Businesses in Kedah hope for stable government and economic development

ALOR SETAR - Businesses in Malaysia’s northern state of Kedah are keeping close tabs on developments leading up to the

Nov 19 general election.

With multi-cornered fights taking place for the first time in several of its 15 parliamentary constituencies, many are concerned about how the election will affect their investments. They want to see policies from the next government that will make it easier for them to expand their businesses.

Start-ups in the administrative capital of Alor Setar are among those feeling concerned.

“We want to have more events and create an entertainment scene like what we see in Bali or Penang to make Alor Setar a more vibrant place, yet we are seeing more raids and restrictions on entertainment. We don’t want this state to be Islamicised,” said Mr Winson Ooi, founder of Terrace 48, a bar that has operated in the city for the past eight years.

Such concerns provide insight on how Kedah’s 1.5 million-plus voters might cast their ballots. The majority of voters are rural Malays who may support Perikatan Nasional (PN), which heads the state government. PN counts Parti Islam SeMalaysia (PAS) as part of the coalition.

Kedah, which has been controlled mostly by Barisan Nasional (BN), came under PAS rule between 2008 and 2013 and since May 2020, when PAS member Muhammad Sanusi Md Nor replaced Datuk Seri Mukhriz Mahathir as menteri besar.

But a growing number of more urbane and progressive voters are likely to vote for the opposition Pakatan Harapan (PH), which swept up 10 seats in the 2018 polls. Others could side with BN, which promises economic development but won only two seats in 2018. They could also vote for Gerakan Tanah Air, a new movement led by Mr Mukhriz’s father, former prime minister Mahathir Mohamad.

The state will see 70 candidates battle for a total of 15 parliamentary seats, with Alor Setar gearing up for a seven-cornered fight.

For years, local and international investors have channelled funds into sectors from industry and manufacturing to retail and entertainment, bringing talent and creating jobs up north. Approved investments during the second quarter of 2022 hit a record RM20 billion (S$6 billion), with the bulk of the funds going into industrial zones, according to state data.

Other ongoing projects include a highway connecting Kedah to the rest of the peninsula and an international airport in the southern constituency of Kulim.

Businesses that have invested in Kedah in recent years to tap its population are hoping the new federal government can work with state leaders to bring about better policies and a stable business environment that will continue to draw investments.

Kedah will not be holding state elections until 2023, but the outcome of the federal vote could have a bearing on how well various parties perform then.

Mr Nur Muhammad, 24, owner of upmarket coffee joint Kafe Moara, is among those who feel PAS politicians can do a better job of engaging with and supporting local businesses. He recalled a music festival in Alor Setar in October that drew flak from some in the Muslim community for being too rowdy.

“They (PAS) just issued a statement saying that the bands involved in the festival were not approved and they banned concerts in Alor Setar,” he complained.

Younger voters like Mr Hafizuddin Bahdun, 33, say they hope the new MPs will work with businesses to help Alor Setar become more modern and attractive to tourists and investors.

The senior executive in marketing and communications at Aman Central said the local culture has changed since the RM500 million shopping mall opened in 2015. “People started buying Starbucks drinks and international brands started gaining acceptance here. People here now want to shop at Uniqlo and H&M.”