10-05-2025
- Business
- New Straits Times
Selangor lays the groundwork for nation's future
ALIZA SHAH speaks to an economist, urban sociologist and planner to unpack the ideas, ambitions and ripple effects of the city's urban reinvention
SELANGOR is playing a key role in shaping Malaysia's development with its initiatives and strong focus on innovation and sustainability.
The Selangor Smart State Agenda, for instance, will transform the state into a leading urban centre in Southeast Asia.
Selangor was recognised by the World Bank last year as a high-income state after it surpassed the per capita income threshold of US$14,000 (RM64,491).
Bold strategies are focusing not only on developing the state and improving the livelihoods of the people, but also on preserving the environment. A future of global competitiveness and sustainable growth is very much on the agenda.
ECONOMIC POWERHOUSE
Selangor is one of the richest states, accounting for 25.9 per cent or RM406.1 billion of the nation's gross domestic product in 2023.
The Petaling district, anchored by Shah Alam and encompassing Petaling Jaya and Subang Jaya, drives over half of the state's economy.
Economist Dr Yeah Kim Leng said this underscores the district's role as a growth pole.
He said the development of Shah Alam, Selangor's capital, would have a significant impact on the country's growth trajectory.
Universiti Kebangsaan Malaysia urban sociology professor Dr Novel Lyndon said without Selangor, Malaysia's economy would suffer significant setbacks.
He said this is due to its strengths in various sectors, which make it an attractive destination for both foreign and domestic investments.
"Its strategic position and strengths make it indispensable to Malaysia's present and future development," he said.
Novel said Selangor is the economic and logistical hub of the country.
"It hosts the country's main port, Port Klang, Malaysia's largest international airport, Kuala Lumpur International Airport and key industrial zones such as Shah Alam, Petaling Jaya and Subang.
"With well-developed infrastructure, skilled workforce and a strong digital economy, Selangor contributes significantly to the nation's GDP and foreign investment," he said.
The state's diverse economy — ranging from manufacturing and services to technology and logistics — also makes it a vital player in national development.
"Selangor is home to many multinational corporations, industrial parks and economic zones, like Port Klang Free Zone and Selangor Hub.
"The state also has excellent support sectors from aerospace to agrotech, tourism and e-commerce," he said.
Shah Alam, he added, holds immense growth potential, driven by smart urban planning, infrastructure investment, economic diversification and sustainability initiatives.
He said the city's strategic position enhances its potential to attract residents, businesses and investors.
SELANGOR'S ROLE IN THE NATION'S GROWTH
Selangor is charting an ambitious course to solidify its position as Malaysia's economic engine.
Among the strategic initiatives are Selangor Smart State Agenda, the Integrated Development Region in South Selangor and Malaysia Vision Valley 2.0.
Novel said the plans aim to enhance Selangor's position as a sustainable and globally competitive state.
"They include expanding digital infrastructure, promoting green technology and building new townships and industrial parts," he said.
The Selangor Aerospace and Aviation sector and Digital Free Trade Zone near KLIA are also expected to draw high-tech investments and boost international trade.
"Selangor plays a critical role in Malaysia's growth in various dimensions such as infrastructure and demographics," he said.
Rapid urbanisation is also fuelling growth in education, housing and services.
SELANGOR'S ROLE BEYOND THE GDP
The state is leading the way in education, health, culture and innovation.
"It is home to top institutions like Universiti Teknologi Mara (UiTM), Universiti Putra Malaysia, International Islamic University Malaysia, Universiti Kebangsaan Malaysia, research bodies and hospitals that support human capital development," Novel said.
As a cultural melting pot and centre for the creative industry, Selangor also fosters national unity and cultural expression.
Novel said the state leads in environmental efforts through initiatives such as river rehabilitation and green urban planning.
He added that Selangor's governance innovations and digital public services provide a blueprint for a citizen-centric administration in Malaysia.
FUTURE-READY CITIES
Recognising the rapid technological advancements, shifting climate patterns and growing urban populations, Selangor is taking a proactive approach to future-proof its cities, with Shah Alam at the heart of this transformation.
Universiti Malaya Urban and Regional Planning Department senior lecturer Dr Nikmatul Adha Nordin said cities now must be more adaptable, resilient and inclusive.
Future-proofing means building with flexibility in mind so we are prepared for what is ahead, she explained.
Echoing her sentiments, Novel said cities must accommodate a growing population and ensure sustainability.
"This involves efficient resource management, reducing environmental impact and ensuring that infrastructure can handle future demands without depleting natural resources.
"Emphasising infrastructure and services will allow cities to attract businesses and investments," said the chairman of the UKM Centre for Research in Development, Social and Environment.
Novel said a future-proof city will be able to better withstand economic fluctuations and promote long-term growth.
"Being proactive in technology adoption will help cities stay competitive and efficient.
"At the same time, it will make cities more attractive and liveable, encouraging population growth and retention."
Novel also believes that investing in educational institutions and research centres will turn Shah Alam into an innovation hub that attracts talent.
"Collaborations with UiTM, for example, to promote research and development, and entrepreneurship will play a vital role (in the city's growth)."
Novel said improving tourism infrastructure, such as parks, cultural sites and entertainment venues, will support the local economy by bringing in more visitors.
Yeah said the synergy between economic growth, modernisation, urbanisation and city centre development underscores the importance of future-proofing cities.
"Future-proofing Shah Alam and other city centres is important to strengthen their role as an economic core for driving growth and a social core that focuses on liveability and social activities."
Shah Alam is also the state's centre of power as it hosts religious and state administrative buildings.
INTEGRATED DEVELOPMENTS RESHAPING CITIES
Nikmatul said the people of Shah Alam are in for exciting years ahead as several development projects transform the city.
"Projects like SA Sentral, river revitalisation in Seksyen 24 and the Kompleks Sukan Shah Alam (KSSA) development are turning Shah Alam into a more vibrant and attractive urban hub.
"These plans are being carried out alongside the city's Low Carbon City 2035 vision — so it's not just about development, but also sustainable and responsible growth," she said.
Nikmatul added that integrated developments and smart city strategies are key to long-term sustainability.
"When planning is data-driven, connected and inclusive, it makes cities more resilient.
"Shah Alam's emphasis on transit-oriented development and smarter infrastructure is laying the foundation for a more competitive, liveable city in the years to come," she said.
Novel said that building integrated developments, where residential, commercial, industrial and recreational spaces coexist, helps prevent a city from relying too heavily on a single economic sector.
This, he added, creates a diverse and balanced economy that is more stable and resilient.
Adopting smart city technologies, he said, will also strengthen industries like green energy, digital services and high-value manufacturing.
"It boosts local entrepreneurship and innovation as well as improves public services and governance.
"Smart systems also allow quick detection of and response to natural disasters, cyberthreats and health emergencies."
Yeah said modern, integrated infrastructure and facilities, the hallmarks of smart and green cities, serve as powerful magnets not only for investors but also for businesses.
"They attract domestic and foreign investors, workers, businesspeople and entrepreneurs, providing a myriad of goods and services for high living standards."
"Rising income and living standards create a virtuous cycle of abundant business and investment opportunities of various scales and scopes," he added.
