HSR Link Poised to Transform Negeri Sembilan & Malacca into Major Growth Hubs


HSR Link Poised to Transform Negeri Sembilan & Malacca into Major Growth Hubs

Lying just to the south of Klang Valley and bordering Johor, these two states provide the vital link between two large population centres i.e. Kuala Lumpur and Singapore, placing them in positions of advantage to leverage on the strengthening of socio-economic ties between Malaysia and Singapore. Leveraging on their proximity to Kuala Lumpur and the development boom in Iskandar Malaysia, both states have risen to make their mark as lucrative property hotspots in the fast growing Southern Corridor.

The High Speed Rail (HSR) Link between Kuala Lumpur and Singapore is set to propel both states to further prominence. Proposed locations for the HSR stations are Seremban in Negeri Sembilan and Ayer Keroh in Malacca.  In July this year the Prime Minister’s department reported that the HSR project is expected to generate an economic impact of RM100 billion to the country’s GDP. About RM70 billion would be generated from construction, operations and the multiplier impact from the mega rail project. The balance RM30 billion is expected to be gained from a wider economic benefit via growth of the property, tourism and services sectors. Negeri Sembilan and Malacca will experience major changes in their landscape, population growth and economic sustainability.


Economic Transformation Expected

These states anticipate the opening of new growth avenues that capitalise on the demand for value added industries and services from the HSR project. HSR lines around the globe have been successful in creating high value economic developments and some of them have flourished tremendously into mega-cities. Economic growth and activity is expected to cascade to the stations in Negeri Sembilan and Malacca and their neighbouring areas. Mobility of workers to and from economic centres will bring lifestyle changes and spur growth in residential, commercial, educational and retail developments in both states.

The last decade has seen growing investment interest in both states. Negeri Sembilan’s capital has geographically expanded with the development of Seremban 2 located about four kilometres southeast of downtown Seremban,  Seremban 2 is a planned city built with the aim of relocating the administrative, business and education services in Negeri Sembilan away from the capital. There is also Seremban 3, a University Technology Mara township. Commercial development too is thriving as indicated by the high occupancy at newly opened industrial areas such as such as Sendayan Tech Valley and Bandar Enstek, which boasts of names like Coca-Cola, Kelloggs’, Hino Japan and SKF bearings. Plans are also underway for the launching of 108,000 hectares Malaysia Vision Valley project that will encompass the Seremban-Nilai-Port Dickson area and consist of townships, industrial zones and educational hubs.

The Malacca state government under the Invest Melaka, an initiative that focuses on promoting business has been successful in maintaining a positive economic growth since 2007. The Malacca state government has recently unveiled mega-development projects that are designed to transform Malacca into a global tourist destination and further leverage on the accessibility it will enjoy with the HSR link. The RM40 billion Melaka Gateway project consisting 12 precincts including residential, commercial, cultural, entertainment and marina terminal is poised to boost the state’s tourism and other related services multi-fold.  It will be the largest in Asia, tapping into the growing number of cruise ships plying the route which currently do not stop at Malacca due to lack of facilities.



The tremendous growth experienced by both states will enable them to fully capitalise on the new opportunities that will arise with the growing prominence of Malaysia’s southern corridor. Negeri Sembilan and Malacca play the very important role of offering investors affordable options with easy accessibility to Greater Klang Valley and Iskandar Malaysia.

This article is first published in iProperty.com Malaysia December 2015 Magazine. Get your latest copy in selected bookstores and newstands or go to www.iproperty.com.my/magazine to subscribe.

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