Fix your water supply before chasing RM720b GDP dream, Akmal tells SG4 states

Water taps are seen at Jalan Klang Lama, Selangor on October 10, 2023. — Picture by Miera Zulyana

By Malay Mail

First Published: Tuesday, 27 Oct 2026 4:41 PM MYT

KUALA LUMPUR, Oct 27 — Chronic deficits in basic utilities, highlighted by Kedah's zero per cent water reserve margin, will derail the ambitious long-term economic targets set by the four opposition-led SG4 states, Economy Minister Akmal Nasir warned today.

In a Facebook post while attending a Gas Exporting Countries Forum meeting in Moscow, Akmal commented on the SG4 Business & Economic Forum 2026, which projected a combined gross domestic product of RM723.75 billion for Kedah, Kelantan, Terengganu, and Perlis by 2050, an expansion that implies annual growth rates of up to 7 per cent.

While declining to dispute the headline figure directly, Akmal stressed that achieving such rapid expansion cannot rely on “Business as usual”, requiring rigorous planning, productivity gains, and disciplined project delivery on the ground.

The minister argued that persistent basic infrastructure deficits present a far more urgent obstacle to growth than setting economic projections, pointing to Kedah's depleted water reserve margin and longstanding clean water disruptions in Kelantan.

“How can the local economy be developed and investment attracted more vigorously without basic infrastructure facilities like this?” he asked.

Akmal stressed that industrialisation across the northern and east coast corridors relies overwhelmingly on federal financing rather than state coffers.

Federal development expenditure in the four states reached RM7.70 billion in 2025, approximately 6.8 times their combined state development allocations of roughly RM1.13 billion.

Under the 13th Malaysia Plan spanning 2026 to 2030, Putrajaya has approved 1,487 development projects valued at RM71.52 billion for the SG4 group. The federal spending ceiling for these states under Rolling Plan 2 for 2027 has been raised to RM8.11 billion, up 1.6 per cent from RM7.98 billion in 2026.

Federal agencies, he noted, continue to anchor the region's core industrial nodes, including the East Coast Rail Link, Kedah Rubber City, Tok Bali Industrial Park, Kertih Biopolymer Park, Perlis Inland Port, and Chuping Valley Industrial Area.

Addressing commercial inflows, Akmal cited Malaysian Investment Development Authority data recording RM37.23 billion in approved investments and 18,319 potential jobs across the four states in 2025.

“However, investment approval does not mean the project is complete. Potential jobs do not mean jobs have been created.

“We must ensure projects are truly implemented, local entrepreneurs take part in the supply chain, and the people get quality jobs and better incomes,” he said.

Akmal ended by saying that while the federal government continues to channel billions into catalytic infrastructure across the SG4 territories, state administrations must resolve foundational utility bottlenecks like water supply to support sustained industrial investment.