2015 - PELAN PEMBANGUNAN LEMBAH CHUPING

KERAJAAN NEGERI PERLIS

PELAN PEMBANGUNAN
LEMBAH CHUPING

JUNE 2015

Chuping Valley Development Plan

CONTENTS 1-1
1-2
1.0 INTRODUCTION 1-2
1.1 Objectives of the Study
1.2 Key Findings in Achieving the Objectives / 2-1
Summary of Key Findings 2-1
2-2
2.0 ASSESSMENT OF EXISTING CONDITIONS 2-3
2.1 Existing Land Use and Zoning 2-4
2.2 Topography 2-7
2.3 Geology and Geomorphology 2-7
2.4 Drainage and Hydraulic 2-7
2.5 Environmental Assessment
2.5.1 Approach Taken 2-13
2.5.2 Findings on Existing Environment and
Project Assessment 2-14
2.5.3 Management of Lembah Chuping as a 2-15
Green Valley 2-15
2.5.4 Subsequent Steps to be Taken 2-17
2.6 Infrastructure and utilities 2-17
2.6.1 Road / Rail Transportation Network 2-17
2.6.2 Water Supply System 2-24
2.6.3 Sewerage System 2-25
2.6.4 Solid Waste Management 2-25
2.6.5 Electricity
2.6.6 Telecommunication 3-1
2.6.7 Gas Supply 3-1
3-1
3.0 BENCHMARKING ANALYSIS 3-2
3.1 Introduction to Benchmarking Analysis 3-2
3.2 Benchmarking Methodology 3-2
3.3 Introduction to the Model Parks 3-9
3-11
3.3.1 Profiling of Model Parks
3.3.2 Rationale for Model Parks Selection 4-1
3.4 Introduction to Evaluation Parameters 4-1
3.5 Analysis and Ratings for Model Parks 4-4
4-10
4.0 PROPOSED INDUSTRIES
4.1 Concept of Lembah Chuping
4.2 Summary of Industry Analysis
4.3 Projected Economic Impact: GNI Contribution
and Job Creation

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4.3.1 Estimated Gross National Income (GNI) 4-11
Contribution to Perlis
4-15
4.3.2 Estimated Job Creation in the Perlis State 4-19
4.4 Key Salient Points

5.0 BUSINESS ECOSYSTEM 5-1
5.1 Introduction 5-1
5.2 Park Supporting Functions 5-3
5.2.1 Lifestyle Infrastructure 5-3
5.2.2 Transport Infrastructure & Services 5-10
5.2.3 Human Capital Development and 5-16
Requirements
5.2.4 Other Supporting Functions 5-23
5.3 Value Chain Support and Competition 5-27
5.3.1 Green Materials 5-30
5.3.2 Electrical & Electronics (E&E) 5-35
5.3.3 Halal Industries 5-47
5.3.4 General Support 5-55
5.4 Key Salient Points 5-56

6.0 GOVERNANCE MODEL 6-1
6.1 Formation of the Governance Structure for 6-1
Lembah Chuping 6-1
6.1.1 Step 1: Setting up of a Delivery 6-3
Management Office 6-6
6.1.2 Step 2: Setting up of a Separate Legal 6-8
Entity as a Park Operator 6-10
6.2 Recommendation on the Administrative Structure
for Lembah Chuping
6.3 Proposed Stakeholders for the Management
Committee and Divisions
6.4 Key Salient Points

7.0 INVESTOR ANALYSIS 7-1
7.1 Introduction 7-1
7.1.1 Proposed Criteria for “Green” 7-2
7.1.2 Research Method 7-11
7.1.3 Limitations 7-11
7.2 Proposed Industries 7-12
7.2.1 Green Energy Generation 7-12
7.2.2 Solar Energy Firms 7-12
7.2.3 Other Green Energy Generating Companies 7-13
7.2.4 Green Manufacturing 7-14
7.2.5 Halal Pharmaceutical Manufacturing 7-16

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7.2.6 Halal F&B Manufacturing 7-18
7.3 Recommended Next Steps for Approaching 7-19

Potential Investors

8.0 INCENTIVES AND BENEFITS 8-1
8.1 Existing Incentives and Benefits in Malaysia 8-1
8.1.1 Current Incentives for the Proposed Core 8-1
Clusters
8.1.2 Current Incentives for Supporting Industries 8-5
and Key Enablers
8.1.3 Current Incentives for Strategic Economic 8-6
Corridors in Malaysia
8.2 Comparison of Incentives and Benefits with Other 8-10
Countries
8.2.1 General Comparison against ASEAN 8-10
Countries
8.2.2 Comparison against Southern Thailand 8-11
8.2.3 Comparison against Halal Food Industrial 8-11
Estates at Pattani (‘HFEI”)
8.2.4 Hsinchu Science and Industrial Park (HSIP) 8-12
8.2.5 Eco World Styria (Eco World) 8-13
8.2.6 Comparison Analysis 8-13
8.3 Proposed Incentives for the Development of 8-14
Lembah Chuping
8.3.1 Rationale for Proposed Incentives for the 8-14
Development of Lembah Chuping
8.3.2 Green Manufacturing 8-16
8.3.3 Halal Industry 8-17
8.3.4 Green Energy Generation 8-19
8.3.5 Research and Development (R&D) 8-20
8.3.6 Waste Management and Recycling 8-22
8.3.7 Academia/ Institution of Higher Learning 8-23
8.3.8 Incentives for other Industries in Lembah 8-24
Chuping
8.4 Cost Benefit Analysis 8-25
8.4.1 Introduction to Cost-Benefit Analysis 8-25
(“CBA”)
8.4.2 Potential Cost Analysis 8-25
8.4.3 Potential Benefit Analysis 8-26
8.5 Key Salient Points 8-26

9.0 CONCEPT PLAN 9-1
9.1 Introduction 9-1
9.2 Concept of Lembah Chuping 9-1

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9.3 Bubble Concept 9-3
9.4 Conceptual Layout Plan 9-6
9.5 Development Components 9-9
9-9
9.5.1 Solar Green Energy Generation 9-9
9.5.2 Green Manufacturing Industries 9-9
9.5.3 Halal Industries 9-9
9.5.4 Waste to Resources Facility 9-10
9.5.5 Green Knowledge Centre 9-10
9.5.6 Small & Medium Enterprise (SME) 9-10
9.5.7 Support Industries 9-10
9.5.8 Mix Development 9-10
9.5.9 Institutional 9-10
9.5.10 Commercial 9-11
9.5.11 Open Space and Green Area 9-11
9.5.12 Infrastructure and Utility Services 9-11
9.6 General Guidelines for Lembah Chuping
10-1
10.0 IMPLEMENTATION PLAN 10-1
10.1 Development Phasing 10-4
10.2 Infrastructure and Utilities 10-4
10.2.1 Earthworks 10-6
10.2.2 Road Network 10-10
10.2.3 Drainage 10-15
10.2.4 Water Supply 10-24
10.2.5 Sewerage 10-29
10.2.6 Power Supply/Electricity 10-40
10.2.7 Telecommunication 10-45
10.2.8 Natural Gas Supply 10-47
10.2.9 Overall Preliminary Cost Estimates 10-49
10.3 Project Implementation 10-51
10.3.1 Preliminary Stage 10-55
10.3.2 Design Stage 10-57
10.3.3 Tender Stage 10-58
10.3.4 Construction Stage 10-59
10.4 Project Implementation Plan 10-59
10.4.1 Preliminary Stage 10-60
10.4.2 Phase 1 - RMK11 (2016-2020) 10-63
10.4.3 Phase 2 - RMK 12 (2021-2025) 10-66
10.5 Business Implementation 10-68
10.6 Perlis Inland Port Implementation

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11.0 APPENDICES

Appendix 1: Job Creation Methodology – Average 11-1
Acreage and Employment
Appendix 2: Lifestyle Infrastructure Methodology 11-3
Appendix 3: Determining Complementary/ Competing 11-9
Nature of Industrial Estates
Appendix 4: Complementary Industrial Estate Scoring 11-11
System
Appendix 5: Focus Group Questionnaire 11-13
Appendix 6: Survey Results – Focus Group Discussion 11-35
Appendix 7: Potential Investors Analysis 11-51
Appendix 8: Industrial Estate Tenant Lists 11-118

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LIST OF FIGURES

Figure 1.1: Location of Lembah Chuping 1-1
Figure 2.1: Existing Land Use 2-1
Figure 2.2: Land Use Zoning for Lembah Chuping 2-2
Figure 2.3: Contour Analysis 2-2
Figure 2.4: Geological Map of Lembah Chuping 2-4
Figure 2.5: Earth drains along the main trunk road (FR79) 2-5
Figure 2.6: Existing Ground of Lembah Chuping Area 2-5
Figure 2.7: Existing Pond inside the Lembah Chuping 2-6
Figure 2.8: Sungai Jarum at Road Crossing FR79 2-6
Jalan Arau-Padang Besar
Figure 2.9: Sungai Jerneh 2-7
Figure 2.10: Water Catchment area for the Timah Tasoh Dam 2-7
Figure 2.11: Terrain of Project site 2-8
Figure 2.12: Flood Prone Area 2-9
Figure 2.13: Total Monthly Rainfall for the year 2011 2-9
Figure 2.14: Location of tube wells at Point C 2-10
Figure 2.15: Tube Wells 2-10
Figure 2.16: Hutan Simpanan Kekal Rimba Mas-Mas 2-11
Figure 2.17: Timah Tasoh Dam 2-12
Figure 2.18: Direction of flow of Sg. Jarum and Sg. Jerneh 2-13
Figure 2.19: Road / Rail Transportation Network in Perlis 2-16
Figure 2.20: Site Accessibility Analysis 2-16
Figure 2.21: Services provided by E-Idaman 2-18
Figure 2.22: Hierarchy of Waste Options 2-19
Figure 2.23: Overall flow of waste generated in Project site 2-20
Figure 2.24: Project Layout Plan and location of Rimba Mas 2-21
Sanitary Landfill
Figure 2.25: Road / Rail Transportation Network in Perlis 2-24
Figure 2.26: Gas Malaysia’s Supply Area 2-26
Figure 2.27: Petronas Gas’s Infrastructure in Peninsular 2-26
Malaysia
Figure 3.1: Benchmarking Methodology 3-1
Figure 3.2: Five (5) Selected Model Parks 3-2
Figure 3.3: Profile of Each Selected Model Park 3-2
Figure 3.4: Example of Companies with respective R&D initiatives 3-3
Figure 3.5: Support Provided to KHTP by Government Agencies 3-4
Figure 3.6: Green Technology Cluster in Eco World Styria 3-6
Figure 3.7: Stack-Up Factory in Singapore 3-7
Figure 3.8: Ratings and Descriptions 3-11
Figure 3.9: Model Park Ratings for Infrastructure Completeness 3-11

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Figure 3.10: Average Connection Bandwidth to Internet Users in 3-14
Each Country
3-18
Figure 3.11: Model Park Ratings for Institutions of Higher Learning
and R&D Initiatives 3-21
3-22
Figure 3.12: R&D Intensity to the Malaysian GDP 3-23
Figure 3.13: Public Expenditure on R&D in Singapore 3-23
Figure 3.14: Energy Research Expenditure in Austria in 2011 3-24
Figure 3.15: Taiwan’s R&D Expenditure as a percentage of GDP 3-25
Figure 3.16: Model Park Ratings for Availability of Skilled Labours 3-26
Figure 3.17: English and the Ease of Doing Business 3-27
Figure 3.18: EF English Proficiency Index Ranking 3-28
Figure 3.19: Model Park Ratings for Park Operating Model 3-29
Figure 3.20: Model Park Ratings for Business Environment 3-30
Figure 3.21: "Ease of Doing Business" Ranking 4-1
Figure 3.22: Total Global Gross Expenditure of R&D
Figure 4.1: Characteristics of a Green Manufacturing 4-1
4-2
Process
Figure 4.2: Map of the Area Surrounding Lembah Chuping 4-3
Figure 4.3: Growth in Green Initiatives (8th, 9th and 10th 4-3
4-9
Malaysia Plans)
Figure 4.4: UTM Energy Costs (2009-2012) 4-13
Figure 4.5: Expected Supply of Fossil Fuels (2000-2090) 4-14
Figure 4.6: Viability of Proposed Industries in the Lembah
4-17
Chuping
Figure 4.7: GNI contribution by Proposed Industry 4-18
Figure 4.8: Estimated GNI Contribution of Lembah Chuping 4-20

by 2025 5-1
Figure 4.9: Total Job Creation of Proposed Industries by
5-2
2025 5-3
Figure 4.10: Lembah Chuping Skill Levels of Created Jobs 5-5
Figure 4.11: Total Job Creation and GNI Contribution
5-5
of Proposed Industries 5-7
Figure 5.1: Approach to Building Lembah Chuping’s
5-7
Business Ecosystem
Figure 5.2: Industrial Park Supporting Functions
Figure 5.3: External Ecosystem - Surrounding Institution
Figure 5.4: Methodology for Availability and Accessibility

of Lifestyle Services
Figure 5.5: Number of Residences, Perlis (2010)
Figure 5.6: Planned Perumahan Rakyat 1Malaysia

(PR1MA) Housing in the Chuping Area
Figure 5.7: Kangar Lifestyle Services

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Figure 5.8: Average Distance of Industrial Parks to Nearby 5-7
Towns
5-8
Figure 5.9: Distance of the Chuping Area to Kangar 5-9
Figure 5.10: No. of Central Lifestyle Services of Industrial
5-9
Parks
Figure 5.11: Level of Lifestyle Services Lembah Chuping 5-10
5-10
Should Achieve 5-11
Figure 5.12: Public Transport Convenience Factor Ranking
Figure 5.13: First Last Mile Problem for Public Transportation 5-12
Figure 5.14: Singapore Science Park Mass Transport
5-13
Connectivity 5-14
Figure 5.15: Hsinchu Science Park Shuttle Service
5-14
Connectivity 5-15
Figure 5.16: Cyberjaya Dedicated Transportation System (DTS)
5-16
External Connectivity
Figure 5.17: Cyberjaya Dedicated Transportation System (DTS) 5-17

Inner-park Connectivity 5-18
Figure 5.18: Existing Transport Networks in Perlis 5-29
Figure 5.19: Key Characteristics of Proposed Shuttle Bus
5-19
Service
Figure 5.20: Industry Human Capital Requirements & Education 5-20

Courses near Chuping Area 5-21
Figure 5.21: Breakdown of E&E Relevant Educational Courses
5-22
near Chuping Area 5-22
Figure 5.22: Internship Examples at Nearby IHLs
Figure 5.23: Main Challenges of Collaborative Efforts 5-25

(KPMG Focus GroupFeedback) 5-27
Figure 5.24: Human Capital Challenges
5-28
(KPMG Focus Group Feedback)
Figure 5.25: Courses Offered by Institute of Technical

Education (Singapore)
Figure 5.26: Location of the Institute of Technical Education

(ITE)
Figure 5.27: International Collaborators of the ITE
Figure 5.28: Manufacturing Sector per Annum Incomes by

Skill Level
Figure 5.29: Distance of External Power Plants to Benchmarked

Industrial Parks
Figure 5.30: Industry Infrastructure Requirements

(KPMG Focus Group Feedback)
Figure 5.31: Average Global Lead Times for Passive Electronic

Components (2010-2014)

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Figure 5.32: Map of Complementary Industrial Estates 5-29
Figure 5.33: Green Materials Manufacturing Value Chain 5-30
Figure 5.34: GBI Certified Projects in Malaysia (2009-2014) 5-31
Figure 5.35: LEED Certified Buildings in Thailand 5-31

(2007-2013) 5-32
Figure 5.36: Value Chain Support provided by Bukit Kayu Hitam,
5-33
Prai, Bayan Lepas and Kuala Ketil Industrial Estates
- Green Building Materials 5-34
Figure 5.37: Value Chain Support provided by Bukit Kayu Hitam, 5-35
Prai, Kuala Ketil and Sungai Petani Industrial Estates 5-36
– Green Automotive Components 5-37
Figure 5.38: Proposed Green Materials Investor Functions
Figure 5.39: Snapshot of Malaysia's E&E Industry 5-37
Figure 5.40: Semiconductor Manufacturing Value Chain
Figure 5.41: Value Chain Support Provided by Sungai Petani 5-38
and Kuala Ketil – E&E
Figure 5.42: Value Chain Support provided by Kulim Hi-Tech 5-39
Park - Solar Component Manufacturing
Figure 5.43: Integrated Circuit Export Contributions by Country 5-39
(2014)
Figure 5.44: Value Chain Support Provided by Prai & Bayan 5-40
Lepas– E&E 5-40
Figure 5.45: Composition of Intermediate Component Firms 5-41
– Penang 5-42
Figure 5.46: Proposed Semiconductor Investor Functions
Figure 5.47: Solar Component Manufacturing Value Chain 5-43
Figure 5.48: Price of Solar Panels per Watt
Figure 5.49: Support provided by KHTP and Bayan Lepas FTZ 5-43
– Solar Component Manufacturing 5-44
Figure 5.50: Proposed Solar Component Manufacturing Investor 5-45
Function
Figure 5.51: PV Service Providers in Malaysia (2015) 5-45
Figure 5.52: LED Manufacturing Value Chain
Figure 5.53: Value Chain Support Provided by KHTP – LED 5-46
Manufacturing
Figure 5.54: Value Chain Support Provided by Prai Industrial 5-46
Estate & Bayan Lepas FTZ - LED Manufacturing 5-47
Figure 5.55: Composition of LED Component Manufacturers 5-49
- Bayan Lepas FTZ & Prai Industrial Estate
Figure 5.56: Proposed LED Investor Functions
Figure 5.57: Halal Industry Value Chain
Figure 5.58: Total Number of Halal Certified Companies in
Malaysia (2009-2012)

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Figure 5.59: Value Chain Support provided by Bayan Lepas, 5-49
Bukit Kayu Hitam, Prai, Kuala Ketil & Sungai Petani
Industrial Estates - Halal F&B manufacturing 5-50
5-51
Figure 5.60: Proposed Halal F&B Investor Functions 5-51
Figure 5.61: Global Halal Market Size in 2013 (USD)
Figure 5.62: Value Chain Support provided by Kulim Hi-Tech 5-52

Park – Halal Pharmaceutical Manufacturing 5-53
Figure 5.63: Value Chain Support provided by Kuala Ketil
5-54
- Halal Pharmaceutical Manufacturing
Figure 5.64: Value Chain Support provided by Prai & Bayan Lepas 5-55
5-55
FTZ – Halal Pharmaceutical Manufacturing
Figure 5.65: Proposed Halal Pharmaceutical Investor 5-56

Functions 5-58
Figure 5.66: Logistics Support for All Proposed Industries
Figure 5.67: Composition of Plant/Facility Related Firms 5-58

- Sungai Petani 5-59
Figure 5.68: Summary of Proposed Industrial Park 6-2
6-2
Supporting Functions 6-3
Figure 5.69: Complementary Industrial Estate Scoring 6-4
6-6
System
Figure 5.70: Summary of Complementary Industrial Estates 6-7
Figure 5.71: Composition of Value Chain Support - Surrounding 6-7
6-8
Industrial Estates 6-8
Figure 6.1: Governance Structure of DMO 6-8
Figure 6.2: Delivery Management Office (DMO) Structure 7-2
Figure 6.3: Structure of Legal Entity as a Park Operator Model 8-11
Figure 6.4: Governance Structure of the Kulim Hi-Tech Park 8-11
Figure 6.5: Divisions to be incorporated under the Management 8-12
8-13
Committee 9-2
Figure 6.6: Performance Management Division 9-5
Figure 6.7: Risk Management Division 9-8
Figure 6.8: Administrative Division
Figure 6.9: Industrial Support Division
Figure 6.10: Proposed Stakeholders
Figure 7.1: Viability of Proposed Industries in the Lembah Chuping
Figure 8.1: Thailand's Southern Provinces
Figure 8.2: Map of Southern Thailand (Pattani)
Figure 8.3: Hsinchu Science and Industrial Park (HSIP)
Figure 8.4: Eco World Styria
Figure 9.1: Concept of Lembah Chuping
Figure 9.2: Lembah Chuping Bubble Concept
Figure 9.3: Lembah Chuping Conceptual Plan

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Figure 10.1: Proposed Lembah Chuping Development Phasing 10-3
Plan
10-8
Figure 10.2: Proposed Road Hierarchy 10-9
Figure 10.3: Road Network Construction Phasing 10-14
Figure 10.4: Proposed Overall Drainage System Layout Plan 10-18
Figure 10.5: Proposed Elevated Reservoir, Pump Station,
10-23
And Suction Tank Layout Plan 10-28
Figure 10.6: Proposed Overall Water Supply Layout Plan 10-39
Figure 10.7: Proposed Sewerage System Layout Plan 10-44
Figure 10.8: Proposed Electrical System Layout Plan 10-39
Figure 10.9: Proposed Telecommunication System Layout Plan 10-61
Figure 10.10: Project Implementation Timeline 10-64
Figure 10.11: Phase 1 Implementation 10-68
Figure 10.12: Phase 2 Implementation 11-5
Figure 10.13: Proposed Layout of PIP
Figure 11.1: Singapore Science (Average Distances Park of 11-6

Lifestyle Services) 11-7
Figure 11.2: Hsinchu Science and Industrial Park
11-10
(Average Distances of Lifestyle Services) 11-11
Figure 11.3: Compiled Focal Points for Average Distances of
11-11
Lifestyle Services 11-36
Figure 11.4: Value Chain Analysis (Example)
Figure 11.5: Scoring System for Complementary Industrial 11-36
11-37
Estates 11-37
Figure 11.6: Net Complementary Effect (Example 1) 11-38
Figure 11.8: Survey Scoring Methodology 11-39

– Sample Question (Step 1) 11-39
Figure 11.9: Survey Scoring Methodology (Step 2) 11-40
Figure 11.10: Survey Scoring Methodology (Step 3)
Figure 11.11: Private Sector Participant Profile 11-40
Figure 11.12: Top Areas of Academic Study – IHLs
Figure 11.13: Manufacturing Facility Expansion Plans 11-41
11-41
(2015-2020) 11-42
Figure 11.14: Significant Industry Issues and Challenges
Figure 11.15: Support Requirements Essential to Business

Operations
Figure 11.16: Factors Considered When Selecting Location of

Business Operations
Figure 11.17: Required Value Chain Support
Figure 11.18: Services Required from an Industrial Park
Figure 11.19: Top Areas of Study – Graduates with a Tertiary

Level of Education

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Figure 11.20: Top Challenges in Meeting Human Capital 11-42
Requirements
11-43
Figure 11.21: Workforce Characteristics (average) – Level of
Education and Nationality 11-43

Figure 11.22: Percentage of Participants Currently Supported by 11-45
Government Initiatives
11-46
Figure 11.23: Green Processes – Trends & Uses along the Value
Chain 11-46

Figure 11.24: Main Factors Facilitating the Adoption of Green 11-47
Processes
11-47
Figure 11.25: Barriers to the Adoption of Green Processes 11-48
Figure 11.26: Composition of Collaboration Partners 11-48
11-49
– IHLs & Private Sector Participants
Figure 11.27: Commonly Undertaken Collaborations- IHLs and 11-49
11-50
Private Sector Participants
Figure 11.28: Average Durations of Collaborations
Figure 11.29: Results of Collaborative Efforts
Figure 11.30: Effective Government Initiatives in Facilitating

Collaborative Efforts
Figure 11.31: Main Challenges Hindering Collaborative Efforts
Figure 11.32: Factors Considered When Selecting the Location for

an IHL/ Firm

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LIST OF TABLES

Table 2.1: Definition of ESA Ranks 2-8
Table 2.2:
Table 2.3: Types of Controlled Solid Waste 2-18

Table 2.4: Categories of Scheduled Wastes as stated in the 2-22
Table 2.5:
Table 2.6: First Schedule
Table 3.1:
Table 3.2: Estimation of Solid Waste Generation Rate 2-23
Table 3.3:
Table 3.4: Amount generated per day based on land area 2-23

Table 3.5: Amount generated per day based on PE 2-23

Table 3.6: Rationale for Selection of Benchmarked Parks 3-4

Table 3.7: Proximity of Model Parks to Import and Export Facilities 3-12
Table 3.8:
Table 4.1: Proximity of Model Parks and Major/Satellite Cities 3-13
Table 4.2:
Table 4.3: Proximity between Model Parks and Nearby 3-15
Table 4.4:
Power Plant
Table 4.5:
Proximity between Model Parks and Water Treatment 3-16
Table 4.6:
Table 4.7: Plant
Table 4.8:
Availability of Specialised Waste Management 3-17
Table 5.1:
Facilities in the Model Park
Table 5.2:
Student Enrollment for Science-Related Courses 3-19
Table 5.3:
R&D Budget for Institution of Higher Learning 3-20
Table 5.4:
Industry Analysis Summary - Green Energy Generation 4-6
Table 5.5: Industry Analysis Summary – Green Manufacturing 4-7
Industry Analysis Summary - Halal Industries 4-8
Table 5.6: Development of Proposed Industries According 4-10

to Land Allocation

Breakdown of GNI Contribution from Proposed 4-11

Industries

GNI Contribution of Proposed Industries 4-14

Methodology for Estimation of Job Creation 4-15

Job Creation of the Lembah Chuping Development 4-16

Phases

Water Treatment Plant Capacities and Production 5-25

in Malaysia (2013)

Global Logistics Costs as a Percentage of GDP 5-27

(2012- 2013)

Value Chain Definition - Green Materials 5-30

Manufacturing

Use of Green Materials among Prominent Auto 5-33
Companies (2012)

Value Chain Definition – Semiconductor 5-36

Manufacturing

Value Chain Definition - Solar Component 5-41

Manufacturing

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Table 5.7: Value Chain Definition - LED Manufacturing 5-44
Table 5.8: Value Chain Definition - Halal Industries 5-48
Table 6.1: Possible Roles and Responsibilities of the 6-10

Four (4) Stakeholders 6-10
Table 6.2: First Step – Setting up of a Delivery Management
6-11
Office (DMO)
Table 6.3: Second Step - Setting up of a State Government-owned 7-12

Legal Entity 7-13
Table 7.1: Summary of Potential Solar Energy Generation
7-14
Investors
Table 7.2: Summary of Other Potential Green Energy 7-17

Generating Investors 7-18
Table 7.3: Summary of Potential Investors in the Green 8-4

Manufacturing Sector 8-4
Table 7.4: Summary of Potential Halal Pharmaceutical 8-9

Investors 8-9
Table 7.5: Summary of Potential Halal F&B Investors 8-10
Table 8.1: Summary of Existing Incentives for Proposed 8-10
8-25
Industries in Lembah Chuping 8-25
Table 8.2: Codes for Types of Proposed Tax Incentives 8-26
Table 8.3: Summary of Existing Incentives for Economic 8-26
9-7
Corridors in Malaysia 9-7
Table 8.4: Codes of Tax Incentives for the Economic 10-1
10-1
Corridors in Malaysia 10-2
Table 8.5: General Comparison against ASEAN Countries 10-5
Table 8.6: Codes of Types of Tax Incentives 10-7
Table 8.7: Potential Costs and Benefits 10-8
Table 8.8: Potential Cost Analysis 10-10
Table 8.9: Job Creation and GNI Contribution 10-10
Table 8.10: Potential Investment Flow into Lembah Chuping 10-13
Table 9.1: Plot 1 Development Component 10-16
Table 9.2: Plot 2 Development Component
Table 10.1: Development Phasing & Parcels
Table 10.2: Phase 1 Development Component
Table 10.3: Phase 2 Development Component
Table 10.4: Earth Work Cost Estimate
Table 10.5: Proposed Road Network Cost Estimates
Table 10.6: Phase 2 Development Component
Table 10.7: Estimated Pond Size
Table 10.8: Proposed Main Drain Size
Table 10.9: Proposed Drainage Cost Estimates
Table 10.10: Detail Water Demand Calculation

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Table 10.11: Proposed Water Supply Cost Estimates 10-21
Table 10.12: Overall Estimated Sewage Flows 10-25
Table 10.13: Overall Cost Estimated for Sewerage System 10-27
Table 10.14: Detail Load Calculations 10-30
Table 10.15: Phase 1 Proposed Electrical Reticulation Work 10-33
Table 10.16: Phase 2 Proposed Electrical Reticulation Work 10-34
Table 10.17: Breakdown Cost Estimate For Electrical 10-36

Infrastructure 10-37
Table 10.18: Overall Electrical Cost Estimate 10-41
Table 10.19: Estimated Telephone Lines Required 10-43
Table 10.20: Breakdown Cost Estimate for Telecommunication
10-43
Infrastructure
Table 10.21: Telecommunication Infrastructure Works Cost 10-36
10-46
Estimates 10-48
Table 10.22: Demand Calculation for Natural Gas Supply 10-48
Table 10.23: Natural Gas Supply Implementation Estimate Cost 10-48
Table 10.24: Overall Lembah Chuping Implementation Cost 10-62
Table 10.25: Preliminary Stage Implementation Timeline 10-62
Table 10.26: Summary of Implementation cost for Phase 1 10-63
Table 10.27: Phase 1 Implementation Timeline 10-65
Table 10.28: Phase 1 Implementation Cost 10-65
Table 10.29: Summary of Implementation cost for Phase 2 10-67
Table 10.30: Phase 2 Implementation Timeline 10-69
Table 10.31: Phase 2 Implementation Cost 11-2
Table 10.32: Indicative Timeline for Implementation 11-8
Table 10.33: Perlis Inland Port Implementation Cost
Table 11.1: Average Acreage and Employment - Job Creation 11-8
Table 11.2: Compiled Averages of Lifestyle Services across
11-9
Benchmarked Industrial Parks 11-35
Table 11.3: Summary of Services within the Average Distance 11-39
11-44
Ranges
Table 11.4: Tenant Capabilities (Example) 11-45
Table 11.5: Focus Group Discussion (FGD) Attendees
Table 11.6: Justifications for Expansion
Table 11.8: Effectiveness of Government Policies

(Green Technology)
Table 11.9: Ineffectiveness of Certain Policies & Methods

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AEC Chuping Valley Development Plan
ATCS
AYE LIST OF ABBREVIATION
CAGR
CBA Asean Economic Community
CFZ Area Traffic Control System
CIWMB Ayer Rajah Expressway
CNG Compound Annual Growth Rate
COJTC Cost-Benefit Analysis
DMO Cyberjaya Flagship Zone
DTS California Integrated Waste Management Board
E&E Compressed Natural Gas
ECER Certified on-the-Job Training Centre
EE Delivery Management Office
EEA Dedicated Transportation System
EIA Electrical & Electronics
EMP East Coast Economic Region
EPP Energy Efficiency
EPPs European Environment Agency
ESA Environmental Impact Assessment
ETP Environmental Management Plan
EU Entry Point Programs
F&B Entry Point Projects
FDH Environmentally Sensitive Area
Felda Economic Transformation Programme
FIC European Union
FiT Food & Beverages
FTZ Fiber Distribution Hub
GBI Federal Land Development Authority
GDP Felda Investment Corporation
GERD Feed-In Tariff Scheme
GITA Free Trade Zone
GNI Green Building Index
GST Gross Domestic Product
GT Gross Expenditure in Research & Development
Green Investment Tax Allowance
Gross National Income
Goods and Services Tax
Green Technology

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GTFS Chuping Valley Development Plan
HDC
HFIE Green Technology Financing Scheme
HIMP Halal Industry Development Corporation
HSBB Halal Food Industrial Estates
HSIP Halal Industry Master Plan
IC High Speed Broadband
ICT Hsinchu Science and Industrial Park
IHL Integrated Circuit
IPCC Information and Communication Technology
IRR Institutions of Higher Learning
IT Intergovernmental Panel on Climate Change
ITA Internal Rate of Return
ITE Information Technology
ITRI Investment Tax Allowance
JKR Institute of Technical Education
JPBD Industrial Technology Research Institute
JPSPN Jabatan Kerja Raya
JTC Jabatan Perancangan Bandar dan Desa
KeTTHA Jabatan Pengurusan Sisa Pepejal Negara
KHTP Jurong Town Corporation
KIC Ministry of Energy, Green Technology and Water
KPI Kulim High Tech Park
KTMB Kedah Investment Centre
KTPC Key Performance Indicators
LCCF Keretapi Tanah Melayu Berhad
LEDs Kulim Technology Park Corporation Sdn Bhd
LEED Low Carbon City Framework
MAI Light-Emitting Diodes
MASTIC Leadership in Energy and Environmental Design
MCKIP Malaysia Automotive Institute
MGTC Malaysian Science and Technology Information Centre
MIDA Malaysia-China Kuantan Industrial Park
MIGHT Malaysia Green Technology Corporation
Malaysian Investment Development Authority
MLD Malaysian Industry-Government Group for High
MoF Technology
Million Litres a Day
Ministry of Finance

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MoHE Chuping Valley Development Plan
MPK
MRT Ministry of Higher Education
MSC Majlis Perbandaran Kangar
MWA Mass Rapid Transit
MWIG Multimedia Super Corridor
NCIA Malaysian Water Association
NFB Malaysian Water Industry Guide
NGDS Northern Corridor Implementation Authority
NPP2 Nutrifres Food & Beverages
NTU Natural Gas Distribution System
NUS National Physical Plan 2
OSA Nanyang Technological University
OTC National University of Singapore
PE One Stop Agency
PET Over the Counter
PGBF Population Equivalent
PHEI Polyethylene Terephthalate
PIA Perumahan Generasi Baru Felda
PIP Private Higher Education Institution
PR1MA Promotion of Investment Act
PS Perlis Inland Port
PV Perumahan Rakyat 1 Malaysia
PWF Pioneer Status
R&D Photovoltaic
RE Perumahan Warga Felda
ROI Research and Development
ROW Renewable Energy
RSA Return on Investment
SBS Right of Way
SCoRE Road Safety Audit
SDC Singapore Bus Service
SEDA Sarawak Corridor of Renewable Energy
SEDC Sabah Development Corridor
SIA Sustainable Energy Development Authority
SLE State Economic Development Corporation
SME Social Impact Assessment
Separate Legal Entity
Small and Medium Enterprises

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SPAN Chuping Valley Development Plan
SSP
ST Suruhanjaya Perkhidmatan Air Negara
STP Singapore Science Park
TIA Suruhanjaya Tenaga
TMB Sewerage Treatment Plant
TNB Traffic Impact Assessment
TSUK Telekom Malaysia Berhad
UKAS Tenaga Nasional Berhad
UniMAP Timbalan Setiausaha Kerajaan
UNIDO Unit Kerjasama Awam Swasta
UPEN Perlis University Malaysia Perlis
US EPA United Nations Industrial Development Organisation
USP State Economic Planning Unit of Perlis
UTM United States Environment Protection Agency
UUM Unique Selling Proposition
VAT Universiti Teknologi Malaysia
VTE Universiti Utara Malaysia
WHP Value Added Tax
WTP Vocational and Technical Education
White Heron Pharmaceutical
Water Treatment Plant

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Chuping Valley Development Plan

1.0 INTRODUCTION

Chuping Valley Development Plan

1.0 INTRODUCTION

Situated to the north east of Kangar (administrative capital of Perlis),
Lembah Chuping provides 2481.91 acres of land for future
investments. The state government has allocated a total of 500 acres
for the establishment of the Perlis Inland Port (PIP) with a vision to
transform Perlis into an international border town with sophisticated
port facilities.
Figure 1.1 illustrates the location of Lembah Chuping.
As a region known as the hottest site in Malaysia that receives a
significant amount of sunlight all year long, the state government has
further allocated 200 acres for the establishment of a solar farm to
leverage of natural resources for energy production.

Note: Graphics used are for illustration purposes only and are not illustrations of exact
scale

Figure 1.1: Location of Lembah Chuping

The surrounding industries of Lembah Chuping house a diverse range
of commerce activities. Padang Besar is a town situated towards the
north of Lembah Chuping and bordering the south of Thailand plays
hosts to a variety of trading activities that attracts shoppers from both
Thailand and Malaysia. It also plays host to University Malaysia Perlis
(UniMAP) with potential to provide human capital to planned
industries.
Apart from land access, accessibility to Padang Besar is further
achieved through the Padang Besar Railway Station.

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1.1 Objectives of the Study

The objectives of the study include the following:

To identify and propose development theme/identity for Lembah
Chuping subject to existing constraints and the vision of Perlis to
become a Development State by 2015 and achieve the status of
High Income State by 2030.

To formulate the Concept Plan and Implementation Plan to
develop Lembah Chuping.

To propose the best approach to develop Lembah Chuping to
become high income generating area, encouraging hi-tech
industry employing skilled and semi-skilled workers, competitive
and create social inclusiveness.

To identify required eco-system to support proposed economic
cluster. This will include indentifying support facilities,
infrastructure, road system, human capital, investment,
management structure, and private participation to drive the
growth.

To propose special incentive package (tax and non-tax) to attract
investors to this area.

1.2 Key Findings in Achieving the Objectives / Summary of Key
Findings

The key findings in achieving the objectives of the study as follows:

It is proposed that the development of Lembah Chuping be
centred on Green technology and Green manufacturing
processes. Manufacturing is considered environmentally-friendly
(or Green) when one (or more) of the stages of the value chain are
compliant with all the outlined characteristics. Emphasis will be put
on the use of ‘Raw Materials’ and the undertaking of
‘Manufacturing’ processes in accordance with the defined criteria.

The concept of Lembah Chuping was incepted with an objective to
compliment surrounding developments and maximizing the
potential of Lembah Chuping derived from planned developments
and opportunities gathered from surrounding developments.

Lembah Chuping will be implemented in two phases. Phase 1 will be
implemented in the Eleventh Malaysia Plan (RMK11) (2016 – 2020) and
Phase 2 will be implemented in the Twelfth Malaysia Plan (RMK12)
(2021 – 2025). It is anticipated that the preliminary works to be carried

out in 2015 prior to phase 1 development. Major infrastructure and
utilities for the implementation of Lembah Chuping include Road
network, Drainage, Water supply, Sewerage, Electricity,
Telecommunication and Natural Gas supply.

In view of the plan to develop Lembah Chuping in line with its
environmentally-friendly concept, and with government and state
initiatives (as highlighted in the 10th Malaysia Plan and the
Rancangan Struktur Negeri Perlis 2030); industries were assessed

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Chuping Valley Development Plan

using the six (6) factors (under the Porter Diamond model)1 to
determine the viability of proposed industries should they be
located in Lembah Chuping. The best approach to develop
Lembah Chuping to become high income generating area,
encouraging hi-tech industry employing skilled and semi-skilled
workers, competitive and create social inclusiveness.
A sustainable model in which the proposed industries in Lembah
Chuping, relevant supporting functions, surrounding industrial
estates, and Institutions of Higher Learning (IHLs) will co-exist as
part of a mutually beneficial network is developed. The ecosystem
proposed seeks to facilitate the socio-economic advancement of
Perlis through higher value added activities and the creation of job
opportunities of various skill levels. This will include indentifying
support facilities, infrastructure, road system, human capital,
investment, management structure, and private participation to
drive the growth.
The proposed incentives for Lembah Chuping primarily aim to
retain and enhance (where appropriate) the existing incentives in
Malaysia as well as to seek for Lembah Chuping to be accorded
with the similar preferential incentives currently granted to other
Malaysian industrial estates. An attractive incentives package
catered to the requirements of industries in Lembah Chuping is
highly likely to distinguish Lembah Chuping from other industrial
areas and be seen as appealing for investors to
establish/expand/re-locate their operations in this park. It could
contribute in creating more job opportunities for the rakyat of Perlis
and increasing the park’s Gross Domestic Product contribution.

1 The Porter Diamond Model considers the relationship between different clusters in an industry’s
ecosystem, where competitiveness is related to the performance of all firms in addition to micro and
macroeconomic factors. This model is frequently used to evaluate the competitive advantage of nations.
In the context of this study, it will serve as a framework in assessing the factors that can influence an
industry’s success in a particular location, analysed through six (6) factors: Government, Factor
Conditions, Demand Conditions, Market Structure and Rivalry, Supporting Industries, and Chance.

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2.0 ASSESSMENT OF
EXISTING CONDITIONS

Chuping Valley Development Plan

2.0 ASSESSMENT OF EXISTING CONDITION
2.1 Existing Land Use and Zoning

Lembah Chuping is a former sugar cane plantation, which is currently
a vacant land with some parts of the land have been planted with cash
crops. The site has been divided into two namely Plot 1 and Plot 2.
Plot 1 cover an area of 142.80 acres and Plot 2 covers an area of
2339.10 acres. The main plot (Plot 2) has several man-made lakes of
various sizes. Forest reserve (Rimba Mas Mas Forest Reserve) is
located to the north east of Plot 2 near the Thailand border. While,
quarries located to the southern side of Plot 1 and western side of Plot
2. A planned development of Perlis Inland Port (PIP) is located on the
north of Plot 2. PIP covers an area of 500 acres.
Figure 2.1 shows the existing land use of the site and its vicinity.

Figure 2.1: Existing Land Use

Based on Rancangan Tempatan Majlis Perbandaran Kangar 2009-
2020, Lembah Chuping has been zoned for mixed developments
comprising commercial, residential, industrial, institutions and
community facilities, and open space.

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Chuping Valley Development Plan
6

Figure 2.2: Land Use Zoning for Lembah Chuping

2.2 Topography
The topography of Lembah Chuping is generally flat and undulating
with no physical restriction for development. The highest peak is on
the western side near Federal Route 79 - FR 79 (Jalan Padang Besar
- Chuping) that is 80m above sea level. Majority is between 0 - 39m
above sea level.
Figure 2.3 shows the topography of Lembah Chuping.

Figure 2.3: Contour Analysis

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Chuping Valley Development Plan

2.3 Geology and Geomorphology

A review of collated referenced literature and geological memoirs
(Jones, 1981 and Basir, 2010, etc.) indicated at least eight recognized
rock formations in the state of Perlis as shown in Figure 2.6. These
include (ranging from older to younger age) the Machinchang
formation (Cambrian), Setul formation (Ordovician to Early Devonian),
Mahang formation (Early Carboniferous), Kubang Pasu formation (late
Devonian to early Permian age), Chuping Limestone (early Permian to
late Triassic age), Bukit Arang Tertiary beds and Quaternary alluvium.
The Granite rock body (Triassic) is generally located at the northern
tip of Perlis (Bukit China) while the Machinchang and Setul formations
can be found towards the western part of the State. The Kubang Pasu
formation forms a syncline in the middle of Perlis with widely exposed
outcrops (Jones, 1981). The Chuping Limestone forms two north-
south oriented ridges and the rocks are slightly folded. The
stratigraphic contacts among those formations are generally
conformable.

There are two distinct geological formations identified within the
Lembah Chuping namely, the Chuping Limestone and the Kubang
Pasu formation. A brief description of each geological formation is
presented in subsection below.

a) Chuping Limestone Formation

The Chuping Limestone formation comprises massive dolomitic
limestone and limestone (generally at the lower depths) with
significant amount of sandstone and shale (within the mid-depth),
and crystalline limestone (at higher levels). The geological age of
Chuping Limestone is designated as Permian-Triassic and
generally shows karst topography with solution phenomena such
as caves, caverns, swallow-hollows, underground river courses,
dry valleys, and undercut cliffs. Dripstone such as stalactites,
stalagmites, columns, and pillars can be found all over the rock
unit.

b) Kubang Pasu Formation

Kubang Pasu formation is a sequence of thick to very thick-
bedded sandstone, mudstone, shale and a variety of poorly sorted
areno-argillaceous deposits, varying from muddy siltstone through
greywacke to feldspathic sandstone. The arenaceous rock
comprises predominantly grey to white sandstone, greywacke, and
conglomerate. Mudstone and shale are the most common
argillaceous rock with lesser siltstone. The rocks are essentially
dark grey and red in colour. Thickness of the individual bed of
arenaceous and argillaceous rocks may range from about 10 cm
to more than 1m. The siliceous rocks consist of thin-bedded chert
and siliceous shale. It contains rounded texture made up of
microcrystalline quartz and chalcedony that may represent traces
of replaced radiolarians.

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Chuping Valley Development Plan

STUDY
AREA

Figure 2.4: Geological Map of Lembah Chuping

2.4 Drainage and Hydraulic
Lembah Chuping is located along the main trunk road Jalan Padang
Besar - Chuping (FR79). There are existing trapezoidal earth drains at
the both sides of this road. Generally, it can be observed throughout
the site reconnaissance that these earth drains are shallow and
vegetated.
Figure 2.5 shows the site photos of the earth drains.

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Chuping Valley Development Plan

Figure 2.5: Earth drains along the main trunk road (FR79)

The whole proposed Lembah Chuping idle with wild vegetation. The
existing ground profile of this Lembah Chuping areas is generally flat
with a small portion of the areas are hilly.
Figure 2.6 shows the existing ground of Lembah Chuping.

Figure 2.6: Existing Ground of Lembah Chuping Area

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Chuping Valley Development Plan

Apart from that, according to Jabatan Pengairan dan Saliran Negeri
Perlis, there are few man-made ponds inside Lembah Chuping area
and these ponds have potential to be converted to detention ponds for
the future development.
Figure 2.7 shows the existing pond of the Lembah Chuping.

Figure 2.7: Existing Pond inside the Lembah Chuping

A few natural streams within the project area have been identified.
There are Sg. Jarum and Sg. Jerneh. Sungai Jarum is located at the
north bound of the Lembah Chuping and it flows to Timah Tasoh Dam
and Sungai Jerneh is located at the south bound of Lembah Chuping.
Sungai Jerneh is a confluence of Sungai Chuping and it flows to the
Sungai Perlis river mouth. As Lembah Chuping used to be a
plantation area before, it is noted that there are a lot of irrigation
channels within Lembah Chuping which are flowing to the natural
stream. Some of these channels may require to be maintained as part
of the future drainage system. Figure 2.8 show the location of Sungai
Jarum and Figure 2.9 shows the location of Sungai Jerneh.

Figure 2.8: Sungai Jarum at Road Crossing FR79 Jalan Arau-Padang Besar

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Chuping Valley Development Plan

Figure 2.9: Sungai Jerneh

2.5 Environmental Assessment
2.5.1 Approach Taken
The purpose of an environmental assessment is to analyze the
existing environmental conditions of the Project site and to
present preliminary findings on the surrounding area. This
section describes the findings obtained through research, a
site visit and meetings with relevant authorities. It also lists out
the current physical features of Lembah Chuping and sensitive
areas that are located adjacent to the Project site.
Environmental management on key and sensitive areas has
been elaborated and this is followed by suggestions on how to
further enhance Lembah Chuping as a green valley.
2.5.2 Findings on Existing Environment and Project
Assessment
As per Rancangan Struktur Negeri Perlis, the entire northern
area of the State which includes the Lembah Chuping Project
site is a water catchment area for the Timah Tasoh Dam as
shown in Figure 2.10 below. The water catchment area is
classified as an Environmentally Sensitive Area (ESA) of Rank
2.

Figure 2.10: Water Catchment area for the Timah Tasoh Dam

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Chuping Valley Development Plan

The definition of Environmentally Sensitive Areas as stated in the
Rancangan Tempatan Majlis Perbandaran Kangar 2009-2020 is as
Table 2.1 below.

ESA Rank Table 2.1: Definition of ESA Ranks

Definition

1 No development, agriculture or logging shall be permitted
except for low-impact nature tourism, research and
education.

2 No development or agriculture. Sustainable logging and
low impact nature tourism may be permitted subject to
local constraints.

3 Controlled development whereby the type and intensity of
the development shall be strictly controlled depending on
the nature of the constraints.

As mentioned in the “Taklimat Pembangunan Negeri Perlis” by
Jabatan Perancangan Bandar dan Desa (JPBD) Perlis, water
catchment areas are classified as one of the sensitive areas to be
developed but are allowed under controlled conditions.

i) Terrain

The terrain of the project area is generally undulating as depicted in
Figure 2.11 below with moderate variations in ground levels. Terrain
slopes are generally minor except in isolated areas. The portion of the
Project site that is lower in elevation is located at the northern sector
which is adjacent to the land designated for the Perlis Inland Port
(PIP). The southern sector is slightly higher in elevation.

Figure 2.11: Terrain of Project site

ii) Land Use
Previously, Lembah Chuping consisted primarily of sugar cane and
rubber plantations. Currently, the land has been cleared and parts of
the Project site have been rented out to farmers for short-term
plantation of cash crops. The Lembah Chuping area is currently
managed by the State Government.

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Chuping Valley Development Plan

iii) Flood Prone Area
Lembah Chuping is virtually free from flooding except for a portion of
the area marked as Point “A” as depicted in Figure 2.12 below. The
area at Point A occasionally experiences flooding as mentioned by the
Plantation Manager.

A
B
C

Figure 2.12: Flood Prone Area

iv) Weather
Perlis experiences a typical equatorial bimodal Monsoon Climate. The
relatively dry season in Perlis is usually during the month of December
to March. The monthly variations in rainfall recorded for the year 2011
is depicted in Figure 2.13. The wet season for the year 2011 occurred
from the end of February right up to April.

Figure 2.13: Total Monthly Rainfall for the year 2011

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Chuping Valley Development Plan

v) Hydrogeology
Based on the National Physical Plan 2 (NPP2) and interviews
conducted with the Plantation Manager, there is substantial amount of
groundwater present within Lembah Chuping. Previously, groundwater
was the main source of water used for irrigating the sugar cane and
rubber plantations. Groundwater was extracted via tube wells (Figure
2.15) that are located at ‘Point C’ as shown in Figure 2.14. The depth
of the tube wells are around 600 ft.

A
B
C

Figure 2.14: Location of tube wells at Point C

Figure 2.15: Tube Wells

However, data on the current quantity of groundwater, groundwater
recharge and abstraction rates are not available and will not be
addressed in this assessment. Risk of contamination to soil and
groundwater due to leakage, spillage or seepage of effluents
discharged from industries or from chemicals stored on-site will be
high. In order to keep track and monitor the groundwater quality in
Lembah Chuping, a groundwater monitoring programme shall be
established and implemented. Some of the existing tube wells that are
currently present in Lembah Chuping can be retained and used as
future groundwater monitoring points. A list of activities that have the
potential to cause soil and groundwater contamination as per the
Contaminated Land Management and Control Guidelines 1 is
attached under Attachment D.

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Chuping Valley Development Plan

vi) Hutan Simpanan Kekal Rimba Mas-Mas
The Hutan Simpanan Kekal (HSK) Rimba Mas-Mas occupying an
area of 52.38 ha as seen in Figure 2.16 below is located about 440m
to the north-east of the Project site and lies outside the project
boundary.

Figure 2.16: Hutan Simpanan Kekal Rimba Mas-Mas

HSK Rimba Mas-Mas is classified as an ESA Rank 1
as shown in Figure 2.16 above. The buffer zone
distance that is required from the Project site to the
HSK Rimba Mas-Mas is 500m as per the National
Physical Plan 2. Although no significant impacts
towards HSK Rimba Mas-Mas will take place during the
construction and operation of this project, special
arrangements on obtaining approval and clearance
from relevant authorities on this matter has to be
obtained.

vii) Timah Tasoh Dam
The Timah Tasoh Dam which is an ESA Rank 1 is located less than
5km away from the development site as shown in Figure 2.17 below.
It is used as the main water source for drinking water and irrigation;
and also acts as a flood control system.

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Figure 2.17: Timah Tasoh Dam

viii) Kawasan Tanaman Padi MADA
Kawasan Tanaman Padi MADA which is an ESA Rank 1 area is a
major food source to the State and Nation and is located around 16km
away from Lembah Chuping as shown in Figure 2.18 below and is
connected to the Project site via Sg. Jerneh.

ix) Surface Water
There are two river systems which are present in Lembah Chuping;
i.e. Sg. Jarum & Sg. Jerneh. The direction of flow for both rivers are
westwardly, with the river flow originating to the east of the
development area (upstream) as shown in Figure 2.18 below.
Lembah Chuping will drain all water generated on site into Sg. Jerneh
via the site’s drainage system.
Sg. Jerneh flows southwards from Lembah Chuping, connects with
other river tributaries which converge and flows into Sg. Perlis and
part of Sg. Perlis crosses into the Kawasan Tanaman Padi MADA
area.
Although the Kawasan Tanaman Padi MADA is located 16km away
from Lembah Chuping, consideration still has to be taken as to the
Project’s potential impact on this area since the Kawasan Tanaman
Padi MADA is an ESA Rank 1.

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Chuping Valley Development Plan

Figure 2.18: Direction of flow of Sg. Jarum and Sg. Jerneh

By reason of this, any premise that generates industrial effluent in
Lembah Chuping has to abide by the Environmental Quality (Industrial
Effluent) Regulations 2009. Industrial effluent that is generated has to
be treated at an on-site industrial effluent treatment system in the
respective premises in accordance to Standard A of the Fifth
Schedule (Attachment A) prior to being discharged into the Project
site’s drainage system. Sewage generated in the Lembah Chuping
area will also have to be treated to meet the discharge limits of
Standard A of the Second Schedule (Attachment B).
Each waste generator has to regularly monitor their treated effluent at
the final discharge point to ensure it meets the discharge standards
and to avoid contamination of the surface water downstream.

2.5.3 Management of Lembah Chuping as a Green Valley
There are a couple of recommendations that can be
incorporated into the design, construction and operation of the
facilities in the Project site to further enhance Lembah Chuping
as a Green Valley. One way will be to obtain the Green
Building Index (GBI) certification. GBI provides the opportunity
for building owners to design and construct sustainable
buildings that are energy, water and material efficient to reduce
the buildings footprint on the environment.

a) Water Conservation
This can be done by recycling the treated effluent and
using it for landscape purposes and for toilet flushing.
The treated effluent can even be re-used in the
manufacturing process so long as the treated effluent

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Chuping Valley Development Plan

quality meets the processes operating standard and
requirements. This practice will reduce the demand of
water supplied daily. Increasing the awareness of all
employees and staff through educational talks and
exhibition is also a means of bringing their attention to
the benefits of water conservation.

b) Rainwater Harvesting
Individual premises in Lembah Chuping can implement
a rainwater harvesting system as this greatly reduces
the demand of water supplied. Collected rainwater can
either be stored above or below ground and used for
irrigation, facility cleaning, toilet flushing and firefighting
purposes. Another benefit of rainwater harvesting is
that it reduces erosion caused by stormwater that falls
from roofs and gutters.

c) Installation of additional solar cells on building
rooftops
Seeing as Perlis is one of the states in Malaysia that
receives the highest intensity of sunlight, owners and
occupiers of premises should take advantage of this
and install solar cells on the rooftops of their structures.
Solar cells once installed require very little maintenance
and emit no pollution in the process. The Malaysian
government is considering implementing the Net-
Metering system in the near future. Once administered,
this system could be applied to the facilities in the
Project site. This system allows the option of the facility
to generate their own electricity and sell the excess
amount generated to the grid.

d) Natural Lighting
Another advantage that can be taken from the
presence of intense sunlight is natural lighting. Owners
of premise can incorporate designs for large windows
or sunroofs that allow natural lighting for the facility.
Although only available during the day, this approach
reduces the amount of artificial lighting used and is also
very much energy efficient.

2.5.4 Subsequent Steps to be Taken

An Environmental Impact Assessment (EIA) as per the
Environmental Quality (Prescribed Activities) (Environmental
Impact Assessment) Order 1987 shall be carried out for the
entire Lembah Chuping site regardless of the type of industries
planned since there are a number of Environmentally Sensitive
Areas of Rank 1 adjacent to Lembah Chuping, the area of the
site exceeds 50 ha, and most importantly because Lembah

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Chuping is part of the Water Catchment Area for the Timah
Tasoh Dam.

Once the land uses have been specified, individual industries
and activities that will be established within Lembah Chuping
will have to carry out EIA studies as per the Environmental
Quality (Prescribed Activities) (Environmental Impact
Assessment) Order 1987.

Following that, an Environmental Management Plan (EMP) for
the entire Lembah Chuping area and each occupied premise
shall be carried out, implemented, revised and updated when
required in accordance with their respective EIA Reports and
the EIA Approval Conditions.

2.6 Infrastructure and utilities

2.6.1 Road / Rail Transportation Network
Perlis is served with a good road network ie. Federal Rads,
State Roads and highway. Changlun - Kuala Perlis Highway
(Federal Route 194) links the towns of Perlis with the North-
South Highway and Federal Route 7 link Padang Besar and
Kangar to Alor Setar.
The existing road connecting Lembah Chuping to surrounding
areas is Federal Route 79 (FR 79), which link Padang Besar to
Ulu Pauh. JKR has proposed U5 standard 40 km road
connecting Padang Besar to Bukit Kayu Hitam (refer Figure
2.19) in which the indicative alignment shows that it traverses
through Lembah Chuping area.
Another transportation asset for Perlis is the KTMB electrified
double tracking railway connecting Perlis to Penang Port and
major cities such as Ipoh, Kuala Lumpur and Johor Bahru.
Railway lines also enable Perlis to be connected to major cities
in Thailand, Indo China and China. Lembah Chuping located
just a kilometer away from the railway track.
Presently, Sultan Abdul Halim Airport in Alor Setar is the
nearest airport to Perlis. While the nearest airport with cargo
facilities is Penang International Airport, in Penang Island.
At present, existing FR 79 (Padang Besar – Ulu Pauh) is the
only road that is accessible to the development area. However,
the planning of new road by JKR to link Lembah Chuping to
Bukit Kayu Hitam will be another new access to the
development.
Figure 2.20 illustrates the accessibility analysis to the site.

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Chuping Valley Development Plan

Figure 2.19: Road / Rail Transportation Network in Perlis

Figure 2.20: Site Accessibility Analysis
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Chuping Valley Development Plan

2.6.2 Water Supply System

Based on site reconnaissance and discussion with JKR
Bahagian Bekalan Air Kangar, there is no existing main water
supply at Lembah Chuping. The nearest reservoir to supply
water to the Lembah Chuping site is at Empangan Timah
Tasoh.

The total water demand shall depend on type of the area to be
developed. Based on the proposed Masterplan Layout, the
total estimated water demand is approximately 11.6 million
gallons per day (or 52,734 m3/day).

According to JKR, the current capacity of Empangan Timah
Tasoh is not sufficient for the additional water demand of the
proposed Lembah Chuping area. Therefore, the existing
treatment plant and reservoir are required to be upgraded, and
a new main trunk is required to be laid from the treatment plant
/ reservoir to the Lembah Chuping with an estimated length is
about 15 kilometres.

The total estimated water demand for this development is 11.6
million gallons per day. The water supply is proposed to be
sourced from Empangan Timah Tasoh as this treatment plant
is the nearest to Lembah Chuping area. However, as
mentioned above, this treatment plant is required to be
upgraded in capacity.

2.6.3 Sewerage System

Based on site reconnaissance and discussion with IWK
(Planning Division), Penang, there is no existing sewer lines
and sewage treatment plant (STP) in Lembah Chuping. A new
trunk sewers, intermediate pump stations and new STP are
required to be provided for this development.

The existing sludge treatment facility is located at Wang
Bintong which is 47.6km from Lembah Chuping. Due to this,
space has to be allowed within the premises of the STP to
accommodate the sludge treatment, sludge handling and
storage facilities.

2.6.4 Solid Waste Management

Jabatan Pengurusan Sisa Pepejal Negara (JPSPN) defines
solid waste as any scrap material or unwanted surplus
substances or rejected products arising from the application of
any process or any substance required to be disposed of as
being broken, worn out, contaminated or spoilt.

a) Current Management of Solid Waste in Perlis

The Local Authority in the state of Perlis has appointed
the concessionaire E-Idaman Sdn. Bhd with the
responsibility of carrying out solid waste management
and public cleansing services. Among the services
provided by E-Idaman are illustrated in Figure 2.21
below.

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Chuping Valley Development Plan

Figure 2.21: Services provided by E-Idaman

b) Legislative Framework

The Solid Waste and Public Cleansing Management
Act 2007 (Act 672) define Controlled Solid Waste as
shown in Table 2.2 below.

Table 2.2: Types of Controlled Solid Waste

Categories of Definition
Controlled Solid Waste

Commercial solid waste Any solid waste generated from any
commercial activity

Construction solid waste Solid waste generated from any construction/
demolition activity, including improvement,
preparatory, repair or alteration works;

Household solid waste Any solid waste generated by a
household and includes garden waste

Industrial solid waste Any solid waste generated from any industrial
activity

Institutional solid waste Any premises approved under any written
law or by the State Authority for use wholly or
mainly for religious worship or for charitable
purposes;

Any premises occupied by any Federal or
State Government department, any local
authority or any statutory body;

Any educational premises;

Any healthcare facilities including hospitals,
clinics and health centers

Any premises used as public zoos, public
museums, public libraries and orphanages

Imported solid waste Any solid waste generated in other countries
and imported to Malaysia for processing or
disposal

Public solid waste Any solid waste generated by public places,
which are under the supervision or control of
any local authority

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Chuping Valley Development Plan

c) Solid Waste Management Policy for Lembah
Chuping

Pursuant to the development of Lembah Chuping as a
Green Valley which houses Green Industries as well as
Green Knowledge Centers, it is important for all
industries and land uses in the development site to
practice the 4R Policy. The 4R policy, which essentially
is Reduce, Reuse, Recycle and Recover, plays a major
part in the overall management of solid waste as shown
in Figure 2.22 below.

Source: JPSPN)
Figure 2.22: Hierarchy of Waste Options

As stipulated by JPSPN, “Reduce” is the reduction of
waste generated at the source or at the waste
generators premise and as shown in the figure above it
is the most desirable form of waste management.
Another term that can be used is Source Reduction.
The occupier of the premise can implement a number
of waste reduction strategies such as reducing the
amount of raw materials used in the process, altering
the packaging of a product to eliminate unnecessary
materials being used or if possible to modify the
manufacturing process in order to reduce the quantity
of by-products produced and also to reduce quantity of
raw materials consumed.
“Reuse” means finding an alternative use for materials
that have been generated as a by-product or any
leftover material or substances from the manufacturing
process. “Recycling” on the other hand is manually
separating the waste generated into streams like paper,
plastics, glass, metals and food waste to be reused.
The concept of waste separation and recycling at the
source has to be implemented and conveyed to all
levels of management and employees in order to yield
positive feedback. Separation of the waste at the
source is important in order to be able to “recover” high
quality of materials that can be reused. If waste is not
separated at the source, it makes it difficult to extract

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Chuping Valley Development Plan

waste that can be reused and recovered at transfer
stations since waste streams have been mixed
therefore reducing the quality of the waste. The
operator of each facility has to ensure that adequate
training and knowledge on the 4R Policy is conveyed to
all employees and make certain that it is being put into
practice. This will lead to higher recycling efficiencies
being achieved and lower quantities of waste being
generated thus reducing the total amount of waste that
will be sent to the landfill.
Through these strategies and approaches, the targets
for recycling of waste and waste reduction to landfills
that have been set by the Government can be
comfortably met. The target to be met by E-Idaman is
to increase their recycling rate from 4% to 22% by the
year 2020 and the Federal Government to meet 40%
waste reduction to landfills by 2020. Figure 2.23 below
illustrates the overall flow of waste that will be
generated at the Project site right up to its final
disposal.

Figure 2.23: Overall flow of waste generated in Project site

d) Types of Solid Waste Generated and Waste
Generation Rate in Lembah Chuping
The two types of solid waste that will be generated in
the Project site are Controlled Solid Waste and
Scheduled Wastes.

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Chuping Valley Development Plan

i) Controlled Solid Waste
In reference to the Solid Waste and Public Cleansing
Management Act 2007 and taking into account the
types of solid wastes that will be generated in Lembah
Chuping, Controlled Solid Waste will be taken to
constitute solid waste falling within any of the following
categories:
• Commercial solid waste
• Construction solid waste
• Household solid waste
• Institutional solid waste
• Public solid waste
• Non-hazardous waste
• Bulky and non-bulky waste
During the construction and operation of the Project
site, substantial amount of controlled solid waste as
stated above will be generated. The Park owner or
occupiers of premise shall make arrangements with E-
Idaman to set up the solid waste collection services
which will cover collection of Controlled Solid Waste
right up to its final disposal.
Controlled solid waste will be collected separately from
each waste generator’s premise by E-Idaman and will
then be sent to the Rimba Mas Sanitary Landfill for final
disposal.

Figure 2.24: Project Layout Plan and location of Rimba Mas Sanitary
Landfill

As shown in Figure 2.24 above, The Rimba Mas
Sanitary Landfill is an ongoing project under JPSPN

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Chuping Valley Development Plan

and is schedule to be completed by July 2015. This
sanitary landfill is situated on Lot 5149 at Rimba Mas,
Mukim Titi Tinggi and will receive waste generated in
Perlis with an estimated value of 150 tonnes/day. This
sanitary landfill will be operated as a semi-aerobic
sanitary landfill and is located 1km away on the
southwest side of the Lembah Chuping.

ii) Scheduled Wastes

Scheduled Waste is classified as waste that falls within
the categories of waste listed in the First Schedule of
the Environmental Quality (Scheduled Wastes)
Regulations 2005 (Attachment C). The categories of
scheduled waste are shown in Table 2.3 below.

Table 2.3: Categories of Scheduled Wastes as stated in the
First Schedule

Category of Description
Scheduled Waste

SW 1 Metal and metal-bearing wastes

SW 2 Wastes containing principally
inorganic constituents which may
contain metals and organic materials

SW 3 Wastes containing principally organic
constituents which may contain
metals and inorganic materials

SW 4 Wastes which may contain either
inorganic or organic constituents

SW 5 Other Wastes

During the manufacturing process in industries,
scheduled wastes can be used as raw materials,
cleaning reagents or can be produced as a by-product
of a process. It is emphasized in the act that the
treatment, recovery and disposal of scheduled wastes
can only be carried out at prescribed premises only.
Kualiti Alam Sdn. Bhd. is the appointed company that
provides off-site treatment and disposal of scheduled
waste.

Scheduled waste generated will be stored in containers
that are durable and compatible with the waste in order
to prevent leakage or spillage of waste to the
environment. Areas that are designated for the storage
of scheduled waste prior to collection shall be
designed, constructed and maintained in accordance
with guidelines prescribed by the Director General to
avoid the escape of wastes into the environment.

It is the responsibility of the waste generator to ensure
that all scheduled wastes generated are labeled

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Chuping Valley Development Plan

according to their respective categories as stated in the
Environmental Quality (Scheduled Wastes) Regulations
2005. Kualiti Alam will oversee all matters relating to
the collection of scheduled waste generated on site to
transportation of waste to its waste management centre
that is located at Bukit Nanas in Negeri Sembilan.
Scheduled waste will then be disposed off at a secured
landfill under the management of Kualiti Alam.

iii) Solid Waste Generation Rate in Lembah Chuping

The estimation of solid waste generation rate based on
land use in Lembah Chuping is as shown in Table 2.4
below.

Table 2.4: Estimation of Solid Waste Generation Rate

Land Use Generation Rate Source

Industries + 1234.91 CalRecycle, 2006 Waste Disposal
SME kg/acre/day and Diversion Findings for
(0.305 kg/m2/day) Selected Industry Groups

Institution + 242.81 kg/acre/day CalRecycle, 2006 Waste Disposal
Commercial (0.06 kg/m2/day) and Diversion Findings for
Selected Industry Groups

As for Table 2.5 below, the waste generation rate is calculated
based on the land area of the facility type and taking into
account 30% of the land area as the built-up area.

Table 2.5: Amount generated per day based on land area

Land Use Industries + SME Institution +
Commercial

Area (acre) 1740 390

Generation Rate for built-up 644,623 28,409
area (kg/day)

The waste generation rate based on the Population Equivalent
(PE) is presented in Table 2.6 below. The waste generation
rate per person in the State of Perlis as per JPSPN is taken as
1.0kg/person/day [Source: National Strategic Plan for Solid
Waste Management, JPSPN] .Mainly food waste will be
generated by employees in Lembah Chuping and based on
this assumption, we have deduced the waste generation rate
to be 0.4 kg/person/day.

Table 2.6: Amount generated per day based on PE

Total PE PE*0.4 kg/person/day
69,000 27,600 kg/day

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2.6.5 Electricity
Based on the site reconnaissance and the meeting with
Tenaga Nasional Berhad (TNB) Kangar, Perlis, the following
are some of our observations of the existing electrical system
at the Lembah Chuping vicinity:-
a) There is an existing 275/132kV Transmission Main Intake
Substation (PMU) Chuping with capacity of 60 MVA near
the army camp which is approximately 15 kms away from
the development area.
b) There is an existing 132/33kV Transmission Main Intake
Substation (PMU) Bukit Keteri South with capacity of 90
MVA which is approximately 20 kms away from the
development area. This PMU was commissioned by TNB
for power supply to KTMB double track project.
c) There is an existing 132/11kV Transmission Main Intake
Substation (PMU) Bukit Keteri for the cement factory.
d) There is an existing 33kV overhead cable which is located
within the site boundary from PMU Bukit Keteri and PMU
Padang Besar. Based on discussion with TNB, the existing
33kV overhead cable will need to be relocated after the
commissioning of the new 132/33kV PMU.
e) There are two (2) nos. existing 11kV overhead cables
along the main road to Padang Besar. There are also two
(2) nos. existing 11kV substations which are located near
the main road to Padang Besar and near the existing lake
within the development area, respectively. These
substations are interconnected to each other by 11kV
underground cables.

Figure 2.25 indicate the existing PMU in the Lembah
Chuping area.

Figure 2.25: Existing Pencawang Masuk Utama (PMU) in Lembah
Chuping Area

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