KUALA LUMPUR: The SG4 grouping of Kedah, Kelantan, Terengganu and Perlis projects the region's gross domestic product (GDP) to grow more than fivefold to RM723.75 billion by 2050.
SG4 Sdn Bhd chairman Professor Dr Haim Hilman Abdullah said the projection was based on a 2025 GDP baseline of RM133.35 billion and an assumed compound annual growth rate of seven per cent.
"This aggressive growth projection would generate an additional RM590.40 billion in annual output across the SG4 region," he said at the SG4 Business and Economic Forum 2026 at the Kuala Lumpur Convention Centre today.
Haim said the four states were ready to take on greater responsibility in driving development and supporting the country's economic growth.
He said the forum provided a platform for SG4 to share its vision and invite investors and institutions to join its strategic development efforts.
The four states contributed about RM133.4 billion to Malaysia's GDP last year, accounting for less than 10 per cent of the national total of RM1.7 trillion.
However, Haim said the region's economic potential remained largely untapped.
"I can assure you that much of SG4's potential remains untapped, and this forum is the best platform for us to work together to take the SG4 economy to the next level," he said.
Manufacturing is projected to remain a key growth driver, with its value added expected to rise from RM33.33 billion in 2025 to RM180.88 billion by 2050.
The sector's development will focus on high-technology industries, including semiconductors, automotive and mobility, electrical and electronics (E&E), advanced manufacturing, renewable energy, and specialty chemicals and materials.
Agriculture's value added is projected to increase from RM15.96 billion in 2025 to RM86.64 billion by 2050, driven by cash crops, commodities and cattle farming.
Mining and quarrying are expected to grow from RM845.33 million to RM4.59 billion over the same period, supported by mining, refining and mineral processing activities.
The services sector is projected to record the largest value added at RM429.51 billion by 2050, while construction is expected to contribute RM18.73 billion.
SG4's growth ambitions are underpinned by RM220.43 billion in approved investments between 2020 and 2025, which generated 76,306 jobs.
Haim said the region also had a growing talent pool, with 131,600 graduates produced between 2021 and 2024.
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