PETALING JAYA: Basic infrastructure shortcomings, particularly water supply, must be addressed if Kedah, Kelantan, Terengganu and Perlis are to achieve their economic growth ambitions by 2050, says economy minister Akmal Nasir.
The four opposition-led states, also known as SG4, yesterday said they were targeting a combined gross domestic product of RM723.75 billion by 2050, implying an annual growth of up to 7%.
Akmal said achieving the “ambitious” target would require viable planning, higher productivity and effective implementation of development projects and investments.
“What concerns me as we plan the economy through to 2050 is the challenge posed by existing basic infrastructure, particularly clean water supply and other essential facilities,” he said in a Facebook post.
“I am particularly concerned about Kedah’s water supply issues, where the reserve margin stands at 0%. Kelantan faces similar water supply problems.
“How can we develop local economies and attract greater investment without these basic infrastructure facilities?"
He noted that the four states recorded RM37.23 billion in approved investments in 2025, with the potential to create 18,319 jobs.
However, Akmal said the states’ focus should not be limited to approving investments, but should extend to ensuring projects are implemented, local businesses participate in supply chains, and residents secure quality jobs and better incomes.
He also highlighted the federal government’s development expenditure for the four states, which totalled RM7.70 billion in 2025, compared with their combined estimated state development budget of RM1.13 billion.
He said the implementation of federal-funded development projects should be accompanied by efforts to resolve basic infrastructure problems, particularly water supply, to support sustainable economic growth.
Northern Malaysian states like Kelantan and Kedah face persistent water supply challenges caused by ageing infrastructure, high water loss, and reserve margin imbalances.
Kelantan’s long-standing water problems have forced many households to depend on tube wells, rivers and other water sources, especially in the rural areas.
In July, a Kelantan executive councillor urged residents who had been facing water supply problems for decades to wait another two years for conditions to improve.