Kuala lumpur: Malaysia's regional growth centres are well-positioned to drive the next phase of high-value economic development, according to RHB Investment Bank Bhd (RHB IB). In a recent research note, it highlighted that the country's high-value economic activities are concentrated in five key regional growth centres.

According to BERNAMA News Agency, these centres include Selangor as the advanced manufacturing and innovation hub, Penang as the semiconductor and electronics hub, Johor as the regional investment and logistics hub, Sarawak as the energy transition and green industrial hub, and Kuala Lumpur as the nation's knowledge-intensive services hub.

The research note emphasized the importance of continued investment in infrastructure, innovation, human capital, and industrial upgrading to sustain Malaysia's competitiveness and strengthen its integration into regional and global value chains.

RHB IB reported that these five states account for nearly 70 per cent of Malaysia's gross domestic product (GDP), about 71 per cent of manufacturing and services output, almost 94 per cent of merchandise exports, and more than 70 per cent of approved investments. Sustaining the growth of these regional economies will require continued investment in enabling factors that support high-value activities.

Beyond physical infrastructure, the report suggested placing greater emphasis on talent development, research and development, innovation, digital infrastructure, and stronger industry-academia collaboration. It also underlined the importance of the continued implementation of the New Industrial Master Plan 2030 (NIMP 2030), National Semiconductor Strategy (NSS), National Energy Transition Roadmap (NETR), and other regional initiatives in strengthening Malaysia's industrial capabilities and supporting the transition towards a more innovation-driven economy.