11,905 Malaysia (USD$6,970 - 2008)

Low Middle Income 976 - 3,855 Indonesia, Philippines, Thailand

Low Income < 975 Cambodia, Laos, Myanmar, Vietnam

Source: World Bank, 2009

All these strategies are intended to give Malaysia a fillip to its economic growth. The intended outcome is to propel Malaysia to become a developed nation with a high level of income. A high income nation is estimated to have an annual income of US$13,426 per capita by 2020 (RM46,991 at conversion rate of US$1 = RM3.50). To reach this level of growth, the economy would have to grow at a much higher rate. Table 4.4 below shows that the conservative per capita GDP (2000 prices) is estimated at RM27,000 by 2020 for Peninsular Malaysia which is in the upper middle income range. It is imperative therefore,that the objectives of the NEM and its roll out strategies are effectively implemented by the government to achieve the target of USD15,000 per capita by 2020.

4-11

Table 4.4 : Estimated Per Capita GDP Growth for Malaysia, 2020

RegionPer capita GDP (RM) in 2000 Prices Average Annual Growth (%)

2000 2010 2020 2000-2010 2010-2020

Northern Region 12,215 14,714 21,774 1.9 4.0

Central Region 20,767 24,883 32,887 1.8 2.8

Southern Region 13,294 15,322 21,483 1.4 3.4

Eastern Region 14,388 16,133 25,156 1.2 4.5

Pen. Malaysia 16,046 18,965 26,879 1.7 3.5

Malaysia 15,170 17,762 24,898 1.6 3.4Source: Computed from unpublished state GDP data, EPU and MP circular

4.3 Urbanisation

In the last several decades, Malaysia has been experiencing accelerated urbanisation as a result of the structural economic change from heavily dependent on mining and plantation agriculture to manufacturing and services. There has, however, not only been rapid urbanisation but also, in the census decade 1991-2000, a less obvious but highly significant trend in urban development. There is the centripetal concentration of the urban population in a small number of city-regions, namely the conurbations around Kuala Lumpur, George Town and Johor Bahru.

Malaysia possesses a strong urban hierarchy which has been developed since the early 19th century. This hierarchy continues to provide a sustainable geographical base for further industrialisation and economic modernisation of the country. Today, a pattern of polycentric interdependent urban centres has emerged, with the Kuala Lumpur conurbation being the ‘advanced’ city supported by the George Town, Johor Bahru and Kuantan conurbations (Figure 4.1). To avoid the Kuala Lumpur conurbation emerging asa single overwhelming primate city, pre-emptive actions should be taken to forestall any further concentration of population and productive capacity into one single super conurbation.

The NPP-2 recognises that these trends are part of the international processes associated with globalisation and transformation into the K-economy. These processes, in combination with the nation’s desire to achieve a high income economy, suggest that the present trend for urban development to concentrate in the larger centres for higher efficiency and high value-added growth sometimes at the expense, but not at the exclusion, of rural areas and the smaller urban settlements will continue. At a macroeconomic level, given the present stage of economic growth, enhanced economic performance, particularly high technology and knowledge-based services, will also continue to require that development generally be focused on core centres rather than be spread thinly over a broad but relatively underdeveloped economic landscape.

4-12

All evidences indicate towards a more rapid growth of urban areas in the future, and a concentration of this growth on existing large urban centres of activities. As such, most of the urban population is anticipated to be living and working in the four major conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan. The four growth conurbations are seen as the main engines of growth to generate the required jobs and enhanced high income, thus ensuring quality of life for all in living areas. The conurbations are expected to contain almost 70% of the urban population of the Peninsular by 2020.

It should be noted that a special case is made of the Kuantan Conurbation. Although clearly not in the same league as George Town and Johor Bahru conurbations, it wasselected for its infrastructural support which is at par with the other two conurbations. The Kuantan Conurbation development strategy is intended to create a regional balance by making it possible to develop a substantial ‘critical mass’ centre on the East Coast as a base for an economic spread effect.

The National Urbanisation Policy (NUP) acknowledges the rapid rate of urbanisation that is taking place in Peninsular Malaysia. Based on past and current trends, it is expected to accelerate in the future to reach 75% urbanisation level in Peninsular Malaysia by 2020, almost at par with other advanced countries.

For the NPP-2, enhanced performance of the economy, particularly with respect to attracting foreign direct investment, suggests the need for a pattern of continuing concentration of urban development in selected centres, particularly conurbations. With the rapid expansion and spread of the conurbations, an ad-hoc non-sequential development resulting in high infrastructure costs, loss of recreational space and green lungs, as well as inner city decay, are some of the emerging imminent threats in urban development.

The challenge for the national, state and local level planning authorities is to manage and direct effectively the urban growth, both in the fast growing conurbations and in the slow growing or declining urban areas. These planning authorities should maximise the development benefits, control potential side effectssuch as. traffic congestion and pollution, and play a positive role in achieving Vision 2020. Spatial planning should aim to create urban centres offering all residents within urban areas a high quality of life and acceptable levels of facilities such as schools, colleges, hospitals and parks as well as good quality urban transport and utilities.

Urban centres outside of the four major conurbations are anticipated to grow slowly; and, over time, lose their share of the urban population. Many major and minor settlement centres, except for those lying within the sphere of influence of the conurbations, are likely to decline in population. For local authority planners, this should be seen as a challenge to enhance productivity and efficiency of the major and minor settlement centres, and create small prosperous places to avoid more population loss. There arepresently a number of major and minor settlement centres that have shown strong indications of becoming the nucleus of future conurbations. These include Mentakab-Temerloh, Lumut-Sitiawan-Manjung and Muar-Batu Pahat-Kluang. There are also a

4-13

number of small centres that possess special features, such as Rantau Panjang, a border gateway town, which may provide a basis for the development of niche activities. At the same time, the capabilities of state capitals to service their surrounding populations should, also be supported.

Other challenges are addressing the problems of economically lagging regions including urban and rural poverty. More efforts will be directed to catalyse and transform the rural and urban settings to become more attractive, prosperous and liveable areas with improved income levels and lifestyles. These factors essentially concern effective planning and managing sustainable human settlements, both urban and rural.

The NPP-2 advocates the strategy of concentrated decentralisation in key economic development corridors to achieve the over-arching regional development objectives of growth, equity and sustainability. This strategy envisages a system of functional urban hierarchy with efforts on the rejuvenation of intermediate towns (major settlements) which will have sufficient levels of population and activity concentration for economic efficiency and agglomeration economies. The future development of urban centres and conurbations will be guided to and shaped into a compact poly-nucleated urban structure where a cluster of urban centres are economically and functionally linked to each other, thus generating significant interdependencies and synergistic growth for mutual benefits (Figure 4.2). In drawing up the plans for the Conurbations, it is important that focus be given to growth management strategies such as delineation of urban limits/ urban growth boundaries, and moving towards TOD in ensuring sustainable urban development. Action programmes, such as urban revitalisation and high impact strategic regional infrastructure, must be initiated to spur accelerated development in economically depressed regions and ‘focus poverty areas’.

4-14

Figure 4.2 : Concentrated Dispersal Strategy

It is envisaged that a significant portion of the country’s GDP is produced within the urban areas. The principal engines to drive growth and innovation will be found in the National and Regional Growth Conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan. Besides regional functions, the Regional Growth Conurbations are expected to play appropriate international and national roles to balance growth across the urban hierarchy and keep the pace and level of urbanisation in the dynamic Kuala Lumpur Conurbation manageable. For example, Kuantan Conurbation will serve as the premier national petrochemical hub to cater for the demands of the Asia-Pacific markets. The urban form of these conurbations will have a metropolitan core area that is linked to a cluster of urban centres in the region by an efficient public transport system and high speed broadband internet connectivity. Another example is Kuala Lumpur functions as the core city linked closely to a ring of surrounding urban centres such as Petaling Jaya, Putrajaya, Kajang, Rawang, Klang etc.

This city-region concept can also be adapted across the whole spatial scale of the settlement pattern and hierarchy. The concept of functional urban hierarchy is important not only to optimise the viable provision and utilisation of quality urban services and infrastructure, but also an important tool to achieve regional balance and equitable development, particularly ensuring the minimum acceptable level of services are provided for in all urban areas.

As the country embraces towards higher urbanisation trends, there has to be greater commitment from the government to be ready to meet up with any challenges and come out with more innovative and creative strategies to combat the challenges. This should, amongst others, include having a full Ministry for Sustainable Urban Development, the setting up an Urban Research Institute and the establishment of an Urban Development Programme and Funds to support Local Authorities in financing significant infrastructure components of inner city redevelopment, brownfield regeneration and environment conservation initiatives in special areas.

4-15

4.4 Regional Balance

Regional balance is interpreted as equal access to equitable levels of real income and personal development opportunities and not necessarily as equal opportunities or right to the same forms of development. It is generally acknowledged that not all places have the same opportunity for development and growth potential, such as establishing and operating high-tech industry. The overriding aim is to narrow the gaps and growth rates between regions in the country. High development potential areas will however be given greater priority in the short term.

Land and natural resources of the less developed regions, which are not fully harnessed, should be further developed to its full potential in order to move up the value chain and productivity thus helping to reduce regional imbalances. Resource-based, forestry-basedactivities and industries, downstream agriculture-based activities, resort/eco tourism,craft-based industries and other niche activities must be encouraged and supported. In other words, viable economic activities that built on inherent resource strength and competitive edge of the specific region should be directed to the less developed regions. Appropriate serviced SME enterprise parks, incentives and strategic infrastructure in these regions, especially the provision of special economic zones as well as ICT and transportation network in potential tourism areas, should be enhanced to facilitate their development. This will expedite their integration into the K-economy activities to promote regional balance. In particular, this includes an early extension of the national expressway to Kelantan state.

Regional balance has also to be interpreted as setting the stage to enable future sustainable development to be carried out to all potentials parts of the country. Hence, the inclusion of the emerging Kuantan Conurbation as an urban-region that will be promoted, along with George Town and Johor Bahru Conurbations. Kuantan will act as a reception area for the emergent and advanced economic growth sectors.

The modernisation of agriculture and enhancement of agricultural incomes, however, will remain a basic factor in the eradication of regional imbalance. Out-migration from the less developed regions should be anticipated and desirable in the national development strategy to facilitate farm consolidation and labour productivity improvement. There is anurgent need to strengthen educational, technical training and social development programmes into the less developed states to encourage these populations to integrate more effectively into the urban economy of the conurbations.

The notion of achieving regional balance has been one of the cornerstones of national development that has underpinned most of the FYMP. The 3-tier federal system of the government has also contributed to regional balance with development funds being allocated equitably amongst the states according to their respective needs, resources and priority.

Presently, the federal government seeks to spearhead and enhance the economic performance in the regions to support high and sustainable national growth. To enable

4-16

accelerated regional economic development, specific strategies have been devised and applied for the four economic regions in Peninsular Malaysia, that is, the Central Region, Southern Region, Northern Region and the Eastern Region. This regional approach has identified key local economic development corridors along the Growth Corridors for implementing high impact catalytic initiatives. Examples of the economic development are the agropolitan and special economic zones, in respect of NCER, ECER and South Johor Economic Region (SJER) involving Iskandar Malaysia. To support the regional economic initiatives of the nation, the NPP-2 has proposed the formulation and reinforcement of the four main growth conurbations as international gateways and national cum regional hubs for each of these Economic Regions, namely:-

Central Region - Kuala Lumpur Conurbation;Northern Region - George Town Conurbation;Eastern Region - Kuantan Conurbation; andSouthern Region - Johor Bahru Conurbation.

These conurbations are catalytic in spearheading development within the economic regions. While the conurbations in the West Coast are more evident, the incipient Kuantan Conurbation in the East Coast may need special Government assistance in terms of both fiscal and non-fiscal incentives including the development of an integrated social and physical infrastructure. One of the key economic instruments used is the designation of the Special Economic Zone (SEZ) that would attract both public and private investments in the region.

4.5 Rural Development Trend and Direction

Establishing strong urban-rural linkages is crucial in ensuring sustainable development of the rural areas. Rural areas are normally characterised by poor accessibility to the urban centres where the rural population is almost totally dependent on marketing farm produce and income. Lack of technological innovation and support also will also result in low productivity and low incomes. Poverty in the initial stages of development is often associated with smallholding agricultural activities in rural areas (Scenario 1 in Figure 4.3).

To improve the attractiveness of rural areas, adequate non-farm job opportunities, higher income, enhanced quality of living, better social facilities, improved access and connectivity are essentially important and must be introduced. The symbiotic relationship between rural and urban settlements must be strengthened through improved connectivity and transportation routes so that the urban job opportunities in larger towns can provide additional employment to farmers and village dwellers within travelling distance from their homes. This situation will also allow workers to live in the rural areas and work in nearby urban centres. This also will improve rural household income and allow families to live in villages where the cost of living will be lower than in urban areas.

4-17

The constant government investments in rural areas have resulted in improved accessibility and personal skills. Improved rural roads have enabled rural residents to commute to non-farm work in job centres which are mainly found in the nearby larger urban centres. Non-farm incomes have been increased with the introduction of resource-and agro-based industries, as well as job opportunities (part time and seasonal) in the retail and services sector in the small- and medium-sized towns.

Commuting to work in the urban centres due to employment in the non-farm sector has led to higher household incomes. However, small land holdings, inadequate local farm workers, and technological support including low market prices for agriculture produce have often resulted in the abandonment of farms and a general decline in farm income (Scenario 2 in Figure 4.3).

The NPP-2 has proposed a need to move to Scenario 3 (see Figure 4.3) where there is cross-sectoral convergence of economic activities (such as agro and industrial biotechnology), and closer economic integration between the rural areas and urban centres. Rural development programmes introduced must recognise the important rolesof small towns and Rural Growth Centres (RGCs) as integral components of successful rural development. At the same time enhanced linkages between rural growth centres and job centres in larger urban centres must be further strengthened.

The key strategies to create prosperous, thriving and sustainable rural communities are:-

a. Improving agricultural productivity and value-add in the supply and marketing chain by consolidating farm smallholdings and introducing cooperative farmingwith professional management.

b. Developing human resource which is the main driving force to productivity and innovation.

c. The use of technology including access to broadband Internet and establishment of rural community ICT centres should be greatly encouraged and facilitated.

d. Providing good accessibility, particularly regular public transport services, from the minor settlement centres and rural growth centres to the job centres in larger urban centres to facilitate off-farm work commuting.

e. Creating opportunities for a range of non-farm income through developing competitive, diverse and thriving rural enterprises including agro- and eco-tourism initiatives, rural industries, Collection, Processing and Packaging Centres (CPPC) for agriculture produce and One-District-One-Product initiatives.

f. Incorporating rural settlements and villages into the local authority areas so that basic standards of building, sanitation and infrastructure are adhered to. The lack of control on building structure and renovations in the villages has often resulted in an overall deterioration of the quality of the physical environment and overall built environment of these villages.

g. Upgrading intermediate towns and rural growth centres for providing quality social and business services as well as creating secondary and tertiary job opportunities.

4-18

Setting up of industries, particularly small and medium industries (SMI), would be the most likely choice for the above purpose. The SMIs should capitalise on the strength ofthe rural economic clusters prevalent in local areas. The Government must play a facilitator role by providing the most conducive investment environment for private initiatives and enterprises to grow and prosper. The most appropriate vehicle for this programme is the government-related institutions and Government-Linked Companies(GLCs).

In many rural settlements, including FELDA, the villagers are also involved in agricultural-based downstream activities, such as the production of traditional cakes, sauces, crackers, chips, handicraft and tailoring. The most successful example of the “One Village One Industry” program or SAWARI, is the model carried out by FELDA, where one region produces one type of product. Through this program, many FELDA settlers were able to increase their income, while certain products are even exported. Some districts have already been successful through this activity, such as Tumpat for sambal daging, Kuala Kangsar for labu sayong and Marang for keropok lekor. These activities should be further strengthened, developed and extended.

4-19

Figure 4.3 : Conceptual Strategy for Urban-Rural Linkages

Minor Growth

Centres / RGCs /

Villages

Job Centres

Almost totally dependant on farm income Low productivityLow technical and professional skillsLow income

SCENARIO 1

Initial Relationship Between Rural & Urban Area

SCENARIO 2

Improved Accessibility & Personal Skills

SCENARIO 3

Future Consolidation of Farms & Expansion of Non-farm Employment

Poor accessibility to urban centres

Improved accessibility to job opportunities

Enhanced physical accessibility to urban job centresCommuting to works to job centre

Increase in non-farm incomeIncrease in household incomeStatic or decline in farm incomeFarms abandonedDecline in agriculture jobsImproved technical & professional skills

Farm consolidation& other institutional changesIncrease farm productivity and introduce CPPCsIncrease both farm & non-farm incomesCreate non-farm employment in, service sector, tourism, rural industries, CPPC, One-District-One-Product, etc.Capitalising on the strength of rural economic clusters prevalent in the area. Integrated small towns / RGC development strategy by providing adequate social facilities and infrastructure improvementBroadband access and Rural ICT Centres

Strengthening employment opportunities in major centres

Continue strengthening of manufacturing & service

sectors employment opportunities

Good transport accessibility

Minor Growth

Centres / RGCs /

Villages

Job Centres

Minor Growth

Centres / RGCs /

Villages

Job Centres

Growth Conurbations(National, Regional / State / Intermediate)

Major Growth Centres

Apart from providing equitable income, the rural areas should be upgraded and improved to increase the quality of life and the surrounding environment. This can be achieved largely by providing adequate social facilities, such as community centres and playfields,infrastructure improvement, sanitation, solid waste disposal and drainage facilities.Although most of the rural areas have been provided with these basic infrastructures,more needs to be done to improve the quality whilst making sure that all rural settlements have these minimum levels of basic facilities.

One of the most deprived rural areas is the Orang Asli (Aborigines) settlements. Most of the Orang Asli people can be considered as hardcore poor. Although there is a major government effort to provide each household with a decent house and agricultural land, there are still however, many who are without proper houses and landless to generate adecent living income.

4-20

Further to this the Government has formulated a policy on the land alienation and development of land for the Orang Asli through the National Land Council Meeting No. 65 (dated 4th Dec. 2009). The following terms were approved:

i. Two to six (2-6) acres of farm land (ladang) and a housing plot measuring (5000sq. ft. - ¼ acre) according to the capability of the State Authority should be given to each household.

ii. Alienation of land is to the Head of Household (Ketua Isi Rumah) as defined under Section 3 Aboriginal Peoples Act 1954 (Act 134).

iii. Perpetuity tenure.iv. The Restrictions in Interest on the land are:

The land cannot be rented, charged or be disposed except with the approval of the State Authority in consultation with the Director General of the Orang Asli Affairs Department The first land owner may not transfer the land for a period of 15 yearsThe land can only be transferred to the Orang Asli

This policy is generally binding on all State Authorities in Peninsular Malaysia. Notwithstanding this, this policy has received objections from the Peninsular Malaysia Orang Asli Association (POASM) which has called for the recognition of a larger Cultural Realm (Wilayah Adat Orang Asli) for the Orang Asli, which among others includes, the settlement area, cemeteries, holy sites, subsistence farming areas, herbal areas, hunting grounds, orchard areas, recreational areas and virgin jungle areas.

The NPP-2 proposed that the Orang Asli be provided with proper houses with land for cultivation including land titles that must be safeguarded from falling into the hands of non-Orang Asli. Agricultural land should be developed solely for their benefit and within it, their settlement should be built. The spatial planning and economic model used in FELDA and FELCRA schemes can be adapted and applied to develop the agricultural land for Orang Asli. However, this land should be commercially managed by an appropriate agency such as FELCRA or a suitable land cooperative. To ensure equitable income, theland to family ratio should be at least 6-10 hectares per family.

4.6 Sustainable Use of Land

4.6.1 Available Land for Development

The land supply for development refers to the available land for further urban expansion in the future. The Peninsular-wide land use analysis shows that built-up areas accounted for a small proportion or about 3.3% of the total Peninsular’s land in 2000, and about 5.8% in 2008. The phenomenon of urban growth in the Peninsular, reinforced by the significant contribution by urban-based economic activities to GDP, has resulted in an impression of broad scale urban sprawl.

4-21

An assessment was undertaken to establish not only the gross area of additional land required for future urban growth and economic activity needs in Peninsular Malaysia up to year 2020 but also to identify at state level the likely directions of urban growth. The land use assessment took into considerations the findings and forecasts of the sectoral studies made on agriculture, environment, utilities and transport aspects.

The land available for future development has taken into account the need for optimising land use without compromising the conservation of all the precious national assets and heritages, particularly ecologically valuable land. This appraisal utilised a map sieving technique where four main constraint areas were filtered out in determining land available for development, namely:-

i. Existing Built-up Area;ii. Physical Constraint Area;iii. Prime Agriculture Area (PAA) Rank 1 and 2; andiv. Environmentally Sensitive Area (ESA) Rank 1, 2 and 3.

By placing an embargo on the above constraint areas for development, the remaining land was classified as available land for urban development (Figure 4.4). Table 4.5 presents the total area of land available for future development by state. The result of the sieving technique showed that about 820,960 hectares of total land in Peninsular Malaysia are available land for future development.

Table 4.5 : Total Area of Land Availability for Future Development by States (‘000 ha)

State Area (ha)

Perlis 0.99

Kedah 20.07

Pulau Pinang 13.82

Perak 161.25

Selangor 73.21

W.P. Putrajaya 0.03

W.P. Kuala Lumpur 0.25

Negeri Sembilan 29.77

Melaka 37.88

Johor 314.75

Pahang 124.29

Terengganu 19.99

Kelantan 24.66

TOTAL 820.96Source: National Physical Plan-2, 2010.

4-23

4.6.2 Agriculture Land

The Third National Agriculture Policy (NAP3) seeks to enhance the performance of the rural sector through the optimal use of resources; and proposes to reduce the cost of food imports. Among the measures incorporated into the NPP-2 to fulfil and support these requirements is the designation of Prime Agriculture Areas (PAA).

Identification of PAAs is important to prioritise the agricultural land to be conserved based on existing major food production areas. The established criteria from the first NPP were utilised with further improvements imputed in this analysis. Below are the criteria and rank used to identify the PAAs:-

i. Granary areas (eight existing granary areas).ii. Paddy areas outside the granary areas. iii. Agricultural areas designated as “Permanent Food Production Parks” which include

food crop, animal husbandry and aquaculture industry zones.iv. Agricultural areas on peat or organic soils.v. Agricultural areas on Class 1 and Class 2 soils.vi. Agricultural areas on Class 3 soils.vii. Agriculture areas in agro-ecological regions without dry season.viii. Agricultural areas in agro-ecological regions with short dry season.

Table 4.6 provides the total area by state for PAA in Peninsular Malaysia and their ranking. A total area of about 4.8 million hectares has been designated as PAA. The state with the largest PAA is Pahang, followed by Johor and Perak.

Table 4.6 : Total Area of Prime Agriculture Areas (PAAs) by States (‘000 ha)

State Rank 1 Rank 2 Rank 3 Total

Perlis 13.4 14.3 27.7 55.4

Kedah 70.6 65.7 225.9 362.3

Pulau Pinang 11.8 2.9 18.5 33.2

Perak 40.3 70.7 627.0 738.0

Selangor 19.3 28.9 281.2 329.4

W.P. Putrajaya - - 0.6 0.6

W.P. Kuala Lumpur - - 0.3 0.3

Negeri Sembilan - 3.5 373.1 376.6

Melaka - 3.8 124.6 128.4

Johor - 101.1 998.3 1,099.4

Pahang - 56.8 1,064.0 1,120.8

Terengganu 5.7 28.6 323.9 358.2

Kelantan 29.8 41.4 168.3 239.6

TOTAL 190.9 417.7 4,233.4 4,842.2Source: National Physical Plan-2, 2010.

4-24

It is proposed that all PAAs should be conserved as part of the country’s need to be self-sufficient in food production and for national security interest. In recognition of this, the agriculture sector has been earmarked as the new third engine of growth for the nation.As the PAAs are generalised locations, detailed studies at state and local levels should further refine the precise delineation of these invaluable areas.

4.6.3 Environmentally Sensitive Areas

Environmentally Sensitive Areas (ESA) refer to areas that are of critical importance in terms of the goods, services and life-support systems they provide such as water purification, pest control and erosion regulation. In addition, they also refer to areas that harbour the wealth of the nation’s biodiversity.

As such, it is important that these areas remain untouched by development, conserved or sustainably managed depending on the type, characteristic and level of sensitivity/ importance involved. Based on these criteria, the ESA areas are ranked as ESA 1, 2 or 3. Each rank is assigned the following management criteria:

ESA Rank 1 No development, agriculture or logging shall be permitted except for low-impact nature tourism, research and education.

ESA Rank 2 No development or agriculture. Sustainable logging and low impact nature tourism may be permitted subject to local constraints.

ESA Rank 3 Controlled development whereby the type and intensity of the development shall be strictly controlled depending on the nature of the constraints.

A composite analysis is used to derive the ESA Categories, based on three broad ESA criteria such as areas important for biodiversity; areas important for life support (although it should be noted that areas important for biodiversity are almost always also important for life support); and areas vulnerable to hazards (Table 4.7).

4-25

Table 4.7: Environmentally Sensitive Area Composite

Rank Criteria

Protection of Biodiversity

1 Existing and proposed Protected Areas (PA).Important small habitats outside the PA system: Turtle landing sites, salt licks, important plant areas, limestone outcrops and natural wetlands of high conservation value.

2 All other forests and wetlands outside of Protected Areas.

3 Marine Park islands.

Life Support System

1 Catchments of existing and proposed dams.

3 Catchments of water intake and groundwater recharge zones.

Hazard Risk Area

1 Areas above 1,000m contour.

2 Areas between 300m – 1,000m contour.

3 Areas between 150m - 300m contour.Areas with erosion risk above 150ton/ha/yr.Areas experiencing critical or significant coastal erosion.

Source: National Physical Plan-2, 2010.

In addition, a 500m buffer zone is provided for around ESA Rank 1 and 2 areas.The analysis process requires the entire data layer to be overlaid to produce an output that contains the spatial combination of information with attributed data layer. In the process of ranking, attribute databases are adjusted by setting the condition and linking selected database to the spatial feature. The conditions are built by formulating queries such as the highest rank value such as Rank 1, from respective data layer which will be applied when both areas are overlapped. This process requires inputting the ranking value inside the attribute for all sub-analysis data layer.

Using the same process, all completed sub-analysis data layers of biodiversity protection, life support system and hazard risk were combined to form Environmental Sensitive Areas (ESAs). The ranking values were inputted according to the sensitivity of the sub-analysis data layer.

Table 4.8 gives the total area by rank for each state. Total areas of 4.7 million hectares as Rank 1 ESA, 3.6 million hectares as Rank 2 ESA, and 3.8 million hectares as Rank 3 ESA have been identified. Pahang state possesses the most ESA, followed by Perak, Johor and Kelantan states.

4-26

Table 4.8 : Total Area of Environmentally Sensitive Areas (ESAs) by States (‘000 ha.)

State Rank 1 Rank 2 Rank 3 Total

Perlis 32.6 9.2 27.6 69.4

Kedah 222.0 251.0 373.6 846.6

Pulau Pinang 3.8 19.1 39.6 62.5

Perak 1,087.0 320.2 471.9 1,879.1

Selangor 268.5 147.1 306.5 722.1

W.P. Putrajaya - - 3.9 3.9

W.P. Kuala Lumpur 0.4 3.3 7.2 10.9

Negeri Sembilan 115.6 184.6 352.9 653.1

Melaka 8.1 13.5 88.4 110

Johor 617.5 322.1 652.3 1,591.9

Pahang 1,192.2 1,468.9 814.1 3,475.2

Terengganu 403.1 533.8 316.6 1,253.5

Kelantan 784.3 351.2 313.0 1,448.5

TOTAL 4,735.1 3,624.0 3,767.6 12,126.7Source: National Physical Plan-2, 2010

4.6.4 Urban Land

i. Future Urban Land Needs

Future urban land required to meet the projected development needs involves various policy decisions and planning standards, such as urban-rural population ratio, degree of intensification of development, extent of mixed-development, desirable urban form and pattern. In estimating the land required for urban purposes, two major factors were considered. The first factor is the demand for land generated by the increase in urban population such as housing and job needs; and secondly, urban land availability assessment without jeopardizing priority and other key land uses such as agricultural production for food security, biodiversity conservation or geo-hazard risk areas.

The additional urban land needed for new urban uses by each state in the NPP (2005)was determined by using the projected urban population growth over the gross average density of 25 persons/ha, which gave an estimated total of 768,610 ha. of urban landrequired in Peninsular Malaysia up to year 2020.

The urban density in 2020 based on the State Structure Plans is lower than the average urban density of 25 persons per hectare as proposed by the NPP (2005).

This implies an over allocation or inefficient use of future urban land resulting in wastage of resources in providing unwanted or underutilised infrastructures. In this respect, it is useful to carry out a review on the urban land required especially for those states which show very low urban densities such as Perlis, Kedah, Negeri Sembilan, Pahang and Terengganu. There is also a need to undertake a further comparative benchmark study

4-27

and adopt accordingly a suitable higher urban density to ensure the optimal use of land in an environmentally sustainable manner.

To cater the needs for the increase in urban population up to the year 2020, the NPP-2has estimated that a total of around 959,700 ha. of land will be required for urban uses or its equivalent, accounting to approximately 7.3% of Peninsular Malaysia’s total land area(Table 4.9).

Table 4.9 : Estimated Urban Land Requirement by States, 2020

StateAdditional Urban

Population 2008-2020(’000)

Additional Urban Land Required

(’000 ha)

Estimated Urban Land/ Built-Up Area

2020

‘000 ha %

Perlis 20.0 0.8 6.6 8.1

Kedah 330.7 13.2 65.4 6.9

Pulau Pinang 470.9 13.9 50.0 47.9

Perak 488.8 19.6 97.9 4.7

Selangor 1,866.7 60.2 203.9 25.6

W.P. Putrajaya* 225.8 0.7 3.9 88.6

W.P. Kuala Lumpur* 569.7 0.1 22.5 93.0

Negeri Sembilan 128.7 5.1 62.2 9.3

Melaka 122.7 4.9 34.1 20.6

Johor 850.6 34.0 196.4 10.3

Pahang 511.5 20.5 100.7 2.8

Terengganu 283.9 11.4 61.5 4.7

Kelantan 384.2 15.4 54.6 3.6

TOTAL 6,254.2 199.8 959.7 7.3Note : Designated urban density is estimated based on the existing and targeted urban density in State Structure Plans

and 1st NPP whichever is higher. Design density of 25 ppha is used where the existing built up density in the state is lower. For the States of Selangor, W.P. Putrajaya, W.P. Kuala Lumpur and Penang, the current density is used to estimate the urban land requirement.* The whole of W.P. Kuala Lumpur and W.P. Putrajaya are almost developed for urban use in 2008 (92.6% and 72.7%). Urban redevelopment with the same or higher urban density is needed to support the targeted urban population in 2020.

Source: National Physical Plan-2, 2010.

ii. Supply of Land for Development

Land requirement for future urban use should be allocated without intruding into specialised or specific use such as PAA or ESA. Much of these land requirements can be met by redevelopment of ‘brownfield’ sites (such as previously developed land) or infill development with higher densities and mixed-uses without sacrificing ‘greenfield’ sites from the urban fringes.

Applying the same rigorous criteria at state level shows that five states namely Perlis, Kedah, Pulau Pinang, Selangor and W.P. Kuala Lumpur, will need to utilise either land designated as PAA or ESA.

4-28

For Perlis, Kedah and Pulau Pinang, given the significance of the granary areas and the enormous investment made in the irrigation schemes, the use of the lower ranked ESA land may be given priority in favour to the use of the PAA lands to overcome the apparent shortfall in land required for future urban use. However, considerable care must be taken, particularly in the use of water catchments and water recharge areas.

With respect to Selangor, W.P. Kuala Lumpur and Putrajaya the analysis of land required for future urban use and lands not subject to limitations reveals that even if some of the lowest rank ESA lands were to be assigned for urban use, there is still a need to utilise PAA lands for urban uses. Given the present pattern of urban land use development within these states, priority should be given to urban land use consolidation over the use of PAA in the interests of efficiency and effective use of national resources.

Innovative spatial planning measures must be taken to reduce further loss of PAA and ESA Rank 3 lands including adopting higher gross densities, encouraging mixed-development in town centres, infill development, rehabilitation and redevelopment of under-utilised buildings sites particularly institutional uses such as railway land and prisons. Other physical planning measures includes creating and sharing spaces, flexible land use zoning in built-up areas, relocating non-central uses, and decentralising land-extensive uses to land surplus states. Urban sprawl should be avoided while new development, especially townships in greenfield sites, can only be permitted if such development cannot be carried out in the existing town centres or urban fringes. Specific Development Plans for the conurbations should indicate in greater detail, areas to beconsolidated, delineation of urban limits and the provision of green corridors and green belts as part of the need to conserve and protect PAAs and ESAs.

iii. Housing

A general assessment of the projected needs for year 2020 shows that future housing need can be accommodated within the designated urban centres without converting forest lands or environmentally sensitive areas into housing. However, the shortage of affordable housing in the conurbations and larger towns is a key issue that must to be tackled urgently. Land speculation should be further reduced by exercising the lapse of planning permission according to sec. 24 of the Act 172.

A major challenge in spatial planning is to change the mindset from the present perception that all lands adjacent to urban areas are ‘ripe for development’. In reality, considerable waste of resources can occur when approved land for conversion was made without a thorough assessment of demand. As the urban areas expand, this process of increasing supply versus maturing of demand will be exacerbated. Effective management and dissemination of information to the appropriate authorities on supply and demand for urban purposes, land suitability, incorporation of PAA and forest lands in conurbations into green belts designation should be made to avoid housing mismatch, property overhangs and inefficient use of lands adjacent to urban areas.

4-29

Identification of routes, recognising long lead times and need for operational efficiencies required by public transport, should also be assessed in the managed release of future urban land and conurbations. Assessments must also be made in considering the capacity and cost of upgrading existing infrastructure and utilities, such as water supply,electricity and road space for future urban growth.

iv. Industry

The Third Industrial Master Plan (IMP3), 2006-2020, aims to drive industrialisation to a higher level of global competitiveness with an integrated approach towards industrial and economic development. The implementation plan for IMP3 has a regional component which seeks to balance out the potential inequity in outcomes.

Within the industrial sector, the focus is to develop key industrial or economic clusters in all locations with a competitive advantage. The key cluster areas are shown in IP5. Theywill be developed further along with the necessary enabling factors such as infrastructure, skills and conducive government policies to further enhance the attractiveness of these clusters.

Industrial activities will be promoted along the main growth corridors identified in the Plan where urban based industrial activities are located, and in selected industrial zones/ nodes within the conurbation areas. Adequate infrastructure, utilities and logistics support should be provided within these industrial belts to further optimise their land use potential as well as separation buffers for residential areas.

General manufacturing industries will be promoted in intermediate cities and secondary urban centres to diversify the economic base of the region and provide opportunities for non agriculture-based employment. Resource-based industries will be developed at resource locations depending on the type of industry. Rural industries will be located in minor local centres and RGCs to better serve the rural community and benefit from the infrastructure and services already available in these small towns.

4.6.5 Tourism

Tourism will be promoted as the second engine of growth for the nation, particularly with the recent liberalisation of the tourism sector to enhance its global competitiveness. Malaysia, as a preferred attractive destination, is being packaged by type of attraction product categories and aggressively promoted by all the states. Table 4.11 highlights the states’ tourism attraction resources and their locational advantages. It is essential for each state to ensure that these tourism resources are properly managed and preserved.

4-30

Table 4.10: States’ Tourism Attractions

State Promotion Caption

Perlis: Little Northern Gem

Perlis prides itself on natural beauty and quaint, tradition country charm.

Kedah: The Rice Bowl of Malaysia

Kedah’s landscape takes on different hues depending on the seasons of the rice fields. The countryside is greenest when the newly planted paddy is spouting, turns a golden yellow at harvest time.

Pulau Pinang: The Pearl Of The Orient

Penang attracts food enthusiasts and those who love exciting beaches and rich cultural experiences.

Perak: The Silver State Perak’s Main Range mountains cut across the state, standing in dramatic juxtaposition to the flat, steaming plains.

Melaka: Historical City Melaka is seen as one of Malaysia’s premier tourist destinations, with its unique heritage and multitude of museums and delicious food.

Kuala Lumpur: The Capital City

Kuala Lumpur is where the new embraces the old, where modern sophistication meets colourful tradition.

Putrajaya: Intelligent City

Putrajaya is the new Federal Government Administrative Centre. It is a modern city, which is rapidly growing and practises the concept of intelligent garden city.

Negeri Sembilan: Land of Quite Grace

Negeri Sembilan is well-known for its rich Minangkabau heritage which is still evident in the unique architecture and matrilineal society here.

Pahang: Adventures offthe Beaten Track

Nearly two-thirds of Pahang is blanketed in ancient virgin rainforest, making in a magnificent enclave of lush greenery and exotic wildlife.

Kelantan: The Cradle of Malay Culture

Kelantan is a prime centre for Malay culture, crafts and religion.

Johor: Southern Gateway

Johor’s vast landscape is characterized by plantations and is punctuated by spectacular national parks and quaint fishing villages.

Terengganu: Beach Paradise

Terengganu has a strong cultural personality and is blessed with some of the best islands in the country.

Selangor: The Golden Gates

Selangor is home to suburban ideals and highly developed infrastructure while still preserving some of the finest nature reserves.

Source : Ministry of Tourism, 2009

Tourist arrivals to Malaysia have been growing between 3.5 to 14% since 2005-2007; and have increased to 10 percent per annum, higher than the targeted growth of 6.9 percent within 2001-2005. This highlights the strengthening effect of the sector and the emerging importance of Malaysia as a preferred tourist destination in the world. The 9th MP has forecasted that tourist arrivals to Malaysia will grow at an average annual rate of 8.4 percent per annum to reach 24.6 million arrivals by 2010.

The four tourism development zones identified by the National Tourism Policy will be further emphasised in NPP-2. Integrated approach on planning and tourism implementation for sustainable tourism is also highlighted in the 9th MP. At the state level, identification of the main tourism products and potential tourism zone/ corridors is made in the State Structure Plan. A balanced tourism development strategy aimed at both international and domestic markets should be adopted. This strategy requires the federal and all state governments including the private sector, to develop sustainably and promote actively the tourism attraction products in line with visitors’ preferences, provision of high quality support facilities and infrastructure both for domestic and international markets, while ensuring that these resources are properly preserved and maintained.

4-31

Fast depleting natural resources, such as pristine forests, hills and wetlands, the heritage sites and cultural lifestyles need to be protected and managed properly in a sustainable manner. Serious efforts should be taken by the government and tourism players to reduce the development pressure exerted on the natural resources of the country. Diversifications of products from natural to man-made will be a good option. High density urban and man-made tourism development need to adopt focused and concentrated strategy in special demarcated urban tourism areas, while rural tourism areas need to be further preserved and protected from conflicting land uses. Tourism cities, towns and zones need to have clear demarcated boundary.

Priority needs to be given to tourism within identified tourism towns and zones, according to their potentials. Future development of designated tourism towns and zones requires monitoring to ensure the sustainable protection of existing and potential tourist attraction areas as national assets. Special tourism guidelines must be prepared within designated tourist areas, taking into consideration of their carrying capacities. Controlled development by means of land use zoning, land use classes restrictions, design guidelines and heritage and culture preservations management plans need to be planned and adopted for all tourism zones. Priority should also be placed on the following tourism activities, in line with the recent sustainable tourism approaches and emerging tourists’ preferences:

i. International shopping for ASEAN region and other international visitors within the main conurbations (Kuala Lumpur, Johor Bahru and Pulau Pinang) and international gateway towns;

ii. Urban tourism including shopping, health, medical, educational, festivals, sports, MICE tourism and others within the urban areas with readily available supporting infrastructure, facilities and human resources. This also includes special roles tourism cities/towns such as Putrajaya and Cyberjaya as intelligent cities;

iii. Coastal tourism within high and medium density tourism towns/zones, marine parks, island gateways and rural coastal districts, such as Melaka, George Town, Langkawi and Kuala Terengganu;

iv. Rural cultural tourism with an emphasis on the development and protection of tangible and intangible assets within traditional kampongs, beaches and islands such as Alor Gajah, Kuala Pilah and Kuala Lipis;

v. Development and protection of national tangible and intangible heritage zones, routes and values such as World Heritage Cities, Perak heritage sites, Royal and Heritage towns, Malaysian traditional and multicultural heritage lifestyles; and

vi. Development and protection of natural heritage assets such as National Parks, State Parks, marine park islands, highlands and hill stations, wetlands and RAMSAR sites, beaches, birds and turtle landing sites, firefly habitats and all other eco-tourism sites.

4-32

Table 4.11: Major Tourism Destinations Based on Locational Advantage

Tourisms Destination Categories Areas

Shopping Cities/Town Kuala Lumpur

Johor Bahru

Penang

Border Towns Bukit Kayu Hitam

Padang Besar

Rantau Panjang

Coastal Tourism Towns Kuah, Langkawi Geo-Park

Port Dickson

George Town - Tg. Bungah - Bayan Baru

Lumut

Kuala Terengganu

Kuantan

Eco-Tourism (Non-Coastal) Gateway Towns

Jerantut

Gua Musang

Gerik

Kuala Lipis

Kuala Berang

Segamat - Bekok

Island Gateways Mersing/Kuala Rompin

Kuala Besut - Merang

Kuala Terengganu - Marang

Kuala Perlis - Kuala Kedah

Port Klang

Lumut

Rural Coastal Tourism Zone Cherating - Kijal

Alor Gajah

Yan - Seberang Perai Utara

Muar - Pontian

Mersing - Desaru

Sabak Bernam - Kuala Selangor

Kelantan and Terengganu Coastal Districts

Eco-Coastal Tourism Zone (islands and wetlands)

Johor Marine Park

Kedah Marine Park

Terengganu Marine Park

Pulau Pinang National Park

Pulau Sembilan State Park

Klang Islands

Kukup Island

Tg. Tuan, Upeh Island

Setiu Wetland, South East Pahang Peat Swamp Forests

Kuala Gula - Matang - Segari - MelintangTaman Alam Kuala Selangor

4-33

Tourisms Destination Categories Areas

World Heritage City/National Heritage Sites/Heritage Town/Royal Town

George Town and Melaka

Beruas, Lenggong, Sg. Lembing, Lembah Bujang

Taiping, Kota Bharu, Kuala Terengganu, Klang, Kuala Lipis

Kuala Kangsar, Pekan, Seri Menanti, Alor Setar

Hill stations Cameron Highlands

Genting Highlands and Bukit Tinggi

Fraser’s Hill

Penang HillSource : National Physical Plan-2, 2010

4.6.6 Transportation Network

The development of a comprehensive transportation network for the country is essential as a means of integrating and maximising the various state economies’ comparative advantages for the benefit of the nation as a whole.

IP 22 indicates the conceptual Integrated National Transportation Network for Peninsular Malaysia to support the NPP-2 Development Strategy.

The transportation network strategies comprise the following aspects:-i. Network Configurationii. National Gateways and Transportation Nodesiii. Urban Transportation and Intelligent Transport Systems

i. Network Configuration

The road and rail networks should be appropriately linked to facilitate multi-modalism, in order to achieve an integrated national transportation system.

a. High-Speed Rail System

Based upon the efficiency criteria, a 300 kph high-speed rail system is proposed consisting of a West Coast line, an East Coast line and two cross lines spanning and linking together the two coastal spines.

The high-speed rail system is proposed as a bulk mover both for people and for goods servicing all existing conurbations and state capitals. It should also connect all the major gateways and ports (seaports, inland ports and airports) in the country.

As the high-speed train proposals along the West Coast, to the East Coast and the East-West links have a long term horizon, corridor alignments need to be identified and incorporated into lower tier plan to be protected as part of the staged implementation of these programmes.

4-34

b. Road Network

The expressway system is to be extended to ensure effective linkages between the various states. A minimum of three highway crosslink will be provided to bridge the West Coast and East Coast expressway systems.

The extensive network of lower hierarchy roads such as the federal and state roads shall be upgraded to support and complement the national expressway system. The present network of roads should be further strengthened leading to the formation of a ladder pattern configuration (see IP 24).

ii. National Gateways and Transportation Nodes

a. Kuala Lumpur International Airport

The largest gateway for international arrivals into the country is the Kuala Lumpur International Airport (KLIA).

With an annual throughput of 27.5 million passengers per annum (mppa), KLIA is operating currently at about 60.0% of its existing capacity of 40 mppa. KLIA has an expandable ultimate capacity of some 50 mppa. Given the availability of some 40.0% spare capacity, the most urgent task is for KLIA to create a critical mass which is large enough to become self-generating.

Externally, KLIA is strategically situated midway of the international air routes from Europe, Middle East and Indian Sub-Continent (at the north) to the Australasia and Oceania countries (at the south), and is equally strategic for travel from the East Asian countries (China, Japan, Korea and Taiwan) to the South African Continent. Strategic alliances with airlines flying these routes may accentuate its role and appeal as an international hub and attraction.KLIA must be made into an integrated national transportation hub whereby travellers bound for external destinations generated locally within the natural hinterland and are channelled efficiently and multimodally through KLIA (IP 25).

KLIA must be made into an integrated national transportation hub whereby travellers bound for international destinations either generated locally or within the natural hinterland are channelled efficiently and multimodally through KLIA (IP 25).

b. KL Sentral

KL Sentral shall be the national transportation hub linking the major transportation nodes in the country with a range of multimodal services. Being thecentral station, KL Sentral shall be the confluent point of the nation’s high-speed rail system and the meeting point of the Express Rail Link, the KTM Commuter Line, the Light Rail Transit and the KL Monorail.

4-35

To be a truly effective urban transportation interchange, KL Sentral must be well served by efficient feeder bus systems and be integrated with well-designed network for non-motorised transport modes such as walking and cycling.

c. Airports

Five international airports are proposed to support the overall NPP-2 transportdevelopment strategy (IP 25).

i. Kuala Lumpur International Airport (KLIA),ii. Penang International Airport (Pulau Pinang),iii. Sultan Ismail International Airport (Johor Bahru),iv. Sultan Mahmud International Airport (Kuala Terengganu), andv. Langkawi International Airport.

The development of Sultan Ismail International Airport in Johor Bahru is planned to be integrated with the Port of Tanjung Pelepas as one of the cargo transhipment mega hubs for the region.

d. Sea Ports

Existing sea ports and designated functions are (IP 25).

National Ports : Port Klang, Port of Tanjung Pelepas, Penang Port, Kuantan Port

Regional Ports : Kemaman Port, Kertih Port Coastal and Feeder Ports : Pasir Gudang Port, Tanjung Langsat Port,

Langkawi Port, Kuala Kedah Port, Lumut Port, Tanjung Keling Port, Tok Bali Port

Port Klang, Port of Tanjung Pelepas (PTP), Penang Port and Kuantan Port are to be the major national ports, albeit each with different focuses.

The Port of Klang, with its central location and proximity to the nation’s domestic hinterland, is to be established as the national hinterland port with extensive inter-modalism and efficient land bridging services to other ASEAN countries such as Singapore, Thailand, Cambodia, Myanmar and Laos. PTP on the other hand, is to concentrate on its development to be a regional transhipment hub for South-East Asia with an extensive maritime feeder service to all ASEAN countries.

The maritime services by Port Klang and Port of Tanjung Pelepas should be complemented and strengthened by the Ports of Penang and Kuantan. Main shipping lines, which prefer to load and unload goods at the Northern Region of the Peninsular Malaysia, can do so at Penang Port. Similarly, Kuantan Port could cater for ships going to the Eastern Region of the Peninsular and from the Pacific Rim

4-36

countries and the East Asia Region that do not navigate en route the Straits of Melaka.

The development of an efficient and extensive intermodalism, feeder and hub port system in freight transportation should be readily promoted. The setting up of a National Commission on Intermodal Transportation (NATCIT) or equivalent to help develop the intermodal development in the country to a globally competitive level is therefore needed. This will certainly improve the competitive edge of the national ports in their endeavours to become the leading top ports in the South-East Asian region. While the ports of Port Klang and PTP have excellent growth in the throughput, there is however a need for government support to strategise and provide the necessary infrastructure and associated facilities for deep water port in both Penang and Kuantan. The positioning of these four national ports will alsoserve as a catalyst to develop the respective conurbation areas and their regional hinterland.

iii. Urban Transportation and Intelligent Transport System

The urban transportation strategy will focus on the development of an integrated, efficient and reliable urban transportation system in all major urban centres of Peninsular Malaysia. The emphasis will be on the need to have a more efficient, safe and comfortable public transport system to enable a modal shift from private car usage.

It is proposed that for major urban centres in Malaysia, the modal split target of 30:70 by year 2020 between public and private transport and long term modal split ratio of 50:50 be adopted as a city mission. Kuala Lumpur presently has a modal split ratio of 20:80 in favour of private transport while the National Key Result Areas (NKRA) is targeted to achieve 25:75 model split in Klang Valley by year 2012.

A fully integrated network system will require the creation of one single multimodal/ multifunction transportation authority to oversee public transportation including rail systems, bus routing and other para transit modes. Detailed conurbation studies will be required to prioritise provision of infrastructure to achieve the modal split and coordinate the location of fixed track networks in areas of greatest demand. For the lower order urban centres which are not likely to exceed the 500,000 population mark, transport system should rely more upon buses.

The use of Intelligent Transport Systems (ITS) will complement the development of modern urban public transport facilities. This system relying upon advanced electronics communications and IT for monitoring and tracking real time information on traffic flows and volumes is to better manage limited road space. The present level of ITS infrastructure is to be expanded in the three main conurbations.

4-37

4.6.7 Utilities and Services

The main physical aspects in providing appropriate Infrastructure and utilities involve the following strategies:-

i. Supply/source - supply must be sufficient and secure to meet demands.ii. Coverage/accessibility - infrastructure shall be accessible to meet demands.iii. Reliability/quality - infrastructure shall be sufficiently reliable and of the quality to meet

the demands.iv. Sustainability - infrastructure shall be developed in a sustainable manner to

safeguard the environment and to be able to meet future demands.

In addition to the above, infrastructure shall be provided in an equitable manner, where access to appropriate levels of infrastructure shall be made available to all levels of the population.

i. Water

Apart from conserving water resources, the development strategy for water supply involves increasing supply and distribution systems to meet projected demands. Production capacity for the whole of the country is expected to increase from 11,917 million litres per day (MLD) in the year 2000 to 18,482 MLD by the year 2010. New dams, water intakes, water treatment plants and distribution systems will need to be constructed to meet future demands.

To ensure an efficient water supply distribution system, measures such as reducing non-revenue water, enforcement against water thefts, pipe and meter replacements, the use of GIS for distribution systems, rehabilitation and upgrading works to distribution systems and water treatment plants will need to be upgraded and continually monitored.

To address anticipated water shortage and uneven distribution, inter-basin and inter-state water transfers will be implemented. Interim measures to address water shortages includes rain water harvesting, the use of storm water in ponds for non potable use and groundwater development. Non-structural measures such as water conservation and the use of water saving devices will also need to be encouraged.

Accessibility to potable water in remote and rural areas will also be a priority. Water supply coverage to rural population will increase to 100% in the states of Johor, Kedah, Melaka, Negeri Sembilan, Pahang, Perak, Perlis and Pulau Pinang. Coverage to the rural population in Selangor, Terengganu and Kelantan is expected to be 99.5%, 98.0% and 70.0% respectively by year 2010. These figures are expected to improve further in the future once additional rural water supply projects are implemented.

The most fundamental of these services is the provision of water to meet the varying demands of the urban population, agriculture and industry. The National Water

4-38

Resources Study up to year 2050 (NWRS) has estimated the demand for domestic, industrial and irrigation in Peninsular Malaysia to increase from 10,833 million m3/year of water in year 2000 to 13,900 million m3/year in year 2020, an increase of 22.0% (Table 4.12).

Table 4.12 : Projected Water Demands for Peninsular Malaysia, 2020

Demand Sector UnitsYear

2010 2020

Domestic million m3/yr 2,987 3,862

Mld 8,184 10,582

Industrial million m3/yr 2,592 3,561

Mld 7,101 9,756

Sub Total million m3/yr 5,578 7,423

Mld 15,285 20,338

Irrigation million m3/yr 6,517 6,517

Mld 17,857 17,857

Totalmillion m3/yr 12,095 13,940

Mld 33,142 38,195Source: NPP-2 Infrastructure and Utilities Technical Report, 2001

The per capita water availability for Peninsular Malaysia in year 2050 is projected to decrease approximately 3,000 m3/year. It is projected that Negeri Sembilan will face water shortage by year 2010, Pulau Pinang and Melaka by year2020. Selangor and Perlis will be in the same category by year 2050. The water-rich states are Perak, Johor, Pahang, Terengganu and Kelantan.

Serious consideration to the protection of water sources and to the future water needs of both the urban and rural areas must be given top priority. Water surplus and water stressed areas have been identified and these have been matched against water source catchments, dams, and water recharge and aquifer areas (see IP 26).

Apart from the water transfer programmes, other specific proposals for water management include the designation of thirty eight (38) dam sites and the protection and rehabilitation of existing rivers and water bodies through the use of buffer zones and conservation of wetlands, peat areas and lakes (inclusive of ex-mining ponds).

ii. Sewerage

In line with the need to create world-class cities, a major commitment to sewerage treatment will be required. The thirteen (13) sewerage projects comprising ten sewerage treatment plants and three central sludge treatment facilities will increase service totals to 14.4 million people.

4-39

The level of service of sewerage facilities will need to be upgraded with priority givento densely populated areas within the main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan. Within the main conurbations and major settlements regional sewerage treatment plants and systems are required to increase efficiency of the sewerage systems. Priority will also be given to the offshore islands and Environmentally Sensitive Areas such as marine parks and nature reserves and tourist destinations where appropriate sewerage systems shall be put in place to safeguard their sensitive environments.

iii. Drainage

Under the NPP-2 development strategy, drainage and flood mitigation programmes for the period up to 2020 are to address flood problems for the main conurbation areas of Kuala Lumpur, George Town, Johor Bahru and Kuantan.

Traditional flood mitigation approaches shall be integrated with source control measures based on Manual Saliran Mesra Alam (MSMA). Flood risk maps for Peninsular Malaysia must be prepared to ensure that adequate provision and consideration is given to this aspect for future physical and land use planning. To this end, contemporary approaches in flood mitigation based on preventive measures which focus on avoidance of flood prone areas for development are to apply. An exception can be allowed for agricultural activities, for which a suitable risk must be factored in for flooding. The principle is to curb intrusion of urban uses into wetlands and flood plain areas that serve as natural flood storage facilities. This environment friendly policy promotes conservation of wetlands whilst the flora and fauna provide regional level active and passive recreational facilities for urban residents.

iv. Solid Waste Management

The National Strategic Solid Waste Management Master Plan provides various strategies and measures to improve solid waste management. Among the physical aspects of this Master Plan includes the construction of solid waste facilities to enable the proper collection, treatment and disposal of solid waste.

Among the facilities that have been constructed include the transfer station at Kuala Lumpur and the sanitary landfill at Bukit Tagar, Selangor and Selong, Johor. It is expected that additional regional sanitary landfills and other facilities such as thermal waste treatment plants, transfer stations and sanitary landfills will also be built. Upgrading of existing unsanitary landfills will also be carried out. In addition, old unused dumping sites will be properly closed.

Apart from the construction of physical facilities, public awareness campaigns will be carried out. Efforts will also be carried out to achieve waste minimisation, reuse, recovery and waste recycling target of 22% by 2010.

4-40

v. Electricity

The peak demand for electricity supply is expected to increase steadily in tandem with the increase in domestic, commercial and industrial consumers.

To meet the electricity demand growth, more new efficient power plants will be built and proposed to be located at the peripheries of the main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan. In line with the national aspirations of green energy, more hydro power plants will be constructed to reduce the use of fossil fuels. Two new hydroelectric power plants at Ulu Jelai and Hulu Terengganu are currently being implemented. In addition renewable energy solutions such as solar power, wind, wave and biomass will also be promoted. Energy Efficiency systems and Energy Demand Management systems will also be implemented to ensure efficient and productive use of energy.

The steady growth in demand will require the transmission and distribution of electricity being strengthened to improve the adequacy and reliability of supply. 500kV and 275kV transmission will form the backbone of transferring large amounts of power from the power plants to the load centres in Peninsular Malaysia, where the power is distributed to the consumers via an extensive distribution network. Amongst the completed transmission projects are the 500kV line from Gurun-Air Tawar in the north, Air Tawar to Kapar in the central region, Pasir Gudang-Yong Peng in the south and the connections from three large power stations namely Manjung Power Station, Tanjung Bin Power Station and Jimah Power Station. More 500kV transmission lines will be added as the power station expands to cater for the electricity demand growth.

Cross-border power interconnections with neighbouring ASEAN countries have been in place since 1981 and today the power systems of Peninsular Malaysia, Singapore and Thailand are interconnected to enable exchange of power. The high voltage direct current (HVDC) transmission links between Peninsular Malaysia and Sarawak and also between Peninsular Malaysia and Sumatra will ultimately pave the way for the establishment of the ASEAN power grid.

vi. Natural Gas

The Peninsular Gas Utilisation Pipeline (PGU) and the Natural Gas Distribution System (NGDS) have enabled many areas within Peninsular Malaysia to be served by piped natural gas. The main consumer of natural gas is the power sector, followed by the non-power sector. A small amount is exported to Singapore.

The NGDS will be further expanded by another 640 km to 2,005 km by 2010 to meet the demand of new growth areas. In addition to the expansion of the NGDS, measures to promote the use of natural gas for vehicles (NGV) will also be made. Additional NGV stations are expected to be constructed to support the use of NGV.

4-41

4.6.8 Information and Communications Technology (ICT) Development

The National Information Technology Agenda (NITA) is a strategic framework for IT programme development at federal, state and local government level. It is intended to draw in the participation of the private and non-government sectors as well as the community at large. The thrust of NITA is seen as a triangle in which infrastructure, software applications and people are inextricably linked. The goal is to create a stimulating working and living environment that provides all Malaysians with equal access to information and knowledge.

While the Multimedia Super Corridor (MSC) located within the Kuala Lumpur conurbation serves as a catalyst to expand IT-related industries and to provide an enabling environment for the orderly development of IT industry in the country, other IT centres will include George Town Conurbation and Johor Bahru Conurbation in its linkages to Singapore. The use of ICT should be encouraged in areas where there is concentration of activities rather than dispersed. This is primarily due to the need for sophisticated back up services in urban centres which would not be available in the more remote locations.

Within the context of the NPP-2, the National and Regional Growth Conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan are to be developed as intelligent cities. The programme shall be followed by all capital cities in the country to form a nationwide network of intelligent cities linked to the global information highway.

Internet and wireless technologies represent two of the fastest developing technologies in the telecommunications field. A backbone network such as the one covering the MSC’s 386 route km high speed broadband fibre optic cable linking Kuala Lumpur City Centre (KLCC), Putrajaya, Cyberjaya and KLIA have been completed.

An extensive fibre optic network of 62,600 km has been installed linking states and major towns across the country enabling high capacity broadband transmission capable of carrying data, audio and video. With the four satellite gateways at Kuantan, Melaka in Peninsular Malaysia and Labuan, Semantan (Kuching) in East Malaysia, connections to countries around the Indian and Pacific Oceans are available. The migration to third generation (3G) mobile communications technology will free up Internet access without limitations to physical constraints.

Adoption of Internet-based services such as e-commerce and provision of broadband access on flat rate bandwidth-based pricing mechanism will promote Internet usage and the uptake of Internet-based applications. These facilities will allow Malaysia to compete in the higher order high-value services at the international level.

4.6.9 Community Facilities

The nationally significant community facilities are the public universities and hospitals. These are due largely to the comparatively large land area involved, large capital investment and maintenance costs required, and the important contribution they make to

4-42

economic and social development of the country. For example, a public university located in a particular state can offer specialised courses tailored to produce skilled manpower to exploit the inherent strengths and potential in the state thus helping to reduce regional imbalance.

i. Public Universities

Public universities play a pivotal role in nurturing skills and talents in a move towards a high technology-driven and knowledge-based economy for the country. Besides being a centre of knowledge and excellence, they also serve as research and development test beds for creative ideas and innovations. Close collaborations between universities and industries can provide the platform to create world-class industrial leaders in new advanced ‘growth’ products, services and technologiessuch assuch as such asrenewable energy technology.

Presently, there are 20 public universities in Peninsular Malaysia and this has exceeded the proposed total number of universities in NPP (2005).

In line with the National Urbanisation Policy (NUP), universities should be located in National, Regional, Sub-Regional Growth and State Growth Conurbations. This is to provide the public amenities based on the hierarchy of town, as well as, to support the business community in conurbations that require various facilities of high quality.

ii. Public Hospitals

At present, there are 91 public hospitals in Peninsular Malaysia. It is essential that the future locations of new hospitals should relate to catchment areas in terms of distance served and public transport availability. Other factors that should be considered are the provision of ample space for expansion of hospitals to health complexes like nurses training and accommodation, R&D and recreation. The hospital is proposed to be located in National Growth, Regional Growth, Sub-Regional Growth, State Growth and District Growth Conurbations.

Community facilities are important for meeting a wide range of social needs. These facilities are provided in convenient locations at a local level. The community facilities should be conveniently available and affordable to the society that may not have access to any other similar options.

Most community facilities are provided at developed areas, especially in main city centres and large housing areas. However, the less developed areas still suffer from the lack of these facilities particularly the Orang Asli settlement and also remote rural area. In addition, disabled peoples will need more barrier-free-facilities enable them to participate actively in activities with the mainstream society. To ensure equal opportunities for all the citizens, proper facilities should be provided or capable to meet the special needs of the disadvantaged or handicapped groups such as ramps for wheelchair. Adequate places of worship and cemetery sites should be suitably andadequately allocated to meet the religious needs of the multi ethnic population.

4-43

4.6.10 Green Technology

Green Technology is the development and application of products, equipment and systems used to conserve the natural environment and resources. It helps to minimize and reduces the negative impact of human activities. Although this technology is still new in Malaysia, many strategies and programmes have been listed by the Ministry of Energy, Green Technology and Water in order to promote the Green Technology. There are five objective of Green Technology which includes:-

i. To minimize growth of energy consumption while enhancing economic development;ii. To facilitate the growth of the Green Technology industry and enhance its contribution

to the national economy;iii. To increase national capability and capacity for innovation in Green Technology

development and enhance Malaysia’s competitiveness in Green Technology in the global arena;

iv. To ensure sustainable development and conserve the environment for future generations; and

v. To enhance public education and awareness on Green Technology and encourage its widespread use.

The National Green Technology Policy has been launched by the Prime Minister of Malaysia on July 2009. The policy includes setting up a legislative and regulatory framework that will support the development of green technologies, as well as to promote a culture of resource use optimisation. One of the strategies is the creation of a Green Technology Fund, which would operate under the concept of the polluter pay principle. Establishment of National Green Technology Council and Malaysia Green Technology Agency will be an effective agency to coordinate and implement the Green Technology initiatives and programmes in Malaysia.

PoliciesCHAPTER 5

NATIONAL PHYSICAL PLAN

5-1

CHAPTER 5

POLICIES

The primary focus of development strategy in the NPP-2 is to ensure that Malaysia is globally competitive for investments in the manufacturing and services sector. The sub-sectors concerned are electronics, knowledge and communications technology, bio-technology, education and health tourism and other related sub-sectors. In order to do so the strategy shall support, promote and enhance the infrastructure and general development of the regions that have the highest potential in attracting such investments and can provide the competitive edge over similar regions in neighbouring countries. In this respect, the NPP-2 shall adopt a development strategy of Concentrated Decentralisation.

The NPP-2 also proposes to simultaneously promote and support the development of resource,agriculture and craft-and-culture-based industries and services. These include forestry and timber products manufacturing, traditional artisan crafts and manufacture, agricultural downstream activities, eco-tourism and general tourism. Cross-border trade and cross-border linked development in regions where such resources and opportunities are located should also be encouraged. At the same time, high value food production and commercial agriculture should be developed intensively in the rural areas.

The NPP-2 shall, therefore, provide a spatial planning strategy for international competitiveness and a framework for national developmental cohesion and discipline. The spatial framework avoids internal conflict and provides a basis for inter-state co-operation and mutual support. Without prejudice to global competitiveness, the NPP-2 shall simultaneously promote co-operation among Malaysia’s close neighbours.

The spatial framework while attempting to promote economic growth will also address the need for conserving the natural resources, biodiversity and the quality of the physical environment of the nation. The nation’s rich biodiversity must be protected and well harnessed to meet the long term sustainability of the natural resources.

The NPP-2 has proposed a development strategy which consists of 41 policies. These policies are divided accordingly into eight (8) development themes and supported by key implementation measures.

Theme 1 Setting a National Spatial FrameworkTheme 2 Enhancing National Economic CompetitivenessTheme 3 Conserving Agriculture Resources and Promoting Rural DevelopmentTheme 4 Sustainable Tourism Development Theme 5 Managing Changing Human Settlements Theme 6 Conserving Natural Resources, Biodiversity and the EnvironmentTheme 7 Integrating the National and Urban Transportation NetworkTheme 8 Providing Appropriate Infrastructure

5-2

These policies will be implemented by the relevant Federal and State agencies. The policies and measures formulated shall provide the guidelines for the implementation of the NPP-2. While the NPP-2 is an exercise in national discipline on physical planning, provision for debate, discussion and consensus is ensured in the formulation process and in the five-year reviews. At the same time, local initiatives and programmes by the states and local authorities are encouraged as long as they conform to the overall framework of the NPP-2.

5.1 Setting A National Spatial Framework

The spatial framework of the NPP-2 shall provide the general direction of physical development for the nation. It shall form the basis on which more detailed Development Plans such as Structure Plans and Local Plans, as well as other sectoral plans are to be drawn up and conforms to the national objectives and 10th Malaysia Plan. The spatial framework will ensure that national resources are optimally used, duplication in infrastructure investment is avoided and more sustainable development in the States are achieved. The plan-led development approach does not however, impute a rigid centralised planning structure, but rather a system that is sufficiently flexible to accommodate top-down and bottom-up inputs current in the country’s system of planning. Aspirations of the State governments and local authorities were taken serious consideration in the formulation of the policies in NPP-2.

NPP 1

The NPP shall serve as the national spatial planning framework in order to achieve an integrated and sustainable land use planning, coordinated with other sectoral policies.

IP 1 : NATIONAL SPATIAL FRAMEWORK 2020

Measures:

i. All Development Plans (Structure Plans and Local Plans) or other sectoral Plans and Policies shall conform to the provisions of the National Physical Plan (NPP-2).

ii. For the purpose of uniformity, Development Plans shall apply the standards and criteria of the NPP-2 in terms of:

a.Land Use Classificationb.Urban Hierarchyc.Classification of ESA areasd.Classification of PAA Areas

iii. Existing Development Plans (that is, the Structure Plans and the Local Plans) shall be reviewed in order to comply with the provisions of the NPP-2.

5-3

iv. Population targets as provided in the NPP-2 may, within a stipulated + / - 5% variant range or as the State Planning Committee (SPC) deems fit, be adhered to as the basis for thepreparation of State Structure Plans. The + / - 5% variant range may also be applied for the planning of key national public infrastructure and social facilities, as well as for the approval of all development applications of national importance.

v. The NPP shall provide the spatial framework for the formulation of the FYMP particularly in deciding public investments concerning key infrastructural facilities, conservation and urban development.

vi. Relevant spatial policies and strategies from the NPP-2 shall be formulated and integrated into other national sectoral policies by all related Federal and State agencies.

vii. Prioritisation of national capital investment decisions particularly key infrastructure projects shall be in line with the NPP-2.

Growth Conurbations

Eco Tourism Area

Island Tourism

Main Centre

Built-up Area

Paddy within Granary Areas

Prime Agricultural Area(Other than Paddy Granary Areas)

Forest Spine

Forest & Wetlands (Outside Forest Spine)

Other Agricultural Areas

Water Bodies

Territorial Waters

International Airport

Domestic Airport

Sea Port

Expressway

Major Highway

KTM Double Track Fast-RailHigh-Speed Rail Corridors

Existing Railway

5-5

5.2 Enhancing National Economic Competitiveness

The Ninth Malaysia Plan (9MP) has five (5) thrusts that will enhance the national development of the country. The five (5) thrusts are as follows:-

Thrust 1 : Moving the economy up the value chain;Thrust 2 : Raising the capacity for knowledge and innovation;Thrust 3 : Addressing persistent socio-economic inequalities;Thrust 4 : Improving quality of life; andThrust 5 : Strengthening Government capacity to implement.

In terms of Urban Growth Strategy, the NPP-2 will focus on the four (4) main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan. This strategy will be complemented by the state capitals and new urban areas that will be the prime centres for urban-based economic growth.

The selected urban centres will be the primary recipients for private sector investments, whether foreign-based or local. Established sectors such as electrical and electronics, ICT, new knowledge-based service sectors and other services such as in transport and logistics, health, educational, finance, business and management services will also be catered for. There are many opportunities for these sectors to build long lasting inter-industry linkages that would give the urban-based service sector an economic advantage. There will be two components to this strategy: directly exporting services or making available export services so that international firms can relocate their operations in this country.

The IMP3’s strategic thrust of global competitiveness will be enhanced by strengthening trading and industrial capacities, promoting the growth of manufacturing and services sectors and developing conducive environments for increased investment. The technological basis of Malaysian industries shall be strengthened through enhanced industry-university linkages, the use of ICT and advances in green technologies and the establishment of centres of excellence. The IMP3 has also taken equity and balanced regional development into consideration.

With regards to spatial dimensions, the NPP-2 has proposed that the targeted growth areas of IMP3 will be accommodated into the urban conurbations (for example, knowledge-based and services sectors) and in the rural areas (such as agriculture and resource based industries). Targeted growth areas will be promoted by encouraging multinational companies to invest or expand and also provide support for local firms to take advantage of proximity and growth potential.

The NPP-2 has also made provisions for the integration of the Corridor Development Regions into the National Spatial Framework, the promotion of border area development and strengthening economic cooperation with its ASEAN neighbours.

5-6

In promoting regional development and reducing regional disparities, the Government has identified three (3) regional growth corridors in the Peninsular Malaysia, namelyNCER, ECER and Iskandar Malaysia. Specific strategies and project initiatives have been identified in their respective Master Plans which will be implemented over the time frame of each Plan. There is a need to integrate all these proposals into the overall national spatial framework.

The NPP-2 corridor development approach focuses development initiatives in selected nodes. Its primary objective is to spur growth in the less developed regions in the East Coast states of Kelantan, Terengganu and Pahang. These states have abundant land and natural resources and a distinctive cultural heritage that should be optimally developed. The improved connectivity and linkages to this region via road, rail and air will help them become more competitive, in supplying products and services to urban-based areas and export markets.

In a similar manner, the border areas present opportunities in terms of international regional cooperation. Both Malaysia and its neighbours will have the benefit of an enlarged economic region to pursue their own different strategies, such as developing infrastructure projects jointly in order to integrate these regions or to foster trading thus adding to their comparative advantage. The ASEAN region with a population of more than 500 million is a large captive market. Malaysia can therefore play an active role in harnessing the economic potential of the region especially in areas of education, town planning, transportation, regional tourism, port related activities and transhipment facilities.

5-7

NPP 2

Future urban growth centres shall be concentrated in strategic conurbations.

IP 2 : CONCENTRATION OF DEVELOPMENT IN CONURBATIONS

Measures:

i. Urban-based economic activities will be concentrated in the main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan to promote efficiency in land use and infrastructure planning and should be globally competitive.

ii. Urban-based economic activities should be located outside the conurbations only where there are adequate infrastructure and available local human and natural resources.

iii. The development of industrial and economic clusters, will be promoted within the conurbation areas to achieve economies of scale.

iv. The development of private and public educational and training facilities in existing urban centres will be encouraged to facilitate transition into the k-economy and to act as a catalyst for economic growth.

v. Knowledge-based activities and cyber cities should be located in the main conurbations and other selected urban growth centres in line with the criteria set by the Multimedia Super Corridor (MSC) Implementation Council.

vi. The use of existing infrastructure facilities such as highways, railways, airports, and seaports should be optimised to support the overall objectives of development.

National Physical Plan-2

5-8

- 2

Source: National Physical Plan-2, 2010

Forest Spine

National Park

Special Tourism Zone

National Growth Conurbation

Regional Growth Conurbation

Sub-Regional Growth Conurbation

State Growth Conurbation

District Growth ConurbationUrban Growth Centre

Major Port

ICT Hubs

Special Management Area (SMA)

High Speed Rail

Major Highway

IP 2

5-9

NPP 3

The corridor development approach shall be adopted in planning the less developed regions to foster greater economic growth and development in order to reduce regional imbalances.

IP 3 : DEVELOPMENT AND ECONOMIC REGIONS

Measures:

i. Development initiatives especially urban and industrial development, agriculture and tourism, should be focused in selected locations within the development corridors and in particular the Main Development Corridors (North-South Corridor, Central East-West Corridor and the East Coast Corridors).

ii. Transportation network, infrastructure and urban services along development corridors will be optimized and enhanced.

iii. Economic diversification through the widening of the economic base of the less developed states should be encouraged by the following means:

a. Strengthening both agricultural upstream investment activities and downstream processing of agricultural products to increase rural income levels.

b. Strong nature/natural tourism potential areas, particularly in the East Coast States shall be conserved and developed on a sustainable basis.

c. Resource-based and craft-based clusters shall be promoted in the less developed states and regions to serve as catalysts for growth and employment.

d. Cross border trade will be enhanced.

iv. Infrastructural facilities, especially related to ICT and transportation network in agricultural and areas of tourism potential will be strengthened to facilitate and expedite integration into the modern economy.

v. Provision of educational technical training and social development programmes in the less developed states will be strengthened in anticipation of the need for segments of these populations to integrate more effectively into the urban economy.

vi. Programmes shall be developed to encourage the East Coast States to develop their recognized skills in crafts such as batik, silver ware, songket, boat building and wood carving into internationally recognized niche market production centres.

vii. Development proposals of the Regional Growth Corridor Master Plans should be integrated with the Structure and Local Plans of the respective states and local authorities.

National Physical Plan-2

5-10

- 2

Source: National Physical Plan-2, 2010

Central Region

Eastern Region

Northern Region

Southern Region

State Capital

East Coast Economic Region (ECER)

Highway

Domestic Airport

1. North-South Corridor2. East Coast Corridor3. Central East-West Corridor

Main Development Corridors

Sub- Development Corridors4. North-South Sub-Corridor5. East West Sub-Corridor6. Lumut-Gua Musang-Kuala Terengganu7. Kuantan-Muar Sub-Corridor

Iskandar Malaysia

Northern CorridorEconomic Region (NCER)

Railway/ Mass Transit SystemInternational Airport

Sea Port

IP 3

5-11

NPP 4

Cooperation in physical planning and economic development between Malaysia and its ASEAN neighbours shall be strengthened.

IP 4 : ASEAN ECONOMIC COOPERATION

Measures:

i. The economic opportunities of neighbouring countries and the Growth Triangles in the northern, eastern and southern parts of Peninsular Malaysia and assisting the development of Cambodia, Lao People’s Democratic Republic, Myanmar and Vietnam (CLMV) shall be capitalised.

ii. Inter regional development initiatives between East and West Malaysia, and with the ASEAN neighbours especially by enhancing transport linkages and promoting regional tourism and providing higher education opportunities shall be strengthened.

iii. Inter-regional cooperation with ASEAN neighbours by effectively capitalising their respective comparative economic advantages and optimising the use of their infrastructure, land and other natural and human resources shall be promoted.

iv. Special Economic Zones (SEZ) in participating member states of the Growth Triangles to cater for new areas of regional co-operation such as Halal food processing and cross-border trade shall be established.

v. The potential for exporting professional services and forging cooperation in town planning with Sabah and Sarawak and with the ASEAN countries through the national planning institutes of member states and countries shall be examined.

National Physical Plan-2

5-12

- 2

Inter-regional Sea Port

Shipping Routes

Trans-Asian Transportation Network

Growth Triangle

Growth Area

ASEAN

Source: National Physical Plan-2, 2010

IP 4

5-13

NPP 5

Planning for industrial development shall adopt the holistic development strategy of the IMP3 of achieving global competitiveness via transformation and innovation of the manufacturing and services sector.

IP 5 : INDUSTRIAL GROWTH CENTRES AND POTENTIAL INDUSTRIAL CLUSTERS

Measures:

i. The IMP3 Target Growth Areas for Manufacturing and Services will be promoted in areas where comparative advantages and agglomeration economies exist:-

a. The main conurbations and urban areas shall provide an integrated network of Infrastructure facilities including social amenities that support the capacity of industrial and service-related firms to compete in the global market place.

b. The location of target growth areas shall be encouraged in selected conurbations, depending on their respective comparative advantages.

ii. New industrial estates, including Halal parks and industrial clusters, will be supported by a detailed programme identifying potential occupants, activities, linkages and viability studies.

iii. Technological basis for industrial-services development, such as using supply chain management, ICT and green technologies will be strengthened.

iv. University-industry linkages and collaboration at the local and international levels will be strengthened and establish centres of excellence for industrial and related research will also be established.

v. Heavy or pollution-generating activities shall not be permitted in / or adjacent to designated nature / ecotourism areas.

vi. Special Economic Zones (SEZ) will be developed in selected locations to promote regional development and enhance the export potential of the country.

National Physical Plan-2

5-14

- 2

Source: Third Industrial Master Plan (IMP3), 2006

Seaport

Domestic Airport

International Airport

Industrial Estate

Highway

Railway

ICT Hubs

Federal Road

Identified Industrial Clusters (IMP3 and corridor Master Plan)

Industrial Growth Central Level 2

Industrial Growth Central Level 1

Industrial Growth Central Level 4

Industrial Growth Central Level 3

IP 5

5-15

5.3 Conserving Agriculture Resources and Promoting Rural Development

Agricultural areas have reduced over the years due to pressure from urban development (Table 5.1). More land, especially those adjacent to town, industries and housing areas will be taken up for urban development. However, areas outside urban development zones should remain as agricultural areas, particularly those areas which are fertile or have special functions such as paddy land. The 9MP (2006-2010) has specifically targeted agriculture as the third engine of growth. “New Agriculture” programmes were advocated to be carried out through modernisation, commercialisation, value added schemes, ICT, biotechnology, and marketing improvements. Downstream activities are encouraged especially for oil palm and rubber sub sectors, while areas with high potential are to be further developed for aquaculture, deep-sea fishing, herbs, ornamental fish and horticulture. The Plan also calls for Malaysia to be a Regional HalalFood Hub.

Table 5.1: Agriculture Land Use in Peninsular Malaysia (Hectare)

Crops 1997 2002 2006 Difference (06-02)

Paddy 410,000 405,800 331,036 -74,764

Oil Palm 2,174,500 2,466,500 2,816,513 +350,013

Rubber 1,759,100 1,560,000 1,284,912 -275,088

Other Crops 1,632,400 1,716,700 808,099 -908,601

Total 5,976,000 6,149,000 5,240,560 -908,441Source: MOA Inc., Agriculture Statistical Handbook 2006, 2008.

In order to ensure balanced development, certain highly productive agricultural areas (Prime Agricultural Areas) must be protected. Among these areas are paddy land (especially granary areas) and areas with high agricultural productivity such as soils of Class 1 and 2 (and to a lesser extent soils of Class 3). Other areas that should be protected include agricultural areas in agro-climate with no dry season and short dry season and agricultural land on peat soils.

Paddy land are categorised as granary areas and non-granary areas. The granary areas have been developed at a very high cost and can be planted with paddy at least twice a year. The eight (8) granary areas in Peninsular Malaysia must be conserved as a food security measure since rice is Malaysia’s staple food and only 7% of the world’s rice production is available in the market. Potential urban development in these areas must be directed to other adjacent areas, outside the granary areas. The ninth granary area is expected to be developed in the near future in the districts of Pekan and Rompin. Paddy land outside the granary areas should be provided with proper irrigation and drainage systems to ensure that these areas will also be highly productive. Using paddy land for urban development should be restricted as it can be costly due to its low lying terrain and flood prone tendencies. As almost no new paddy land will be developed in Peninsular Malaysia, the target of providing 70% rice sufficiency lies in the modernisation and use of new technologies which could raise average production levels.

5-16

Peninsular Malaysia has a short fall in food production. According to the Agriculture Statistical Handbook 2008, the import bills for foodstuff have increased over the years from RM12.69 million in 2003 to RM23.37 million in 2007. Agricultural land use data show that most of the agricultural areas are planted with oil palm and rubber (2.8 million.ha and 1.28 million. ha respectively), followed by paddy (331,036 ha), mix horticulture (326,768 ha), orchards (184,828 ha), coconut (104,555 ha) and vegetables (16,913 ha). As such more concerted effort should be directed towards food production. Areas currently under food production, especially those developed commercially for “Permanent Food Production Park” (PFPP) should be conserved. Currently only government land is utilised for PFPP. It is recommended that more large land holdings belonging to individual farmers should also be included in this programme. PFPP should also include areas used for animal production and “Aquaculture Industrial Zones” (ZonIndustri Akuakultur – ZIA).

Existing agricultural land on peat soil is currently one of the most productive areas for oil palm and pineapple in this country and should continue to be used for agriculture. Apart from giving high yields, peat soil is not suitable for urban development due to the thick organic matter which is not suitable for the construction of buildings and is prone to flooding. The development on new peat land should be restricted as they threaten the existing and natural ecosystems. If development is to be undertaken, it should be done in a sustainable manner.

Peninsular Malaysia has 26 agro-climatic regions for lowland crops and two (2) agro-climatic regions in the highlands (areas above 300 meters above sea level). These areas can be generally grouped into five (5) regions namely:

i. Highlandsii. Regions with a clear and regular dry seasoniii. Regions with a short but fairly regular dry seasoniv. Regions without regular dry seasonv. Areas predominated by organic soils

The most productive region within this group is the region without regular dry season. These areas should remain under agriculture unless they are within “areas designated for urban development”. Much of these areas are found in Johor, Selangor, Central Pahang and the northern coastal area of Perak.

Agricultural productivity is also dependent on soil suitability (soil-crop suitability). Soil-Crop Suitability Classification categorises soils into five (5) Classes as follows:

Class 1: Soils with no limitation or only minor limitations to crop growthClass 2: Soils with one or more moderate limitations to crop growthClass 3: Soils with one serious limitation to crop growthClass 4: Soils with more than one serious limitations to crop growthClass 5: Soils with at least one very serious limitation to crop growth

5-17

Soils of Class 1 and 2 are highly productive and should be devoted for agriculture, unless they fall within the urban growth boundary. Where possible, Class 3 soils should be conserved for agriculture unless there is a strong and urgent need for development.

The rural areas should be continuously developed to enable the rural population to have higher income and better quality of life. The rural population includes those living in traditional villages; new villages; FELDA, FELCRA and Orang Asli settlements; plantation quarters; fishing villages and rural housing schemes. This is in line with the NKRA's objectives of "Raising living standards of low-income households" and "Improving rural basic infrastructure". Some of the key strategies to be adopted include rural farm consolidation, providing Agriculture CPPCs and the expansion of non-farm employment (rural tourism, services, general manufacturing) in key intermediate towns (job centres) serving the rural cluster. Broad band access will be enhanced and public transportation to job centres will be improved allowing commuting for work to generate extra income for the rural population.

5-18

NPP 6

Prime Agricultural Areas (PAA) shall be conserved only for agriculture purposes and urban development shall be restricted.

IP 6 : PRIME AGRICULTURAL AREAS

Measures:

i. Agricultural land will be prioritised to conserve Prime Agricultural Areas (PAA) in the following order of importance:

a. Strategic granary areas. b. Paddy land outside granary areas.c. Agricultural land designated as “Permanent Food Production Park (PFPP)”which

could include areas for crop production, animal husbandry, aquaculture and aviculture.d. Existing agriculture areas on peat / organic soils.e. Agriculture areas on Class 1 and Class 2 soils.f. Agriculture areas on Class 3 soils.g. Agriculture areas without regular dry season.h. Agriculture areas with short dry season.

ii. The above PAA shall be categorized into Rank 1, Rank 2 and Rank 3 as an indication of their importance.

a. Rank 1: This area shall remain as paddy land and not be developed for other purposes.The area under Category 1 is:

Granary areas.

b. Rank 2: These areas shall remain as agriculture areas unless it is within the city and town limits. The areas under this category are:

Paddy land outside granary areas.Agricultural land designated as Permanent Food Production Park (PFPP) or popularly known as Taman Kekal Pengeluaran Makanan (TKPM). Agriculture areas on peat / organic soils.Agriculture areas on Class 1 and Class 2 soils.

c. Rank 3: These areas shall remain as agricultural areas unless they are designated to be developed for other uses. The areas under this category are:

Agriculture areas on Class 3 soils.Agriculture areas without regular dry season. Agriculture areas with short dry season.

5-19

Source: National Physical Plan-2, 2010

Paddy Rank 1 (Within Designated Granary Areas)

Permanent Food Production Park (Corp)

Agriculture within Peat/ Organic Soil

Permanent Food Production Park (Aquaculture)

Agriculture within Soil Class 1 and 2

Paddy Outside Granary Areas Agriculture within Soil Class 3

Agriculture area Without Dry Season

Agriculture area With Short DrySeason

State Capital

Rank 1 Rank 2 Rank 3

5-20

NPP 7

The eight (8) strategic granary areas comprising Muda (MADA), Kemubu (KADA), IADA Kerian-Sungai Manik, IADA Barat Laut Selangor, IADA Pulau Pinang, IADA Seberang Perak, IADA Terengganu Utara (KETARA), and IADA Kemasin-Semerak shall be conserved for paddy cultivation.

IP 7 : STRATEGIC GRANARY AREAS

Measures:

i. The eight (8) strategic granary areas shall be gazetted as paddy land.

ii. The urban limits for all urban centres in these areas shall be demarcated in the Local and Structure Plans.

iii. Paddy land outside the established urban limits shall not be converted to other uses except for paddy related activities.

iv. Future urban development shall be directed away from the granary areas. In unavoidable circumstances, urban development should only be allowed in the form of high rise development to minimise land loss.

v. Water catchments in granary areas shall be identified and conserved to ensure adequate, clean and quality water supply for paddy cultivation.

vi. Fiscal measures shall be introduced to assist the state governments that are required to conserve their granary areas.

5-21 Source: Dept. of Agriculture, 2006.

Paddy Rank 1

State Capital

5-22

NPP 8

Existing potential paddy land outside granary areas shall be provided with the proper infrastructure to increase productivity and yields.

IP 8 : PADDY LAND OUTSIDE GRANARY AREAS

Measures:

i. Existing potential paddy land outside granary areas shall be conserved as paddy land. Where necessary, such areas may be converted to granary areas by providing the necessary infrastructure.

ii. Existing potential paddy land shall be provided with proper irrigation, drainage systems and road network for the mobility of machinery.

iii. Productivity shall be increased through the use of new technology and mechanisation to achieve higher yield.

5-23 Source: Dept. of Agriculture, 2006.

Paddy Rank 1 (Within Designated Granary Areas)Paddy Outside Granary Areas

State Capital

5-24

NPP 9

Rural areas and Rural Growth Centres (RGCs) shall be developed to ensure higher income and better quality of life for the population.

IP 9 : RURAL SETTLEMENTS AND POTENTIAL RURAL ECONOMIC CLUSTERS

Measures:

i. A National Rural Development Policy shall be prepared to provide a framework for integrated development of rural areas and rural growth centres including FELDA Settlements.

ii. Integrated rural planning shall be adopted taking cognizance of the roles of neighbouring urban centres and rural tourism opportunities in providing off-farm employment, improving public transport systems and increasing Internet access.

iii. Small rural farmlands shall be consolidated to allow for better management and economies of scale in production.

iv. Appropriate economic activities shall be developed in rural areas such as one district one product, agropolitan, homestay, agriculture-based industry, cottage industry, handy craftand agro-tourism.

v. Rural growth centres (RGCs) shall be provided with quality infrastructure and amenities such as roads, clean water, drainage, electricity, ICT, proper housing, sanitation, schools and clinics.

vi. The existing RGCs shall be reviewed and their implementation programmes shall be expedited. The Structure Plans and Local Plans shall identify the RGCs as effective rural service centres.

vii. Social and commercial services and public facilities shall be consolidated in the RGCs.

viii. Public transportation services between the RGCs and the main urban centres providing off-farm employment shall be improved.

ix. Public investment in infrastructure shall be concentrated in RGCs to support resource-based economic activities, craft-based industries, rural tourism initiatives, agriculture-based and forestry-based downstream activities.

x. Historical, heritage, cultural and architectural value villages should be selected as prospective RGCs. Where any such village is not selected, a special programme shall be created for it to be conserved.

xi. Residents of villages where the population is too small, too isolated or uneconomic to service shall be encouraged to be relocated to RGCs.

National Physical Plan-2

5-25

- 2

Source: National Physical Plan-2, 2010

Off Farm Job Centres

Major Road

Conurbations (Refer to Figure 3.7)

Settlements

Forest

Agriculture Areas

Island Tourism-based

Highland Tourism and highland AgricultureEco-Tourism, Agriculture and Agro Forest based

Urban, Agriculture and Agro-based Industry

IP 9

5-26

NPP 10

The Orang Asli communities shall be spatially and economically integrated into the mainstream of all development initiatives.

IP 10 : ORANG ASLI SETTLEMENTS

Measures:

i. Specific areas shall be reserved and allocated for the Orang Asli communities to enhance their economic and social well being.

ii. The Orang Asli shall be provided with proper houses in planned villages with adequate community and suitable transportation facilities according to the needs and customs of the respective Orang Asli communities.

iii. Suitable agriculture land and extension services and facilities shall be provided for the economic well being of the Orang Asli.

iv. Orang Asli communities shall be provided with quality amenities such as schools, clinics, roads, clean water and electricity.

v. Agricultural land allocated to Orang Asli shall be developed commercially either by themselves or by the appropriate government agencies.

vi. Animal husbandry and aquaculture shall be introduced as integrated agricultural development where appropriate.

vii. Appropriate economic activities and programmes shall be introduced for the Orang Aslito take an active part in rural economic development programmes such as, agropolitan, homestay, agriculture based industry, cottage industry, handy craft, eco and agro-tourism.

National Physical Plan-2

5-27

- 2

Source: National Physical Plan-2, 2010

Orang Asli Settlements

Major Road

Lake

Forest

Built-Up Area

Agriculture Areas

IP 10

5-28

5.4 Sustainable Tourism Development

Good sustainable tourism principles refer to a suitable balance between the environmental, economic and socio-cultural aspects of tourism development in order to guarantee its long-term sustainability. The 9MP emphasises that Malaysia has to continuously meet its commitments to tourism declarations pertaining to sustainable tourism and climate change.

The two main issues faced by the country is staying competitive and remaining as a safe destination. At a more local level, there are also issues in conserving the natural resource attractions and protecting rural areas from the continuous pressure on conversion for urban and tourism developments. In this respect, the National Ecotourism Plan has been reviewed to keep up to current trends and expectations in the local andglobal eco-tourism initiatives.

The importance of regional cooperation for tourism growth within the region has been recognized by ASEAN. Opportunities within the region have led to the expansion of the national and low cost air carriers to more destinations within the region. Increased mobility of visitors and demand for tourism services in the APEC region and its importance to national economic competitiveness is well-acknowledged by the Government. Tourism will continue to be one of the major forces of economic growth in the future, particularly with the nation’s liberalisation of the sector to enhance its global competitiveness.

Uncontrolled tourism development in both urban and rural areas has created negative impacts on coastal tourism cities/towns, rural and natural resources. While many established coastal tourism towns such as Langkawi, Penang and Port Dickson face tremendous growth, there are many unresolved issues relating to low maintenance and cleanliness of tourism products. This has led to congestion, lack of tourist safety, erosion of beaches, low sea water quality, low accessibility levels during peak seasons and low quality of services.

Sea reclamation projects proposals in many states also pose a threat to the naturaltourism resources such as marine parks, islands, forests, wetlands, turtle landing sites, resting sites for migratory birds and water catchments. Many rural cultural and heritage products such as traditional kampungs and rural areas also face physical and cultural changes due to urbanisation.

Malaysia has been identified as one of the top 30 emerging destinations for tourism. Product diversification such as new focuses to MICE and health tourism for example requires high expenditure to build world class facilities in order to accommodate effective functions. The Government should also establish and promote sustainable tourism development as a national priority optimising the use of environmental resources, maintaining essential ecological processes and helping to conserve natural heritage and biodiversity.

5-29

Popular destinations need to be revitalised and rebranded to keep up to tourist expectations. Heritage, multiculturalism and the 1Malaysia lifestyles need to be nurtured and promoted worldwide and continuously as the ‘Truly Asia’ concept. The challenge is to keep up to the international tourists’ expectations and to keep them coming back to the country.

The tourism industry needs to grow in profit and size and be viable in providing long-term operations and ensure a fair distribution of socio-economic benefits to all stakeholders. This includes creating stable employment, income-earning opportunities and social services to host communities and contributing to poverty alleviation. Sustainable tourism development requires the cooperation and informed participation from all relevant stakeholders and political leadership to ensure wide participation and constant monitoring of impacts and corrective measures are made from time to time.

NPP 11

Natural tourism resources, the authentic multi-cultural and historical heritage of the country shall be conserved.

Measures:

i. Resource protection and management measures shall be efficiently and effectively implemented in all tourism resource areas.

a. Tourism areas should be zoned properly according to their merits in order to safeguard tourism resources from being over-developed or tampered with by unsuitable scale of development.

b. The quality of tourism resources including establishing the limits of acceptable change and resources sharing by neighbouring states through a special tourism committee should be protected, monitored and managed continuously.

ii. The nation’s biodiversity and tourism corridors should be conserved. At the same time, tourism accreditation/ certification schemes should also be provided for international and national level products in order to improve their environmental performance.

iii. The need to promote the authenticity, living heritage and culture of the nation should be recognised and strengthened. The involvement of community-based tourism in order to contribute to inter-cultural understanding and respect should also be encouraged and promoted.

iv. The inter-dependent relationship between environmental conservation (including the development in Environmental Sensitive Area) and tourism must be recognised and promoted.

5-30

v. The tourism industry shall be made responsible in good environmental practices, through adherence to environmental legislation and encouragement of conservation and sustainable use of natural resources.

vi. The tourism players must be encouraged to practice responsible tourism practices with the following code of practices:

a. Contribute to the local economyb. Respect culture and invest in social capitalc. Promote local guide tours and activitiesd. Efficient and sustainable use of resourcese. Responsible waste managementf. Commit to protecting the local environmentg. Develop capacity for continuous improvementh. Manage sites within limits of acceptable change.

NPP 12

Tourism development zones in each state shall focus on specialised regional niche products based on their locational advantages and availability of resources

IP 11 : NATURAL TOURISM RESOURCESIP 12 : MAN-MADE TOURISM RESOURCES

Measures:

i. The National Tourism Policy, 2004 shall be reviewed to incorporate the spatial aspects of tourism development including recommendations to guide appropriate approaches for sustainable tourism development. The Revised National Tourism Policy will include development guidelines and management practices which are applicable to all forms of tourism destination. The National Tourism Policy will also guide the following:

a. Avoid unhealthy competition, promote complementary efforts in tourism development and packaging between neighboring states and countries.

b. Achieve cooperation and coordination in tourism development and promotion among the public sector and the other various sector stakeholders (private sector, communities and the civil society).

c. Promote community-based tourism and facilitate investments in tourism industries.

ii. A high standard of quality tourism products shall be provided and maintained through the:

a. Identification of uniquely differentiated tourism areas of outstanding natural beautywith strong tourism potential

b. Continuous revitalization of existing products

5-31

c. Diversification and the introduction of new product mix and infrastructure based on tourist preferences including the needs of domestic tourists through continuous market research and analysis of the country’s competitive advantages.

iii. To promote development of tourism products within the tourism zones according to their locational advantages:

a. International shopping to be enhanced in designated major urban centres, border towns and other free trade zones in order to maximise tourist and excursionist gateway capture for economic benefits.

b. Health, wellness, sports and events tourism shall be further developed in all major cities/ towns with readily available supporting infrastructure while more wellness zones providing traditional therapies should be promoted within coastal resorts and rural destinations.

c. Medical tourism shall be further expanded in the main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan.

d. Educational tourism shall be further developed in the existing institutions of higher learning and new Educational Cities/ Towns will be established providing conducive environments for students’ development and equipped with the appropriate facilities.

e. The nation’s importance as Meetings, Incentives, Conventions and Exhibitions (MICE) destination shall be supported through continuous infrastructure developments in all major cities.

f. Nature based ecotourism shall be sustainably developed and promoted in natural areas such as highlands, coastal areas, marine park islands, national and state parks, geological sites, wetlands and RAMSAR sites, birds, turtle landing sites and firefly habitats.

g. Authentic multicultural and historical heritage tourism resources and products shall be sustainably developed, protected and promoted in heritage cities/ towns, heritage zones and sites and rural districts.

National Physical Plan-2

5-32

- 2

Jetty

Hill Station

National Ecotourism Sites

White Water Rafting

Lake / Dam

Forest

Wetland

Sea

Marine Park

Tourism Product

Eco-tourism Gateway Town

Airport

Mountain

Turtle LandingSite

Roads

Highway

Source: State Structure Plans and Tourism Malaysia, 2009

IP 11

National Physical Plan-2

5-33

- 2

Source: State Structure Plans and Tourism Malaysia, 2009

World Heritage

Heritage Town/ Royal TownEntertainment City

Coastal Tourism Town

National Border Towns

Special Role Centre

HighwayRoads

Shopping

SeaHighland Tourism Town

Homestay

Tourism Product

Jetty

Airport

IP 12

5-34

NPP 13

High quality tourism infrastructure and facilities shall be provided to enhance tourists comfort and safety without compromising the quality of the environment.

Measures:

i. Gateway towns to ecotourism and island destinations shall be promoted for a wide range of tourism related businesses where support facilities, including tourist accommodation, transport, travel agents, licensed tourist guides, food and beverages, souvenirs and takeaways shall also be provided.

ii. The tourism industry should be encouraged to prepare for resort-specific crisis and industry-wide disaster situations, such as planning for emergency evacuation facilities, emergency response and community resilience.

iii. Efficient and comprehensive transportation system (air, water, rail and road) and accessibility shall be planned and improved, to support tourism growth and expansion of integrated tourism packages. This includes the need for providing:-

a. Coastal scenic routes as tourism attractions for rural areasb. Good accessibility to all tourism zones/ productsc. Emergency routes, evacuation facilities and other safety aspects of tourist journeys

and activities in tourist zones are monitored regularly by the authorities, agencies and resort operators

iv. High quality, clean and value for money accommodation facilities need to be provided for all range of tourist segments. They shall be of appropriate scale and located close to other tourist facilities and infrastructure based on tourist demand and within the limits of acceptable change for the particular location.

v. Other support infrastructure such as information technology, clean toilets, money

changing facilities, transit facilities, safety boxes and facilities to cater for domestic tourists, family tourists and independent travellers shall be provided for within the tourism zones.

vi. Continuous maintenance and adequate financial support shall be taken to protect the tourism product and ensure tourist satisfactions.

5-35

5.5 Managing Changing Human Settlements

While there is symbiotic relationship between urban centres and rural settlements, this Section is focussed largely on cities and towns. Rural settlements, particularly Rural Growth Centres (RGCs) and Orang Asli settlements, and their potential rural economic clusters are dealt with in Section 5.3: Conserving Agriculture Resources and Promoting Rural Development.

The level of urbanisation in Peninsular Malaysia has increased from 54.3% to 65.4% in the inter-censual period 1991-2000 and is expected to increase to 75.0% by 2020. During the plan period of the NPP-2 the intensification of urbanisation will be the dominant feature of Malaysian geography and economics. Urbanisation is also marked by the increasing primacy of the four main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan around which conurbations are being formed. The fastest growing towns in the period 1991-2000 have been those that cluster around these cities(the suburbs) - the ten fastest growing towns in the period concerned being Subang Jaya, Skudai, Batu 9 Cheras, Pasir Gudang, Kulim, Kajang, Shah Alam, Gelugor, Ampang Jaya and Klang. The four main conurbations will continue to grow faster than the rest of the country and attract in-migration. Population projection of the four main conurbations is as shown in Table 5.1.

Table 5.2: Population Projection of Main Conurbations

Conurbations Year 2000 (in million) Year 2020 (in million)

Kuala Lumpur 4.8 10.37

George Town 1.3 2.42

Johor Bahru 1.0 2.40

Kuantan 0.5 1.38

Total as % of Peninsular Population 41.1% 60.4%Source: The population projection of Kuala Lumpur Conurbation is based on the study of “Rangka Kerja Penyelarasan

Pengurusan Pertumbuhan Kuala Lumpur Conurbation” and George Town Conurbation is based on 1st NPP. For Johor Bahru and Kuantan Conurbations, the population projections are based on SJER Master Plan and ECER Special Economic Zone (SEZ).

The formation of an emerging fourth conurbation is also taking place around Kuantan in the East Coast of Peninsular Malaysia. The selected strategy of concentrated decentralisation in development corridors based on the main conurbations will reinforce the functions and development of these four conurbations.

Vision 2020 and the OPP3 are based on a high level of economic growth through accelerated industrial development and an export-based manufacturing sector. The 9MP also confirms that the growing sectors of the economy are services andmanufacturing. It further identifies a need for the promotion of FDIs and recognises that industrialisation for the future will be faced with intensifying competition among countries for investments and markets. These challenges and the economic planning strategies formulated focus a dependence on the urban areas for the country’s future development.

5-36

They also imply a general freedom of location for investors in accordance with the imperatives of particular businesses. International investors are likely to prefer locations that have the supporting physical infrastructure and close proximity to other businesses and industries in order to gain low transactional costs and agglomeration of economiesincluding supporting infrastructure to support the lifestyle of their knowledge workers.Such a lifestyle requires social, recreational and sports clubs, a variety of entertainment and outlets for cultural expression, international schools, luxurious shopping andconvenient access to international travel. In a nutshell, liveable cities and conurbations attract and retain talent and knowledge workers who in turn draw in cutting edge industries and high value-added services that will drive high income economic growth (see Figure 2.2). These conditions however, can only be provided by the highly urbanised conurbations.

The strategy of concentrated decentralization in development corridors avoids impinging on the capability of our most dynamic urban centres to compete with other urban centres in the West Pacific region and sustain their competitiveness. The implied outlook for Peninsular Malaysia is therefore, a continuing process of concentration of productive investments, employment and population in the main conurbations.

The present trend in urbanisation towards primacy of the main cities may be modified but not countered, as past policies in rural urbanisation has shown such as in the example of the Regional Development Authority (RDA) areas. Any attempt to direct industrial development to areas dictated by the Government may result in ineffective public investments, loss of Malaysia’s competitiveness in attracting FDIs and losing local investments to foreign competitors thus jeopardising achieving the objectives of Vision 2020.

Modification of the current development trend may include a continuing support for the development of selected and limited locations in the less developed regions such as Kuantan and South Terengganu in the form of a “cone development” within key economic growth corridors. Each of these selected urban centres should specialise in its economic activity based on its inherent resource potentials to cater for niche markets, for example, NCER on agriculture production for the Middle East markets. The main aim is to encourage a balance in the geographical development of the country and to strengthen the base for further industrialisation of these regions. It also includes channelling overspill and excess development to other conurbations located between the main conurbations such as Ipoh, Melaka, Temerloh-Mentakab, Lumut-Sitiawan-Manjung and Muar-Batu Pahat-Kluang.

The Major and Minor Settlement Centres (small and intermediate towns) including some state capitals in general, have generally not developed as fast as the main conurbations and have experienced population loss between 1991-2000. Public investments in infrastructure in order to attract development in the sectors facing global competition to the major and minor centres will not be cost-effective. Developmental viability should, therefore, depend on sectors that are not subject to intense global competition such as resource-based manufacturing, resource-based services, craft-based industries,

5-37

downstream agricultural activities, forestry, as well as the general modernisation of the agricultural sector.

There are a few exceptions, particularly towns that have a potential in those sectors related to in-situ resource development, in niche sectors which are not subject to intensive international competition. These towns may be referred to as Special Feature Towns. They include among others towns located close to sites of outstanding natural beauty or areas of natural, archaeological or historical attraction that can become tourist resort towns (such as Tanah Rata and Port Dickson) and new bases for ecotourism (example: Raub and Kuala Lipis) including towns that support a particular mining operation such as in Kertih. State Governments may direct infrastructural investments that are appropriate to the type of development into these exceptional areas.

Urban sprawl and the consequential deterioration of the urban environment within the conurbation is an issue in the continuing expansion of the conurbations. While the conurbations themselves should be encouraged to grow in order to absorb development investments, individual cities within the conurbations should not lose form, character and functional efficiency. Urban planning at the local level should seek to nurture a liveable environment in the individual cities, maintain the integrity of relationships between the city cores and suburbs and minimise travel time between centres and peripheries. The conurbations should not become a chaotic and continuous mass of undifferentiated urban uses, imposing upon its inhabitants journeys to work, school, shopping or play, that are unnecessary, long, or that criss-cross with one another.

Liveable cities and sustainable communities can be achieved by shifting from the conventional haphazard urban sprawl to a compact city form and building design. In order to create liveable cities, resources must be given priority in rejuvenating community and vitality to the existing city centres and older suburbs. Liveable cities concept also places emphasis on promoting mixed-uses, higher densities, public transport and pedestrian accessibility, optimum use of existing infrastructure, environmental improvement, and the protection and provision of open spaces. Compact building design permits more green and open spaces to be provided and protected, such as parks, urban forest, wetlands and prime agriculture land. Building design,particularly multi storey buildings and car parks should be constructed with more efficient use of land and resources. Compact city concepts are necessary for the provision of an efficient public transport system due to the minimum levels of density required to make public transport networks viable. On a per-unit basis, it is also cheaper to provide and maintain utility services such as water, sewer, electricity and telephone services in compact neighbourhoods rather than in dispersed communities. Since the community knows their needs best, it is important to engage community participation from the public and private sector in the plan-making process.

An important element of a compact city is the integration of mixed land uses into the communities, particularly in the city centre, based on the pollutive impact use zoning approach which is non-pollutive live-work-play activities. The close proximity of mixed uses (such as housing, businesses and services) allows for efficient functional linkages

5-38

and offers an alternative to driving, like walking and cycling, thus helping to reduce greenhouse effects. Mixed land uses can generate a sizable population critical mass and commercial base to support a viable public transport system. It can enhance the vibrancy, security and vitality of an area particularly town centre and neighbourhood centres, by increasing the number of people on the street, shopping areas and public spaces, thus enhancing economic activities in commercial centre and revitalising community life.

The inner cores of the conurbations have also experienced a loss of their share of population to the suburbs and satellite towns in the last decade. The main cause of this population movement out of the core cities may be attributed to the increasing cost of living in the cities especially the middle and lower income groups. Only the subsidised low-cost housing manages to retain a proportion of the low income groups in the citieswhile the middle income group are not subsidised. A situation may develop in which the city centres are populated by the richest and the poorest population. This is however not a desirable social mix.

To address the housing syndrome of this middle-income and lower middle-incomegroups, adequate affordable housing, in terms of size, type and tenure, must be made available in the cities and large towns according to local needs. City living, particularly in innovative high rise buildings, will be encouraged; and more affordable homes will be built in all new residential development, especially in brownfield sites, through expediting planning permission and providing incentives, such as mixed uses and higher densities. In this way, the city will have a higher living population and more economic activities.Mixed communities will be promoted and provision of common user’s space, such as playing fields and playgrounds, should be provided to foster more social interactions and cohesion in line with the 1Malaysia Concept.

The out-migration of population from the inner cities may make way for the conversion of old housing areas to commercial and office uses, but many areas are left to decay as the rate of abandonment outpaces the rate of redevelopment. The decay of inner city areas will increasingly become an issue over the next two decades. To achieve an economically vibrant and thriving city, the main spatial development thrust will be directed towards regenerating existing town centres and older suburbs. Urban policies need to be put in place to guide the planning of cities, particularly the older cities in the main conurbations. Greater effort needs to be made at the local planning level to deal with the design and renewal of specific sites and locations as well as any other impediments to redevelopment such as land tenure issues.

The aspiration to attain developed nation status and to enjoy the quality of urban life of a developed country involves the adoption of a developed country standards for the physical environment. Present planning standards, particularly standards of open space provision, recreational parks and facilities, need to be reviewed. Standards and quality of infrastructure provision, such as in water supply, sewerage, street and drain cleanliness need to be monitored, reviewed and compared with other international standards.

5-39

Malaysia is still experiencing property overhang which had immobilised capital and resources due to speculative development. In order to prevent future property overhangs approving authorities must be cautious with the approval of development applications and be guided by realistic projections of housing and property demand.Approval of land conversion should not be at a rate faster than five years ahead of projected demand for development land.

The policies for managing human settlements should also be integrated with the sectoral policies in agriculture, conservation of resources and the environment and other sectors that have an impact on land use. For example, the agricultural policy of conserving the strategic granary areas would require that urban development be diverted away from cities located in the midst of granary areas like Alor Setar. Such diversion could be to areas just outside the paddy growing land or to other cities and towns in the state. The details of urban diversion would be matters for state and local planning to address, while national policies should include financial assistance to states involved with the necessity for such urban diversion.

National policies on human settlements should also encourage local initiatives in so far as they do not contradict with the national spatial framework. Federal financial allocations shall also be made available to support local programmes that conform to the National Physical Plan (NPP-2).

NPP 14

The concentration of urban growth shall be accommodated in the conurbations which shall be planned and developed in an integrated manner in line with the National Urbanisation Policy.

IP 13 : CONURBATIONS AND URBAN HIERARCHY Measures:

i. The levels of conurbations proposed for priority development are as follows:-

Level Designation Area Indicative Population Range

1 National Growth Conurbation Kuala Lumpur Conurbation > 2.5 million

2 Regional Growth Conurbation George Town ConurbationJohor Bahru ConurbationKuantan Conurbation

1.5 – 2.5 million

3 Sub-regional Growth Conurbation

Ipoh ConurbationMelaka Conurbation

500,001 – 1.5 million

4 State Growth Conurbation Alor Setar ConurbationKota Bharu ConurbationKuala Terengganu ConurbationKangar Conurbation

300,001 – 500,000

5 District Growth Conurbation Muar-Batu Pahat-Kluang ConurbationLumut-Setiawan- Manjung ConurbationTermeloh Conurbation

100,001 – 300,000

Source: National Urbanisation Policy, 2006

5-40

Regional Plans for conurbations shall be prepared for each of the conurbation areas. Conurbation plans shall, amongst other things, address such matters as new townships and growth centres within the conurbations, urban limits, green belts, transportation, water supply, sewerage systems, solid waste disposal, industrial estates and flood mitigation.

ii. Additional development that cannot be accommodated within the prescribed urban limits of existing cities and towns shall be directed to new towns and growth centres located within the conurbation boundaries.

iii. In delineating city limits, land between individual cities and towns shall be set apart from development. Such land shall form green belts. Policy guidelines shall be formulated to provide for the creation, maintenance and control of green belts.

iv. Isolated forest reserves, PAA and ESA Ranks 1 and 2 shall form part of green belts.

v. Development control of land designated as PAA and ESA shall be enforced in the green belts. Generally, development in the green belts shall be restricted to the use of land for recreational purposes. Types of suitable recreational activities shall depend on environmental sensitivity of the area.

vi. Land conversion and development applications shall be assessed on the basis of sequential test to minimise speculative development.

vii. State land within urban limits shall be reserved for public use such as, open spaces and community facilities where appropriate.

viii. While inter-city movements within conurbations shall be facilitated by mass transit systems, land use planning in the conurbations shall aim at minimising the necessity for inter-city travel.

ix. A hierarchy of infrastructure, social and recreational facilities shall be established within each conurbation to promote greater efficiency in public investments and the use of public facilities.

National Physical Plan-2

5-41

- 2

Source: National Urbanisation Policy (NUP), 2006

District growth Conurbation

Towns Within ConurbationMajor Settlement Centre

Sub-Regional Growth Conurbation

Regional Growth Conurbation

National Growth Conurbation

District Growth ConurbationState Growth Conurbation

IP 13

5-42

NPP 15

The growth of the four main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan shall be supported to enhance their global competitiveness.

Measures:

i. In addition to the general support for services and manufacturing, the global competitiveness of the main conurbations for local and foreign direct investments in the k-economy growth sectors of ICT, health and education tourism and biotechnology shall be given special attention and support.

ii. The provision of infrastructure and facilities particularly in power supply, housing, recreation, entertainment and environmental quality, which are necessary to support the k-economy sector shall be enhanced and improved.

iii. Where necessary and appropriate, specific areas shall be identified and developed within the conurbations for housing ICT and biotechnology enterprises.

iv. Integrated mass transit systems shall be developed in the main conurbations to enhance the efficiency of the conurbations.

v. The aspiration to develop and promote Kuala Lumpur as a ‘World Class City’ shall be supported.

vi. Overspill industries and services from the main conurbations shall be encouraged to be located in the sub-regional growth conurbations and future conurbations of:-

a. Ipohb. Melakac. Temerloh-Mentakabd. Lumut-Sitiawan-Manjunge. Muar-Batu Pahat-Kluang

5-43

NPP 16

High priority shall be given to achieve energy efficient ‘compact cities’.

Measures:

i. Transit oriented development (TOD), high intensity and mixed development shall be promoted to achieve energy efficient and liveable compact cities and towns.

ii. Infill development and the use of brownfield sites within urban areas shall be encouraged to better utilise existing and committed physical and social infrastructure.

iii. Appropriate incentives shall be provided to stimulate urban regeneration and infill development.

iv. Local planning shall create opportunities for urban regeneration in the major towns and cities not only for the purpose of economic growth but also for the purpose of enhancing the living environment.

v. The linkage and identity between the core areas of individual cities and their peripheries shall be defined and maintained.

vi. Individuality and physical separation of cities, towns and villages shall be maintained.

vii. The development limits and urban growth boundaries of individual cities, towns and villages shall circumscribe to the horizontal expanse of the cities, towns and villages respectively.

viii. Local planning shall be sensitive to the conservation of historical, cultural and architecturally outstanding areas to enhance the character and uniqueness of individual cities.

ix. Development Plans shall identify the relevant issues related to climate change and shall aim to achieve ‘green neighbourhoods’.

5-44

NPP 17

Towns with special features shall be identified and the development projects to enhance their special features shall be supported with appropriate infrastructure.

Measures:

i. Special features and functions of selected towns shall be developed and enhanced in accordance to their respective economic potentials by providing adequate support facilities.

Special features towns are listed below:-

Special Function Town State

Other Special Feature Towns

Coastal Resort Town

MersingDesaru

Johor

Kuah Kedah

Port Dickson Negeri Sembilan

Kuala RompinCheratingPantai Sepat

Pahang

DungunMarangPenarik-MerangKuala Besut

Terengganu

PangkorLumut

Perak

Batu FeringgiTg. Tokong

Penang

Tumpat Kelantan

Highland Town and Hill Stations

Tanah Rata (Cameron Highlands)Genting HighlandsFraser’s Hill

Pahang

Lojing Kelantan

Bukit Bendera (Penang Hill) Pulau Pinang

Bukit Larut (Maxwell Hill) Perak

Gunung Jerai Kedah

Nature Based / Eco-tourism

Pontian KecilSegamat

Johor

JerantutBera

Pahang

JertehMarang

Terengganu

DabongGua Musang Kelantan

5-45

Special Function Town State

Other Special Feature Towns

Nature Based / Eco-tourismAlor GajahAyer KerohJasin

Melaka

Historical / Heritage Town

George Town Pulau Pinang

Teluk IntanGerikLenggongTaiping

Perak

Klang Selangor

Malacca Town Malacca

Kuala Lipis Pahang

Royal Town

Pekan Pahang

Kota Bharu Kelantan

Kuala Terengganu Terengganu

Kuala Kangsar Perak

Arau Perlis

Alor Setar Kedah

Sri Menanti Town Negeri Sembilan

Klang Selangor

Special Role TownPutrajaya Federal Territory

Cyberjaya – Cyber City Selangor

Special Industry Town

Tanjung Malim – Proton City Perak

Prai – Heavy Industry Pulau Pinang

Gurun- Heavy Industry Kulim – Hi-Tech industries

Kedah

Senai – Aviation & Logistic Hub Johor

Kertih - Oil, Gas & PetrochemicalTeluk Kalong – Heavy Industry

Terengganu

Gebeng – Petrochemical, Palm Oil & Bio-Diesel, LogisticsPeramu - AutomobileTg Agas- Marine Based industry

Pahang

Communications and Transportation Nodes

Lumut – Setiawan – ManjungPerak

Gerik

Temerloh – Mentakab Pahang

Gua Musang Kelantan

Gemas Negeri Sembilan

Border Towns

Padang Besar Perlis

Bukit Kayu HitamKota Putra

Kedah

Pengkalan Hulu Perak

Bukit BungaRantau PanjangPengkalan Kubor

Kelantan

Source: National Physical Plan-2, 2010

5-46

ii. The special features and functions of special feature towns shall be expressed through responsive and effective urban design.

iii. All Border Towns shall be planned taking into consideration the existing situation and development proposals across the borders. Cross border cooperation shall be promoted.

iv. Comprehensive Development Plans covering both sides of the borders shall be prepared by the Federal Government and as a Joint Development Strategy (JDS) through the ASEAN sub-regional development cooperation in IMT-GT (northern border towns) and IMS-GT (in the case of Johor Bahru).

5-47

NPP 18

Major and Minor Settlement Centres shall be sustained and developed in accordance with their local economic potentials.

IP 14 : MAJOR AND MINOR SETTLEMENT CENTRES

Measures:

i. Public amenities and facilities in all Major and Minor Settlement Centres shall be maintained at a level that can commensurate with the needs of their population.

ii. Resource-based industries, craft-based industries, value-added agricultural activities, ecotourism and similar industries and services in Major and Minor Settlement Centres shall be supported by the necessary infrastructure for such developments.

iii. Urban development shall be coordinated with national policies relating to land use, such as the National Agricultural Policy (NAP) to safeguard food producing areas. Large scale urban expansion shall not be allowed in towns located within designated granary areas. Such development should be diverted to locations not reserved for rice production.

iv. Inter-state border towns shall be planned and developed in a coordinated manner with emphasis on the identity of the respective states. Examples of inter-state border towns are:-

Nibong Tebal-Permatang Keling-Parit BuntarTanjung Malim-Ulu BernamTampinGemasEndau-Tanjung GemukKemaman-ChendurKuala Besut-Tok Bali

Comprehensive Development Plans covering the border towns shall be prepared, based on interstate cooperation, addressing cross border issues and coherent urban design principles.

National Physical Plan-2

5-48

- 2

Source: Nation Urbanisation Policy (NUP), 2006

Major Settlement Centre

Conurbation

Minor Settlement Centre

IP 14

5-49

NPP 19

Sufficient affordable housing with adequate community facilities, including security facilities and services, shall be provided in major urban centres to meet the requirements of the population. Measures:

i. Adequate housing equipped with infrastructure, public facilities and amenities shall be provided based on affordability.

ii. Housing in major urban centres shall be planned to achieve the target of one dwelling unit per household.

iii. In major urban centres, the target of zero squatters shall be achieved by 2020.

iv. Safety and security shall be ensured in all neighbourhoods. Crime Prevention through Environmental Design (CPTED) shall be adopted in both public and private sector housing schemes.

v. Local Plans shall identify areas for public housing ensuring proximity to places of work, good accessibility and taking into consideration the needs of the various ethnic groups of society including the disabled and senior citizens.

vi. New implementation strategies such as land readjustment and land pooling shall be adopted as a strategy for land assembly of fragmented land parcels in meeting housing needs.

vii. Public common users’ space shall be provided for social interaction and sustainable communities.

NPP 20

Planning standards and urban development policy guidelines shall be designed to meet the requirements of a developed nation.

Measures:

i. Existing planning standards shall be benchmarked against the standards of other more developed country and upgraded where appropriate with the view of ensuring better quality of life for Malaysians. Upgrading may be selective to ensure that higher standards adopted are practical and appropriate to the local culture, climate and other conditions.

5-50

ii. The implementation of enhanced standards shall be carried out gradually to avoid any potential drastic impact on land and house prices.

iii. The adoption of enhanced planning standards should be monitored and reviewed over an extended period of time.

iv. Planning standards to be reviewed shall include space standards for public facilities as well as private sector development.

v. The quality and range of municipal services provided shall be monitored and reviewed to commensurate with the aspirations of a developed country.

vi. Uniform planning standards and detailed policy guidelines on urban development shall be formulated to meet the requirements of a developed nation while addressing relevant issues of climate change and achieving ‘green neighbourhoods’.

NPP 21

A designated central authority shall be responsible for publishing on a regular basis, information pertaining to land use development.

Measures:

i. The central authority responsible to publish on regular basis information on land use development shall be the Federal Department of Town and Country Planning (FDTCP).

ii. Every local planning authority shall be required to supply to the designated central authority, at regular intervals, information on planning approvals and the issue of Certificates of Completion and Compliance (CCC) within their respective areas.

iii. Every district land office and the State Director of Lands and Mines shall be required to supply to the designated central authority, at regular intervals, information on land conversions approved in the districts.

iv. The designated central authority shall determine the frequency of publication in consultation with stakeholders and the frequency of reporting by the local planning authorities and land offices.

v. The designated authority shall, in consultation with the stakeholders, determine the format for reporting and publication and the type of information to be included.

vi. All Development Plans shall include programmes designating when land is ‘ripe for development’ and its conversion to urban use. Approval for the conversion of land from agriculture to urban use shall adhere to such programmes. Where conversion is well ahead of development there should be a moratorium on land conversion. The rate of conversion should be no more than five (5) years ahead of projected development.

5-51

5.6 Conserving Natural Resources, Biodiversity and the Environment

Malaysia is recognised as one of 12 mega-diverse countries in the world which is the rich biological diversity contained in the many forms of forest, freshwater and marine habitats. In Peninsular Malaysia alone, there are about 8,300 species of vascular plants, 229 species of mammals, 742 species of birds, 1,031 species of insects and 290 species of freshwater fish. The warm tropical waters off Peninsular Malaysia harbour an extensive network of coral reefs, mudflats, mangroves and seagrass beds which contain globally significant marine species, such as one of the world’s largest populations of endangered green sea turtles, as well as other endangered species such as hawksbill turtles, dugongs and whale sharks.

The importance of conserving these species, habitats, ecosystems and associated ecological processes for the sustained well-being of human populations should not be underestimated. Biodiversity provides essential goods, services and life-support systems that are very much needed for human existence and survival. (Table 5.2).

Table 5.3 : Biodiversity and Ecosystem Services

Biodiversity & Ecosystems

Provisioning Services Regulating Services Cultural Services

Products obtained from ecosystems

Benefits obtained from regulation of ecosystem processes

Non-material benefits obtained from ecosystems

FoodFresh waterTimberFuel woodFibreBiochemicalsGenetic resources

Climate regulationPest regulationRunoff/flood regulationWater purificationPollinationErosion regulation

Spiritual & religiousRecreation & ecotourismAesthetic & inspirationalEducationalCultural heritage

Supporting Services

Services necessary for the production of all other ecosystem services

Soil formation Nutrient cycling Primary production Provision of habitat Oxygen production

Source: A Common Vision on Biodiversity (NRE, 2008)

Since late 19th century habitat conservation has been in practise in the country. In 1994,Malaysia ratified the United Nations Convention on Biological Diversity (CBD) and in 1998 formulated the National Policy on Biological Diversity which provides direction and strategies on the conservation and management of biological diversity in the country. At present, forests still cover approximately 44.8%, of Peninsular Malaysia’s land mass whereas protected areas (including forest reserves having protection status) encompasses 13% of the landmass. The marine park system includes an area of over 2,199 km2 encompassing the waters surrounding 71 islands.

Despite many ongoing efforts on conservation, habitat loss and fragmentation of species and ecosystem services is still prevalent in Peninsular Malaysia. While the protected areas are relatively secure, forest reserves are easily de-gazetted and subsequently

5-52

converted to agriculture or other uses. Between 2001 and 2005, over 40,000 hectares of forest reserves were excised in Peninsular Malaysia. In addition, the area within forest reserves planted with rubber, oil palm and other crops jumped from 4,686 hectares in 2005 to 38,387 hectares in 2007. The loss and fragmentation of forests has led to the degradation of ecosystem services, a decline in wildlife populations as well as increased incidences of human-wildlife conflicts. Such as, addressing the loss of forest cover and the problem of fragmentation is crucial in the effort to protect the nation’s biological heritage.

The conservation values of ecosystems outside protected areas are often overlooked in favour of resource exploitation. Limestone hills, for example, which harbour a high proportion of endemic species due to long periods of isolation, are usually regarded only as resources to be exploited for aggregate or marble. As such, national level studies to prioritise such areas for conservation or utilisation are urgently needed.

The coastal zones of Peninsular Malaysia are experiencing rapid urbanisation, including large-scale reclamation for ports, industrial zones and aquaculture, all of which are associated with habitat loss and pollution. Waters and corals in marine parks continue to be degraded by development and pollution from marine parks islands. All of these undermine the value of the ecosystem services provided by the coastal zone such as catch fisheries and tourism. Many important coastal and marine ecosystems such as seagrass beds, turtle landing sites and water bird sites need to be protected in order to reduce more incidences of habitat loss.

Highlands have unique characteristics that make them attractive for tourism and agriculture. However, uncontrolled development in the highlands, especially in Lojing and Cameron Highlands, are causing problems such as flash floods, landslides and sedimentation of rivers. These in turn affect aquatic biodiversity and the functions of rivers for clean water supply, recreation and tourism. There is a need to strictly control the expansion of urban and agriculture development in the highlands, implement better management practices and formulate statutory plans for key hill stations.

The protection of water catchments, along with rivers and groundwater recharge zones, is central to ensuring an adequate supply of good quality water and sustainable land use planning. The true economic value of forested catchments and clean rivers must be recognised and realised. The construction of dams, which have major environmental and social consequences, should not be seen as the only means for water resource development. Instead, the incorporation of water demand management measures and enhancement of distribution networks must be given equal emphasis.

Finally, the nation needs to proactively address the anticipated impacts of global climate change. Although not a main contributor to climate change, Malaysia is nevertheless vulnerable to its effects. The Intergovernmental Panel on Climate Change (IPCC) predicts that without further action to reduce greenhouse gas emissions, the global average temperature will rise by a further 1.8 to 4.0 °C this century.

5-53

The projected global warming is predicted to have serious consequences, including a rise in sea levels of between 18 and 59 cm which will endanger coastal areas and small low lying islands. Climate change is also expected to lead to greater frequency and severity of extreme weather events, cause substantial biodiversity loss and adversely affect water resources and agriculture.

Malaysia’s main obligations as a Non-Annex 1 Party to the UNFCCC include formulating adaptation strategies to combat the impacts of climate change and promoting sustainable management, conservation and enhancement of carbon sinks. While an improved understanding of the likely range of climatic conditions and associated impacts is imperative for the formulation of more specific measures, it is widely agreed that early pre-emptive adaptation measures are critical to limit the damage and economic costs of these impacts (see Table 3.1).

On the whole, better land use planning, management and more stringent protection at every level of environmentally sensitive areas is imperative in ensuring the wise use of natural resources, biodiversity and ecosystem services in Peninsular Malaysia. In addition, State Governments must be provided with the opportunity to move away from their dependence on a very narrow revenue base, namely exploitation of natural resources and land taxes.

Therefore, it is vital that adequate platforms and economic incentives for the implementation of environmental protection and biodiversity conservation programmes and safeguards at the state level are established.

5-54

NPP 22

Environmentally Sensitive Areas shall be integrated in the planning and management of land use and natural resources.

IP 15 : ENVIRONMENTALLY SENSITIVE AREAS

Measures:

i. The wise use and conservation of Environmental Sensitive Areas in Peninsular Malaysia shall be in accordance with the management criteria specified in the table below. In addition, all levels of spatial planning shall take into account the Guidelines for Managing Biodiversity in the Landscape1.

ESA Categories and Criteria:-

Rank Environmentally Sensitive Areas Management criteria

ESA Rank 1

Existing and proposed Protected Areas.Important small habitats outside the PA system: Turtle landing sites, salt licks, important plant areas, limestone outcrops and natural wetlands of high conservation value.Catchments of existing and proposed dams.Areas above 1,000m contour.

No development, agriculture or logging shall be permitted except for ecotourism2,research and education.

ESA Rank 2

All other forests and wetlands outside of Protected Areas.500m buffer zone around Rank 1 areas3.Areas between 300m – 1,000m contour.

No development or agriculture. Sustainable logging and eco-tourism may be permitted subject to local constraints.

ESA Rank 3

Marine park islands.500m buffer zone around Rank 2 areas3.Catchments of water intake and groundwater recharge zones.Areas between 150m - 300m contour, all areas with erosion risk above 150ton/ha/yr, all areas experiencing critical or significant coastal erosion.

Controlled development whereby the type and intensity of the development shall be strictly controlled depending on the nature of the constraints.

ii. Structure Plans and Local Plans shall detail out the ESAs identified in the NPP to include other ESAs that may be of importance at the state or local levels. ESA categories and corresponding management criteria in the NPP shall be retained in the Structure Plans and Local Plans. Additional management criteria shall be elaborated in the Structure and Local Plans for all ESA types falling under ESA Rank 3.

1 NRE. 2009. Managing Biodiversity in the Landscape – A Guideline for Planners, Decision Makers and Practitioners.

Ministry of Natural Resources and Environment. Putrajaya. 2 The National Ecotourism Plan (Ministry of Culture, Arts and Tourism 1997) adopts the World Conservation Union

(IUCN) definition for ecotourism, i.e.:“Environmentally responsible travel to relatively undisturbed natural areas in order to enjoy and appreciate nature (and any other accompanying cultural features). One that promotes conservation, one that has low visitor impact and one that provides for beneficially active socioeconomic involvement of local populations.”

3 The widths of these buffer zones may be revised at the local level to take into consideration site-specific constraints.

5-55

iii. The boundaries of all ESAs shall be delineated in the Structure and Local Plans. Eventually, these boundaries should be clearly demarcated on the ground.

iv. There shall be adequate buffer zones between ESA (Rank 1 and 2) and urban or agriculture development. Guidelines for land use in buffer zones shall be established. Permanent buildings should not be permitted in buffer zones. The buffer zones may be utilised for agro-forestry, subject to the above guidelines. Within the designated conurbations, ESA buffer zones may be incorporated into the green belts.

v. In order to retain the present amount of natural forest cover, there shall be no further excision of permanent forest reserves. In addition, forest plantations shall only be developed outside of permanent forest reserves.

vi. Fiscal measures shall be introduced to enable state governments to offset potential revenue loss as a result of biodiversity conservation initiatives. Studies shall be carried out to formulate the most appropriate mechanisms, which may include Payment for Ecosystem Services (PES) schemes such as public payment instruments, carbon trade and biodiversity offsets.

vii. The respective State Biodiversity Biotechnology Committees shall be further strengthened. These committees shall advise the respective state governments on all matters pertaining to biodiversity conservation, protected areas management, access and benefit sharing, including biosafety and bioprospecting.

viii. The Protected Area (PA) system shall be expanded to include a full representation of natural habitat types in Peninsular Malaysia. To achieve this, a PA System Plan shall be developed for Peninsular Malaysia, taking into consideration all previous proposals for PAs. Some of most important areas that have been proposed are:-

Ulu Muda (Kedah)Gunung Jerai (Kedah)Sungai Merbok mangroves (Kedah)Bintang Range (Kedah and Perak)Temengor (Perak)Pondok Tanjung freshwater swamp forest (Perak)Fraser’s Hill National Park (Pahang)South-east Pahang peat swamp forest (Pahang)Gunung Panti (Johor)Sg Sedili Kecil & Sedili Besar wetlands (Johor)Setiu wetlands (Terengganu)Kenyir and Tembat (Terengganu)Terengganu Hills (Terengganu)Upper Nenggiri/ Perias basin (Kelantan)Pergau and Gunung Basor (Kelantan)Gunung Chamah (Kelantan)

5-56

Limestone hills with high conservation value such as Gunung Jaya and Gua Panjang in Kelantan; Serdam, Gelanggi and Jebak Puyoh in Pahang; Gunung Datuk, Rapat, Lanno and Kantan in Perak; and Batu Caves in Selangor.Coastal hill dipterocarp forests such as Segari Melintang and Teluk Muroh in Perak; and Bukit Labohan in Terengganu.

A stepwise approach is recommended to formulate the Plan, with the Protected Area Master list for Peninsular Malaysia4 as a starting point. The Plan shall also include strategies and action programmes in order to strengthen management effectiveness and sustainable financing of PAs.

ix. National Action Plans shall be formulated to guide the wise use, conservation and protection of high conservation value areas which are at present generally outside of protected areas, in particular limestone hills, natural wetlands, important plant areas (IPA)5, and important bird areas (IBA)6.

4 NRE. In prep. The Masterlist of Protected Areas in Malaysia. Ministry of Natural Resources and Environment.

Putrajaya. 5 A study on Important Plant Areas is currently on-going. Contact FRIM for further information. 6 Yeap, C.A., Sebastian, A.C. and Davison, G.W.H. (compilers). 2007. Directory of Important Birds Areas in Malaysia:

key sites for conservation. Kuala Lumpur. Malaysian Nature Society (MNS Conservation Publication No. 8)

National Physical Plan-2

5-57

- 2

Source: National Physical Plan-2, 2010

ESA Rank 3

ESA Rank 2

ESA Rank 1

State Capital

State Boundary

IP 15

5-58

NPP 23

A Central Forest Spine shall be established to form the backbone of the Environmentally Sensitive Area network.

IP 16 : ECOLOGICAL CORRIDORS AND CENTRAL FOREST SPINE

Measures:

i. The Central Forest Spine (CFS) shall be planned and managed as an integrated unit which forms the backbone of the ESA network. The non forested areas within the indicative CFS boundary shall also be treated as ESAs and the necessary management regimes shall be formulated. Further studies shall be undertaken to formalise this concept.

ii. The CFS Master Plan10 shall be implemented in order to establish ecological linkages to re-connect the most important forests complexes across Peninsular Malaysia. Additional ecological linkages shall be identified at the Structure and Local Plan levels. Special Area Plans will be prepared to manage and conserve the ecological linkages that have been identified.

iii. Land use planning at all levels should strive to prevent or minimise further habitat fragmentation. In this regard, the CFS Master Plan, the National Tiger Action Plan11 as well as the Guidelines for Managing Biodiversity in the Landscape12 should be referred to, in particular for highways, railways, pipelines and plantations, which pose the greatest threat for habitat fragmentation.

iv. Care shall be taken to minimise habitat fragmentation in particular for developing areas around Raub-Kuala Lipis-Gua Musang which is located at the heart of the CFS between the Main Range and Taman Negara. These areas are crucial for the integrity of the CFS and shall be planned and managed as environmentally sensitive areas.

v. A model project shall be undertaken to develop the “Conservation District” concept in districts that have a high percentage of ESAs, especially within the CFS. The project shall include organisational set-up, funding, strategies, programmes and training. The programmes and measures will act as tools for the local Government to effectively incorporate biodiversity conservation and environmental protection particularly, the relevant measures contained in the NPP-2 into land use planning, management and administrative protocols.

10 TCPD. 2009. Central Forest Spine 1 – A Masterplan for Ecological Linkages. Town and Country Planning Dept. (DTCP), Kuala

Lumpur. 11 Department of Wildlife and National Parks Peninsular Malaysia. 2008. National Tiger Action Plan for Malaysia. Kuala Lumpur. 12 NRE. 2009. Managing Biodiversity in the Landscape – A Guideline for Planners, Decision Makers and Practitioners. Ministry of

Natural Resources and Environment. Putrajaya.

National Physical Plan-2

5-59

- 2

Source: Central Forest Spine: Master Plan of Ecological Linkages (by FDTCP), 2010

Primary Linkages

Secondary Linkages

Forest Cover

Primary Linkages

Forest Complexes

1 KEDAH – SINGGORA FOREST COMPLEX

2 BINTANG HIJAU FOREST COMPLEX

3 MAIN RANGE FOREST COMPLEX

4 GREATER TAMAN NEGARA FOREST COMPLEX

5 BENOM FOREST COMPLEX

6 CHINI – BERA FOREST COMPLEX

7 SOUTH EAST PAHANG PEAT SWAMP FOREST

8 ENDAU ROMPIN – SEDILI FOREST COMPLEX

IP 16

5-60

NPP 24

Sensitive coastal and marine ecosystems shall be protected and managed in a sustainable manner.

IP 17 : SENSITIVE COASTAL ECOSYSTEMS

Measures:

i. Coastal reclamation shall not be encouraged except for the development of ports of strategic national importance. Coastal reclamation shall not be permitted in or adjacent to sensitive ecosystems such as marine parks, mangroves, mudflats, coral reefs, seagrass beds, turtle landing sites and major tourism beaches. All proposals involving coastal reclamation shall be referred to the National Physical Planning Council.

ii. A National Plan of Action for wetlands shall be formulated to ensure the wise use and sustainable management of natural wetlands. The conversion of natural wetlands to other land use shall only be carried out for the development of critical infrastructure where the wetlands are found to have low value in terms of supporting biodiversity and ecosystem services.

iii. Seagrass beds, which are wetland habitats critical for marine fisheries and conservation of the dugong, shall be gazetted as protected areas. A National Seagrass Action Plan shall be formulated to ensure the protection of the most important seagrass beds.

iv. The National Plan of Action for Sea Turtles shall be referred to and adopted. Important turtle and terrapin nesting sites, in Pasir Panjang beach (Perak), Cherating beach (Pahang), Chakar Hutang, Penarik, Telaga Papan, Geliga and Kijal beaches (Terengganu), Pulau Upeh, Padang Kemunting, Pasir Gembur, Kem Terendak beaches (Melaka) and all Marine Turtle Management and Conservation Centres shall be protected. In addition, other nesting sites shall be identified and ranked as ESA 1. All degraded sites shall also be restored.

v. Waterbird sites of international importance shall be conserved and sustainably managed15. These are located on the west coast, in particular Teluk Air Tawar–Kuala Muda in Kedah and Sebarang Perai, the Matang mangroves in Perak, and the north-central coast of Selangor.

vi. Islands within marine parks shall be managed in a manner that will protect the rich marine biodiversity in the waters around them. Development and tourism management on the islands shall be in line with the each respective Marine Park Management Plan. Appropriate solid waste and wastewater management systems must also be in place.

15 Li, Z.W.D. and Ounsted, R. (eds.). 2007. The Status of Coastal Waterbirds and Wetlands in Southeast Asia: Results of Waterbird Surveys in Malaysia (2004–2006) and Thailand and Myanmar (2006). Wetlands International, Kuala Lumpur, Malaysia.

5-61

vii. Coastal planning and development shall take into account the strategies and measures contained in the Rancangan Fizikal Zon Persisiran Pantai Negara16 and the various Integrated Shoreline Management Plans (ISMP).

viii. Ecosystem Based Fisheries Management (EBFM) shall be used as a management tool to ensure the sustainable management of marine fisheries. Specific conservation actions on the basis of EBFM shall include the development of recovery and management plans for all major fisheries, as well as the gazettement of additional Fisheries Prohibited Areas and important fishery habitats.

16 FDTCP. 2010.National Coastal Zone Physical Plan (NPP-CZ). Federal Department of Town and Country Planning (FDTCP), Kuala

Lumpur.

National Physical Plan-2

5-62

- 2

Source: National Physical Plan-2, 2010

Critical Costal Erosion Area

Turtle Landing Site

Seagrass Beds

Coastall Hill Dipterrocarp Forest

Important Waterbirds Site

State Capital

Wetlands

Marine Park

IP 17

5-63

NPP 25

Land development in the highlands shall be strictly controlled to safeguard human safety and maintain environmental quality and biodiversity.

IP 18 : HIGHLANDS AND SPECIAL MANAGEMENT AREAS

Measures:

i. All development shall adhere to the Guidelines on Development Planning in Hills and Highlands23.

ii. Development strategies for agriculture and tourism on hills and high lands shall be properly planned and well integrated together to optimise and benefit the use of resources.

iii. New golf courses including medium and heavy industries shall not be permitted in the highlands.

iv. A National Highland Policy shall be formulated to guide development in the highlands.

Development within the SMA;

v. Following recommendations on the Study for the Sustainable Development of the Highlands of Peninsular Malaysia by EPU24, future urban and agriculture development in the highlands shall only be permitted in two Special Management Areas (SMA):-

a. Cameron Highlands-Kinta-Lojing; andb. Genting Highlands-Bukit Tinggi-Janda Baik.

Within the SMA, future agriculture development shall only be permitted outside forest reserves and water catchment areas.

vi. No new development shall be permitted in the Fraser’s Hill SMA. Existing development shall adhere to the strategies and guidelines contained in the Development Coordination Study in Bukit Fraser25.

vii. Special Area Plans shall be formulated for the Cameron Highlands-Kinta-Lojing SMA, Genting Highlands-Bukit Tinggi-Janda Baik SMA and Fraser’s Hill SMA as well as for Bukit Larut (Maxwell Hill), Penang Hill and Gunung Jerai. Development in these hill stations shall be restricted to eco-tourism, focusing on refurbishment and upgrading of existing facilities. No new hill stations shall be allowed.

23 Federal Department of Town and Country Planning (FDTCP) 2009. Garispanduan Perancangan Pembangunan di

Kawasan Bukit dan Tanah Tinggi. Ministry of Housing dan Local Government.24 EPU. 2002. Study for the Sustainable Development of the Highlands of Peninsular Malaysia. Economic Planning

Unit, Prime Minister’s Department. Putrajaya.25 DOE. 2008. Development Coordination Study in Bukit Fraser, Pahang. Department of Environment. Putrajaya.

National Physical Plan-2

5-64

- 2

Mountain (>1000 meters a.s.m.l)

Highland (>300 meters a.s.m.l)

Special Management Areas

Hill Station

State Capital

Source: National Physical Plan-2, 2010

18

5-65

NPP 26

All surface and ground water resources shall be safeguarded and managed sustainably.

IP 19 : WATER CATCHMENT AREAS IP 20 : GROUND WATER RESOURCES

Measures:

i. Catchment areas of existing and proposed dams shall be gazetted as water catchments to avoid further encroachment of incompatible land uses into such areas.

ii. Structure and Local Plans shall identify and delineate water intake catchments and ground water recharge zones as ESA Rank 3 areas requiring special land use management. The type and intensity of development shall be strictly controlled depending on the nature of the constraints.

iii. All existing and future land use activities within water intake catchments and recharge zones should not jeopardise nor add to the cost of water treatment for human consumption. New industrial development and other activities that could be a source of water borne pollution shall not be permitted whilst existing industries shall be required to adopt appropriate environmental management measures to protect public health and water quality.

iv. The use of public wells and important ground water resources catering for commercial, industrial and agricultural activities shall be monitored, particularly to avoid over-extraction. Drainage controls shall be imposed close to important ground water areas such as peat swamps and freshwater swamps to maintain the water table required to sustain these ecosystems.

v. Water bodies shall be managed to protect the aquatic biodiversity, with the objective of sustaining living rivers. River and lake reserves shall be established to protect river water quality, maintain the integrity of aquatic habitats, alleviate flooding and where required, to function as ecological corridors.

vi. Water demand management measures shall be implemented. In addition, Integrated Water Resource Management (IWRM) and Integrated River Basin Management (IRBM) approaches shall be adopted to incorporate sustainable water resource use into land use planning.

vii. Strategic Environmental Assessments (SEA) shall be used to rationalise the need for new dams.

National Physical Plan-2

5-66

- 2

Source: National Water Resources Study, 2000

Existing Dam Catchment

Proposed Dam Catchment

Water Intake Catchment

Major River

Water Body

IP 19

National Physical Plan-2

5-67

- 2

Source: Hydro-Geological Map of Peninsular Malaysia 1st Edition, 2008 (by Dept. of Minerals and Geoscience)

Very High

High

Medium

Major River

Low

IP 20

5-68

NPP 27

The spatial planning framework shall incorporate mitigation and adaptation measures against the impacts of climate change.

IP 21 : POTENTIAL AFFECTED COASTAL AREAS DUE TO CLIMATE CHANGE

Measures:

i. Future planning of settlements and infrastructure in coastal zones shall be located away from areas vulnerable to rising sea levels/ storm surges, with setback policies extended as appropriate. Risk assessment and vulnerability mapping shall be carried out, as early warning and emergency response systems against any environmental disaster.

ii. Shoreline stabilization structures (such as dikes and sea walls) shall be strengthened in critical areas of high economic value or strategic importance.

iii. Natural barriers, especially mangroves shall be protected and expanded. Furtherconversion of mangroves for development shall not be allowed.

iv. The efficiency of irrigation for agriculture shall be improved to optimise water use in agriculture. Diversified farming, inter-cropping and crop rotation, integrated pest management as well as other land management and farming techniques shall be further applied. Crop suitability shall be assessed periodically in order to adapt to the impacts ofclimate change on crop productivity.

v. The maintenance of key ecosystem processes, such as migration, breeding, pollination, seed dispersal is vital to ensure the resilience of biological diversity to climate change. Key to this is the protection of the full range of ecosystem in Peninsular Malaysia and the maintenance of connectivity between habitats through the establishment of ecological corridors.

vi. Green technology shall be actively promoted as a means to mitigate climate change. New developments shall incorporate greater energy efficiency and utilise renewable energy sources.

vii. The energy consumption in the transportation sector shall be reduced by enhancing public transportation, promoting pedestrian and cycling facilities and providing incentives for cleaner fuels and cleaner vehicles.

viii. Water demand management shall be given priority over supply management. Rainwater harvesting, water storage and conservation programmes shall be expanded. Water catchment areas shall be protected to ensure adequate water supply while adequate buffer riparian zones shall be provided in agriculture and plantations to prevent erosion and sedimentation in rivers.

ix. Forests and peat lands are important carbon sinks. Existing forest reserves shall be conserved in order to limit the amount of carbon released into the atmosphere.

National Physical Plan-2

5-69

- 2

Source: National Physical Plan-2, 2010

Current Storm Surge Zones

Future Storm Surge zones

Areas < 1M above mean sea Level

State Capital

IP 21

5-70

5.7 Integrating the National and Urban Transportation Network

The road and expressway network of Peninsular Malaysia is well developed, especially on the West Coast, although the expressway system has yet to be extended to the East Coast. On the other hand, road travel for people is generally slow and tedious. While air travel is much faster, it involves considerable non-travel time, including movement from city to airport, processing and waiting time. Air transport for the passenger becomes worthwhile when the travel time is at least several times longer than the non-travel time. This becomes the case when the distance between departure point and destination is sufficiently far apart. The average distance between major cities of the Peninsular, particularly the main conurbations, is about 300 km. This makes air travel seem much faster only in comparison with road travel or travel by the existing rail service, that is, in the absence of any real alternative. A high-speed rail service would completely change the perspective and provide a different paradigm for the development of Peninsular Malaysian cities.

The National Physical Plan (NPP-2) proposes that an integrated national transportation system be developed in which railway forms the core system for people and goods transportation while the road system provides both an alternative mode and an articulation of the system. The two must be well integrated in order to work efficiently and effectively. The two networks of road and rail must also interact and interlink to facilitate multimodal movement of goods and people.

The national expressway system is as yet incomplete. Its extension to the East Coast, particularly to link the East Coast cities of Kota Bharu, Kuala Terengganu and Kuantan to the West Coast conurbations, must be given priority. Supporting and complementing the national expressway system shall be an extensive network of lower hierarchy roads such as the federal and state roads. These are essential for traffic dispersal from the expressway system, for local access and particularly for access to the rural areas. Although the linkage between urban areas and rural areas may utilise all the different levels of highways and roads as well as railways or even air service, the most critical part of the system will be the state roads, particularly the kampung (village) roads.

The rail system using high-speed design criteria is yet to be fully developed as a means not only to link effectively the different parts of the country but also to unify the different elements of the national transportation system. Given the distribution pattern of the main urban centres, a national high-speed rail transport system shall best serve as a comprehensive unifying system linking all state capitals and designated conurbations.When performing at a speed of 300km/h or more, the high-speed rail will be the most optimal and appropriate choice in terms of journey time, carrying capacity and safety. Apart from considering the latest technologies in rail transport, the execution of the high speed network should also include an evaluation of upgrading the present meter gauge(1.0m) to the internationally accepted standard gauge (1.435m).

In view of the length of about 900km of the Peninsular and a width of about 300km with KL located in the midway, the high speed rail system is the most optimal interstate

5-71

public transport mode for the country. As such in the long run, the fast train network should serve as the basis for people movement in the country. Malaysia has also to move towards a comprehensive electrified rail based network to underpin the economic transformation of the country from an industrial phase to the new economic model that emphasises on growth of the high value add manufacturing and services industry.

Complementing the inter-state high-speed rail, the main urban conurbations should have their own light and mass rail transits (LRT and MRT) for urban areas. Railway stations will become the focal points of urban life and activity and community places in addition to being transportation interchanges.

In relation to sea traffic, Malaysia acts as a regional transhipment hub and its ports also serve as regional hinterland ports. As a transhipment hub, Malaysia functions as the transfer point for different shipping lines where cargo is off-loaded from one ship to other ships and forwarded to different port destinations. Seaports and inland ports are oriented essentially for the transportation of goods rather than people. The most important objective of a port is to ensure the efficient and speedy transfer of goods from inland transport to maritime transport and vice versa.

Port Klang, Port of Tanjung Pelepas (PTP), Penang Port and the Kuantan Port should be promoted as major national ports with a different focus. With its central location and close proximity to the nation’s domestic hinterland, Port Klang should focus on being the regional hinterland port with extensive inter-modalism and efficient land-bridging services to other ASEAN countries. PTP, given its locational characteristic on the other hand, should concentrate on being a regional and international transhipment hubcapturing the overspill from Singapore. Penang Port will serve as the main national port in Northern Region while Kuantan Port will be developed as the main national port to serve the East Coast Region and an important transhipment and container port to serve the ASEAN countries and the East Asia Region.

For air traffic, KLIA has the strategic potential to be a competitive hub for air travel between the northern and the southern hemisphere. The strength of KLIA lies in its large hinterland of some 23 million potential travellers. The key for KLIA to unlock its latent potential is to galvanise its large hinterland together with the country's vast potential for tourism to generate a critical mass which would entice a greater number of airlines to operate from KLIA. In this respect, there is a need to look at the positioning of the Malaysian airports to promote more LCCT terminals and a more liberal policy towards designating domestic airports to facilitate regional air travel especially from the ASEANcountries. Malaysian Airports should capture the demand for increased air travel within the ASEAN region and not limit themselves within the confines of national air space.

Domestically, with the introduction of the high-speed train as the trans-peninsular transportation spine, domestic air travel will become increasingly less significant, and so will regular, scheduled domestic air services. Tourism-related chartered services may then assume a more significant role.

5-72

Within most urban centres, the transportation system is neither balanced nor sustainable. In order to achieve a reasonable degree of sustainability there is a need to have a more efficient, safe and comfortable public transport system to permit a modal shift from private car usage. Kuala Lumpur for example, with a current modal split of about 20:80 in favour of private transport, reflects an obvious imbalance between public and private vehicle usage. Due to the existing imbalance and number of cars more road infrastructure will need to be provided unless a shift of mode from private transport to public transport is imposed. The National Key Result Areas (NKRA) targeted to achieve 25:75 modal split in Klang Valley by year 2012. Hence, a modal split of 30:70 is proposed as a national strategy for all major urban centres by year 2020 and 50:50 modal split in future.

In the immediate future, road transport shall continue to provide the basic mode of travel for the movement of people and goods. While the expressway network substantially caters for inter-state movement in the West Coast, the older federal and state roads still cater for substantial interstate and local movements.

This network, which was laid down many decades ago, urgently needs upgrading in terms of road alignment, widening and village by-passes to enhance road safety and cater for the high volumes and faster travel speeds of today’s motor vehicles. This programme should focus on all federal and main rural-urban roads that are hindering the growth potential of rural areas which are capable of servicing the conurbations and rural-urban commuters.

NPP 28

An integrated national transportation network shall be established in recognition of the inter-relationship between land use and transport.

IP 22 : INTEGRATED NATIONAL TRANSPORTATION NETWORK

Measures:

i. A National Transport Policy and a Master Transportation Services Network Plan incorporating the role and function of road, rail, sea and air facilities and services at a national level shall be developed.

ii. The hierarchy and function of the road system shall be defined to complement rather than duplicate each other.

iii. To facilitate emergence of an integrated landuse transportation network, studies shall be undertaken to identify movement corridors and for these corridors to be subsequently incorporated into the Structure and Local Plans.

5-73

iv. Transportation Corridors shown in Structure and Local Plans shall be protected from alternative land uses.

v. Transport corridors shall not fragment important forest blocks and ecological corridors identified in the CFS – Master Plan for Ecological Linkages27. Transport corridors shall go around the forest blocks and ecological corridors including incorporating wildlife crossing structures such as viaducts and tunnels (see also NPP 23).

vi. While implementation of a transportation network may be undertaken incrementally, the overall work programme shall be consistently executed to achieve modal integration.

vii. All main public transport terminals shall be developed in each of the main urban conurbations, state capitals and urban growth centres, as seamless multi-mode integrated hubs catering for buses, taxis, private cars, LRT, MRT and interstate trains.

viii. A hierarchy of transportation systems comprising rail, road, sea and air services to link all states economic activities of the Peninsular Malaysia shall be established. The high-speed rail shall act as the core system supported by the road network.

27 Central Forest Spine – (CFS): Master Plan for Ecological Linkages – FDTCP, 2009.

National Physical Plan-2

5-74

- 2

Source: National Physical Plan-2, 2010

International airport

Domestic Airport

National Sea Port

Regional Sea Port

Coastal Sea Port

Main Centre

Expressway

Major Highway

High-Speed Rail Corridors

KTM Electricfied double Track Rail

KTM Single Track Rail

IP 22

5-75

NPP 29

A national integrated high-speed rail system shall be established to complement the existing rail network.

IP 23 : NATIONAL RAIL NETWORK

Measures:

i. A National Railway Master Plan shall be prepared incorporating both the high-speed rail network and the KTM electrified double track programme covering both passenger and freight movement.

ii. The existing programme to complete the National electrified double track rail linking Kuala Lumpur to Padang Besar to the north and Kuala Lumpur to Johor Bahru in the south shall be given priority.

iii. Corridors for the high-speed rail system shall be established and implemented in phases.

iv. All state capitals and major conurbations should be linked via the high-speed rail network with the rail stations acting as focal points for community and transportation activities.

v. The priority route for implementation of the high-speed system shall be the Kuala Lumpur-Johor Bahru-Singapore link, followed by the Kuala Lumpur-George Town link and subsequently north to Bangkok, as part of the Trans-Asian Railway to reinforce the North-South Development Corridor.

vi. A new East West rail link will be established connecting Kuala Lumpur-Kuantan-Kuala Terengganu and Tumpat.

National Physical Plan-2

5-76

- 2

Source: National Physical Plan-2, 2010

Main Centre

High-Speed Rail Corridors

KTM Electriffied Double Track Rail

KTM Single Track Rail

IP 23

5-77

NPP 30

The national road network shall be further extended for regional travel and for local access.

IP 24 : NATIONAL ROAD NETWORK

Measures:

i. The future road network shall be supported and integrated with the proposed high speed rail system.

ii. The expressway and highway system shall be extended to cover both the West Coast and the East Coast regions in which a minimum of three cross-links should be provided to better integrate the Western Coast Area, Central Highlands and Eastern Coast Area.

iii. Supporting and complementing the national expressway system shall be an extensive network of lower hierarchy roads such as highways and primary roads (federal and state roads), essentially for traffic dispersal from the expressways, the rail system and for local access.

iv. A road functional hierarchy as established under the HNDP29 2007 study by HPU shall be used as a framework for the National Road Network.

29 National Highway Network Development Plan 2 – Highway Planning Unit, 2008.

National Physical Plan-2

5-78

- 2

Source: Highway Network Development Plan (HNDP), 2007

Expressway

Major Highway

Minor Highway

Primary Road

Towns

State Capital

IP 24

5-79

NPP 31

Major airports and seaports shall be developed according to their complementary functions to enhance the nation’s economic competitiveness and facilitate tourist arrivals.

IP 25 : NATIONAL AIRPORTS AND SEAPORTS

Measures:

i. Planning and development shall support the functions and roles of the international airports as follows:

a. KLIA as the main international gateway and the regional hub of South-East Asia.b. Penang International Airport as the major hub serving the industrial, commercial and tourism

needs of the northern region.c. Langkawi International Airport shall complement Bayan Lepas and support the role of Pulau

Langkawi as the major site for exhibitions, conventions and tourism.d. Sultan Ismail International Airport as the major hub of the southern region and to support the

function of the Port of Tanjung Pelepas. Sultan Mahmud International Airport will be upgraded to international status and serve as the main tourism gateway to the East Coast region.

ii. Other domestic airports are to be upgraded to facilitate arrivals of charted international flights.

iii. Planning and development shall support the functions and roles of major seaports as follows:-a. National Ports:

Port Klang - regional hinterland port providing for eventual land-bridge services to Asian countries. To remain as the national load centre in terms of international cargo movement, it shall be characterized by a high level of connectivity with the surrounding countries (through various infrastructural developments such as the Trans-Asian Railway) and a strong emphasis on multi-modal and inter-modal. Port of Tanjung Pelepas - international and regional transhipment hub for the Asia Pacific.Kuantan Port as a main international and regional container and transhipment hub serving the East Coast Economic Region and the East Asia Region Penang Port focuses on shipping lines from the west, and serves as the main port for the Northern Region.

b. Regional Ports:Kertih and Kemaman Port will be integrated with Kuantan Port to serve as the main shipping hub for the east coast states and serve the oil, gas and petrochemical sector

c. Coastal Ports:Pasir Gudang, Langkawi, Lumut, Kuala Kedah, Tanjung Langsat, Tanjung Keling and Tok Bali.

These ports shall provide for the efficient bulk movement of goods and also serve as intermodal and multimodal hubs.

National Physical Plan-2

5-80

- 2

Source: National Airport Master Plan, 2010 and National Physical Plan-2,

International Airport

Domestic Airport

National Sea Port

Regional Sea Port

Coastal Sea Port

Main Centre

Major Road

Inland Port

IP 25

5-81

NPP 32

The Transit Oriented Development (TOD) concept shall be promoted as the basis of urban land use planning in order to ensure viability of public transport.

Measures:

i. The main railway terminals shall be developed as integrated multi-mode transportation terminals and foci for commercial, residential and social activities and be equipped with disabled - friendly facilities.

ii. Feeder bus and park-and-ride facilities shall be provided to promote the railway stations as transportation hubs of the towns in suitable locations.

iii. Covered walkway linkages shall be provided to connect the railway stations with other major landmarks or developments in the town centres.

iv. For major towns, the railway station and its immediate areas shall be designated for high-density commercial and residential development.

v. For those cities with their own rail networks, the stations shall be designated as the foci providing mixed-use services and activities.

vi. The main conurbations of Kuala Lumpur, George Town, Kuantan and Johor Bahru shall incorporate LRT, MRT and BRT (Bus Rapid Transit) routes into the urban fabric where appropriate.

vii. The present LRT routes in the Kuala Lumpur conurbation shall be better integrated and extended to service the new outer growth centres.

NPP 33

An integrated public transportation system shall be established in all major urban centres.

Measures:

i. Comprehensive integrated land use-public transport studies shall be carried out in all major conurbations.

ii. Transportation in all major urban centres shall adopt a modal split target of 30:70 by year 2020 and a long term target of 50:50 between public and private transport.

iii. An integrated, regular and frequent public bus service shall be provided in all urban settlements.

5-82

iv. An integrated mass rapid transit system shall be adopted for urban settlements with populations of more than 0.5 million.

v. Traffic management measures including Intelligent Transport Systems (ITS) shall be adopted to enhance traffic efficiency.

5.8 Providing Appropriate Infrastructure

Providing appropriate infrastructure is one of the key enabling initiatives that support the economic growth of the nation. Principally the NPP-2 provides the framework for the delivery of integrated infrastructure service.

The key infrastructure services that are addressed in this plan relate to water supply, sewerage systems, solid waste management, drainage and irrigation, power supply and distribution, natural gas supply, communications and multimedia, river and coastal management.

There is need to provide adequate land areas and reserves for all strategic infrastructure installations. This is particularly so for installations that may have significant environmental and social impacts such as regional sewerage treatment facilities, power plants and waste disposal sites. Securing land in advance for these infrastructure should be given priority especially in the conurbation areas as it is common for most local communities to adopt the NIMBY (not in my backyard) attitude towards such facilities. Many of these nationally significant infrastructure projects are also capital intensive and will require the advice of the NPPC before it is implemented.

As land becomes scarce, the use of common or shared infrastructure facilities and reserves should also be promoted as a means of maximising and increasing land use efficiency.

Sustainable development of infrastructure by the application of green technology hasalso been included in the NPP-2 together with measures on sustainable / green applications such as recycling of waste, rain water harvesting and energy efficiency in buildings.

In line with the government’s objective for more equitable distribution of infrastructure facilities, new policies have been introduced to provide appropriate levels of infrastructure to all levels of settlements in order to reduce the digital and infrastructure divide between urban and rural areas.

Recent technology developments in infrastructure provision has also been included to take into consideration the need for nuclear power plants, the application of green technology, the creation of cyber cities and cyber centres and the introduction of HSBB (high speed broadband) to enhance internet connectivity within the knowledge based economy.

5-83

NPP 34

The NPP-2 shall provide the spatial framework for the delivery of integrated infrastructure services at the national and regional levels and to the main conurbations.

Measures:

i. National agencies responsible for infrastructure planning and services shall adopt the NPP-2 as the basis for planning and coordinating provision of infrastructure services.

They include:-a. Water supply and distribution;b. Sewerage;c. Waste management;d. Drainage systems;e. Power supply and distribution;f. Natural Gas Supply and distribution; andg. Communication and multimedia.

ii. National infrastructure agencies shall oversee state and local level agencies to ensure programmes are consistent with the intent of the NPP-2.

iii. The NPP-2 population projections and distribution proposals shall be the reference for infrastructure service supply and distribution programmes.

iv. Proactive proposals for delivery of services shall be adopted to enhance efficiency and reduce costs and delays in the delivery of the services.

v. Enhanced management of infrastructure services shall be achieved by ensuring that all infrastructure services / providers maintain records of their facilities using Geographic Information Systems (GIS).

vi. Adequate land reserves, corridors and right-of- ways shall be provided for infrastructure facilities in all Structure Plans and Local Plans.

vii. The use of common infrastructure facilities such as common utility trenches, common utility reserves and shared facilities shall be applied by the local authorities to maximise land use efficiency in infrastructure planning.

viii. The application of green technology in the provision of all infrastructures and utilities shall be made a priority to ensure sustainable infrastructure development and to enhance and protect the environment.

5-84

NPP 35

Appropriate water supply infrastructure including source works, treatment plants and transmission and distribution networks shall be provided to all settlements.

IP 26 : WATER SUPPLY RESOURCES AND WATER-STRESSED AREAS

Measures:

i. Nationwide studies on water shall be carried out to encompass issues such as water demand, water supply sources, inter-basin water transfers, inter-state water transfers and distribution networks.

ii. Emphasis shall be given to sustainable development of water resources including alternative sources for water supply, water conservation, reduction of water loss and water demand management.

iii. Planning of water supply infrastructure shall take into consideration projected demands; spatial development and land use as outlined in the National Physical Plan -2 and the Structure and Local Plans.

iv. Adequate land reserves, corridors and right of ways shall be provided for water supply infrastructure facilities in all Structure Plans and Local Plans.

v. The provision of a safe, adequate and reliable water supply for all the population shall be the priority in water supply infrastructure planning.

vi. Appropriate technology and infrastructure shall be provided to ensure that rural areas and remote areas will have access to adequate potable water.

National Physical Plan-2

5-85

- 2

Source: National Water Resources Study, 2000

Notes:

1. This indicative plan is based on the National Water Resources Study 2000-2050 (NWRS).

2. Since the completion of the NWRS, inter basin and interstate water transfer projects have been implemented to alleviate the “water-stressed areas”.

Existing Dam Catchment

Proposed Dam Catchment

Water Intake Catchment

Major River

Water-Stressed Area

State Capital

IP 26

5-86

NPP 36

Appropriate sewerage facilities shall be provided for all areas, with adequate collection, treatment and disposal of sewage and sludge.

Measures:

i. A National Sewerage Policy shall be formulated to encompass issues such as priority areas, appropriate technology for rural areas, setting appropriate targets, land reservation and sludge treatment and disposal, recycling and reuse of effluent and bio-solids and water demand management.

ii. Adequate land reserves, corridors and right of ways shall be provided for sewerage infrastructure facilities in all Structure Plans and Local Plans.

iii. Priority shall continue to be given to the rationalisation and centralisation of the sewer networks and treatment systems for the main conurbations, major urban settlements and tourist activity areas and islands.

iv. Sewerage policies shall be extended to encompass all land use activities in urban areas. To optimise delivery cost and efficiency, centralised sewerage treatment plants and mains network should be proactively planned in accordance with the spatial policies for new growth urban areas.

v. Appropriate technology solutions to sewerage treatment should be applied in rural and low density housing areas.

NPP 37

All settlements shall be serviced by an integrated network of solid waste disposal and/or recovery facilities.

IP 27 : SOLID WASTE MANAGEMENT

Measures:

i. Solid-waste disposal and/or recovery system of facilities may include intermediate treatment, transfer or other necessary facilities and shall be monitored at all times by the appropriate health and environmental agencies.

ii. Adequate land reserves, corridors and right of ways shall be provided for solid waste management facilities in all Structure Plans and Local Plans.

iii. The system of facilities shall be shared by as many urban centres as feasible, taking into consideration the local road infrastructure and the location of these facilities.

5-87

iv. The location of the facilities shall comply with the national guidelines as contained in the National Strategic Plan for Solid Waste Management, taking into consideration the prevention of any health hazard, and adverse effect on the environment and the surrounding population.

v. Due to long-term health and environmental factors, abandoned or closed dumpsites and other contaminated sites shall not be utilised for human habitation.

vi. Waste generation management, waste reduction and separation of waste at source shall be promoted. Active promotion of recycling of waste shall be instituted with respect to solid waste collection and disposal in accordance with the National Strategic Plan for Solid Waste Management.

vii. Appropriate solid waste management facilities shall be provided in areas such as islands and rural tourism areas that are compatible with the locality.

viii. Producers of scheduled waste shall ensure that all scheduled waste will be properly collected, transported, treated and disposed in a safe and environmentally responsible manner, in accordance to prevailing environmental regulations.

National Physical Plan-2

5-88

- 2

Source: National Strategic Plan for Solid Waste Management, 2005

Note:

2. Location of the facilities is merely indicative. Further detail study will be done to ascertain their location.

Sanitary LandfillMaterial Recovery FacilitiesTransfer Station

Thermal Treatment Plant

Waste Flow

District Boundary

State Capital

IP 27

5-89

NPP 38

Drainage infrastructure shall be provided in all settlements to eliminate the incidence of major floods, minor floods and pollution.

IP 28 : FLOOD PRONE AREAS

Measures:

i. Studies should be undertaken to evaluate the impact of flood frequency of main river systems on human and economic activities.

ii. Adequate land reserves, corridors and right of ways shall be provided for drainage facilities in all Structure Plans and Local Plans.

iii. All developed areas shall be provided with appropriate drainage systems that cater for both the quantity and quality of storm water runoff.

iv. Development within flood prone areas shall be carried out only after due consideration of the risk of the occurrence of major floods. Appropriate measures such as flood protection works or raising of platform levels shall be carried out to prevent major flood damages to settlements.

v. Land utilised for rivers, streams, main drains and detention / retention ponds shall be designated as drainage or river reserves.

vi. The Manual Saliran Mesra Alam (MSMA) proposals shall be applied in all urban areas including ‘at source’ control measures and erosion and sediment control.

vii. For rural areas and areas not subject to MSMA proposals but subject to flooding, appropriate flood mitigation measures must be adopted.

viii. To enhance the quality of urban life, the MSMA retention system and riverbank system shall be integrated to create continuous urban parkway networks and act as buffer zones.

ix. In conjunction with the implementation of the MSMA proposals, measures such as the reuse and recycling of rainwater shall be developed and applied.

National Physical Plan-2

5-90

- 2

Source: Drainage and Irrigation Department (DID), 2001

Flood Prone Areas (1 Years Average Recurrence Interval)

Flood Prone Areas (100 Years Average Recurrence Interval)

Major River

State Capital

Note:

1. Flood mitigation schemes have been implemented to protect many urban areas such as Kuala Lumpur from floods.

IP 28

5-91

NPP 39

As strategic assets, electricity generation plants, transmission and distribution mains shall be located strategically to provide a reliable and efficient supply of electricity to consumers.

IP 29 : POWER SUPPLY GRID

Measures:

i. Adequate land reserves, corridors and right of ways shall be provided for electricity infrastructure facilities in all Structure Plans and Local Plans.

ii. Positioning of transmission and distribution networks should include impact evaluations on land use and aesthetics, particularly in nature tourism locations.

iii. Renewable energy such as energy from solar, wind, wave, geothermal and biomass are to be promoted to complement traditional power generation sources.

iv. Alternative energy sources such as nuclear energy shall be evaluated with due consideration to its spatial and environmental impacts.

v. Energy Efficiency Systems, Energy Demand Management systems and Energy Conservation shall be promoted to ensure efficient and productive use of energy.

National Physical Plan-2

5-92

- 2

Source: Tenaga Nasional Berhad, 2009

500 kV O/H

275 kV O/H

275 kV U/G

132 kV O/H

132 kV U/G

Hydro Power Station

Major Sub-Station

State Capital

Thermal Power Station

IP 29

5-93

NPP 40

Natural gas processing plants, transmission and distribution pipe networks shall be located to provide a reliable and efficient supply of natural gas to consumers.

IP 30 : AREAS SUPPLIED BY NATURAL GAS DISTRIBUTION SYSTEM

Measures:

i. The use of natural gas through the existing and future natural gas supply distribution networks shall be promoted. The NPP-2 population projections and distribution proposal as well as demand of industrial activities shall be taken into consideration in the planning of the natural gas supply and distribution network.

ii. Appropriate reserves and corridors for natural gas infrastructure facilities shall be provided in Structure Plans and Local Plans.

iii. The use of natural gas for vehicles (NGV) shall be enhanced by locating NGV stations at appropriate locations.

National Physical Plan-2

5-94

- 2

Source: PETRONAS and Statistics of Piped Gas Distribution Industry (2007) from Energy Commission

Gas Pipeline

Export Terminal

Gas Processing Plant

Metering Station / City Gate

Regional Office

5-95

NPP 41

Communications network facilities and infrastructure shall be provided to all settlements.

IP 31 : CYBER CENTRES

Measures:

i. Communications shall be considered as an essential service to all settlements. All developments shall facilitate early planning and deployment of communications network facilities and infrastructure including last mile access and appropriate back haul facilities.

ii. Adequate land reserves, corridors and right of ways shall be provided for communications infrastructure facilities in all Structure Plans and Local Plans.

iii. Appropriate communication facilities and infrastructure shall be provided in the underserved areas and to underserved groups within the community to ensure the digital divide in access to ICT is minimised.

iv. Broadband facilities and infrastructure shall be deployed with high speed broadband in high economic impact areas including the four major conurbations and broadband to the general public in other areas.

v. Access to communication shall be supported by a common nationwide backbone infrastructure for diversity and national security requirements.

vi. The growth of cyber cities and cyber centres shall be promoted to encourage wider use of ICT.

National Physical Plan-2

5-96

- 2

Source: Multimedia Development Corporation (MDeC), 2009

Cyber Centres (as of Year 2009)

State Capital

Major Road

Note :

1. This indicative plan shows existing cyber centres as of December 2009. Additional cybers centre and cyber cities inseveral other locatios have also been planned

IP 31

Implementation MechanismCHAPTER 6

NATIONAL PHYSICAL PLAN

6-1

CHAPTER 6

IMPLEMENTATION MECHANISM

6.1 Institutional Mechanism for Implementing the NPP

The Federal Department of Town and Country Planning (Act 172 ) is statutorily required to prepare the National Physical Plan (NPP); and to keep it under review in tandem with the review of the FYMP. While it is the general duty of Act 172 to monitor and report progress of the implementation of the NPP to the NPPC, it does not have directresponsibilities, in terms of authority and financial resources to implement the policies and proposals of the NPP especially at the state and local levels. In this context, planning permission are granted by the relevant local authorities while implementation are done by the appropriate public implementing agencies such as highways by Public Works Department (PWD).

Successful implementation of the NPP’s policies and proposals depend not only on the formulation of useful viable policies, but also on the operation of an effective mechanism to implement the policies. The NPP is a continuous plan making process and must not be allowed to become irrelevant, out of date and degenerate into a static blueprint. As such, regular monitoring of the assumptions and forecasts on which the policies are based; and the periodic up-dating of the policies and measures are utmostly necessary.

Monitoring is crucial not only to ensure that the NPP remains valid and relevant but also to determine whether the policies and measures are effectively implemented. In the event of particular policies being found to be unsatisfactory, remedial action may be considered necessary, and the options available and their likely effects will require further assessment and evaluation.

6.1.1 Key Issues on Implementation

i. Long Gestation Periods to Implement Spatial Development Policies

The development of conurbations, major infrastructural projects and national conservation strategies take a long to implement and require consistent commitment on the part of the government and private sectors.

ii. Weak Monitoring and Up-Dating Capability

To collect the necessary data and assess its implications, the National Physical Planning Division of the Act 172 must have the continuous up-dating capabilities, in terms of manpower and financial resources, in carrying this multiplicity of plan making process. Capacity of relevant federal and state agencies has to be strengthened to enhance monitoring and updating capability.

6-2

iii. Absence of a National Land Use Database for Strategic Zones and Urban Centres

Monitoring both the policy performance of the NPP itself and the social, economic, physical, environmental and technological changes likely to affect policy validity is very much dependent on an effective information system. The information sources available include published data from Federal Government Departments and relevant agencies; and also the primary data provided by surveys conducted by state governments, particularly from the state structure plans, and local authorities. Publicutility service authorities provide data for progress of infrastructure development and services rendered.

The Census, as a source of data for key socio economic information such as population, employment and housing matters, is of vital importance. As the Census is carried once in every ten years, only estimates are made for inter-censual years. As with other data sources, data need to be compiled for the NPP’s designated strategy zones, conurbation areas and urban centres. Although Development Plans are required to apply standards and criteria for example, land use classification of the NPP to facilitate uniformity of measurement and comparative analysis, some development plans use their own standards, thus making aggregation and disaggregation of data difficult and inaccurate. These pose serious data constraints to monitor and assess policy compliance and policy performance.

To address this issue, Act 172 , should be responsible as the central authority to collect and publish on regular basis information on land use development, akin to the annual Property Report published by the Valuation Department. All relevant departments and agencies are required to supply the necessary land use information, including approved land conversion, planning approval and Certificate of Compliance and Completion, to Act 172 at regular intervals in order to keep land use information updated. Complementing the National Land Use Database is up-to-date Ordnance Survey Maps indicating natural and man-made features and cadastral data for the country especially, for the major towns and settlement areas. It may be necessary to establish a continuous programme with JUPEM to provide updated Ordnance Survey Maps indicating as-built information and topographic data for urban areas.

iv. Lack of Suitable Policy Indicators

It is extremely difficult to set any specific development targets in the short term for measuring and evaluating the policy achievement for the NPP. To overcome this problem, each of the NPP’s policy statement is characterised by one or more quantifiable policy Indicators. Information of many policy indicators however were not easy and time-consuming to obtain. Some of the policy indicators have shown little relevance in evaluating how successful the policies have been implemented. In view of this, it is important to carry out a thorough assessment of the existing policy indicators; and to carefully identify suitable policy indicators for which relevant data is readily available sufficiently accurate and easy to use.

6-3

v. Poor Incorporation of National Spatial Planning Aspects into Sectoral Planning and Development

In many sectoral master plans, little attention was given to incorporate national spatial planning aspects into sectoral planning and development, such as highways traversing environmentally sensitive areas without appropriate mitigating measures.In this connection, Act 172 , as custodian of the NPP, should endeavour to hold more road shows to promote and market the NPP to the stakeholders. This is because the new innovative planning concepts and strategies are not easily understood and implementing agencies are unsure whether to adopt them. Act 172 should also engage actively and jointly work with other government agencies, NGOs, utility service providers, private sector players and community interest group, both in the preparation of NPP and the relevant sector master plans.

vi. Need for the National Physical Planning Advisory Panel (NPPAP)

There is an urgent need to establish a high level consultative panel of spatial planning experts to advice the government on new spatial planning directions, innovative planning approaches and principles of sustainable development. This panel acts as a forum for communication and consultation between the government, the private sector and the citizens on issues related to spatial planning.

The membership of the panel is by invitation. It is important that the private sector and community’s views and opinions on national spatial planning issues and solutionsare taken into consideration. The panel comprises representatives who have high ability and experience in the field of spatial planning. Its members should consists ofProfessional Bodies/ Institutes; Non Governmental Organisation (NGO) related to development, conservation and the environment; Research Institutes and Universities; Eminent National and International Planning Experts, Business Councils such as FMM and REHDA; amongst others. The Act 172 shall act as the Secretariat to the Panel.

vii. Establishment of Spatial Planning and Development Research Institute (SPDRI)

The national spatial policies formulated need to be supported and complemented by other national planning and design guidelines / standard documents, as for example the sustainability appraisal guideline. This will give practical detailed advice on the formulation and use of national spatial policies in preparing the more detailed plans and layout plans. There is an urgent need for more R&D initiatives particularly with respect to national spatial planning as the country becomes more developed. There isalso a need to establish a national Spatial Planning and Development Research Institute (SPDRI) to complement all the efforts made by the Federal Act 172 .

6-4

viii.Setting up the National Physical Plan Action Programme

The National Physical Plan Action Programme will include key demonstration projectson best planning practices and planning models that could be applied in the country. Before these new planning ideas can be rolled out and replicated throughout the country, they must be tried and tested as pilot and demonstration projects on the ground. The programme will also include key initiatives that are necessary to not only prepare the NPP and keep them in review but also action programmes related to the monitoring of indicators. Research on the effectiveness of the NPP policies and the necessary information technology to support the national effort shall also be included in the programme.

It is proposed that a NPP Action Programme be set up with adequate funding under the FYMP. Through this action programme, it is possible to foster international collaboration as well as industry research partnership. Not only will it take physical planning to the next higher level, it can also showcase our excellence in physical planning worldwide.

ix. Linking NPP’s Policies with Budgetary Allocation

As mentioned earlier, Act 172 has no executive power and direct financial resources to implement and enforce the NPP-2. Besides being directed by the NPPC, it can convince the implementing agencies to implement the NPP’s policies in order to promote sustainable growth in the national and public interests.

The NPP-2 policies can be implemented by controlling development budget. This implies that decision makers for development programmes and budget allocation must give priority to development proposals / projects if they are consistent with NPP’s spatial policies and development proposals. The Act 172 has to take this matter forward with the relevant authorities.

x. Compensation Payment for Loss of Development Rights

The states have been facing relatively scarce resources and revenue due toincreased public expenditure. They have to provide more and better public infrastructure and social amenities to meet the needs of the people in their states. At the same time, most states are experiencing heavy pressure for development to meet the housing and job demand of their population.

All states depend heavily on revenues derived from exploiting state land and the natural resources such as, alienation of state land, land conversion from agriculture to residential development, log extraction from forests etc. However, the policies of NPP-2, call for the protection of environmentally sensitive areas, prime agricultural areas and concentration of new development in Brownfield sites within existing major urban centres.

6-5

In this respect, it is proposed that most states request the Federal Government to provide adequate compensation to the State Government affected to offset the loss of rights of development and resultant revenues. If this proposition is agreed to inprinciple, an acceptable compensation payment formula needs to be worked out. This may also involve amending the relevant constitutional provisions of Article 109 of the Federal Constitution to enable Federal Government to make grants to States for conserving Environmentally Sensitive Areas (Rank 1) and granary areas.

6.1.2 Existing Agencies Involved in Spatial Planning

Town and Country Planning comes within the concurrent list under the Federal Constitution which means that both the Federal Government and State Governments have shared powers with respect to formulating laws and policies on spatial planning and procuring funds.

The Act 172 is the main department entrusted with the responsibility for spatial planning at the federal level. Although there are several ministries and agencies involved in spatial planning, the Act 172 will however exercise technical leadership and ensure that spatial planning is coordinated.

The NPP is one of the tools through which coordination can be achieved. Therefore it is important that these Ministries are represented in the NPPC. Some of the key ministries that play an important role in spatial planning are the Ministry of Housing and Local Government, Ministry of Natural Resources and Environment, Ministry of Rural and Regional Development, Ministry of Federal Territories and Urban Well-being, Ministry of Works, Ministry of Transport, Ministry of Agriculture and Agro-based Industry, and the Ministry of Energy, Green Technology and Water.

There are also other national councils that are related to physical development. These councils include the National Housing Council, National Water Resources Council, National Biodiversity Council, Environmental Quality Council, Green Technology Council, National Minerals Council, Regional Planning Council and National Information Technology Council. It is important that linkages and constructive engagements are established with these Councils when preparing the NPP-2.

The newly formed Public Land Transport Commission (SPAD) also should be included in spatial planning to coordinate integration of the nation’s public land transportation system, especially in major urban areas.

6-6

6.1.3 Integrated National Development Planning System

The main forum in charge of spatial planning is the NPPC which is established by law under the Act 172. Essentially there are three parallel streams relating to the different components of national development planning (Figure 6.1):- a. National socio-economic development planning under the National Economic

(Planning) Council and the National Development Planning Committee (NDPC). b. National Physical Planning under the National Physical Planning Council (NPPC). c. Project Implementation and Monitoring under the National Development Council.

All three streams of development planning have parallel functions that relate to organisations at the Federal and State levels. In this respect, it is important to forge horizontal linkages and working cooperation with one other particularly at the Secretariat and Technical Working Committee levels. At a functional level it is important that Act 172 is represented in the NDPC and similarly the EPU is represented in the NPPC Working Committee.

6.1.4 National Physical Planning Structure

The proposed national physical planning system is shown in Figure 6.2. Under this proposal there will be five inter related bodies and committees related to National Physical Planning:-

a. National Physical Planning Council (NPPC)b. NPPC Working Committeec. National Physical Planning Advisory Panel (NPPAP) d. National Physical Planning Agencye. Spatial Planning and Development Research Institute (SPDRI)

The functions of these bodies are discussed in Section 6.1.5.

The NPPC Working Committee is chaired by the Secretary General of the Ministry responsible for Town Planning and consists of relevant heads of government agencies and departments. The Secretariat to the NPPC Working Committee is the Federal Department of Town and Country Planning (under Act 172). A National Physical Planning Advisory Panel (NPPAP) is also proposed to be set up to advice the Minister on current matters and issues relating to physical planning. This is similar to that practised in Denmark and Holland. The committee members of the three related committees and councils are also different. The NPPC will be the highest physical planning council in the country and will comprise Federal and State Ministers. The NPPC Working Committeewill comprise mainly related Ministries and Departments while the NPPAP will include the NGOs, Professional Institutes, Business Councils and special interest groups.

6-7

6-8

The Act 172 will be the main agency responsible for preparing the NPP. The Act 172 will issue call circulars to both Federal and State agencies to furnish the department with information and project proposals that have a bearing on national physical planning through the NPP-2 Land Use Planning Intelligent System (iPLAN). Similar to the process of preparation and review of the national development plan, Inter Agency Planning Groups (IAPG) will be established to prepare and review policy papers. The IAPG may also be further reduced to smaller Technical Working Groups (TWG) to discuss technical reports. Technical working papers should be based on current issues affecting town and country planning.

The NPPC may also issue Planning Guidelines similar to the Planning Policy Guidelines (United Kingdom) to all the state governments from time to time. Once the Draft Plan has been prepared, it will be reviewed by the NPPC Working Committee before it is submitted to the NPPC for approval. The approved plan will be further endorsed by Cabinet. Policies and proposals that are within the jurisdiction of the Constitutional Councils such as the NLC, NCLG and the NFC may be further tabled to the respective councils. The decisions of these constitutional councils are generally binding on the states.

6-9

Figure 6.2: Proposed National Physical Planning Structure

Federal Town and Country Planning Department

Parliament

Cabinet

National Physical Planning Council

Secretariat : FDTCP

Constitutional Councils

National Physical Planning Advisory Panel

National Land

Council

National Council for

Local Government

National Finance Council

Chairman : Minister Of Town PlanningNGO’s Business Council, Special Interest GroupProfessional BodiesElement National and International Planning Expert sResearch Institutes and Universities

Secretariat : FDTCP

NPP Working Committee National Physical Planning Agency

Research Institute

Chairman : Secretary General of MHLGDeputy Chairman : DG of Town & Country PlanningHead of Government Agencies/ Depts.

Secretariat : FDTCP

Spatial Town and Country Planning Institute

IAPG

TWG

State DTCP

Chairman : Menteri BesarTechnical DepartmentsSecretary : Director State DTCP

Municipal Planning Department

Chairman : PMFederal MinisterState MBSecretary : DG of Town and Country Planning

State Planning Committee

Local Planning Authority

Sector Councils

National Biodiversity

Council

Water Resources Council

National Housing Council

Environment Quality Council

National Information Technology Council

Green Technology

Council

6-10

6.1.5 National Physical Planning Institutional Structure

i. The National Physical Planning Council (NPPC)

The NPPC is established under the Section 2A(1), Act 172. The functions of the council are:-

a. To promote town and country planning as an effective instrument for the achievement of sustainable development.

b. To advise the Federal and State Governments on matters related to town and country planning. This would include formulation of national policies and matters that are referred to it by State Governments and any other Councils and Committees duly established.

c. To approve the Draft National Physical Plan and to review in tandem with the Five Year Development Plans To coordinate physical development at a national and regional level to ensure a sustainable form of development.

d. To establish a Regional Planning Committee where necessary for planning areas that consists of two or more states.

e. To formulate a uniform set of planning rules and guidelines for the country.f. To advise the State Planning Committees on planning applications and plans

which are referred to the council for its advice.g. To give directions to the Director General of Town and Country Planning

consistent with the provisions of the Act.h. The Council may also perform any other functions incidental or consequential to

the Act.

The current members of the NPPC are shown in Table 6.1.

Table 6.1: Members of the NPPC

The permanent members under the Act 172 are:

1. A Chairman, being the Prime Minister2. A Deputy Chairman, being the Deputy Prime Minister3. The Minister4. The Minister responsible for housing and local government, if he is not also the

Minister responsible for town and country planning5. The Minister of Finance6. The Minister responsible for Land7. The Menteri Besar or Chief Minister of every state8. The Minister responsible for the Federal Territory9. Not more than 7 other members to be appointed by the Chairman

6-11

The other seven member appointed by the Chairman are:

1. Minister of Works2. Minister for Rural and Regional Development3. Minister of Transport4. Minister of Agriculture and Agro-based Industry5. Minister of Energy, Green Technology and Water6. Chief Secretary to the Government (KSN) 7. Attorney General

The Director General of Town and Country Planning is the Secretary of the Council

ii. NPPC Working Committee

The functions of the Committee are as follows:

a. Discuss and review issues related to national physical planning before it is decided by the NPPC.

b. Establish the broad terms of reference for the preparation and review of the NPP.c. Review the Draft NPP before it is tabled to the NPPC for approval. d. Identify spatial planning issues / projects / programmes that may have financial

implications that require the attention of the NDPC or the National Finance Council.

e. Review all Planning Policy Guidelines (PPG) for approval by the NPPC.f. Review strategic planning applications that are referred to the NPPC for its advice

under Section 22(2A) Act 172.

The members of the NPPC Working Committee are as follows (Table 6.2):

Table 6.2: Members of the NPPC Working Committee

1. Secretary General (KSU) of the Ministry of Housing and Local Government as the Chairman2. KSU Ministry of Finance3. KSU Ministry for Land4. KSU Ministry for the Federal Territories5. KSU Ministry of Works6. KSU Ministry for Rural and Regional Development7 KSU Ministry of Transport8. KSU Ministry of Agriculture and Agro-based Industry9. KSU Ministry of Energy, Green Technology and Water

10. KSU Ministry of Natural Resources and Environment11. State Secretary of every State

The Director General of Town and Country Planning is the Secretary of the Committee

6-12

iii. National Physical Planning Advisory Panel (NPPAP)

The NPP-2 proposes that a National Physical Planning Advisory Panel be set up to advice the Minister on issues concerning Town and Country Planning in the Country (Table 6.3). This Committee is an important aspect of the consultative process in the preparation of the NPP. The proposed functions of this Panel are:-

a. Advise the Minister on issues concerning town and country planning in the country.

b. The members of this committee are required to prepare Briefs to be discussed which will also serve as inputs to the preparation and review of the NPP.

c. Highlight the concerns and complaints of the public with respect to physical planning.

The membership of the committee is by invitation and should include the following (Table 6.3):-

Table 6.3: Members of the National Physical Planning Advisory Panel

1. Minister responsible for Town Planning as the Chairman2. Director General of Town and Country Planning as Secretary3. Members of Professional Bodies / Institutes4. Non Governmental Organisation (NGO) especially those related to development, conservation

and the environment5. Research Institutes and Universities6. Business Councils such as FMM and REHDA7. Eminent national and international planning experts8. Other special interest groups

The Secretariat will be provided by Federal Department of Town and Country Planning

iv. Federal Department of Town and Country Planning

The National Physical Planning Agency is the Federal Department of Town and Country Planning. Under Act 172, the Director General of Town and Country Planning is required to prepare the NPP-2. The key functions of this Department are:-

a. Advise the Federal Government on all matters pertaining to the use, development and the conservation of land.

b. Act as the Secretariat to the NPPC and carry all related works. c. Promote a comprehensive system of town and country planning through the

formulation of laws, methodology, procedures, research, planning studies and standards.

d. Translate national socio economic objectives into spatial plans. e. Assist the state authorities, local governments and government agencies in

preparing Development Plans such as Structure Plans and Local Plans. f. Publish statistics, bulletins and research on town and country planning.

6-13

This will require the existing National Physical Planning Division under the Federal Department of Town and Country Planning (Act 172) be strengthened in order to keep the NPP in review. This will also entail increased staffing with sufficient skills as well as enhancing the GIS capabilities of the Department.

v. Spatial Planning and Development Research Institute (SPDRI)

It is imperative that as the country gets more urbanised, greater efforts are made in advancing research in town and country planning. The NPP should benefit from the latest R&D in spatial planning. As such, it may be necessary that the Government establishes an urban research institute for Spatial Planning and Development in order to have a continuous R&D and training programme on national physical planning. This institute should preferably be an autonomous self regulating research institute that is supported by Government grants. It could be modelled after Institute of Strategic and International Studies (ISIS) with full powers to hire and fire staff. It is also important that the Research Institute has a full complement of a multidisciplinary research team including urban planners, urban designers, engineers, economist, environmentalist, transportation planners and social impact analysts to undertake research on the different facets and issues affecting town and country planning. Part of the responsibility of the Research Institute is to assist the Director General of Town and Country Planning and the NPPC in formulating planning policy guidelines and prepare the necessary research papers and publications. This institute could be a public-private partnership involving the Government, the Malaysian Institute of Planners (MIP), Universities and the private sector such as REHDA. International funding for the project could also be sourced through bilateral arrangements with leading international agencies.

Alternatively the institute could also be set up as a Centre of Excellence in any one of the leading research universities in the country for a start.

It is common to have research institutes to support a national spatial planning programme. Examples include KRIHS in Korea, Habitat (Nairobi), International Centre for Sustainable Cities (Canada) and International Institute for Urban Environment (Netherlands). To provide an idea of the structure of proposed Spatial Planning and Development Research Institute (SPDRI), a quick look at some research institutes, with similar objectives, provides an insight on what form SPDRI can take in the future. The institutes listed here are:

Institute of Strategic and International Studies (ISIS) is a private limited company set up under the Company Act in 1983. It is non-profit entity and Malaysia’s first think-tank. It undertakes research in various strategic areas and provides consultancy services. Its research cover areas of national interest such as defence, security and foreign affairs, national and international economic affairs, nation-building, science, technology, industry, energy and natural resources, and international understanding and cooperation.

6-14

Lincoln Institute in the USA which was set up to improve the dialogue about urban development, the built environment, and tax policy in the United States and abroad especially through research, training, conferences, demonstration projects, publications, and multimedia to provide high quality, nonpartisan analysis and evaluation of regulatory, planning and policy decisions.

Korea Research Institute for Human Settlements (KRIHS) is established in 1978 to address spatial policy issues and promote a more efficient use of land resources in South Korea. It is a government research agency and in 1999, it comes directly under the Prime Minister’s office through the Korea Council of Economic and Social Research Institutes, a supervisory body of research institutes engaged in economics and social studies. KRIHS undertakes research on spatial topics such as regional and urban development, infrastructure, land use, transportation and geospatial information.

The International Centre for Sustainable Cities (ICSC) was set up in 1993 as a partnership between the three levels of government in Canada, private sector, and civil society organizations. It is governed by a Board of Directors from private, public and civil society organizations. ICSC has a small number of core staff and is supported by an international panel of advisors, partners, organizations and associations, and other cities. The ICSC’s objective is to translate urban sustainability into practical actions by bringing together business community, civil society organizations and governments. To promote practical actions, the ICSC does demonstration projects on urban design, land-use planning, transportation, solid waste, urban greening, energy efficiency, disaster mitigation, poverty eradication, governance, and multi-party participatory process. In addition, it sets up a platform to share knowledge and innovations on urban planning among cities through a system known as ‘Sustainable Cities: Plus Network’. It advocates peer learning networks by linking cities up to share knowledge and learn from each other. Funding is through the sale of its services, grants, and contributions from private and public sectors, international agencies, foundations and individuals. Among its major donors is the Canadian International Development Agency (CIDA).

The International Institute for Urban Environment (IIUE), based in Netherlands, promotes sustainable urban development through research and demonstration projects. It has links to funding programmes in the European Union, helping to obtain EU funding for demonstration projects, and finding partners for project proponents, and coordinating projects. Some demonstration projects of IIUE include the ‘Triodos’ (an assessment of sustainability of office buildings), MILUnet or Multifunctional Intensive Land Use Network (a project to tackle urban sprawl and the dysfunctional development of urban, suburban and rural areas), and Climate Proof Cities (a projectto establish a network and partnerships among European cities on how to adapt to climate change) IIUE is currently working on projects that include Child Friendly Cities, ENGINE which focuses on the identity of peri-urban cultural heritage in North West Europe, RISE, a project on sustainable regeneration of post-war high-rise

6-15

residential areas that are suffering from bad image and deprivations, and Living Green.eu partnership which looks at the use of energy technologies.

As a supporting measure the Ministry of Housing and Local Government has also set up a Training Institute which aims to provide training to staff of the local authorities on matters pertaining to town planning, management of solid waste, housing management, local government management, landscape planning, local government laws and enforcement.

vi. Inter Agency Planning Group (IAPG) and Technical Working Group (TWG)

IAPG and TWG comprising representatives from various government agencies and NGOs should be established prior to the preparation of the next review of the NPP. The IAPG will accordingly frame the TOR for the next review. The review will essentially address national spatial issues identified by the IAPG in the subsequent 5 year period. There is a need to formalise the NPP- IAPG similar to what is done for the preparation of the FYMP by EPU and the Annual Budget Dialogs by Treasury.The IAPG could be established by the 8 themes of the NPP-2. The members of the IAPG will provide the necessary data inputs and discussion papers to be deliberated on current planning issues for inclusion into the Review. The Secretariat will be provided by the Act 172 . This should be a continuous programme of engagement and not a one off attempt each time the NPP is being prepared. Specific TWGs could also be established as and when needed to address key issues pertaining to the distribution of population and growth targets by regions and states.

6.1.6 Public Consultation in the Preparation of the National Physical Plan

Public participation in the NPP-2 shall take the form of consultation with the State Authorities and utility boards and service providers as well as dialogues with selected NGO groups. The Act 172 requires the Director General of Town Planning to consult every State Authority and such other bodies as the NPPC may direct (Section 6B(3) Act172).

Extensive publicity must be given when preparing and reviewing the NPP. The concerns of the stakeholders have to be taken into consideration while preparing the NPP. Other avenues for public participation could include:

i. Focus group discussions;ii. Dialogue sessions similar to the Budget Dialogues;iii. Creating an interactive opinion survey through electronic media; andiv. Exhibitions, seminars and workshops.

6-16

6.2 Plan Implementation

The policies of the NPP-2 cover a wide range of issues that have a bearing on the physical development of the country. These will be implemented by various Federal and State agencies responsible for administering them. The measures suggested to implement these policies are contained in Chapter 5. The principal implementing agencies identified to implement these policies are shown in Table 6.4. In tandem with the FYMP and the project planning cycle, these agencies will have to take proactive actions to translate these policies into action plans, programmes and projects. A concerted effort will be made to ensure that these projects are included in the subsequent FYMP. This will also require the forging of horizontal linkages with the economic and project planning cycles (Section 6.2.6). Some of the key measures taken to implement are described below.

Table 6.4: Implementing the NPP-2 Policies

Policies Principal Implementing Agencies Key Enabling Initiatives

NPP 1The NPP shall serve as the national spatial planning framework in order to achieve an integrated and sustainable land use planning, coordinated with other sectored policies.

Federal and State Agencies, Act 172

Translate the strategies and proposals of the NPP into the Structure Plan (SP), Local Plan (LP) and Special Projects of the Ministries.

NPP 2Future urban growth centres shall be concentrated in strategic conurbations.

Federal and State agencies, SEDC, Min. of Education, MDeC, Act 172 ,MOT

Locate urban-based activities such as industrial enterprises, privatized educational and training institutions, cyber cities and main infrastructure facilities in strategic urban centres.

NPP 3The planning of less developed regions shall adopt the corridor development approach to foster greater economic growth and development in order to reduce regional imbalances.

EPU, Corridor Implementing Agencies (ECERDC, NCIA,IRDA), Act 172 , Min. of Tourism, Min. of Works, Min. of Human Resources

Encourage economic diversification especially in the agriculture and tourism sectors as well as bridging the digital divide, accelerating the construction of key infrastructure and providing technical training and social development programmes.

NPP 4Cooperation in physical planning and economic development between Malaysia and its ASEAN neighbours shall be strengthened.

EPU, Min. Foreign Affairs, State agencies, Act 172 ,Professional Services, Development Corporation, MOF

Promotion of projects in the Regional Growth Areas, establishment of Special Economic Zones, exporting professional services and cross border developments.

NPP 5The planning for industrial development shall adopt the holistic development strategy of the IMP3 of achieving global competitiveness via transformation and innovation of the manufacturing and services sector

MITI, SEDC, Act 172 , MOF The spatial identification of new industrial, service clusters and special economic zones.

NPP 6Prime Agricultural Areas (PAA) shall be conserved only for agriculture purposes and urban development shall be restricted.

Act 172 , DOA, MADA, Kada, IADA Krian- Sg. Manik, IADA Barat Laut Selangor, IADA Pulau Pinang, IADA Seberang Perak, KETARA, IADA Kemasin-Semerak

Act 172 ensures that this policy is adhered to in all development plans (SP and LP).All these areas must be clearly demarcated in all development plans (LP and SP).Respective MOA agencies should ensure that their respective areas are not encroached.

6-17

Policies Principal Implementing Agencies Key Enabling Initiatives

NPP 7The eight (8) strategic granary areas comprising Muda (MADA), Kemubu (KADA), IADA Kerian-Sungai Manik, IADA Barat Laut Selangor, IADA Pulau Pinang, IADA Seberang Perak, IADA Terengganu Utara (KETARA), and IADA Kemasin- Semerak shall be conserved for paddy cultivation.

Act 172 , DID, DOA, MADA, KADA, KETARA, IADA Pulau Pinang, IADA Kerian-Sg. Manik, IADA Seberang Perak, IADA Barat Laut Selangor, IADA Kemasin-Semerak, MOA, MOF

Gazette the strategic granary areaAct 172 ensures that this policy is adhered to in all development plans (SP and LP).All these areas must be clearly demarcated in all development plans (LP and SP).Respective MOA agencies should ensure that their respective areas are not encroached.Development can only take place in these areas after discussion and approval by the respective agencies.DID must ensure that the irrigation and drainage systems in these areas are not encroached by development.DID must ensure that the irrigation and drainage systems are maintained and improved.

NPP 8Existing potential paddy land outside granary areas shall be provided with the proper infrastructure to increase productivity and yields

Act 172 , DID, DOA, MADA, KADA, KETARA, IADA Pulau Pinang, IADA Kerian-Sg. Manik, IADA Seberang Perak, IADA Barat Laut Selangor, IADA Kemasin-Semerak, MOA

Act 172 must ensure that this policy is taken into consideration in all development plans.DID must ensure that proper irrigation and drainage systems are provided.PWD must ensure that road networks are provided.DOA must ensure that these areas are not encroached by development.Development can only take place in these areas after due consultation and approval.DID must maintain and improve the irrigation and drainage systems.

NPP9Rural areas and Rural Growth Centres (RGC) shall be developed to ensure higher income and better quality of life for the population.

FELDA, FELCRA, KEMAS, District Office, Local Council, DOA, RISDA, DOV, DOF, LPP, MARDI, Act 172 , Min. of Rural and Regional Development, MARA

FELDA, FELCRA, JHEOA, must ensure that their respective areas are developed.State Authorities and Local Council provide leadership in developing rural areas.Act 172 ensure that rural areas are not left out in development strategies.PWD should provide the basic infrastructures.Economic activities must be brought to rural areas by respective government agencies.DOA, DOV, DOF strengthen/ introduce agriculture based industries to rural areas.

NPP 10The Orang Asli communities shall be spatially and economically integrated into the mainstream of development initiatives.

Land office, JHEOA, Act172 , FELCRA, Districtoffice, Local Council, PWD, DOA, RISDA, DOV, DOF, Suruhanjaya Koperasi Malaysia

State Authorities should provide land to Orang Aslifor agricultural and settlement purposes.JHEOA should ensure that this policy is adhered.Land cooperatives agencies should develop the area commercially.Act 172 should include this policy in the statutory development plans PWD should provide the basic infrastructure.

NPP 11Natural tourism resources, the authentic multi-cultural and historical heritage of the country shall be conserved.

Act 172 , State EPU, LA,Min. of Culture, Arts and Heritage, MOTOUR

Setting up of Joint-State Tourism Planning Committees which should also include the private sector and NGO participation.Preparation of Action Plans for critical areas and provide necessary tourism infrastructure including signage, accommodation, access roads, sewerage and solid waste disposal.Preparation of Action Plan for all tourism zones and corridors, including the demarcation of the boundaries for purpose of development control.

6-18

Policies Principal Implementing Agencies Key Enabling Initiatives

NPP 12Tourism development zones in each state shall focus on specialised regional niche products based on their locational advantages and availability of resources.

State EPU, Act 172 , LA, Ministry of Tourism Malaysia State Office, NGOs, MOTOUR

Review the National Tourism Policy to incorporate spatial tourism development principles and recommendations.

Participation of all relevant stakeholders to ensure wide participation and consensus building to achieve sustainable tourism.

Constant monitoring of impacts and introducing the necessary preventive and / or corrective measures whenever necessary.Maintain a high level of tourist satisfaction and meaningful experience to the tourists; raising their awareness about sustainability issues and promoting sustainable tourism practices amongst them.Inventories of existing baseline/ current state of tourism product/ resources and economic activities within the country/ states and their borders, and continuous monitoring of the impacts.

NPP 13High quality tourism infrastructure and facilities shall be provided to enhance tourists comfort and safety without compromising the quality of the environment.

MOTOUR, Marine Park Dept., Ministry of Tourism (State Office), Dept. of Museums (Federal and States), Forestry Dept Peninsular Malaysia, Dept. of Wildlife and National Parks, MOHE, MAB, Min. of Works, Malaysian Hotel Association (MAH), MATTA, LA, Act 172

Preparation of Tourism Master Plan for all states which will also include the planning of tourism infrastructure and support facilities, the culture heritage plan, nation’s biodiversity and tourism corridor.

Preparation of Disaster Preparedness Action Plan for all major tourism destinations.

Preparation of a comprehensive set of tourism product inventories at state levels and monitoring and reporting of their condition to Tourism Malaysia annually.

NPP 14The concentration of urban growth shall be accommodated in the conurbations which shall be planned and developed in an integrated manner in line with the National Urbanisation Policy.

Federal and State agencies, Act 172 , EPU

Prepare appropriate regional plans for the conurbations.Identify and give priority to projects aimed at reducing regional disparities.Establish consultative committees involving local authorities.

NPP 15The growth of the four main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan shall be supported to enhance their global competitiveness.

Federal and state agencies, Act 172 , EPU

Establish Regional Planning Committees for the conurbations and other support initiatives in ICT,health, education, tourism and public transport systems.

NPP 16High priority shall be given to achieve energy efficient ‘compactcities’.

Federal and state agencies, Act 172 , LPA, State EPU

Undertake comprehensive urban planning including the establishment of urban limits in the LPs.

NPP 17Towns with special features shall be identified and the development projects to enhance their special features shall be supported with appropriate infrastructure

Act 172 , MOTOUR , IMT-GT, EPU

Prepare appropriate development programmes to enhance the special features of the Special Feature Towns.

NPP 18Small and intermediate towns shall be sustained and developed inaccordance with their localeconomic potentials.

Federal and state agencies, Act 172 , Ministry of Rural and Regional Development, DOA

Provide public amenities, encourage resource based and craft industries to develop major and minor settlement centres.Coordinate the planning and development of inter-state border towns.

6-19

Policies Principal Implementing Agencies Key Enabling Initiatives

NPP 19Sufficient affordable housing with adequate community facilities, including security facilities and services, shall be provided in major urban centres to meet the requirements of the population.

MHLG, State Authorities, LA, Private Sector, REHDA

Assess existing housing situation (supply, demand, price, etc) to formulate housing programmes especially for urban centres. Provide adequate infrastructure, public facilities and amenities in housing area.

NPP 20Planning standards and urban development policy guidelines shall be designed to meet the requirements of a developed nation.

Federal and state agencies, Act 172

A comprehensive review of existing planning standards should be carried out.

NPP 21A designated central authority shall be responsible for publishing on a regular basis, information pertaining to land use development.

Federal and State Agencies, Act 172 , SA, LA, State Director of Land and Mines, Land and Survey Mapping, MRSA, MyGDI, Private Sector

Act 172 shall be designated as the central authority charged with the responsibility to publish on regular basis information on land use development.Structure Plans and Local Plans shall identify such areas and propose development projects in consultation with the private sector.

NPP 22Environmentally Sensitive Areas shall be integrated in the planning and management of land use and natural resources.

DOF, DOE, Act 172 ,Wildlife Dept., Local Authority, State Authority, Regional Development Agencies (NCIA, ECERDC& IRDA)

Demarcate ESA and buffer zones in SP and LP.

NPP 23A Central Forest Spine shall be established to form the backbone of the Environmentally Sensitive Area network.

DOF, DOE, Wildlife Dept., Act 172

Identify Central Forest Spine in the Development Plans and draw up appropriate management plans for the CFS.

NPP 24Sensitive coastal and marine ecosystems shall be protected and managed in a sustainable manner.

DID, Act 172 , Wildlife Dept, Fisheries Dept., Marine Dept., DOE

Identify and protect mangrove forest, turtle landing sites, marine parks and landing sites for migratory birds .These areas have to be protectedby law or identified as ESA in the SP and LP. Identify the resources in the Exclusive Economic Zone (EEZ) and develop in appropriate manner.

NPP 25Land development in the highlands shall be strictly controlled to safeguard human safety and maintainenvironmental quality and biodiversity.

EPU, Dept of Land and Mines, LPA, Act 172 , PWD (Slope Dept)

Apply existing guidelines and recommendations of the Study for Sustainable Dev. of the Highlands of Peninsular Malaysia, EPU 2002. Prepare Special Area Plan for Special Management Area (SMA).

NPP 26All surface and ground water resources shall be safeguarded and managed sustainably.

DMG, DID, Water Authorities, DOF, DOE, Act172 , SA

Demarcate surface and ground water resource and recharge areas and establish appropriate management plans.

NPP 27The spatial planning framework shall incorporate mitigation and adaptation measures against the impacts of climate change.

NAHRIM, Act 172 , DMG, DID, DOA, MMD

Determine the impacts of climate change and apply the adaptation measures to reduce the damage of those impacts.

NPP 28An integrated national transportation network shall be established in recognition of the inter-relationship between land use and transport.

EPU, MOT, Min. of Works, PWD, Act 172 , SPAD

Prepare an Integrated Land Use- Transportation Policy.

NPP 29A national integrated high-speed rail system shall be established to complement the existing rail network.

MOT, Act 172 , MOF, EPU Prepare a feasibility study; identify rail-based corridor and transportation hubs in SP and LP.

6-20

Policies Principal Implementing Agencies Key Enabling Initiatives

NPP 30The national road network shall be further extended for regional travel and for local access.

HPU, PWD, Act 172 ,MOW, LLM

Develop the major roads within the growth corridors.

NPP 31Major airports and seaports shall be developed according to their complementary functions to enhance the nation’s economic competitiveness and facilitate tourist arrivals.

EPU, MOT, MOF, Port Authorities, Marine Dept.

Prepare a National Port Master Plan.Enhance support infrastructure and facilities at major airports and seaports.

NPP 32The Transit Oriented Development (TOD) concept shall be promoted as the basis of urban land use planning to ensure viability of public transport.

MOT, LPA, Act 172 Identify TOD in Regional Plans for conurbation, SP and LP.

NPP 33An integrated public transportation system shall be established in all major urban centres.

EPU, MOT, Act 172 , LPA, SPAD

Prepare an Integrated Land Use Transportation Network Plan for urban area. Introduce compact city development and integrated public transportation system in all major urban centres. Encourage the use of public transport facilities including bus and rail in all major urban centres.

NPP 34The NPP-2 shall provide the spatial framework for the delivery of integrated infrastructure services at the national and regional level and to the main conurbations.

Act 172 , MHLG, MEGTW, Solid Waste Commission, DID, EC, MCMC, Dept. of Sewerage Services, SPAN

National policies required on all aspects of infrastructure, such as sewerage, water, energy, green technology ,etc.

NPP 35Appropriate water supply infrastructure including source works, treatment plants and transmission and distribution networks shall be provided to all settlements.

Act 172 , State Planning Authority, MEGTW, SPAN, State Water Authorities

Formulate and implement the National Water Policy and National Water Resources Study.

NPP 36Appropriate sewerage facilities shall be provided for all areas, with adequate collection, treatment and disposal of sewage and sludge.

Act 172 , MEGTW, SPAN, IWK

Formulate a National Sewerage Policy.

NPP 37All settlements shall be serviced by an integrated network of solid waste disposal and/ or recovery facilities.

Act 172 , MHLG, Solid Waste & Public Cleansing Commission, Dept. of Solid Waste & Public Cleansing

Promote waste generation management and identify waste treatment plants in major urban areas.

NPP 38Drainage infrastructure shall be provided in all settlements to eliminate the incidence of major floods, minor floods and pollution.

Act 172 , DID, LA Implement Urban Storm Water Management Manual (MSMA) and formulate drainage guidelines for rural settlements.

NPP 39As strategic assets, electricity generation plants, transmission and distribution mains shall be located to provide a reliable and efficient supply of energy to consumers.

Act 172 , MEGTW, EC Provide adequate power and locate power plants and distribution mains compatible to the surrounding land use.

6-21

Policies Principal Implementing Agencies Key Enabling Initiatives

NPP 40Natural gas processing plants, transmission and distribution pipe networks shall be located to provide a reliable and efficient supply of natural gas to consumers.

Act 172 , MEGTW, EC Formulate a national policy on gas utilisation and supply.

NPP 41Communications network facilities and infrastructure shall be provided to all settlements.

Act 172 , MEGTW, MCMC Extend cyber city concept to other parts of the country, bridge rural-urban digital divide and promote the use of ICT in all levels of government and private sectors.

6.2.1 State Structure Plans to Conform with the NPP-2

The proposals of the NPP-2 will be implemented through the respective Structure Plans which will have to conform generally to the proposals of the NPP-2. As Structure Plans are gazetted documents, they will additionally provide the statutory basis for implementing the policies.

This is generally instituted through the following ways:

i. While reviewing the Structure Plan, the State Director of Town and Country Planning (the Director) is required to examine the provisions of the NPP-2 and other national economic, social, physical, environmental and conservation policies.

ii. The Draft Structure Plan must include matters prescribed by the State Planning Committee (SPC) and the NPPC. This would suggest that the NPPC may issue planning guidelines from time to time and it would be necessary on the States to conform to these guidelines in the Structure Plans.

iii. In considering the approval of the Draft Structure Plan, the SPC is required to consult

with the NPPC for its direction and advice. Should the SPC fail to reach a decision within 6 months of its submission, the State Director may refer the Draft Structure Plan to the NPPC for a decision.

iv. Additionally it is proposed that a Certificate of Conformity be issued by the NPPC to the respective State Directors before the Draft Structure Plan is released for public objections.

6-22

6.2.2 Advise on Strategic Infrastructure, Large Townships and Development in ESA Areas

According to the subsection 22 (2A) Town and Country Planning Act 1976 (Act 172), all applications for planning permission involving the following categories of national interest must be submitted to the NPPC for advice. The applications submitted under this section involves:-

i. The development of a new township for a population exceeding 10,000 or covering an area of more than 100 hectares or both;

ii. A development for the construction of any major infrastructure or utility projects such as airports, seaports, railway lines, highways, erections of dams, main power stations and toxic waste disposal sites; and

iii. A development affecting hill tops or hill slopes in areas in areas designated as environmentally sensitive in a development plan (RT)

The relevant State Planning Committee (SPC) is required to refer these applications to the NPPC for its advice. In practice, these applications will firstly be evaluated by the NPPC Monitoring Committee (Mesyuarat Jawatankuasa Kawal Selia MPFN) before it is forwarded to the NPPC Working Committee. This monitoring committee is chaired by the Director General Town Planning and represented by key technical departments and the relevant local authority. Generally the NPPC is consulted for general planning advice as well as advice on planning applications. General Planning Advise is usually given to concept plans and master plans involving large development projects which have national interest. With respect to project applications for planning permission that were referred to the NPPC, the most common were for New Town Developments. Very few major infrastructure and utility projects nor developments on hill slopes were referred to the NPPC.

Since the NPPC only meets once during every four months in a year, most projectproponents see this as a cumbersome process and it is very often at the discretion of the SPC if these applications are referred to the NPPC.

Due to this, classification under paragraph 22(2A)(b) Act 172, ‘Nationally significant infrastructure project’ means a project wihich consists of any of the following:

i. Airports development; ii. The construction of seaports facilities;iii. The construction of railway lines; iv. Highways development; v. High scale bridge development;vi. The construction of solid waste/ hazardous waste disposal sites; vii. Development relating to oil refineries/ gas pipe-lines facilities;viii. The construction of integrated public transportation terminals; ix. The construction of dams or reservoir;x. The construction of a power generating station, independent power plant and

electric lines;

6-23

xi. The construction of a nuclear centre; andxii. The construction of memorial parks.

It may also be necessary to amend the Act 172 to include coastal land reclamation projects under Section 22(2A) to bring it within the purview of the NPPC to provide advice. Despite the policy statements in the NPP forbidding coastal land reclamation for urban development purposes, many states continue to do so as a means of enhancing state revenue. This is an aspect that needs to be monitored and controlled as such initiatives can have dire environmental and coastal consequences to neighbouring statesand the marine and coastal ecosystems.

6.2.3 Town Planning Rules

The NPPC may make Rules with respect to any matter as stipulated by section 58(1A) of Act 172. The rules made by the Council will prevail over the rules made by the State Authority (Section 58(1B) Act 172). To date no rules have been made by the Council. All amendments to the Act 172 and related Acts that affects spatial planning must be first deliberated by the Council for its advice.

6.2.4 Coordinating with the Economic Development Corridor Plans and Regional Planning Initiatives

The three economic development corridors initiatives in the Peninsular were formed to reduce regional imbalance and bring about equitable growth and ensure comprehensive and widespread economic development. The three regional authorities, i.e. ECERDC, IRDA and NCIA are established by law to spearhead development in their respective regions. As these are committed government programmes, regional planning initiatives of the Act 172 should complement the efforts made by the Corridor Authorities and facilitate the implementation of the projects identified in NPP-2. The Act 172 should also continue to exercise close consultation with the Corridor Authorities in rationalising the relevant statutory plans that are the NPP, Structure Plans and Local Plans to accommodate the proposals of the Regional Development Plans.

The Act 172 allows for the establishment of a Regional Planning Committee (RPC) andfor the preparation of the Regional Plans for the respective areas. Under the Act 172,Regional Planning Committees (RPC) is only established if the planning area transcends two or more state boundaries. In this respect, the RPC may become relevant for the: i. Conurbation areas of Kuala Lumpur, Kuantan and George Town; ii. Special Management Areas (SMA) of Cameron-Kinta-Lojing Highlands; andiii. Integrated River Basin Studies that transcend state boundaries.

The Regional Planning Division of the Act 172 is in charge with performing the executive secretarial tasks of the RPC and establishing a framework for regional planning in the country. In this context it may be necessary that all the Regional Economic Master Plans

6-24

are referred to the NPPC for its advice in order to streamline these Plans with the statutory planning system established under the Act 172.

6.2.5 National Spatial Planning Policy Guidelines

National Spatial Planning Policy Guidelines are material considerations in reviewing planning applications by the respective local planning authorities. The NPPC may issue such guidelines from time to time. This is similar to the UK where Secretary of State for the Environment issues Planning Policy Guidelines, Mineral Policy Guidelines and Regional Planning Guidelines from time to time.

There are more than 24 Planning Policy Guidelines issued by the British Government and includes guidelines on Green Belts, Housing, Industrial and Commercial Development, Town Centres and Retail Development and Transport. It is relevant for the NPPC to issuesuch guidelines especially on current issues affecting planning in the country such as hillside development, urban densities, public transport, sports and recreation, affordable housing and environmentally sensitive areas. These guidelines are necessary to complement the NPP-2.

6.2.6 Linking NPP Policies with Socio Economic Development Planning and Budgetary Allocation

National socio-economic planning and project planning processes are well institutionalised in the country. National socio-economic planning takes the form of the OPP and the FYMP. The NPP-2 on the other hand provides the spatial component to National Development Planning.

In translating the proposals of the NPP-2 into projects and programmes the following actions need to be taken:

i. Federal and State agencies should refer to the NPP and make project bids in conformity to the recommendations of the NPP-2 (refer Circular No. 2, Year 2006 NPP).

ii. The NDPC and EPU should give priority to projects that are recommended by the NPP.

iii. The director general of Act 172 should be a permanent member of the NDPC to ensure that the aspirations of the NPP-2 are incorporated in the subsequent National Development Plans.

iv. Act 172 should be included in the project budgeting and programming process. v. The IAPG for the FYMP relating to physical planning should be chaired by the

Director General of Act 172 .

6-25

6.2.7 Establishing Linkages with Sector Councils

Related sector policies are made by the relevant Ministries, Central Agencies and Sector Councils. Some of these councils are established under the Constitution such as the NLC, NCLG and the NFC while others are set up administratively such as the National Water Resources Council. In preparing the NPP, the director general of Act 172 is required to take into consideration the National Urbanisation Policy and other national policies and consult relevant authorities and bodies. The following actions may be taken to forge linkages with these councils.

i. Hold focus group discussions and dialogue sessions with the relevant councils while preparing the NPP-2.

ii. The NPP-2 shall take into consideration the relevant national sector policies when the plan is prepared.

iii. Include members of the various councils in the IAPG and TWG and have them prepare technical working papers as inputs to the NPP-2.

iv. Strategic recommendations that affect land and local government may be deliberated in the respective NLC and the NCLG to ensure compliance by the State and Local Authorities.

6.2.8 Establishing Linkages with other Planning Authorities

There is a need to establish strong linkages with planning authorities at the state and local levels. The main planning authorities at the State level are the State Authorities and theState Planning Committees while at the local level, the Local Planning Authority (LPA) is the Local Authority (LA). As for areas outside the local authority, the State Director of Town Planning is the Local Planning Authority (LPA). The Structure Plans have to conform to the NPP and similarly the Local Plans with the Sructure Plans. All draft Structure Plans (SP) will be referred to the NPPC for advice before it can be approved by the relevant State Planning Committees (SPC). The NPPC may issue letters of non conformity to Structure Plans (SP) that are contradictory in essence to the objectives and policies of the NPP. The Director General of Act 172 may also issue circulars and directions of the Council to the relevant planning authorities from time to time. It is also important that state land use information is made readily available to Act 172 . This will be realised through the establishment of the iPLAN at the Act 172 with linkages to the State Planning Information System (SPIS) (refer section 6.4.3).

6.3 National Physical Plan Action Programme

To support the NPP-2 policies, the NPP-2 should have an action programme that relate to urban planning and conservation initiatives. These programmes could include innovative demonstration projects as well as integrated projects and programmes that involve inter-agency collaboration. A Development budget has to be allocated to implement some of the key projects identified.

6-26

Coordination and cooperation amongst authorities and agencies at all levels of government are important for the successful implementation of the Action Programme. The proposed initiatives are not restricted to Act 172 initiatives, but other ministries, federal agencies and state and local authorities could also be involved. Effective coordination will be required especially when spatial initiatives cross national, state and local jurisdictions. The Act 172 should develop a common platform for all parties concerned to work and cooperate jointly to carry out the spatial initiatives.

Although the proposed initiatives are spatial in nature, they often incorporate a range of technical skills outside of planning. Getting relevant skills entail recruitment of adequate human resources and investment in retraining and skills upgrading. Another important risk is finding adequate financial resources. The current economic conditions will constrain the availability of federal funds. Finding funds for the Action programme should not be limited to bidding for federal funds. There must be a flexibility built into the programme to enable the Act 172 to seek alternative funding sources via partnerships with private sector and non-governmental organizations (NGOs), or partnerships with international or supra-regional agencies with similar programmes and objectives.

6.3.1 Principles

The principles underlying the NPP-2 Action programme are: i. Initiatives are to be linked directly to NPP-2 policies for consistency;ii. Initiatives have national or regional significance;iii. Initiatives should be spatial and planning-oriented;iv. Initiatives with spatial implications that cut across physical and jurisdictional

boundaries;v. Initiatives that can be factored into the federal development budget for financial

allocations.

6.3.2 Components of the Action Programme

There are 3 components of the Action Programme, namely:-

NPP-2 Specific Actions; NPP-2 Spatial Initiatives; and NPP-2 Demonstration Projects.

The NPP-2 Specific Actions are key initiatives necessary to further enhance the NPP-2 preparation. The NPP-2 spatial initiatives are the relevant national sector master plans and policies that are currently absent or lacking that is necessary to complement the NPP-2. It is important that relevant line agencies and ministries prepare these plans and policies so that they are better integrated in the NPP-2. The NPP-2 Demonstration Projects on the other hand are key projects initiated by the Act 172 in partnership with Local Authorities and Development Agencies to implement pilot projects that could be bench marked for the development of a more comprehensive nationwide programme.

6-27

i. NPP-2 Specific Actions

The objectives of NPP-2 Specific Actions are: a. To improve the implementation of NPP-2; b. To promote research and development in spatial planning; andc. To develop appropriate planning models for adoption and applications.

Four (4) NPP-2 Specific Actions are identified and summarized in Table 6.5.

Table 6.5: NPP-2 Specific Actions

Specific Actions Objectives

Establishing the National Physical Planning Advisory Panel Improve implementation of the NPP

Assessment of Existing NPP Indicators Improve implementation of the NPP

Strengthening Land Use Planning Intelligent System (iPLAN) and Publishing Land Use Data

Promote R&D in spatial planning and monitor land use change

Establishing a Spatial Planning and Development Research Institute (SPDRI)

Develop appropriate planning models for adoption and applications

a. Establishing the National Physical Planning Advisory Panel (NPPAP)

The National Physical Plan Advisory Panel (NPPAP) is urgently required to facilitate the planning process, especially in terms of giving attention to national strategic and contemporary spatial issues. Such issues could undermine national competitiveness if left unattended. It could also facilitate the review of the national physical plan enabling the review process to quickly pick up such issues for study and evaluation and determine the implications on the NPP-2 policies (see Section 6.1.5.(iii)).

b. Assessment of Existing NPP Indicators

The NPP-2 provides for the establishment of a monitoring process through the development of key policy indicators. These indicators shall provide the enabling tool for continuous monitoring, with a proviso for flexibility such that the indicators can be modified, removed or added. The main thrust of the monitoring process is to gather data and information needed for the indicators on a regular basis from selected data providers. At the same time, these indicators have to be assessed and evaluated on their timely relevance.

Plan monitoring has been identified as one of the issues in NPP. There is a need to assess existing KPIs and identify those with inadequate data coverage, those which are unsuitable for measurement, and those which entail duplications in data collection. Of specific concern is the use of quantifiable indicators for the NPP policies. Quantifiable indicators require a relatively strong data base which not all NPP KPIs have. The other option is to use qualitative indicators which would entail reviewing some KPIs in greater depths to determine whether qualitative indicators are

6-28

better than quantitative indicators, and evolving a mixed KPI index, using both qualitative and quantitative aspects. Spatial data for the KPIs have to be updated continuously.

To reduce time and costs, it may be necessary to use existing data base and to rely on existing sources of information. For example, the data base could be devised to systematically include statistical information from the Department of Statistics (DOS). The indicators from the Act 172 MURNInet could also be adapted into the NPP-2 in order to reduce time and to streamline data collection and compilation across agencies and local authorities.

Although the NPP-2 has revisited the KPIs; it is not a thorough assessment of the KPIs and their relevance. It is recommended that a separate assessment be undertaken to check and evaluate the robustness and relevance of the present NPP KPIs.

c. Strengthening NPP Land Use Planning Intelligent System (iPLAN) and Publishing Land Use Data

The NPP recommends the establishment of the NPP Land Use Planning Intelligent System (iPLAN). The iPLAN’s objective is to enable effective data and information sharing among the three levels of organizations involved in spatial planning. The iPLAN will be linked to the state level system, that is the State Planning Information System (SPIS), and district level system or the District Planning Information System (DPIS). Against this vertical integration of spatial data across different tiers of government, the iPLAN also advocates the sharing of information horizontally across federal agencies to further enhance the spatial information flows. The vertical and horizontal information flows are expected to be strengthened through the Malaysian Geospatial Data Infrastructure (MyGDI). Once in place, the sharing of digital land use data among government agencies and departments will be carried out efficiently.

Conceptually, the iPLAN will strengthen spatial planning at all levels of government and horizontally across agencies of similar level. In practice, data sharing on land use has yet to occur as envisaged under iPLAN. Presently, there are neither published data on land use nor national land use data for urban centres /strategic zones or conurbations throughout the country. In this respect, NPP-2 advocates that Act 172 take specific actions to strengthen and intensify iPLAN’s horizontal and vertical networks so that the necessary infrastructure is operational and accessible to everyone engaged in spatial planning.

As the national authority on land use, Act 172 should, on a regular basis published land use data that could be distributed at a reasonable price to the general public.

6-29

d. Establishing a National Spatial Planning and Development Research Institute (SPDRI)

NPP-2 proposes that a research institute for spatial planning and development be established to spearhead research in spatial planning. The models put forward could be similar to that of the Institute of Strategic and International Studies (ISIS) in Malaysia, the Korea Research Institute for Human Settlements (KRIHS), International Centre for Sustainable Cities (ICSC) in Vancouver, Habitat in Nairobi, and the International Institute for Urban Environment in the Netherlands. NPP-2 believes that the creation of a national Spatial Planning and Development Research Institute (SPDRI) is still relevant and important for enhancing the national spatial framework for the country, and thus, advocates that its creation should be given immediate attention by Act 172 .

One possibility in the initial step is to corporatize it as a non-profit company operating on an initial government grant under Act 172 directive and guidance. It is important for SPDRI to have an independent board of directors comprising public and private representations from professional bodies like the Malaysian Institute of Planners, NGOs, REHDA and the universities. Both the Ministry of Housing and Local Government (MHLG) and Federal Department of Town and Country planning (Act172 ) are represented in its board of directors.

In the medium to long term, the proposed SPDRI could be a blend of KRIHS or IIUE. It can initiate demonstration projects that would spearhead research and development on spatial topics that are both contemporary and significant at national and global levels. It can provide research and consultancy services, conductseminars and workshops, and publish research findings in peer-reviewed journals. It should be given the means to raise funds independently to support its activities as much as possible, with an eventual goal of being self-supporting.

ii. NPP-2 Spatial Initiatives

Spatial initiatives are proposed in accordance with the various NPP-2 policies. The initiatives are directly or indirectly linked to NPP-2 policies although some may fall within the wider umbrella of the NPP-2 themes. The initiatives have to be in line with the principles mentioned earlier. They are spatial in nature, and are expected to have spatial implications at national or regional level. Some initiatives could cross state or local authority administrative boundaries or even national boundaries, especially with Peninsular Malaysia’s immediate and adjoining neighbours, that is, Thailand andSingapore.

The spatial initiatives are mainly national level studies where the findings are expected to contribute significantly towards national spatial planning that are strategic for overall development. They either value-add to existing knowledge and information on national spatial issues or they lead to a more effective use of national natural assets and resources, thus contributing to an overall improvement of the environment.

6-30

Table 6.6 links the spatial initiatives to the NPP-2 themes, and shows the objectives of each spatial initiative. Altogether, 24 spatial initiatives are identified. Most of the spatial initiatives are to be initiated by Act 172 but there are some which are to be undertaken by other federal and other agencies. The non-Act 172 initiatives are included because of their close linkages to the NPP-2 policies, and thus, are deemed important for overall national physical planning. An attachment detailing the proposed spatial initiatives is appended for reference. The details will include the justification and scoping for the proposed initiatives. The objective is to provide a further understanding of the importance of the NPP spatial initiatives for national spatial planning.

Table 6.6: NPP-2 Spatial Initiatives

NPP Themes Spatial Initiatives Objectives

Enhancing National Economic Competitiveness

1. A Master Plan on Border Towns in Northern Peninsular Malaysia

To provide a rational spatial form for land use development in the border region.

2. A Spatial Evaluation Study of Industrial Areas in Peninsular Malaysia

To determine the investment priority for targeted industrial areas using the IMP3 strategy. To identify potential for private sector industrial investments.To develop a strategy for underperforming industrial areas.

Conserving Agricultural Resources and Rural Development

3. A Master Plan Study of Prime Agricultural Areas (PAA) in Peninsular Malaysia (with special emphasis on Food Production Areas)

To preserve highly productive agricultural areas, especially food production areas, to sustain long-term agricultural production in the country

4. A Study on Loss of Development Rights under the NPP and the Formulation of a Compensation Payment for Such Losses in Affected States

To study the impact of NPP-2 on the revenue losses incurred by states. To outline compensation payment scheme to enable affected states to make fiscal adjustments for the loss of current and potential revenue.

5. Feasibility studies for the Improvements ofPaddy Areas Outside the Granary Areas

To convert paddy areas outside the granaryareas into granary areas to increase productivity and yield.

6. An Integrated Rural Development Policy and Master Plan in Peninsular Malaysia

To develop a development policy and strategy for rural settlements. To conduct an integrated analysis of RuralGrowth Centres and clusters. To identify economic opportunities and to enhance socio-economic and socio-cultural environment in these centres.

7. A Master Plan of Orang Asli Settlements in Peninsular Malaysia (with Special Emphasis on the Integration of Spatial, Economic and Socio-Cultural Aspects)

To develop a master plan for development and improvements of Orang Aslisettlements. To identify economic opportunities that would improve their livelihood. To enhance their socio-cultural environment.

Sustainable Tourism Development

8. A Master Plan on Sustainable Tourism Development in Peninsular Malaysia

To identify appropriate strategies for sustainable tourism development. To establish guidelines and policies to support sustainable tourism development.

6-31

NPP Themes Spatial Initiatives Objectives

9. A Study on the Identification, Conservation and Use of Natural, Historical and Cultural Sites and Resources in Peninsular Malaysia (with Special Emphasis on Tourism Development)

To identify natural, historical and cultural sites and resources and map these areas. To determine strategies to conserve, enhance, and improve these sites as tourism attractions.

10. A Master Plan Study of the Development and Integration of National and State Parks in Peninsular Malaysia and their Contribution to Tourism Development

To map national and state parks and develop a green network planTo evaluate the resources and potential of existing parks. To formulate strategies to conserve and protect these parks. To formulate strategies to integrate the development of the parks into tourism attractions.

Managing Changing Human Settlements

11. Kuala Lumpur Conurbation Plan To map and delineate the boundary of the conurbation. To profile the conurbation. To prepare the regional plan.To formulate a regional integrated development strategy.

12. George Town Conurbation Plan To map and delineate the boundary of the conurbation. To profile the conurbation. To prepare the regional plan. To formulate a regional integrated development strategy.

13. Kuantan Conurbation Plan To map and delineate the boundary of the conurbation. To profile the conurbation. To prepare the regional plan. To formulate a regional integrated development strategy.

14. An Evaluation Study of Major and Minor Settlement Centres in Peninsular Malaysia and their Potential Spatial Expansion

To define intermediate and small towns in the urban hierarchy. To determine the functional roles of these towns. To formulate development strategies for the growth of these towns.

Conserving Natural Resources, Biodiversity and the Environment

15. A Study on Sustainable Use and Conservation of Limestone Hills in Peninsular Malaysia

To improve knowledge and understanding of the contributions of limestone hills to land use development. To identify the areas that should be conserved and those where quarries are permitted. To formulate a strategic plan for the sustainable use and conservation of such areas.

Integrating the National and Urban Transportation Network

16. A Master Plan Study of the High-Speed Rail System in Peninsular Malaysia

To determine potential routes. To undertake feasibility studies.

17. A Master Plan Study of Seaports in Peninsular Malaysia

To study the existing sea ports and their functional roles. To develop a hierarchy of sea ports. To prepare a master plan for their development.

6-32

NPP Themes Spatial Initiatives Objectives

18. A Study on the Development of Freight towns in Peninsular Malaysia

To identify and map towns currently serving as logistics centres. To identify and map towns with potential for developing in to logistic centres and hubs. To formulate strategies for developing such towns.

19. Public Transportation Master Plan for Kuala Lumpur Conurbation (These studies could be integrated with the Conurbation Studies)

To undertake a study on public transportation for the conurbation. To identify issues and constraints.

To prepare a master plan for its development.

20. Public Transportation Master Plan for the Georgetown Conurbation (These studies could be integrated with the Conurbation Studies)

To undertake a study on public transportation for the conurbation. To identify issues and constraints. To prepare a master plan for its development.

21. Public Transportation Master Plan for the Kuantan Conurbation (These studies could be integrated with the Conurbation Studies)

To undertake a study on public transportation for the conurbation. To identify issues and constraints. To prepare a master plan for its development.

Providing Appropriate Infrastructure

22. A Review of the National Water Resources Master Plan

To ensure sustainable development of water resources including surface and ground water. To develop a National Water Resources Policy. To develop water supply management strategies.

23. A National Sewerage Master Plan Study To provide for the development of sustainable sewerage services. To improve sewerage services throughoutthe country.

24. A Study on the Adoption of Energy-Efficient/ Low Energy/ Green Buildings in Urban Conurbations (including a Feasibility Study on the Provision of Incentives)

To study the implications and impacts of the adoption of energy efficient technologies in the urban areas. To determine appropriate energy efficient technologies for urban conurbations in Peninsular Malaysia.

iii. NPP-2 Demonstration Projects

The third component of the Action Programme is the NPP-2 Demonstration Projects. Likethe spatial initiatives, the NPP-2 Demonstration Projects are linked to the NPP-2 themes and policies. The difference is the NPP-2 Demonstration Projects are directed at specific areas in Peninsular Malaysia for the purpose of implementation and serve as demonstration projects. They are spatial in nature, and would likely take the form of Special Area Plans (SAPs) to facilitate implementation. To kick-start the NPP-2 Action Programme, thirteen (13) demonstration projects are identified and summarized in Table 6.7.

6-33

Table 6.7: NPP-2 Demonstration Projects

NPP Themes NPP Policies Demonstration Projects

Special Area Plans (SAPs) / Feasibility Studies

Enhancing National Economic Competitiveness

NPP4Cooperation in physical planning and economic development between Malaysia and its ASEAN neighbours shall be strengthened.

Special Area Plans for:1. Bukit Kayu Hitam, Kedah2. Pengkalan Kubor, Kelantan

Conserving Natural Resources, Biodiversity and the Environment

NPP22Environmentally Sensitive Areas (ESA) shall be integrated into the planning and management of land use and natural resources.

Special Area Plan for Conservation District in:1. Grik, Perak2. Gua Musang, Kelantan

NPP 23A Central Forest Spine (CFS) shall be established to form the backbone of the Environmentally Sensitive Area network.

Special Area Plans for:1. Sg. Yu Ecological Corridor, Pahang2. Labis Timur Ecological Corridor, Johor3. Temerloh/ Bera Forest District, Pahang,

Primary Linkage of additional Bera – Chini Forest Reserve

4. Ketiar River, Hulu Terengganu, National Park Primary Linkage – Tembat Forest Reserve

5. Gerik, Perak that includes Belum Forest Reserve, Royal Belum Forest Reserve and Temenggor Forest Reserve

NPP 25Land development in the highlands shall be strictly controlled to safeguard human safety and maintain environmental quality and biodiversity.

Special Area Plans for:1. Cameron-Kinta-Lojing Highlands (SMA)2. Penang Hill3. Bukit Larut 4. Gunung Jerai5. Fraser’s Hills

Implementation Projects

Providing Appropriate Infrastructure

NPP 37All settlements shall be serviced by an integrated network of solid waste disposal and/ or recovery facilities.

Research and Development Project on:1. Sustainable Solid Waste Management

Practices and adoption of Green Technology in Putrajaya

Managing Changing Human Settlements

NPP 16High priority shall be given to achieve energy efficient ‘compact cities’.

Brownfield Project on:1. Integrated mixed-urban regeneration ,

project involving housing, commercial, public amenities, recreational and lorry parking terminal (14.5 ha) in Port Klang, Selangor Darul Ehsan (Port Klang Special Area Plan)

The proposed demonstration projects may be categorised into six (6) groups as follows:

a. Special Area Plans for Border Towns

Initially, two border towns that is Bukit Kayu Hitam, Kedah and Pengkalan Kubor, Kelantan are identified as demonstration projects. The study has finally identified 7border towns along the northern Peninsula border with Thailand, which are, Kota Putra, Kedah; Padang Besar, Perlis; Pengkalan Hulu, Perak; Rantau Panjang, Kelantan; Bukit Bunga, Kelantan, Bukit Kayu Hitam, Kedah; and Pengkalan Kubor, Kelantan.

6-34

The demonstration projects on the two towns entail working with authorities across the Malaysian border and with the Centre of IMT-GT Sub-regional Cooperation to draw up development plans, involving joint-implementation.

b. Special Area Plans for Conservation Districts

The NPP-2 identifies conservation districts, as districts which have high percentages of their lands under ESA. These districts are located mostly in the CFS. Here, land use planning and resource extractions have to consider the implications on biodiversity and environment in the districts, as well as their potential for tourism activities, especially eco-tourism.

It is suggested that two model projects be undertaken within the focal initiative umbrella. The two ‘conservation districts’ identified are Grik in Perak and Gua Musang in Kelantan.

c. Special Area Plans for Ecological Corridors

The third category involves the preparation of special area plans for ecological corridors identified from the CFS study. The need for special area plans would be looked into, especially in extremely sensitive areas. As a start, the study proposes two areas to focus which are the Sungai Yu Ecological Corridor in Pahang, and the Labis Timur Ecological Corridor in Johor. Other ecological corridors are the Temerloh/ Bera Forest District in Pahang, Ketiar River in Hulu Terengganu and Grik in Perak which include Belum Forest Reserve Royal Belum Forest Reserve and Temenggor Forest Reserve.

d. Special Area Plans for Highlands Settlements

Human settlements in the highlands and their economic activities impact upon the environment and the biodiversity in the areas. The fact that these settlements exist long before awareness and concerns over the environment are realized, poses a problem over the management and conservation of the highlands. Removing human settlements and their activities may not be the solution, politically and socially. The tasks then are to strive for a delicate balance between human needs and conservation needs in the highlands. The proposal to prepare special area plans to treat these settlements and their activities as special management areas would help to sustain highlands while allowing human activities to continue with certain control.

The areas proposed are Cameron Highlands-Kinta-Lojing SMA, Penang Hills, Bukit Larut, Gunung Jerai and Fraser’s Hills.

6-35

e. R&D Demonstration Projects in Sustainable Management of Infrastructure Services and Adoption of Green Technology

This category is focused on the applications of green technology and sustainable methods in management of services, in particular solid waste management in a given local planning area. The category would likely cover a wide range of R&D applications that are pertinent to urban land use planning, especially in improving the quality of life in urban centres throughout the country.

f. Integrated mixed-Urban Regeneration Project Involving Housing, Commercial, Public Amenities, Recreational and Lorry Parking Terminal (14.5 ha) in Port Klang, Selangor Darul Ehsan.

The NPP-2 direction on urban development is to refocus towards brownfield development and compact city development as opposed to greenfield site development. The project is part of the urban regeneration initiatives identified in the Special Area Plan prepared for the harbour town of Port Klang according to section 16B of Act 172. The project involves the redevelopment of a 14.5ha site near the South Point Area close to the historic town of Port Klang into a vibrant mixed development involving housing, commercial shot lots, public amenities and a lorry parking terminal. This demonstration project will be implemented by the Klang Municipal Council and the State Act 172 using provisions of the Act 172, in particular Part VIII (Development Areas). The project will provide key insights on the role of the local authorities in undertaking urban regeneration projects, stakeholder participation involving landowners, local community and the transport hauliers, public-private sector participation, revitalization of local urban economies and the application of urban design principles in enhancing the urban image and identity of the place.

In the medium to long term the demonstration projects should cover a wider range of strategic topics on land use planning and management in the country. They can also be linked to other global initiatives such as Local Agenda 211 and the World Bank’s local economic development programme,2 all of which contain spatial development strategies.

6.3.3 Implementation Model

i. Key Custodian

The key custodian and implementing agency to the NPP-2 Action Programme is the Act172 to ensure that the specific actions are in place before the next review.

The NPP Spatial Initiatives will also be undertaken by Act 172 while the other non-planning initiatives would be implemented by the appropriate agencies and authorities.

1 The Local Agenda 21 is a comprehensive strategy aimed at protecting the environment, while promoting economic growth and

community well-being. It is usually government-led program that encourages community participation. 2 See urban development program under World Bank for more information. Refer to www.worldbank.

6-36

As they are NPP initiated, support from the relevant agencies and authorities is greatly encouraged.

The Demonstration Projects are designed to facilitate implementation. As a norm, Act 172 is not an implementing agency. However, the NPP-2 has recommended enabling initiatives and area specific initiatives which could be realized if some of these can be turned into ‘demonstration projects’.

The preparation of the each demonstration projects involves a two-part exercise. The first is the conduct of an implementation study for the focal area which is designated as a special area. The tasks involve detailing strategies, and the preparation of a physical plan outlining specific projects to be carried out and the resultant desired land use changes.The second exercise is the actual implementation of the projects. The demonstration projects are specifically generated from the NPP-2 and thus, can be differentiated from the existing system of special area plans. However, they should be integrated into the existing system of special area plans according to section 16(B) of the Act 172.

ii. Demonstration Projects as Special Area Plans (SAPs)

Section 16B of Act 172 provides for an area to be designated as a special area for special and detailed treatment by development, redevelopment, improvement, conservation or management practice. The approach may be flexible and the nature of the treatment can be varied. The SAP can be initiated by a State Director or a Local Planning Authority (LPA) or directed by the SPC. In the case of the demonstration projects, the Director General of Act 172 will initiate the demonstration projects.

To facilitate implementation, it is suggested that the relevant local planning authority adopts the NPP-2 Demonstration Projects as the SAP and declares the area or parts of it, as a Development Area. This is useful as the demonstration projects are specific area-based and would come under a LPA for implementation. Matters related to land could also be resolved through Section 38 and Section 39 of the Act 172, provided there are adequate financial resources to undertake this task. The Act 172 allows for compensation and the mode in which compensation can be given. By allowing the local planning authority to acquire or purchase land in the designated development area, it creates an enabling environment to expedite implementation.

There are other provisions which are also important to provide the enabling environment for implementing demonstration projects. For example, Section 41 of the Act 172 allows a LPA to enter into a ‘business’ arrangement with any person, company or body subject to various conditions and restrictions. It also provides for the Local Planning Authority (LPA),with approval of the Chief Minister or Menteri Besar to establish a corporation to carry out and manage any project in the designated Development Area. Section 42 of the Act 172 provides for borrowing by the LPA with the approval of the Chief Minister or Menteri Besar to finance the development of a designated Development Area.

6-37

6.3.4 Implementing Agencies

i. Key Implementing Agencies for NPP Spatial Initiatives

The Act 172 is identified as the key implementing agency for most of the spatial and demonstration projects (Table 6.8). The demonstration projects are to be led by the MHLG; the Act 172 will assist the Ministry in the implementation of this component of the Action Programme. A development programme should be drawn up for the demonstration projects by the MHLG.

Federal ministries identified in the NPP spatial initiatives are the Ministry of Finance(MOF), Ministry of Tourism (MOTOUR), Ministry of Transport (MOT), Ministry of Rural and Regional Development (KKLW), and the Ministry of Energy, Green Technology and Water (KeTTHA).

Other agencies that are expected to be involved, either as lead or key supporting agencies, include the Centre of IMT-GT Sub-regional Cooperation (CIMT), Department of Aboriginal Affair (JHEOA), Northern Corridor Implementation Authority (NCIA), East Coast Economic Region Development Council (ECERDC), Indah Water Konsortium Sdn. Bhd. (IWK), Forestry Department, Wildlife Department, Department of Irrigation and Drainage (DID), and Local Planning Authorities.

Table 6.8: The NPP-2 Spatial Initiatives, Key Implementing Agencies

NPP Policy Spatial Initiative Key Implementing Agencies

NPP 4Cooperation in physical planning and economic development between Malaysia and its ASEAN neighbours shall be strengthened.

1. A Master Plan on Border Towns in Northern Peninsular Malaysia

Act 172 / Centre of IMT-GT Sub-regional Cooperation (CIMT)

NPP 5The planning for industrial development shall adopt the holistic development strategy of the IMP3 of achieving global competitiveness via transformation and innovation of the manufacturing and services sector.

2. A Spatial Evaluation Study of Industrial Areas in Peninsular Malaysia

Act 172

NPP 6Prime Agricultural Areas (PAA) shall be conserved only for agriculture purposes and urban development shall be restricted.

3. A Master Plan Study of Prime Agricultural Areas (PAA) in Peninsular Malaysia (with special emphasis on Food Production Areas)

Act 172 / DOA

NPP 7The eight (8) strategic granary areas comprising Muda (MADA), Kemubu (KADA), IADA Kerian-Sungai Manik, IADA Barat Laut Selangor, IADA Pulau Pinang, IADA Seberang Perak, IADA Terengganu Utara (KETARA), and IADA Kemasin- Semerak shall be conserved for paddy cultivation.

4. A Study on Loss of Development Rights under the NPP and the Formulation of a Compensation Payment for Such Losses in Affected States

Act 172 / MOF

NPP 8Existing potential paddy land outside granary areas shall be provided with the proper infrastructure to increase productivity and yields.

5. Feasibility Studies for the Improvements of All Paddy Areas outside the Granary Areas

Act 172 / DID/ DOA

6-38

NPP Policy Spatial Initiative Key Implementing Agencies

NPP 9Rural areas and Rural Growth Centres (RGC) shall be developed to ensure higher income and better quality of life for the population.

6. An Integrated Master Plan of Rural Growth Centres in Peninsular Malaysia

Act 172

NPP 10The Orang Asli communities shall be spatially and economically integrated into the mainstream of development initiatives.

7. A Master Plan of Orang Asli Settlements in Peninsular Malaysia (with Special Emphasis on the Integration of Spatial, Economic and Socio-Cultural Aspects)

Act 172 / JHEOA

NPP 11Natural tourism resource, the authentic multi-cultural and historical heritage of the country shall be conserved.

8. A Master Plan on Sustainable Tourism Development in Peninsular Malaysia

MOTOUR

NPP12Tourism development zones in each state shall focus on specialised regional niche products based on their locational advantages and availability of resources.

9. A Study on the Identification, Conservation and Use of Natural, Historical and Cultural Sites and Resources in Peninsular Malaysia, (with Special Emphasis on Tourism Development)

Act 172 / MICC

10. A Master Plan Study of the Development and Integration of National and State Parks in Peninsular Malaysia and their Contribution to Tourism Development

Act 172 / MOTOUR/ DOF/Wildlife Dept.

NPP15The growth of the four main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan shall be supported to enhance their global competitiveness.

11. Regional Plan Study for Kuala Lumpur Conurbation

Act 172 / Min FederalTerritories

12. Regional Plan Study for Georgetown Conurbation

Act 172 / NCIA

13. Regional Plan Study for Kuantan Conurbation

ECERDC/ ACT 172

NPP16High priority shall be given to achieve energy efficient ‘compact cities’.

14. Demonstration project 2: Integrated mixed- urban regeneration projectinvolving housing, commercial, public amenities, recreational and lorry parking terminal (14.5 ha.) in Port Klang, Selangor Darul Ehsan (Port Klang Special Area Plan)

Act 172 / Klang Municipal Council

NPP 18Small and intermediate towns shall be sustained and developed in accordance with their local economic potentials.

15. An Evaluation Study of Intermediate and Small towns in Peninsular Malaysia and their Potential Spatial Expansion

Act 172

NPP22Environmentally Sensitive Areas shall be integrated in the planning and management of land use and natural resources.

16. A Study on the Sustainable Use and Conservation of Limestone Hills in Peninsular Malaysia

Act 172 / DMG

NPP29A national integrated high-speed rail system shall be established to complement the existing rail network.

17. A Master Plan Study of the High-Speed Rail System in Peninsular Malaysia

MOT

NPP 31Major airports and seaports shall be developed according to their complementary functions to enhance the nation’s economic competitiveness and facilitate tourist arrivals.

18. A Master Plan Study of Sea Ports in Peninsular Malaysia

MOT

19. A Study on the Development of Freight towns in Peninsular Malaysia

Act 172

NPP 33An integrated public transportation system shall be established in all major urban centres.

20. Public Transportation Master Plan for the Kuala Lumpur Conurbation

SPAD/ MOT/ Act 172

21. Public Transportation Master Plan for the Georgetown Conurbation

SPAD/ NCIA/Act 172

22. Public Transportation Master Plan for the Kuantan Conurbation

SPAD/ECERDC/Act 172

6-39

NPP Policy Spatial Initiative Key Implementing Agencies

NPP35Appropriate water supply infrastructure including source works, treatment plants and transmission and distribution networks shall be provided to all settlements.

23. A Review of the National Water Resources Master Plan

MEGTW

NPP 36Appropriate sewerage facilities shall be provided for all areas, with adequate collection, treatment and disposal of sewage and sludge.

24. A National Sewerage Master Plan Study

MEGTW/ IWK

NPP 37All settlements shall be serviced by an integrated network of solid waste disposal and/or recovery facilities.

25. Demonstration project 1: Sustainable Solid Waste Management Practices and application of Green Technology in Putrajaya

Act 172 / MHLG/ KeTTHA

NPP 39As strategic assets, electricity generation plants, transmission and distribution mains shall be located to provide a reliable and efficient supply of energy to consumers.

26. A Study on the Adoption of Energy-Efficient/Low Energy/Green Buildings in Urban Conurbations (including a Feasibility Study on the Provision of Incentives)

KeTTHA

6.3.5 Implementation Approach

i. Horizontal and Vertical Partnerships

Implementation of NPP-2 initiatives rest upon the development of successful partnerships developed horizontally and vertically. Horizontal partnerships are forged with federal ministries and agencies, and vertical partnerships are developed with local planning authorities and state agencies.

The success of the NPP-2 initiatives depends on the successful partnerships developedhorizontally and vertically between the federal ministries and agencies, and with local planning authorities and state agencies.

Implementation entails both horizontal and vertical integration of shared goals and visions to make the national physical environment conducive for economic growth and achieving Vision 2020. In some instances, Act 172 initiates and coordinates; in others, it will extend assistance and cooperation. At the vertical integration stage, Act 172 plays an important role in bringing the demonstration projects down to the local planning authority level. At this lowest level of planning, technical and financial assistance is crucial because many local planning authorities have difficulty in gaining direct access to federal funds for implementation.

6-40

Figure 6.3: Implementation Model for NPP-2 Initiatives

ii. Creating a Development Programme for NPP-2 Demonstration Projects

It is proposed that a development programme for implementing Special Area Plans (SAPs) be established under the Ministry of Housing and Local Government (MHLG). The NPP Demonstration Projects shall fall under this development programme. The programme shall be eligible for funds from the federal development budgets. The Act 172 shall assist the Minister in the coordination and implementation of the proposed projectsunder the development programme.

It is proposed that the development programme for SAPs have a time frame of 10 to 15 years. This means it would cover three 5-year development plan periods. The rationale for this is to ensure continuity and to allow Demonstration Projects to reach its completion, and be reviewed. All Demonstration Projects should be reviewed to determine their strengths and weaknesses in order to derive good practices and lessons for subsequent projects.

6.3.6 Funding Model

The funding model for the Action Programme is composed of two (2) stages. The first stage is to use the federal allocations for Act 172 to finance the NPP-2 specific actions and the studies to be conducted under the NPP spatial initiatives. The second stage is to establish a proposed Development Programme for Special Area Plan (SAP) under the Ministry of Housing and Local Government (MHLG) to receive allocations from federal development budgets. However, in order to receive federal funds, the Development Programme for Special Area Plan, it is suggested that a trust account be set up for this purpose under the MHLG.

Federal Ministries

Private Sector / NGOs

Federal Agencies

Horizontal Integration

Ministry of Housing & Local Government

Act 172

Local Planning Authorities

State Agencies

Private Sector/NGOs

Horizontal Partnership

6-41

i. Using Federal Funds for NPP-2 Specific Actions and Spatial Initiatives

Federal funds will be used to undertaking the NPP-2 specific actions which have already been approved by the NPPC. The rationale for undertaking the proposed NPP-2 spatial initiatives are to tackle strategic planning challenges that are important for overall national land use planning and will contribute towards a more rational and sustainable use of land as a national asset.

ii. Creating a Trust Account for Financing the proposed Development Programme for Special Area Plans

It is proposed that a trust account be established to receive funds for the proposed development programme. The funds are more likely to be federal funds although the trust account should also be able to receive donations and grants from other organizations including multilateral and bilateral assistance to support the programme on SAPs. One possibility is to work with jointly with European Union on its urban programmes.3

iii. Establishing a Revolving Fund

Funds channelled into the trust account for the development programme are to be held in a Revolving Fund. There are two major reasons for establishing a Revolving Fund and they are (i) to ensure that flow of funds is maintained as far as possible, and (ii) to operate on a principle that monies received have to be used efficiently and transparently and must be paid back to allow the fund to operate (iii) the funds are used mainly to finance thefeasibility studies and infrastructure components of the project.

A Revolving Fund implies a ‘cap’ to the amount set aside in the fund. In this case, the recommended sum is RM10 billion. Enlarging the amount allocated to the fund shall be at the discretion of the federal government. If there are no regular injections into the fund, there would be insufficient monies to continue with financing projects under SPA.

In the absence of any enlargement, the fund managers have to work with available monies and adopt a payment mode that encourages replenishments from users. To enable replenishment, the allocations of monies from the revolving fund would have to be in the form of loans rather than grants and allocations. However, taking into consideration that many local planning authorities, tend to be hard pressed financially, it is suggested that the revolving fund be subdivided into two sub-components that is, grant and loan segments.

3 The EU has an active urban programme designed to improve urban developments within the EU. It has also set up a regional programme called EU-Asia Urbs Programme to work with local government in Asia on improving urban environment. It also has another regional programme known as Asia Pro Eco II that aims to co-finance projects in the field of urban environment. Both programmes are in the second phase. Under Asia Pro Eco II, it is known that there are 3 projects in eco-tourism Malaysia involving NGOs that are under this programme. (Malaysia –European Community Strategy Paper for the Period 2007-2013. Refer to ec.europa.en/external-relations/Malaysia/csp/07-13.e.pdf)

6-42

Grants

Grants are given to smaller local planning authorities to finance part of the projectsunder Special Area Plans (SAP) and in particular conservation and social infrastructure projects. To be eligible for grants from the revolving fund under the development programme, the applicants would have to meet certain criteria to be spelt out by the fund managers.

Loans

The Revolving Fund can extend loans to Local Planning Authorities to enable them to implement projects recommended under the SAP. Borrowings are allowed under the Act 172. The conditions and terms of the loans are to be spelt out by the fund managers. Local Planning Authorities under loan schemes (as well as grant scheme) are encouraged to look for ways (i) to raise monies to supplement the grants and loans, and (ii) to repay the loans in accordance with the terms and conditions set out.

The mix of grants and loans should favour loans more than grants. Under thecircumstances, it is suggested the mix should be 20% for grants and 80% for loans. Having a grant element would mean that regular topping up by the federal government is required in order to maintain the size of the grants in the revolving fund. The loan segment requires borrowers to repay the monies according to a payment schedule determined in the loan agreements. One condition may be for the borrowers to set up a ‘sinking fund’ within their respective accounts to repay the loans (see Figure 6.5).

6-43

Figure 6.4: Development Programme for Special Area Plans and Funding Model

Development Premiums

Re-Valuation of Property Tax

Development Key Infrastructure

Acquire Land

Activity 2e.g. Riverfront Development

Activity 3e.g. Multilevel Car

Park Scheme

Activity 1e.g. Food Court &

Stall

Activity 4e.g. Hotels/

Homestay Facilities

Trust Account

Revolving Fund

GrantsLoans

Department Programmefor Special Area Plan

FGTCP

Ministry of Housing & Local Government

Sinking Fund

Area Development Licensing Scheme

Set Up Corporations

JV or Partnership

Special Area Plan proposed as NPP Demonstration

Projects

Special Area Plans (Prepared Under Section 16b. Act 172)

Local Planning Authority

6-44

Access to the Revolving Fund

The system of SAP should be able to access the proposed Revolving Fund. This means that whilst it is the NPP-2 focal initiatives that are the driving force being the development programme for special area funds, the funds allocated should not be restricted only to them. The other SAPs that are identified under the Structure Plansand Local Plans as per Section 16B of the Act 172 are also eligible. However, given that there is a cap on the monies in the revolving fund, the allocation of monies would have to depend on availability, eligibility, and feasibility of projects. The fund cannot provide for all projects recommended under each SAP. Priorities would be accorded and eligibility would vary with findings from feasibility studies to be undertaken and the capacity of the borrowers to repay.

iv. Repayment of Loans

To dispel concerns over repayment by borrowing bodies, the following proposals are recommended:

Setting up Sinking FundLocal Planning Authorities who borrow under the Development Programme for SAPs to fund some their projects are encouraged to establish sinking funds within their accounts. The objective of the sinking funds is for borrowers to set aside annually a sum dedicated towards repayment of the loan. The sinking funds are to be set up immediately when the loans are released even if there is a grace period given before repayment commences. The sinking funds have a lifespan equivalent to the loan period. Monies to be set aside in the sinking fund could be a certain percentage of annual revenue. The commitment to repay is critical for sustaining the revolving fund, and enables it to assist more Local Planning Authorities.

Engaging in Public-Private Partnership SchemesTo carry out the projects under the SAPs, it is suggested that Local Planning Authorities set up corporations to go into joint ventures and / or to manage the improvement areas through public-private partnership schemes. The rationale is to enable local planning authorities to raise more monies to finance implementation. Private sector involvement is encouraged. Partnerships are encouraged to help devolve the need to rely completely on the revolving fund for financial support. Local planning authorities are encouraged to seek to recoup the enhancement to their areas as a result of the SAP.

There are ways for the local planning authorities to raise monies from proposed developments under the SAP, where possibilities exist. Examples include (i) raising development premiums; (ii) readjusting the local tax base to reflect the change of use of land; (iii) introducing ‘area development’ licensing scheme. An area development licence scheme allows a private investor to participate directly in implementing parts of the SAPs under a licence from a Local Planning Authority (LPA). The private investors are encouraged to invest because (i) part or most of the major infrastructure

6-45

will be put in place by the LPA, (ii) the local planning authority will acquire lands, if necessary in compliance with the SAP proposals; (iii) the plans are in place and approvals are expedited; (iv) a private investor who agrees to participate in the ‘area development licence’ scheme is allowed to develop, redevelop and reassign the development rights of the area to another investor subject to approval from the local planning authority. The options available to the LPA in setting up the ‘area development licence’ scheme to raise monies are; (i) to sell or auction the development licence; (ii) to create an annual licence fee, (iii) to go into partnership; and (iv) to use a combination of the three options.

The proposal to establish a revolving fund at the Federal Level for urban development initiatives is particularly important to implement the SAPs prepared under the Act 172. A similar concept is applied in Japan where a central government fund is established to implement City Planning Roads (Major roads identified in the Local Plans) and the Land Readjustment Projects that are implemented through the statutory planning system. It is imperative that urban planning in the country migrates towards implementing innovative demonstration projects to enhance the quality of the living environment as is the trend in many developed countries. While the Act 172 has the relevant statutory provisions to embark onto this important area of work, not much emphasis was given to this in the past as the priority then was to prepare statutory Development Plans (Structure Plans and Local Plans) for guiding and managing land use development. As the trend in urban planning initiatives moves towards inner city development and urban regeneration, it is imperative that the government paves the way to provide the framework for this to happen through the Special Area Plan system.

6.4 Plan Monitoring

Plan monitoring provides the framework for continuous evaluation which would become the basis for the review of the NPP. Key development indicators would be examined and the continuing validity of all assumptions, forecasts and objectives checked. The following section discusses the methodology to monitor the performance of the NPP-2 and the implementation of NPP-2 policies.

6.4.1 Scope of Monitoring

The scope of monitoring involves determining the various aspects of the NPP-2 which would need to be monitored. There are two major objectives in monitoring, namely:

i. To monitor the application of the NPP-2 policies through the use of relevant indicators.

ii. To determine the extent of conformity in land use planning between the National Physical Plan and the Structure Plans. The main aspects of land use planning to be monitored would include land use changes pertaining to the following:

6-46

a. Sustainable urban land use patterns with special emphasis on the physical growth of urban land and conurbations as proposed in the NPP-2.

b. The preservation and conservation of environmentally sensitive areas and green belts including the status of forest areas as proposed in the NPP-2.

6.4.2 Monitoring Agencies

The Act 172 as the custodian of the NPP-2 and the State Act 172 as the custodian of Structure Plans are the lead agencies to conduct the monitoring process. The role of each agency is defined below:

i. The Act 172 is the lead agency responsible for monitoring national land use planning information and policy indicators for future reviews of the NPP.

ii. The respective State Act 172 will take the lead in maintaining its own land use planning information and monitoring land use changes at state level.

6.4.3 The Monitoring Process

Monitoring land use changes can be processed through the use of indicators and the setting up of an appropriate information system which would allow for continuous evaluation and support informed decision making.

i. Application of Key Policy Indicators

The key instrument that will be used to monitor the progress and application of land use policies are the NPP-2 policy indicators. The indicators can be modified, removed or added to the list with each Review. The NPP policy indicators are for Peninsular Malaysia and will be collected on an annual basis by the National Physical PlanningDivision of Act 172 from identified data providers. The data providers will be required to collect information in a prescribed format and forward them to Act 172 on a regular basis. Indicators are prepared in the form of numeric and statistical measures based on quantifiable dimensions such as area, proportion, ratio, and indices. The usefulness of the indicators is based on their relevancy, ease of getting data and reliability. Table 6.9 outlines the NPP policies, the key indicators and data providers.

6-47

Table 6.9: NPP-2 Policy Indicators

Policies & Measures Expected Outcomes Performance Indicators Data Providers

NPP 1The NPP shall serve as the national spatial planning framework in order to achieve an integrated and sustainable land use planning, coordinated with other sectoral policies.

Consistent planning framework between NPP, Development Plans, national sectoral plans and policies.

Variation between targeted population in SP and NPP-2 by state.

Act172

Number of SP that comply with the NPP classification on ESA, PAA, urban hierarchy and land use.

Act 172

Proportions of population in strategic conurbations.

DOS

NPP 2Future urban growth centres shall be concentrated in strategic conurbations.

Greater concentration of economic activities in the strategic conurbation centres.

Proportions of population in strategic conurbation centres.

DOS

Proportions of employment in strategic conurbation centres.

DOS

Number of (availability) of strategic facilities (e.g. universities, hospitals, etc) within conurbation centres.

Act 172

Mean household income by state.

EPU (Distribution Section)

NPP 3The corridor development approach shall be adopted inplanning the less developedregions to foster greater economic growth and development in order to reduce regional imbalances.

Fewer imbalances in economic growth between regions.

Regional GDP (RM million) compared with 2020 target.

EPU (Macroeconomics Section)

Regional GDP growth rate (%) compared with 2020 target.

EPU (Macroeconomics Section)

Mean household income by regions.

EPU (Distribution Section)

NPP 4Cooperation in physical planning and economic development between Malaysia and its ASEAN neighbours shall be strengthened.

Cross border plans being developed, via studies, plans submitted, development projects launched.

Total trade of Malaysia with ASEAN Countries.

DOS

Number of Special Economic Zones established.

EPU

Total investment by Malaysian companies abroad and FDI into Malaysia.

DOS, Bank Negara

No. of cross border plans submitted/being developed.

MIDA

NPP 5The planning for industrial development shall adopt the holistic development strategy of the IMP3 of achieving global competitiveness via transformation and innovation of the manufacturing and services sector.

A more globally competitive industrial economy.

Malaysia’s rank in Global Competitiveness Index.

World Bank

GDP sectoral shares (%) against 2020 target by state.

EPU (Macroeconomics Section)

NPP 6Prime Agricultural Areas (PAA) shall be conserved only for agriculture purposes and urban development shall be restricted.

Conservation of PAA for agriculture activities.

Number of SP to identify PAA areas.

Act 172

PAA area (ha) lost for non-agricultural development.

DOA

Area (ha) designated and zoned for agriculture in development plan.

Act 172

6-48

NPP 7The eight (8) strategic granary areas comprising Muda (MADA), Kemubu (KADA), IADA Kerian-Sungai Manik, IADA Barat Laut Selangor, IADA Pulau Pinang, IADA Seberang Perak, IADA Terengganu Utara (KETARA), and IADA Kemasin- Semerak shall be conserved for the paddy cultivation.

Conservation of strategic granary area for paddy production.

Total land area (ha) designated as strategic granary area in development plan.

Act 172 , KADA, MADA, KETARA, IADAs

Area (ha) of granary area gazetted under Irrigation Areas Act.

Act 172 , KADA, MADA, KETARA, IADAs

Area loss /gain (ha) of strategic granary area to other uses.

Act 172 , KADA, MADA, KETARA, IADAs

Increase of total paddy production and productivity.

DOA

Percentage of contribution from granary areas onto paddy production.

DOA

NPP 8Existing potential paddy land outside granary areas shall be provided with the proper infrastructure to increase productivity and yields.

Increased in productivity of paddy.

Area loss (ha) of paddy land outside granary to other uses.

DOA, DID

Area (ha) of paddy land gazetted as strategic granary area in development plan.

DOA, DID, Act 172

Increase of total paddy production and productivity.

DOA

NPP9Rural areas and Rural Growth Centres (RGC) shall be developed to ensure higher income and better quality of life for the population.

Improve the income and better quality of life in rural area.

Mean household income of rural population.

Min. of Rural & Regional Dev., EPU

Living Condition (availability of basic amenities).

Min. of Rural & Regional Dev., Min. Education, Min. Health

Number of SP which identifies Rural Growth Centre (RGC).

Act 172

NPP 10The Orang Asli communities shall be spatially and economically integrated into the mainstream of development initiatives.

Improve of living condition and environment of Orang Asli.

Number of Orang Aslisettlements served with basic utilities and amenities.

JHEOA

Mean household income of Orang Asli community.

JHEOA

Number and percentage of Orang Asli children going to school.

JHEOA

PP 11Natural tourism resource, the authentic multi-cultural and historical heritage of the country shall be conserved.

Conserve and safeguard the natural, cultural & historical tourism resources.

Number of SP and tourism plans (by other agencies)identify/ designate natural, cultural & historical tourism resources.

JPBD State, MOTOUR, NRE

Number of natural and historical tourism resources that has been gazetted.

FDPM, Marine Park Dept., Fisheries Dept., MICC

Number of tourism resources getting international recognition e.g. as World Heritage Tourism.

UPEN, MICC

NPP 12Tourism development zones in each state shall focus on specialised regional niche products based on their locational advantages and availability of resources.

Sustainable increase of tourist arrivals (domestic & internationals) with the improvement of its locational advantages.

Number of tourist arrivals in Malaysia.

MOTOUR

Accommodation occupancy rate (%) by state.

MOTOUR

Percentage of contribution from tourism industry to GDP by state.

EPU, JPM

6-49

NPP 13High quality tourism infrastructure and facilities shall be provided to enhance tourists comfort and safety without compromising the quality of the environment..

High quality standard of tourism support facilities (accommodation, transport facilities, access and linkages , tourists information centre, etc)

World recognition to checkpoints (airports) facilities

MOT

Number of tourism accommodation by stats.

MOTOUR(Tourism Services Division)

Number of major tourism information centres by states.

MOTOUR

Total budget of state to maintain tourism areas.

EPU

Number and Frequency of international airline landing

MOT

Identification of area prone to natural disaster e.g. tsunami, flood etc.

NSC, SP

NPP 14 The concentration of urban growth shall be accommodated in the conurbations which shall be planned and developed in an integrated manner in line with the National Urbanisation Policy.

Concentrated development in the conurbations

Number and total value ofinvestment

EPU, MIDA

Urbanization rate by state. DOS

NPP 15The growth of the four main conurbations of Kuala Lumpur, George Town, Johor Bahru and Kuantan shall be supported to enhance their global competitiveness

Support the main conurbations with high level of facilitiesIntegrated planning for the conurbations

Total population increase by conurbations.

DOS

Number of major strategic facilities in main conurbations (e.g., LRT, Cyber Centre, MICE, university, etc)

Act 172

NPP 16High priority shall be given to achieve energy efficient ‘compact cities’.

Enhance the character and uniqueness of individual cities within the conurbations

Number of Development Plans with designated urban limit.

Act 172

Total urban development (ha) developed outside of the designated urban limit of the conurbations.

State Act 172 , LA

NPP 17Towns with special features shall be identified and the development projects to enhance their special features shall be supported with appropriate infrastructure.

Optimize the potential of special features towns.

Number of special features towns supported with the appropriate infrastructure.

State Act 172 , LA

NPP 18Small and intermediate towns shall be sustained and developed in accordance with their local economic potentials.

Optimize the potential of small and intermediate towns.

Number of economic projectimplemented in accordance to the economic potential which has been identified as to local plan.

State Act 172 , LA

NPP 19Sufficient affordable housing with adequate community facilities, including security facilities and services, shall be provided in major urban centres to meet the requirements of the population.

Sufficient affordable housing supply with high quality of life.

Number of affordable new housing units by major centre

MHLG, Valuation & Property Services Dept., DOS, LA

Median of housing price over household income.

MHLG, Valuation & Property Services Dept., DOS, LA

Average number of household per dwelling unit.

MHLG, Valuation & Property Services Dept., DOS, LA

Squatter houses over housing stock by state.

MHLG, Valuation & Property Services Dept., DOS, LA

Crime (per 1,000 population). Police

6-50

NPP 20Planning standards and urban development policy guidelines shall be designed to meet the requirements of a developed nation.

Achieve high standards of living Number of Federal planning standards and guidelines adopted by state.

Act 172

Malaysian Quality of Life Index.

EPU

NPP 21A designated central authority shall be responsible for publishing on a regular basis, information pertaining to land use development.

Continuous data gathering and monitoring on land use change

Number of verified land use plan.

State Act 172

Total land area (ha) with latest land use data.

State Act 172

NPP 22Environmentally Sensitive Areas shall be integrated in the planning and management of land use and natural resources.

Protect and proper management of the ESA

Area (ha) gazetted as protected area.

DOF, DWNP,FDPM, Marine Park Dept.

Area (ha) of forest reserve under natural forest cover.

DOF, Act 172 ,DWNP, NRE,FDPM

NPP 23A Central Forest Spine shall be established to form the backbone of the Environmentally Sensitive Areanetwork.

Conserve 45% of land as forest cover and integrated ecological linkages to all forest complexes.

Number of ecological linkages established.

NRE, DOF, DWNP

Number of linkages with enriched habitat (ha)

NRE, FDPM, DWNP

NPP 24Sensitive coastal and marine ecosystems shall be protected and managed in a sustainable manner.

Protect and proper management of the sensitive coastal areas

Area (ha) of coastal reclamation area.

DID, Act 172

Number of Biodiversity components protected.

MIMA, Marine Park Dept., DWNP

Coverage of mangrove and coastal forest (ha).

DOF

NPP 25Land development in the highlands shall be strictly controlled to safeguard human safety and maintainenvironmental quality and biodiversity.

Protect the highlands and proper management of the SMAs

Percentage of habitat loss in the highlands (areas above 300m) and outside of the Special Management Areas (SMAs).

Act 172 ,DMG, State EPU

NPP 26All surface and ground water resources shall be safeguarded and managed sustainably.

Protect and proper manage the water resources for water supply to all location

Area (ha) of dam catchments gazetted.

DMG, DID, FDPM,State Water Authorities

Demarcation of groundwater aquifer and recharge areas.

DMG, DID, FDPM,State Water Authorities

Water quality index (WQI) for rivers.

DOE

Water catchment areas (ha) gazette within Permanent Forest Reserves

FDPM

NPP 27The spatial planning framework shall incorporate mitigation and adaptation measures against the impacts of climate change.

Minimize the economic loss caused by climate change

Areas mapped for vulnerability.

Prime Minister‘s Dept. (National Security Div.), NRE, NSC

6-51

NPP 28An integrated national transportation network shall be established in recognition of the inter-relationship between land use and transport.

Integrated system for all transportation modes

Development of 20 year National Public Transport Master Plan.

SPAD

Development of 10 years Regional Public Transport Master plan.

SPAD

No. of integrated transport terminals (ITT) for passengers built and under construction in country.

SPAD

No. of multimodal or intermodal terminals (MMT) for freight developed in country.

SPAD

NPP 29A national integrated high-speed rail system shall be established to complement the existing rail network.

High-speed rail connecting to all main conurbations. HSR is defined as rail system on standard gauge with average operating speed of 140kph and above

F/S for High Speed Rail Corridor completed:-

KL-Penang HSR CorridorKL-Kuantan HRS CorridorKuantan-KT-KB HSR CorridorKuantan-JB HSR Corridor

SPAD

NPP 30The national road network shall be further extended for regional travel and for local access.

High level of road accessibility Road service level (total road lane length per 1,000 persons).

HPU

Road density (length of roads / land area).

HPU

Road Development Index (RDI) for federal road only.

HPU

NPP 31Major airports and seaports shall be developed according to their complementary functions to enhance the nation’s economic competitiveness and facilitate tourist arrivals.

Adequate airport and seaport for national economy development

Number of passengers over the designed airport capacity.

MOT

Tonnage of freight over the designed capacity of airport.

MOT

Tonnage of freight over the designed capacity of seaport.

MOT

NPP 32The Transit Oriented Development (TOD) concept shall be promoted as the basis of urban land use planning to ensure viability of public transport.

TOD development in all conurbations.

Number of local plans and special area plans that have incorporated the TOD concepts

Act 172

NPP 33An integrated public transportation system shall be established in all major urban centres.

Model split (private to public transport) of 25:75 in Klang Valley by 2012, 30:70 for all major urban centres in 2020 and 50:50 in future.

Modal split ratio (number of private vehicle passengers/ number of public transport passengers).

SPAD

No. of integrated transportation terminal constructed in major urban centres.

SPAD

NPP 34The NPP-2 shall provide the spatial framework for the delivery of integrated infrastructure services at the national and regional level and to the main conurbations.

Integrated infrastructure services in all human settlements

Number of National Infrastructure Master Plan prepared at national/ regional level.

All service provides

6-52

NPP 35Appropriate water supply infrastructure including source works, treatment plants and transmission and distribution networks shall be provided to all settlements.

Full coverage of water supply to all human settlements

Percentage of population served.

SPAN

Daily water consumption rate per capita.

SPAN

Non revenue water rate SPAN

NPP 36Appropriate sewerage facilities shall be provided for all areas, with adequate collection, treatment and disposal of sewage and sludge.

Full coverage of sewerage treatment plans in all human settlements

Percentage population connected to sewerage treatment plants.

SPAN, DID

NPP 37All settlements shall be serviced by an integrated network of solid waste disposal and/ or recovery facilities.

Proper solid waste disposal for all human settlements

Percentage population connected to regional plants.

SPAN, DID

Household waste generation capita/day.

JPSPN

Percentage of solid waste been recycled.

JPSPN

NPP 38Drainage infrastructure shall be provided in all settlements to eliminate the incidence of major floods, minor floods and pollution.

All main river reserves gazetted.Reduced economic losses due to floods

Number of state that has gazetted (under Section 62, NLC) its river reserves.

DID

Number of flood incidence according to state/ year.

DID

Number of flood prone areas protected (victim/ area).

DID

NPP 39 As strategic assets, electricity generation plants, transmission and distribution mains shall be located to provide a reliable and efficient supply of energy to consumers.

Minimum electric interruption incidenceIncreased use of renewable energy

Number of electric interruption incidence (SAIFI and SAIDI Index).

TNB

Percentage produced renewable energy.

TNB

NPP 40Natural gas processing plants, transmission and distribution pipe networks shall be located to provide a reliable and efficient supply of natural gas to consumers.

Promote industrial development

Number of customers by sectors.

Energy Commission

Length of natural gas pipeline. (high and medium pressure)

Energy Commission

`NPP 41Communications network facilities and infrastructure shall be provided to all settlements.

Transform the nation into a knowledge society with full coverage of ICT services

Fixed line penetration rate. MCMC

Number of cyber cities & cyber centres developed by states.

MCMC

Cellular mobile penetrationrate.

MCMC

Fixed line Internet penetration rate.

MCMC

High speed broadband penetration rate.

MCMC

Personal computer ownership per 100 households.

MCMC

6-53

ii. Establishment of the NPP-2 Land Use Planning Intelligent System (iPLAN) to be maintained by Act 172 :-

a. The iPLAN is set up as the info-structure framework to support the whole process of implementation, monitoring and review stages of the NPP-2. It will contain support modules which can track land use changes and monitor the application of selectedland use policies. To date the department has set up:

Statistical data in tabular format on socio economic profiles at state, district andtown levels; Spatial data on land use in GIS format; andTextual data on guidelines, classification of land use, standards and indicators.

b. To ensure conformity amongst the different tiers of land use planning, iPLAN will be developed within a framework of an integrated land use planning information system which will comprise three components i.e. iPLAN, State Planning Information System (SPIS) and District Planning Information System (DPIS). This integrated framework will allow effective data and information sharing among the three levels of organisations responsible for physical planning.

c. There are two major sets of information flow in the iPLAN:

There shall be a vertical flow of information between the SPIS and the iPLAN.State Act 172 will supply updated land use data and other information collectedfrom the State Structure Plan and various Local Plans to Federal Act 172 which will in turn analyse the land use changes and monitor the continued relevance of selected land use policies. The vertical flow of information shall be made obligatory between the State Act 172 and Act 172 (Figure 6.6).There shall be a horizontal flow of information from the line agencies and major data providers to iPLAN. The horizontal flow of information will involve relevant government departments and agencies that will supply necessary information to iPLAN. The horizontal flow of information may be achieved through a process of negotiations in the form of MOUs between Act 172 and the various government agencies and departments (Figure 6.7).

6-54

Figure 6.5: Vertical Information Flows

Figure 6.6: Major Data Providers in iPLAN (Horizontal Information Flows)

LOCAL AUTHORITIES

DTCP (STATES)

DEMOGRAPHIC-SOCIALPopulation & HouseholdsUrban settlementsRural SettlementsCommunityFacilities

DTCP(FEDERAL)

NPP LAND USE PLANNING INTELLIGENT SYSTEM (iPLAN)

INFRASTRUCTURERoadsRailPortsAirportsUtilities

LAND USE Land CoverBuilt-Up-Area

ExistingResidentialCommercialIndustrialRecreation AreaOthers

Committed ProjectsProposed ProjectsApproved Projects

NPP MAINFINDINGS STRATEGIES & COMPOSITE MAPS

SPISSTATE LAND USE & ZONING PLANS

COMMITTED DEVELOPMENT

Remotely Senseddata PHYSICAL

ENVIRONMENTElevation SlopeRiversLakes, PondsRiver BasinsWater Catchment ZonesForest ReservesMiningSoilsAgro-climatic

ECONOMIC Global TradeMacro EconomicPrimarySecondaryTertiary

Parcel lot level Information

Local Area Data

Development Project

DPIS

Socioeconomic tables &

projections

GOVT. AGENCIESRelated to

HousingEducation

HealthTrade &

IndustriesSocial Facilities

Transport

MOU

GOVT. AGENCIESRelated to

TourismForestryMineral &

GeoSciencesDrainage & Irrigation

EnvironmentUtilities

MOU

iPLAN

MOU

EPU DEPT OFSTATISTICS

DEPT OF AGRICULTURE MACRES

JUPEM (CAMS)

MOU

MOU

6-55

d. One of the main objectives of iPLAN is to ensure that accurate, timely and up to date information will be available for subsequent NPP Reviews which are scheduled at five year intervals. Consequently, data maintenance and updating of iPLAN information system will be on an annual basis in order to analyse land use changes in a timely manner. There are two distinctive tasks involved in data maintenance and updating of the iPLAN, namely:

Updating the statistical information base: The statistical database is made up of selected profiles of activities covering sectors such as economics (primary, secondary and tertiary sectors); population, housing and settlements; infrastructure, utilities and services, land-use and the environment. Appropriate tables specifying the types of data required will be sent to each data provider on an annual basis. The older sets of statistical data will be archived but can be retrieved for analysis purposes when required. The updated version will form the basis for the next set of data for the Review.

Monitoring land use changes: This will be done from the bottom up, that is, information on land use changes would be tracked at state level and generalised to meet the needs of the iPLAN information system.

iii. Establishment of Information System in State

Act 172 shall be the hub for the information system at the state level. In order to achieve this, each state would have to establish land use information system which will include the State Land Use Information System and the Planning Approval Information System.

a. To achieve consistency, the land use base maps for each state are prepared and standardised in both scale and format to facilitate comparison of land use patterns both at the state and federal levels. The principal source of land use maps at state level will be the DOA Mapping Division and JUPEM. There is a need for Act 172 to enter into an MOU with DOA and JUPEM, so that each state can have access to a standardised base map. These maps will be updated with urban land use information from the Local authorities.

b. For the purposes of tracking land use changes in the iPLAN, information need to be compiled on approved development projects of 20 hectares and above for smaller states such as in Pulau Pinang, Perlis, Melaka and Negeri Sembilan while, 50 hectares and above for the other states. Information such as the status of approved projects and the types of land use will also be monitored.

c. The schedule for updating approved development projects from the State Act 172 will be on an annual basis.

6-56

d. The transfer of land use information from the State to iPLAN will be in digital format to minimize errors. The iPLAN will establish guidelines for the conversion of data to the required format.

iv. Data Sharing Measures

a. Data sharing between Federal and State is an important element to facilitate the monitoring process. In this context, the NPP-2 also calls for the establishment of a TWG to oversee the process of vertical integration and information sharing procedures within town and country planning departments. The TWG will also be responsible for negotiating MOUs at an inter-organisational level to foster horizontal linkages with external data providers.

b. Achieving a consistent flow of information through vertical and horizontal integration by utilising the Malaysian Geospatial Data Infrastructure (MyGDI). The MyGDIprogramme is currently being developed to enable land related digital data to be exchanged seamlessly between various government departments and agencies in the country as shown in Figure 6.8.

Figure 6.7: Vertical and Horizontal Linkages Land Use Planning Information System,2020

Source: NPP : Package I: Implementation of NPP Information System Technical Report, 2001

iPLAN

SPIS

DPIS

MyGdi

Govt. AgenciesFederal Level

Govt. AgenciesDistrict/ Local

Level

Govt. AgenciesState Level

Govt. AgenciesFederal Level

Govt. AgenciesState Level

Govt. AgenciesDistrict/ Local

Level

6-57

v. National Physical Plan Monitoring System (NPPMS)

The Act 172 is currently embarking on a NPP-2 Monitoring system using GIS applications. The overall concept is shown in Figure 6.9. The sub components of the system comprise:

The Input (Back End). The Core (comprising processing and analysis sub modules).The Output (Front End) comprising derived tables.

Additional modules and applications that can be added on in the future will include land suitability analysis, population growth projections and decision support systems. This conceptual framework of the National Physical Plan Monitoring System (NPPMS) could serve as a prototype for monitoring land use changes at all three levels of planning.

Figure 6.8: The Conceptual Framework of NPPMS

6.5 Review of the NPP

There is a duty on the part of the various planning authorities to keep the NPP, Structure and Local Plans in review. The concept of a hierarchy of Plans implies that the lower subsidiary Plans should conform to the higher levels of Plans. When a Local Plan is prepared there is a duty to take cognizance of current development policies, whethernational policies or state policies. This would suggest that development plans would

Proposed Futuredirection/ application

Statistical & Graphic DatabaseBACK END

Enhanced DSS to Stakeholders

M2Built-Up-Areas 2-5

Years Trends (Image Analysis)

Selection Land-use layer extracted from iPLAN

CORE

Remotely Sensed Data On Land use cover

M4Analysis and Modeling of Landuse Changes

ArcGIS 9 Model Builder

Benchmarking Target Setting

M3NPPMS Graphic Database ArcGIS

9 Format

M1Landuse Database

Module (in EXEL FORMAT)

iPLAN Spatial Database

(ARCVIEW 3 FORMAT)

M5Output Table of

Indicators in HTML format

Land suitability Analysis (AHP) site Selection

Potential Sub-modules Population Growth Modeling

Industrial Growth Centre Modeling Geo-Demographic

Analysis Regional Analysis SIA

iPLANStatisticalDatabase

6-58

influence and affect one another. Hence it is important that there is a coordinated programme for the preparation of the various plans. Most of these plans also require a lead time of between 18-24 months for preparation (Figure 6.10).

Figure 6.9: Economic and Land Use Planning Cycle

The NPP-2 shall be reviewed every five years in tandem with the Review of the FYMP. To achieve this, data required for such reviews must be made available beforehand for the exercise to be undertaken on time. Collection of data for the Review should commence at least two years before. As the custodian of the iPLAN, it will be necessary for Act 172 to ensure that the requisite data and information, particularly the indicators, are kept in review and made available when needed.

6.5.1 Evaluating the effectiveness of the Policies

There is also a need for continuous evaluation of the NPP policies to ascertain its effectiveness in achieving national development objectives. The Act 172 , the Spatial Planning and Development Research Institute (SPDRI) and Universities should undertake research initiatives and impact studies from time to time to ascertain the effectiveness of the NPP-2 policies. The findings of this research will provide useful information for the subsequent Plan Review.

11MLeadtime2 years

T

MT

T+5

MT

T+10

MT8MP 9MP 10MLeadtime2 years

Leadtime2 years

Leadtime2 years

Leadtime2 years

Leadtime2 years

Leadtime2 years

SPLeadtime2 years

Leadtime2 years

Leadtime2 years

Leadtime2 years

DLPLeadtime18 years DLPLeadtime

18 years DLP

Revi Revi Revi

NPP NPP NPP

Economi

Spatial Planning

6-59

6.6 Proposals

The institutional responsibilities for the preparation, implementation, monitoring and review of the NPP-2 are shown in Table 6.10. The Director General of Act 172 is responsible for preparing the NPP, monitoring its implementation and keeping it in review every 5 years. At the same, he will be assisted by the various committees that have been proposed in the NPP-2 such as, the NPPC, NPPC Working Committee, NPPAP, IAPG and TWG.

The Implementation of the NPP-2 however will require the support of the various Federal and State agencies that have a legal obligation to adhere to the policies of the NPP-2. In this respect it is important that the proposals are translated into plans of action and included in the subsequent FYMP through the offices of the EPU, Treasury and the NDPC. In order to enhance the effectiveness of the NDPC, the Director General of Act 172 shall be made a permanent member.

Adherence to the recommendations of the NPP-2 will also be manifested in the respective Structure Plans. One of the key instruments for monitoring the NPP-2 and keeping it in review is the establishment of the iPLAN to ensure effective exchange of both spatial and attribute data that is necessary to prepare the NPP-2 and its review.

The policies of the NPP-2 will remain applicable unless reviewed or replaced. In carrying out the review, the Director General will rely on the advice of the NPPAP, the NPPC Working Committee, directions of the NPPC and the application of indicators and research findings to assess their effectiveness. Critical success factors will depend on the establishment of a clear Terms of Reference of matters that need to be reviewed. Appropriate IAPG and TWG will also be established to provide adequate and up-to-date inputs for the Review.

Table 6.10: Institutional Responsibility for Plan Preparation,Implementation, Monitoring and Review of NPP-2

Activity Responsibility Enabling Law Enabling Instruments/ Institutions

Plan preparation Director General Act 172 NPPC, iPLAN, IAPG , TWG, NPPAP,NPPC Working Committee

Plan Implementation All Federal and State Agencies Act 172 NDPC, EPU, Treasury, Act 172

Monitoring Land Use changesApplication of the policies

Director General Act 172 NPPIS, NDPC, Indicators

Plan Review Director General Act 172 NPPC, NPPC Working Committee,NPPAP, iPLAN, IAPG, TWG

Abbreviation

NATIONAL PHYSICAL PLAN

ABBREVIATION

8MP - 8th Malaysia Plan9MP - 9th Malaysia Plan10MP - 10th Malaysia PlanAAGR - Average Annual Growth RateAFTA - ASEAN Free Trade AgreementASEAN - Association of South-East Asian NationsBIMP-EAGA - Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth AreaCCC - Certificates of Compliance and CompletionCFS - Central Forest SpineCIMT - Centre of IMT-GT Sub-regional CooperationCLMV - Cambodia, Lao People’s Democratic Republic, Myanmar and VietnamCPPCs - Collection, Processing and Packaging CentersCPTED - Crime Prevention Through Environmental DesignDG - Director GeneralDID - Department of Irrigation and DrainageDMG - Department of Mineral and Geoscience DOA - Department of AgricultureDOE - Department of EnvironmentDOF - Department of ForestryDOS - Department of StatisticsDOV - Department of Veterinary ServicesDPIS - District Planning Information SystemDTCP - Department of Town and Country PlanningEBFM - Ecosystem Based Fisheries ManagementECER - East Coast Economic RegionECERDC - East Coast Economic Region Development CouncilEEZ - Exclusive Economic ZoneEIA - Environmental Impact AssessmentEPU - Economic Planning UnitERL - Express Rail LinkESA - Environmentally Sensitive AreasFDI - Foreign Direct InvestmentFELCRA - Federal Land Consolidation and Rehabilitation AuthorityFELDA - Federal Land Development AuthorityFYMP - Five-Year Malaysia PlanGDP - Gross Domestic ProductGIS - Geographic Information System GNI - Gross National IncomeHNDP - Highway Network Development PlanHPU - Highway Planning UnitHSBB - High Speed BroadbandIADA - Integrated Agricultural Development AreaIAPG - Inter Agency Planning GroupICT - Information and Communication TechnologyICU - Implementation and Coordination UnitICZM - Integrated Coastal Zone Management

IIUE - International Institute for Urban EnvironmentiPLAN - Land Use Planning Intelligent SystemIRDA - Iskandar Region Development AuthorityIMP3 - Third Industrial Master PlanIMS-GT - Indonesia-Malaysia-Singapore Growth Triangle IMT-GT - Indonesia-Malaysia-Thailand Growth Triangle IP - Indicative PlanIPCC - Intergovernmental Panel on Climate ChangeIRBM - Integrated River Basin ManagementISMP - Integrated Shoreline Management PlansISIS - Institute of Strategic and International StudiesITS - Intelligent Transport SystemIWK - Indah Water Konsortium Sdn BhdIWRM - Integrated Water Resource ManagementJDS - Joint Development StrategyJHEOA - Department of Aboriginal AffairsJPSPN - National Solid Waste Management DepartmentKADA - Kemubu Agricultural Development Authority KRAs - Key Result AreasKEDA - Kedah Regional Development AuthorityKEJORA - Southeast Johore Development AuthorityKESEDAR - Kelantan Selatan Development AuthorityKETARA - IADA Terengganu UtaraKETENGAH - Terengganu Tengah Development AuthorityKeTTHA - Ministry of Energy, Green Technology and WaterKKLW - Ministry of Rural and Regional DevelopmentKLIA - Kuala Lumpur International AirportKPI - Key Performance IndicatorKRIHS - Korea Research Institute for Human SettlementsKSN - Chief Secretary to the Government KTMB - Keretapi Tanah Melayu BerhadLA - Local AuthorityLA 21 - Local Agenda 21LCCT - Low Cost Carrier TerminalLP - Local PlanLPA - Local Planning AuthorityLRT - Light-Rail TransitMAHB - Malaysia Airports Holdings BerhadMADA - Muda Agricultural Development Authority MARA - Majlis Amanah RakyatMARDI - Malaysian Agricultural Research and Development InstituteMATRADE - Malaysia External Trade CorporationMCMC - Malaysian Communications and Multimedia CommissionMDeC - Multimedia Development CorporationMHLG - Ministry of Housing and Local GovernmentMICC - Ministry of Information, Communication and CultureMICE - Meetings, Incentives, Conventions and ExhibitionsMILUnet - Multifunctional Intensive Land Use Network

MIP - Malaysian Institute of PlannersMITI - Ministry of International Trade and IndustryMMD - Malaysian Meteorological DepartmentMOHE - Ministry of High EducationMOF - Ministry of FinanceMOSTE - Ministry of Science, Technology and EnvironmentMOT - Ministry of TransportMOTOUR - Ministry of TourismMOU - Memorandum of UnderstandingMPOB - Malaysian Palm Oil BoardMPPA - Million Passengers per AnnumMRRD - Ministry of Rural and Regional DevelopmentMRSA - Malaysian Remote Sensing Agency MRT - Mass Rail TransitMSC - Multimedia Super CorridorMSMA - Urban Storm Water Management Manual for Malaysia MyGDI - Malaysian Geospatial Data InfrastructureNAHRIM - National Hydraulic Research Institute of MalaysiaNAP - National Agricultural PolicyNAP3 - Third National Agricultural PolicyNATCIT - National Commission on Intermodal TransportationNCER - Northern Corridor Economic RegionNCIA - Northern Corridor Implementation AuthorityNCLG - National Council of Local Government NDPC - National Development Planning CommitteeNEM - New Economic ModelNEP - National Ecotourism PlanNFC - National Finance CouncilNGO - Non Governmental OrganizationNGDS - Natural Gas Distribution SystemNITA - National Information Technology Agenda NKRA - National Key Results AreaNLC - National Land CouncilNPP - National Physical PlanNPP2 - Review National Physical Plan (2009)NPPC - National Physical Planning Council NPPAP - National Physical Planning Advisory PanelNPPMS - National Physical Planning Monitoring System NSC - National Security CouncilNRE - Ministry of Natural Resources and EnvironmentNUP - National Urbanization PolicyNWRC - National Water Resources CouncilOIC - Organisation of Islamic CountriesOPP - Outline Perspective Plans OPP3 - Third Outline Perspective PlanPAA - Prime Agricultural Areas PFPP - Permanent Food Production ParkPGU - Peninsular Gas Utilization

POASM - Peninsular Malaysia Orang Asli AssociationPPG - Planning Policy GuidelinesPWD - Public Work DepartmentR&D - Research & Development RDA - Regional Development AuthorityREHDA - Real Estate and Housing Developers' Association RGC - Rural Growth CentreRISDA - Rubber Industry Smallholders Development AuthorityRPC - Regional Planning CommitteeSA - State AuthoritySEA - Strategic Environmental AssessmentsSEDC - State Economic Development CorporationSEZ - Special Economic ZoneSJER - South Johor Economic RegionSMA - Special Management AreasSME - Small and Medium Scale EnterprisesSMIDEC - Small and Medium Industries Development CorporationSP - Structure PlanSPAD - Public Land Transport CommissionSPAN - National Water Services CommissionSPC - State Planning CommitteeSPDRI - Spatial Planning and Development Research InstituteSPIS - State Planning Information SystemSPRI - Spatial Planning Research InstituteSTP - Sewerage Treatment PlantSYABAS - Syarikat Bekalan Air Selangor Sdn BhdTNB - Tenaga Nasional BerhadTOD - Transit Oriented DevelopmentTWG - Technical Working GroupUNCLOS - United Nations Convention on Law of the SeaUNFCCC - United Nation Framework Convention on Climate ChangeW.P. - Wilayah Persekutuan / Federal TerritoryWTO - World Trade Organization

Glossary

NATIONAL PHYSICAL PLAN

GLOSSARY

Term Definition

Affordable Housing Affordable housing includes low, low medium and medium cost housing with selling

prices between RM42,000 to RM150,000 per unit to cater for low and medium

income groups with a monthly household income between RM1,500 to RM4,000.

Biodiversity The Convention on Biological Diversity (CBD) defines biodiversity as: The variability

among living organisms from all sources including, inter alia, terrestrial, marine and

other aquatic ecosystems and the ecological complexes of which they are part; this

includes diversity within species, between species and of ecosystems.

Buffer Zone A buffer zone is normally in the form of green areas, separating two incompatible

land use activities i.e. residential and industrial areas.

Catchment A catchment is essentially an extent of land where rain water drains downhill into a

body of water, such as a river, reservoir, wetland or sea. Two types of catchments

are distinguished here, i.e. dam catchments and water intake catchments, which

may be located along the river a long way downstream of dams.

Conservation Areas Areas of special architectural or historic interest and character which are desirable

to be preserved or enhanced. Conservation areas are critical environmental areas

where ordinary development practices would likely cause significant environmental

damages. Development surrounding these areas should consider negative impacts onto the conservation efforts and effective controlling methods need to be provided

in order to reduce these impacts.

Development

Charge

Development charge levied on enhanced land value of a development proposal due

to change of land use and/or an increase in population density and/or an increase in

plot ratio and/or a shortage in provision of car parking bays.

Development Plan Development plan in relation to an area means the local plan for the area or if there is no local plan for the area, the structure plan for the area, and in relation to any

land or building, means the development plan as so defined for the area in which

the land or building is situated.

Eco-Tourism Environmentally responsible travel to relatively undisturbed natural areas in order to

enjoy and appreciate nature (and any other accompanying cultural features). One that promotes conservation, one that has low visitor impact and one that provides

for beneficially active socio economic involvement of local populations.

Forests The Food and Agriculture Organisation (FAO) defines forests as: Land with tree

crown cover of more than 10 percent and area of more than 0.5ha.

Plantation forests are defined as: Forest stands established by planting or/and

seeding in the process of afforestation or reforestation. They are either of introduced

species (all planted stands), or intensively managed stands of indigenous species

which meet all the following criteria: one or two species at plantation, even age

class, regular spacing.

Term Definition

Highlands The Study for the Sustainable Development of the Highlands of Peninsular Malaysia

(EPU, 2002) adopted the following classification for highlands:Lowlands: below 150m

Hill land: 150m–300m

Highlands: 300m– 1,000m

Mountains: above 1,000m

Hill Station The term Hill station is a term used for a town usually at somewhat higher

elevations. The term was used in colonial Asia (particularly India), where towns

have been founded by European colonial rulers up where temperatures are cooler,

as refuges from the summer heat.

K-Economy The K-economy is about knowledge and the ability to use it to create new value and wealth. The K-economy includes all human economic activities of previous eras,

such as agriculture and industry, but it introduces new activities that were not

prominent or possible before.

Megadiverse countries

Megadiverse countries are a group of countries that harbour the majority of the Earth's species and are therefore considered extremely biodiverse. The World

Conservation Monitoring Centre, an agency of the United Nations Environment

Programme, has identified 17 megadiverse countries, most located in the tropics.

Non-Polluting Industrial Use

Industrial use which does not involve activities that are detrimental to the occupants of the building and amenity of the area by reason of noise, waste water discharge,

vibration, smell, fume, smoke, soot, ash, dust or grit.

Protected Area

(PA)

IUCN states that a Protected Area is: An area of land and/or sea especially

dedicated to the protection and maintenance of biological diversity, and of natural

and associated cultural resources, and managed through. The term Protected Area

is used here to refer to terrestrial, freshwater and marine areas.

Recharge Zone A recharge zone/area is a land area into which water can infiltrate into an aquifer

relatively easily. The infiltration replenishes the aquifer.

Strategic

Environmental

Assessments (SEA)

SEA refers to a range of analytical and participatory approaches that aim to

integrate environmental considerations into policies, plans and programmes and

evaluate the inter-linkages with economic and social considerations.

Special

Management Areas

(SMA)

The Study for the Sustainable Development of the Highlands of Peninsular Malaysia

(EPU, 2002) defined SMAs as locations in the Main Range where agriculture and

urban related activities may be permitted to be developed. These are areas in the highlands where there are already existing concentration of population and serviced

by basic infrastructure and facilities.

Tourism Product Refers to something that has sense of attraction, which can attract tourist to come

and see. Examples of tourism products are eco-tourism, sports tourism and education tourism.

Tourism Resources Refer to resources, which will be utilised to develop tourism product such as nature

resources, cultural heritage, historical remains, man-made resources and

events/activities.

Term Definition

Tourists A temporary visitor staying at least one night but not more than one year in a

country visited and whose purpose of visit could be classified as leisure, business, visiting friends and relatives or attending conferences and meeting, other than

exercise of an activity remunerated from within the country visited.

Transit Oriented

Development

High intensity residential, commercial or mixed-used development at or around a

transit terminal.

Wetlands A wetland is an area of land whose soil is saturated by moisture either permanently

or seasonally. The Ramsar Convention uses a broad definition of the types of

wetlands covered in its mission. These include peatlands, estuaries, near-shore

marine areas, coral reefs, and human-made sites such as fish ponds, rice paddies,

reservoirs, and salt pans. A variety of wetlands ecosystems exist in Malaysia, the most threatened being freshwater swamp forests, gelam forests, and seagrass

beds.