Why merge Kulim district and KHTP local councils?

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Kedah Considers Merging Kulim District and KHTP Local Councils to Facilitate Park Expansion

The Kedah state government is contemplating a merger of the local councils governing the Kulim district and the Kulim Hi-Tech Park (KHTP). This initiative is driven by the KHTP's complete utilisation of its allocated land, necessitating future expansion into the adjacent Kulim area. The proposed consolidation aims to create a unified administrative district under the KHTP banner, thereby securing a more substantial land tract for subsequent development phases and attracting increased foreign direct investment (FDI).
KHTP Faces Land Constraints for Further Development

The Kulim Hi-Tech Park has reached its full capacity, having expanded into all the land areas designated for its development. Consequently, any new phases of expansion, such as phase 5 and beyond, will inevitably require the absorption of land currently within the administrative boundaries of Kulim. This situation presents a challenge for continued growth and investment attraction at the park.
Administrative and Investor Dissatisfaction Arises from Current Structure

The existing administrative framework, where the KHTP is managed by a local council established by a parliamentary enactment, while the state owns it, has led to practical issues. Notably, new investors participating in phase 4 of the park are reportedly assigned addresses in Sungai Seluang rather than KHTP. This administrative anomaly has caused dissatisfaction among these investors, highlighting the need for a more integrated and clearly defined territorial jurisdiction.
Proposed Merger to Create Unified District for Expansion

The merger of the Kulim district and KHTP local governments is intended to establish a single, cohesive district explicitly designated as KHTP. This consolidation will provide a larger, contiguous land area, thereby facilitating the planned expansion into future phases. Such a unified district is expected to streamline administrative processes and present a more appealing proposition for potential investors seeking significant operational space.
Anticipation of Exponential Growth and Increased FDI

Beyond addressing land constraints, the Kedah Mentri Besar, Datuk Seri Mukhriz Mahathir, expressed aspirations for "exponential growth" in KHTP's expansion, aiming to surpass the RM31 billion in FDI attracted between 1996 and 2019. The state government sees opportunities in global economic shifts, such as the trade war between China and the US, to draw further investment. Industries like artificial intelligence and robotics are identified as key sectors that could drive this projected surge in FDI.

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Why merge Kulim district and KHTP local councils?

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