By Amar Shah Mohsen
SHAH ALAM, Nov 1 — Selangor’s rapid growth in recent years makes it possible for the state to contribute a remarkable 30 per cent to the nation’s gross domestic product by the end of its current term in 2028.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said this is so long as Selangor can maintain a steady growth and that the country does not face a recession during this period.
“I feel like Selangor’s growth is quite fast. To me, it is like a reflection of the national economy.
“If, like I said, there is no recession and if the state can maintain a six per cent growth each year, then it is possible to achieve a 30 per cent GDP contribution by 2028,” he said in an interview with Media Selangor on Wednesday (October 30).
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Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid speaks during an interview with Bernama on Malaysia's economic situation, in Kuala Lumpur on January 25, 2023. — Picture by BERNAMA[/caption]
The state government had previously said it aims to contribute 30 per cent to the national economy by 2025, coinciding with the end of the First Selangor Plan (RS-1).
Menteri Besar Dato’ Seri Amirudin Shari said this would be driven by projects like the Integrated Development Region in South Selangor (Idriss) and the NCT Smart Industrial Park (NSIP).
However, under the RS-1 mid-term review, the figure was revised down to 27 per cent, with Amirudin citing economic and geopolitical conditions as reasons for the decision.
Last year, the state pushed 25.9 per cent (RM406.1 billion) — its highest contribution yet — to Malaysia’s GDP, an increase compared to 25.5 per cent recorded in 2022.
Selangor's GDP growth from 2021 to 2023 averaged 7.43 per cent, exceeding the RS-1 target of 6.5 to 7.0 per cent.
To help achieve its targets, Afzanizam said Selangor should focus on advanced industries in the coming years, including semiconductor and data centres, an approach already undertaken by the state government.
However, the state government also should seek solutions to address challenges arising from the development of more data centres, especially concerning high power and water consumption.
“Selangor’s water reserve margin is only about 15 per cent currently. Ideally, it should be above 17 per cent. I fear that if there are too many data centres, it will affect consumption by other sectors, so the state has to be fair.
“We do not want a situation where there are water disruptions as a result of this,” he said.
To this, Afzanizam proposed that Selangor should invest heavily in the water industry to reduce non-revenue water loss, including through pipe replacements.
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An aerial view of Masjid Sultan Salahuddin Abdul Aziz Shah in Shah Alam. — Picture by UNSPLASH[/caption]
