BUSINESS IN LANGKAWI
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.
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
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
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
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