IKPM Helps Govt Identify Least Developed Areas, Design Targeted Interventions -- Mohd Shahar
KUALA LUMPUR, Oct 20 (Bernama) -- The government has used the Malaysian Composite Development Index (IKPM) to identify least developed areas and design targeted interventions to address socioeconomic imbalances and narrow the development gap between regions, states, and districts.
Deputy Economy Minister Datuk Seri Mohd Shahar Abdullah said IKPM is a comprehensive development measurement instrument that helps the government identify areas that require special attention based on local needs and economic potential.
He said the index comprises five main components, namely physical and spatial, economic, social, environmental, and governance, to enable more focused development strategies under the 13th Malaysia Plan (13MP).
In reply to Datuk Dr Nik Muhammad Zawawi Salleh (PN-Pasir Puteh), he said that for 2026, 46 projects with a budget ceiling of RM207.2 million have been approved for the Pasir Puteh parliamentary area to strengthen development in the region.
He said the approved projects include land acquisition and the development of industrial-area infrastructure in Cherang Tuli to support downstream industrial development near the East Coast Rail Link (ECRL) project's cargo station.
“The East Coast Economic Region Development Council (ECERDC) is also conducting a study to strengthen the agri-food value chain, including a proposal to develop collection, processing, and packaging centres near the ECRL station,” he said during the Questions for Oral Answers session in the Dewan Rakyat today.
Nik Muhammad Zawawi asked the ministry to state the policy indicators, quantitative targets, and achievement timelines set under the 13MP to reduce development gaps between districts, given that the concentration of income and households in a small number of districts masks the issue of relative development lags within a state.
Mohd Shahar said the government is also strengthening rural basic infrastructure, master plans, and infrastructure mapping, while attracting investment through rural investment hubs that leverage artificial intelligence, geospatial technology, and big data.
“Through the use of IKPM, the setting of quantitative targets, and the implementation of strategic projects, the government will continue to strengthen targeted interventions to expand the benefits of economic growth and bridge the development gap, including in Pasir Puteh, throughout the 13MP period,” he said.
Under the 12MP period, he said, Malaysia’s gross domestic product (GDP) per capita increased by 6.2 per cent per year to RM59,186 in 2025 from RM43,717 in 2020.
Meanwhile, in reply to a supplementary question from Datuk Adnan Abu Hassan (BN-Kuala Pilah) regarding incentives for investors who create skilled jobs and offer higher wages in underdeveloped districts, he said that incentives are among the approaches that can be considered to encourage investment in less developed areas.
“IKPM is also the grounds considered by the Ministry of Finance in determining the new tax framework, and the index is reviewed every three years to assess the level of development at the regional, state, and district levels,” said Mohd Shahar.
He said the government also needs to consider workforce readiness (talent) in certain areas when planning the country's development under the 13MP to ensure targeted interventions are implemented effectively.
-- BERNAMA