KUALA LUMPUR: SG4 has the potential to become a major economic hub if its four member states pool their resources and complement one another.
Describing the economic cooperation initiative involving Kedah, Kelantan, Terengganu and Perlis as a "sleeping giant", the former prime minister Tun Dr Mahathir Mohamad said the states had the land, population, infrastructure and resources to drive growth.
"If these states can get their act together, pool their resources, and complement each other, the sky is the limit," he said in a speech read by his son, Tan Sri Mokhzani Mahathir, at the SG4 Business and Economic Forum 2026 at the Kuala Lumpur Convention Centre today.
Dr Mahathir, 101, was unable to attend as he had been unwell. Mokhzani said his father had prepared the speech and wanted to deliver it personally.
Dr Mahathir said SG4, with a combined population of 5.7 million and a land area of more than 38,000 sq km, had the potential to become a productive and profitable economic zone.
He said the initiative needed to tap expertise, build technical know-how and ensure sustainable economic activities.
Dr Mahathir, who has been an adviser to SG4 since 2023, said the four states had begun exploring opportunities beyond their traditional economic sectors.
He cited Kedah's ambition to become a manufacturing hub, Kelantan's efforts to commercialise agriculture, Terengganu's exploration of downstream petroleum activities and Perlis's focus on expanding cross-border trade.
He also highlighted the potential of large-scale commercial farming by consolidating smallholders under professional management to improve productivity.
On rare earth elements (REE) found in the four states, Dr Mahathir cautioned against merely extracting and selling the minerals, saying greater returns could be generated through value-added activities.
"The issue now is not merely about retrieving and selling them, which will then immediately provide the SG4 states with a substantial source of income for the state coffers.
"It is rather about how to work on value add on these elements, which will increase their income multiple folds," he said.
He added that economic development must ultimately benefit the people, whom he described as SG4's greatest asset.
While natural resources could generate wealth, Dr Mahathir said, the initiative's success depended on public participation and commitment.
Dr Mahathir also urged the states to support local entrepreneurs and help them develop sustainable business models.
He cited the growth of food businesses run by entrepreneurs from Kelantan and Terengganu on the west coast, as well as the expansion of cafes and homestays in Perlis, as examples of emerging opportunities.
However, he warned that corruption, dishonesty and the pursuit of quick profits could undermine progress.
The four states, he said, needed to demonstrate greater commitment to close the development gap with west coast states.
"They need to put their best foot forward because they have been lagging over the decades, and to catch up, let alone overtake the west coast states, anything less than 100 per cent commitment may not bear the desired results," he added.
Recalling Malaysia's economic achievements in the 1990s, Dr Mahathir urged the states to embrace the spirit of "Malaysia Boleh" and show similar determination under the rallying cry "SG4 Boleh".
Themed "Four States. One Economic Vision", the forum brings together state leaders, investors, economists and industry representatives to explore investment opportunities and economic cooperation.
SG4 Group Sdn Bhd was formally launched in September 2024, with Kedah, Kelantan, Terengganu and Perlis each holding a 25 per cent stake.
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