COMPETITIVENESS INDEX OF PENINSULAR MALAYSIA'S NORTHERN BORDER DISTRICTS

Abstract

Competitive cities are known for their substantial economic growth, high incomes, and the ability to attract foreign investments. While a strong economy is crucial, other factors such as effective governance, efficient transportation, adequate housing, social inclusivity, and environmental sustainability also contribute to a city's competitiveness. This paper aims to assess the economic competitiveness of border districts in northern Peninsular Malaysia. Border cities hold significant importance following their proximity to neighbouring countries, subsequently offering advantages in terms of trade opportunities, cultural exchange, diplomatic relations, security, and socio-cultural integration. This research employed the quantitative method to measure the competitiveness level of 10 districts using economic and socioeconomic statistical data from the Department of Statistics Malaysia. The results indicated a distinct disparity among the districts along the Malaysia-Thailand border. In particular, the western districts of Perlis and Kubang Pasu displayed a higher level of economic development compared to the rural eastern districts due to their economic diversity and close proximity to industrial hubs such as Penang, Sungai Petani, and Songkhla in Southern Thailand. Furthermore, the strategic locations of the busiest international entry points, Bukit Kayu Hitam and Padang Besar, contribute significantly to the importance of logistics in these areas. In contrast, the middle and eastern districts heavily rely on agricultural activities, resulting in lower average incomes and higher poverty rates.