Negri Sembilan is a ‘hidden gem'

Malaysian Reserve

a day ago

Strategic location and industrial growth make Negri Sembilan a top investment target
NEGRI Sembilan has embraced a forward-looking development agenda with the Negri Sembilan Vision Valley (NSVV), also known as the Malaysia Vision Valley 2.0 (MVV 2.0), as a cornerstone of its strategy.
'We believe the development of NSVV will play a crucial role to attract more investment and drive the state's economic growth over the medium to long term,' MIDF Amanah Investment Bank Bhd (MIDF Research) said in a thematic report on the state released in end-May.
For this year, MIDF Research expects the state GDP growth will continue to be supported by the domestic spending activity amid concerns of the negative impacts from trade war on Malaysia's manufacturing activity.
'We also noticed that recent acceleration in Negri Sembilan's inflation was due to inflation in the restaurants & hotels segment, which suggests the demand condition (especially for food and beverages (F&B) services, travels and accommodation) remained strong,' it said.
The report, entitled 'Uncovering A Hidden Gem', identified three key investment highlights for Negri Sembilan.
First, Negri Sembilan is strategically located near Klang Valley and Kuala Lumpur International Airport (KLIA), enhancing its appeal for logistics and investment.
Second, the state's nominal GDP grew at a compound annual rate of 5.8% from 2015 to 2023, slightly above the national average. Manufacturing and services sectors made up over 90% of Negri Sembilan's GDP in 2023, underscoring their economic importance.
Third, several key initiatives for the development of the state; (i) the MVV 2.0 initiative spans 153,000 ha and targets high-tech, aerospace and maritime industries, (ii) the Digital Economy Blueprint 2027 promotes smart agriculture, tech parks and digital governance initiatives, (iii) the Negri Sembilan Maju 2045 vision outlines a long-term plan for inclusive, sustainable and innovation-driven growth.
It estimated Negri Sembilan's real GDP expanded by 4.4% to 5.0% last year (2023: 1.8%), backed by increased domestic spending and in contrast to the decline in exports. Taking into account the trade weakness, it said its estimate assumed the state real GDP growth to be somewhat lower than 5.1% rise in national real GDP growth last year.
The state is led by Mentri Besar Datuk Seri Aminuddin Harun.
Here are some excerpts from MIDF Research's two-part report:
Negri Sembilan remains the ninth largest state in Malaysia, with the size of its nominal GDP having grown to RM63.3 billion in 2023 (2015: RM40.2 billion) after growing at a compound annual growth rate (CAGR) of 5.8% per annum since 2015.
The state's economy grew slightly more robust than the national economy as the CAGR for Negri Sembilan's nominal GDP was marginally higher than the CAGR of 5.6% per annum for national nominal GDP in the same eight-year period. Despite the stronger growth, Negri Sembilan accounted for 3.5% of Malaysia's nominal GDP (2015: 3.4%).
In 2023, the manufacturing and services sectors accounted for the largest share of 90.7% of Negri Sembilan's GDP in 2023 (2022: 89.6%; 2015: 86.2%). Negri Sembilan ranked fifth among all states in contributing to the national manufacturing GDP in the year, accounting for 5.4% — behind Johor (12%) and Sarawak (10.3%).
Growth Sector
We foresee the services sector growth will be sustained on the back of increased domestic spending, while the outlook for the manufacturing sector could be constrained by the trade war and uncertainties on the future external demand.
While we expect manufacturers will take the chance to frontload deliveries and shipments following the US decision to temporarily pause from imposing the 24% reciprocal tariffs, there was persistent weakness in Negeri Sembilan's export activity in the first quarter of 2025 (1Q25) which was incon- sistent with the pick-up in national exports ahead of the US tariff hikes.
On the domestic front, higher inflation and renewed cost pressures present other downside risks that could hurt consumer and business spending, which could come from further subsidy rationalisation and other policy changes. Nonetheless, a resilient labour market, accommodative monetary policy and ongoing fiscal measures will support in sustaining domestic demand.
Going forward, income growth in Negri Sembilan is expected to improve in tandem with efforts to attract more investment into the state. Increasingly, companies are capitalising on the spillover effects of industrial and tech developments in Selangor and Johor by relocating operations to Negri Sembilan.
The state offers lower operating costs while maintaining close proximity to the Klang Valley, making it an attractive location for business expansion. This shift is likely to support higher output and create more job opportunities, contributing to stronger income growth in the coming years.
The NSVV or MVV 2.0 is a large-scale economic development corridor located in the state. It encompasses the districts of Seremban and Port Dickson.
The NSVV is a long-term development spanning 1,534 km sq, roughly twice the size of Singapore. It is envisioned to be a world-class metropolis that is competitive, inclusive and environmentally clean. It is considered as strategically located as it leverages its close proximity to heavily developed Klang Valley and KLIA, aiming to gain from the spillover effects from Greater Kuala Lumpur's rapid development. We believe the development of NSVV will play a crucial role to attract more investment and drive the state economic growth over the medium to long term.
Negri Sembilan has embraced a forward-looking development agenda. The MVV 2.0 initiative is a cornerstone of this strategy. MVV 2.0 aims to transform the state into a high-tech, sustainable economic corridor. It includes key projects such as the Negri Sembilan High Tech Industrial Park, Negri Sembilan Aerospace Valley (NSAV) and the Port Dickson Free Zone. These developments are designed to attract high-value industries, including semiconductors, aerospace, maritime logistics and smart manufacturing. The Negri Sembilan Digital Economy Blueprint 2027 is a strategic initiative aimed at transforming the state into a digitally empowered economy by 2027. Building upon earlier efforts, the blueprint focuses on enhancing digital infrastructure, promoting industry digitalisation and fostering a digitally literate society.
Key Projects
Key projects include the development of smart agriculture practices in Gemas, the establishment of high-tech industrial parks like Techpark @ Enstek and Sg Gadut Industrial Park and the creation of a new digital centre in Seremban 3. These initiatives aim to attract investments in sectors such as electric vehicles, semiconductors, aerospace and halal industries.
In addition to these, the blueprint outlines plan for the establishment of Sendayan Tech Valley, envisioned as a hub for high-tech manufacturing and innovation. The state is also focusing on enhancing digital governance through initiatives like N9PAY, a digital payment gateway facilitating cashless transactions for government services.
Furthermore, there is an emphasis on digital literacy programmes, including collaborations with institutions like Universiti Teknologi MARA (UiTM) and the implementation of the Malaysian Communications and Multimedia Commission (MCMC)-Microsoft AI TEACH programme. Collectively, these efforts are poised to position Negri Sembilan as a competitive, inclusive and sustainable digital economy by 2027. Ultimately, the digital economy blueprint is a strategic roadmap to integrate digital technology into the economy to achieve the Negri Sembilan Maju 2045 vision. — TMR
This article first appeared in The Malaysian Reserve weekly print edition