LuMIC: A 25-year Vision To Boost Perak’s Economy, Strengthen Malaysia’s Port Sector

By Razif Rosli and Muhamad Adzhar Tajudin

LUMUT, Feb 10 (Bernama) -- The Lumut Maritime Industrial City (LuMIC), designed for development over 25 years, is seen not only as a catalyst for the long-term economic growth of Perak but also as a complement to the country’s port sector.

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Perak State Development Corp (PKNPk) chief executive officer Datuk Redza Rafiq Abdul Razak said LuMIC is a development agenda for the Integrated Maritime Industry Cluster in Manjung, focusing on maritime, port, logistics, and industrial sectors, including direct involvement in international trade.

“The LuMIC project, developed on a 9,307.7-hectare land in Manjung, is expected to attract foreign direct investment (FDI) into Perak, and at the same time, we expect to create more than 50,000 new job opportunities.

“PKNPk is confident that the collaboration with Port of Antwerp-Bruges International (PoABI) based in Belgium will enhance connectivity between Europe and Asia and make Lumut a modern and sustainable city,” he said when interviewed by Bernama recently.

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LuMIC is one of five major projects currently being implemented in Perak, in addition to the Automotive High-Tech Valley (AHTV), Perak Halal Industrial Park (Perak HIP), Silver Valley Technology Park (SVTP), and the Kerian Integrated Green Industrial Park (KIGIP).

EU-FUNDED FEASIBILITY STUDY

According to Redza Rafiq, the successful completion of the feasibility study’s first phase with a grant worth 1.9 million euros (1 euro=RM4.58) from the European Union (EU) in 2023 is part of a joint effort between PKNPk and PoABI to assess Perak’s prospects in the sector.

“This study focuses on assessing green energy, master planning, and business planning, which is expected to be completed by early this year. After that, detailed planning and land preparation will begin, paving the way for actual development activities.

“PKNPk and PoABI have formed a special purpose vehicle (SPV) called LuMIC DevCo to jointly undertake the development and management of the integrated maritime industrial hub in LuMIC, located in the Manjung district and the surrounding areas in Perak,” he added.

Redza Rafiq highlighted that the collaboration with PoABI includes a comprehensive study of LuMIC's development plan, emphasising direction, strategy, sustainable environmental standards, and value chains. 

The port also provides expertise in project management, consulting services, and international-level training.

Meanwhile, PKNPk provides local expertise and networks for the development and land proposal for LuMIC.

LUMIC, A GROWTH ENGINE FOR PERAK AND NCER

Redza Rafiq added that LuMIC is seen as a growth engine for Perak and the Northern Corridor Economic Region (NCER). 

The private sector participates through FDI and domestic investments, special economic zone incentives, and strong industry-academic partnerships.

“Investments from companies, both local and international, will enhance the flow of capital into the state, while the initiatives and facilities provided for investors will also increase government revenue through taxes and fees.

“Besides thousands of job opportunities, this project will drive the development of local workers’ skills, employability, and productivity,” he said.

The development spillover, such as roads, ports, and advanced logistics systems to enhance the state’s economic competitiveness, is also expected to increase the value of properties in the surrounding areas, said Redza Rafiq.

“With effective implementation, the LuMIC project will bring substantial benefits to the people, improving the well-being and prosperity of the local community and contributing to the overall economic growth of Perak,” he said.

CAN LuMIC COMPETE WITH MAIN PORTS?

Asked if LuMIC could compete with major ports like Port Klang in Selangor and major ports in Johor and Penang, Redza Rafiq emphasised that although these three ports have a strong reputation, LuMIC can be a significant complement.

He said that one of the attractions of LuMIC is its strategic location on the west coast of Peninsular Malaysia.

This makes it easier to access international trade routes, in addition to having the advantage of attracting merchant ships passing through the Strait of Malacca.

“Modern infrastructure and facilities, along with advanced technology, will certainly enhance LuMIC’s competitiveness, including supporting facilities such as logistics centres, warehousing, and ship maintenance workshops,” he said.

Redza Rafiq added that LuMIC can also offer competitive operational costs compared to other ports, in addition to offering efficiency in port management, including fast handling times and quality services.

The development of a good transportation network with access to highways, rail, and air will further increase the appeal of the port, as well as government support at both the state and federal levels through tax incentives and investment-friendly policies.

“LuMIC will also serve as a connector to international ports and global shipping companies to attract new trade routes, and we are confident that with careful planning and effective implementation, it has the potential to compete with Malaysia’s main ports,” he said.

However, Redza Rafiq acknowledged that the main challenge is attracting the necessary investment for the early development phases, particularly in the face of uncertain global economic and geopolitical situations.

“Infrastructure development requires good coordination, especially from the government and local communities, and at the same time, it must ensure that development does not harm the environment. It also requires a skilled and highly qualified workforce,” he said.

MORE THAN JUST A PORT

Meanwhile, State Tourism, Industry, Investment and Corridor Development Committee chairman Loh Sze Yee said that the development of LuMIC is not solely focused on the port but also encompasses manufacturing, logistics, and warehousing industries.

He said that this phased project aims to capitalise on Lumut’s potential as a coastal location that could significantly increase the state’s revenue.

“Some may believe that the development of LuMIC focuses only on building a large-scale port for export or import purposes, but this is not true.

“Instead, we will develop the existing port, Lumut Port Terminal, more efficiently so that it becomes a key pillar in generating significant investment value for the state,” Loh, who is also Jalong assemblyman, said.

He said that the benefits brought by LuMIC will open opportunities for local companies to enhance productivity and tap into broader markets, particularly in ASEAN countries.

“This platform should be fully utilised by local companies to explore new markets through the businesses that will be opened. 

“This opportunity should be recognised now to ensure that it generates proper returns,” he said.

-- BERNAMA