BUSINESS IN LANGKAWI
The agro-based, economic life stream of langkawi, which has been padi and rubber cultivation and fisheries, is now poised to make a right-about turn to become a soaring, tourism-based economy within the next decade or so. Already, plans are underway to develop the island, capitalizing on its natural, unspoiled environment, rich culture and historical background, not to mention its Duty Free Port status since 1987.
The main development activities are currently located in the main towns of Kuah (the sea gateway to the island, Padang Matsirat (the air gateway) and Padang Lalang.

The growth and development of this island resort comes under the watchful eyes of its development coordinator, LADA (Langkawi Development Authority), which was established in March 1990 to ensure that the struggle for economic growth and socioeconomic improvement of the islanders are not at the expense of the natural environment of the island.

LADA's 3-pronged objectives of:-
a) provision of more hotel facilities to meet the projected 7,500 hotel rooms by the year 2005
b) development of more improved tourist attractions on the island to increase length of stay of tourists
c) development of Langkawi into a major exhibition and convention centre lay emphasis on both optimum development of in-land areas as well as development of coastal , recreational activities to promote tourism.

The in-land areas identified for potential development are Kuah town itself inclusive of areas further in-land like Temoyong, Telok Burau Besar, Telok Burau, Pantai Kok and Padang Lalang. The in-land areas offer potential for development of tourist attractions and facilities like hotels and resorts, handicraft centers, commercial and light industries, air-based and marine-related industries.

The coastal locations identified for development are at Kuah, Pantai Cenang, Pantai Tengah, Pantai Kok/Telok Burau, Telok Datai and Tanjung Rhu.

The Development of hotel rooms stands at about 7,200+ completed within the last 5 to 6 years with the recent opening of City Bayview Hotel in Kuah and the Radisson at Tanjung Rhu. More hotel projects are in the pipeline to achieve LADA's target of 7,500 rooms.

Billions were spent to develop the Underwater World at Pantai Cenang, the Langkawi Coral Reef' platform at Pulau Payar Marine Park, and the Crocodile Adventure land.

Now, the five areas identified for establishment of light industries, service industries, general and special industries, are Kuah, Telok Ewa, Padang Lalang, Padang Matsirat and Kisap, and the total areas allocated for each are as follows:-

Kuah :150 hectares
Padang Lalang :50 hectares
Telok Ewa :50 hectare for port-related industries
Padang Matsirat :50 hectares for airport-related activities
Kisap :100 hectares for Ikan Bilis (salted fish) and marine-related industries.

In line with LADA's objective of safeguarding and protecting the environment of the island, strict measures have been enforced to ensure only non-polluting industries are established on the island.
Out of the five areas, three have been zoned for urban development - Kuah, Padang Lalang and Padang Matsirat

A deep water port has been planned at Tanjung Gerak to promote international trade to and from the island, taking advantage of its free port status to turn Langkawi into a trading hub within the Northern Growth Triangle of Malaysia with Thailand, Myanmar and Indonesia (Sumatra).

Other LADA approved projects that are underway currently include the RM34 million Perdana Beach Resort, an RM4million marina project and Langkawi's biggest resort development project, the RM 1billion floating village at Kuala Muda in Padang Matsirat. This village will have hotels, commercial complexes, marinas and a boat repair centre and is expected to take about three to four years to complete. It also encompasses the runway extension at the international airport and a golf course. Plans are also underway to convert the RM3O million Mahsuri International Exhibition centre into the island's first one-stop shopping as well as international exhibition centre expected to be the largest in Southeast Asia. This centre will be linked to the departure terminal at the airport by escalators.

The Malaysian Government has also been wooing European and American leisure boat builders to set up manufacturing operations in the country, providing them generous incentives. LADA has gone into ajoint venture with the local Melewar group to develop the RM4 million Marina project with clubhouse facilities and berths that can accommodate boats measuring 30 meters or more in length.

The State Government strongly promote and encourage this leisure activity on the island amongst the boating enthusiasts.

Increase in tourist arrivals to the island over the past 5 years have prompted the commercial sector to upgrade its services to international standards, especially in banking, restaurants and retail outlets. Job opportunities have been created for the locals, enhancing their quality of life at the same time.

Tourist Arrivals to Langkawi have been increasing since 1990:-
1990 -    783,687
1991 -    879,252
1992 -    l.000,000+
1993 -    1,300,000+
1994 -    1,500,000+
1995 -    1,795,406
   
In anticipation of a 2 million+ tourist arrival figure by 2005, the Government has expanded the Langkawi Airport Terminal building and work is in progress to extend the airport runway to cater for B747-400 aircraft arrivals by 1997.

'The success of LIMA '91 (Langkawi International Maritime & Aerospace Exhibition) has boosted the status of Langkawi as an important international, exhibition and convention centre. The development of the 10,000 sq. meters exhibition centre known as 'Mahsuri International Exhibition Centre' (MIEC) located at Padang Matsirat, opposite the International Airport has made it the latest exhibition venue in Malaysia. Since CHOGM in 1989 (Commonwealth Heads of Government Meeting), Langkawi has hosted innumerable international meetings, conventions, events and exhibitions, including the biennial LIMA, international beauty pageants, international cat shows, LIMOS (International Motor Shows) and Class One Powerboat World Championship etc.

A state-of-the-art Police Station (the best in Malaysia) and a fully equipped Medical Hospital are some of the newly-completed projects. Commercial and residential properties are under construction throughout certain parts of the island, especially Kuah town. A new stadium is under construction, targeted to be ready for the SUKOM and Sukma games in which Langkawi will host the 'shooting' events.

INVESTORS ARE WELCOMED

The procedure for any investors to participate in the development program in Langkawi is quite simple. All one has to do is to approach LADA or write directly to the General Manager, P.0.Box 60, Kuah, 07000 Langkawi. LADA office is situated at Jalan Persiaran Putra, 07000 Langkawi. Tel:04- 9667186 / 04- 9667187 Fax : 04-966 7233.

GUIDELINES TO PROJECT DEVELOPMENT

All project undertakings will have to be first submitted in 11 (eleven) copies and approved by Board of Directors of LADA and must comprise the following:-

*    Objective of project.
*    Project description and location.
*    Proposed development concept.
*    Abstract of the proposed project components to be developed.
*    Program schedule.
*    Financial sponsorship and cost of project.
*    Date / Time of completion.
*    Landscape program.
*    Provide a perspective plan and other relevant plans.