|
| 68. |
In so far as Kuala Lumpur is the capital
of the nation, its economic catchments encompass the entire country.
The present range of human activities in the City, its infrastructure
and buildings, its parks and monuments, its spectrum of social, spiritual,
recreational and entertainment facilities, and its concentration of
governmental and nongovernmental institutions, are manifestations
of the City’s function as the capital of the nation. With the
relocation of federal government administrative functions to Putrajaya,
some diminution of this role is likely to be felt, but the City will
remain the economic and business centre of the country. |
| 69. |
At the same time, Kuala Lumpur and
its conurbation (KLC) form a region that is the most industrialised
and economically the fastest growing in the country. Furthermore,
the development of the KLIA at Sepang, the creation of the MSC, which
includes Putrajaya and Cyberjaya, and the expansion of Port Klang
have reinforced the national and international economic significance
of the City. |
| 70. |
As an international business centre,
Kuala Lumpur vies with cities such as Singapore, Bangkok, Manila and
Hong Kong for primary position in the Asia Pacific Region. In realising
its vision to become A World-Class City, Kuala Lumpur must address
the regional, national and international perspectives, embrace the
opportunities presented and define its specific role. |
| 4.2 |
Existing
situation and issue |
|
| 71. |
The Gross Domestic Product (GDP) for
Kuala Lumpur (at purchasers’ value in 1987 prices) has increased
from RM21,157 million in 1995 to RM25,968 million in 2000, an average
annual growth rate of 4.2 percent. Malaysia’s GDP average annual
growth rate during the same period was 4.7 percent (refer Table 4.1). |
| |
Table 4.1: Gross Domestic Product (GDP), 1995 - 2000 |
| 72. |
The per capita GDP for Kuala Lumpur
during the period 1995 to 2000 rose from RM22,799 to RM30,727, an
average annual growth rate of 6.1 percent. The per capita GDP for
Kuala Lumpur was more than twice that of the national average (refer
Table 4.2). |
| |
Table 4.2: Per Capita Gross Domestic Product (GDP),1995 - 2000 |
| 73. |
The total current employment in Kuala
Lumpur is estimated at around 838,400. The economic structure of Kuala
Lumpur and the entire KLC, in terms of broad sectoral distribution
of employment is given in Table 4.3. |
| 74. |
The tertiary or service sector forms
the largest component of employment in Kuala Lumpur representing about
83.0 percent of the total compared to 71.0 percent in the KLC. Based
on the Eighth Malaysia Plan, it is estimated that Kuala
Lumpur accounts for the major portion or 58.0 percent of the service
sector jobs within the KLC. The tertiary sector comprises finance,
insurance, real estate & business services, wholesale & retail
trade, restaurant & hotel, transport, storage & communication,
utilities, personal services and government services. |
| |
Table 4.3: Distribution of Employment by Major Sectors in Kuala
Lumpur, Kuala Lumpur and its Conurbation and Malaysia, 2000 |
| 75. |
The secondary sector, which comprises
manufacturing and construction, represents only 16.0 percent of employment
in Kuala Lumpur compared to 26.0 percent in the KLC. |
| 76. |
The employment to population
ratio in Kuala Lumpur is higher at 59.0 percent compared to 41.0 percent
in the remainder of the KLC and 40.0 percent in the country as a whole. |
| 77. |
The manufacturing component
of employment has declined to 10.5 percent of total employment in
2000 from 16.8 percent in 1980, leading to a reduction in the range
of employment opportunities in the manufacturing sector.
• Decline in employment in the manufacturing sector. |
| 78. |
Based on sources from Department of
Statistics and assumptions derived from the existing number of housing
units in Kuala Lumpur, it is estimated that the population for Kuala
Lumpur in 2000 was 1.42 million people. The KLSP 1984 projected that
the population for Kuala Lumpur for the year 2000 was 2.2 million
with the employment of 1.4 million. |
| |
Photo 4.1: ... it is estimated that the population for Kuala
Lumpur in 2000 was 1.42 million people. |
| 79. |
Population and employment have not
grown as fast as projected by the KLSP 1984. However, the ratio of
employment to population has increased from 46.9 percent in 1980 to
59.0 percent in 2000. |
| 80. |
Figure 4.1 indicates the changing trends
in the migration. There has been a reversal in net inmigration of
about 9,000 persons per annum between 1975 to 1980 to a net out-migration
of about 4,280 persons per annum for the period 1991 to 1997. The
out-migration is clearly not a result of lack of employment opportunities
but is partly due to the shortage of affordable housing. Kuala Lumpur
has experienced a movement of people to the suburbs and outlying towns,
who, nonetheless, commute daily back into the City to work. While
the KLC grew rapidly, the City itself experienced a slower population
growth. |
| |
Figure 4.1: Net Migration in Kuala Lumpur, 1975 to 1997 |
| |
• The high rate of
net out-migration and low population growth rate. |
| 81. |
The continuing decline in
the birth rate for Kuala Lumpur has resulted in the decline in the
proportion of young people below 15 years old from 33.0 percent in
1980 to slightly less than 27.0 percent in 2000. Commensurately, the
working
age group of 15-59 increased from 63.0 percent in 1980 to 67.0 percent
in 2000. The old age group, 60 years old and above has increased from
4.0 percent in 1980 and 1991 to 6.0 percent in 2000 (refer Table 4.4) |
| 82. |
By looking into the age
structure of the city population, it needs special policy and approach
on aspects related to housing, facilities and opportunities for all
ages including the teenager, youth and aged.
• Impact of young population and the increasing proportion of
aged population. |
| |
Table 4.4: Composition of Population by Age Structure, 1980
- 2000 |
| 83. |
The KLSP 1984 projected
an increase in the proportion of Bumiputera population from 28.0 percent
in 1980 to 34.5 percent in the year 2000. However, based on the census
of the Department of Statistic, the actual percentage of Bumiputera
population was 33.0 percent in 1980 and increased to around 38.0 percent
in 2000 (refer Table 4.5). This was higher than anticipated. |
| 84. |
Another phenomenon has been
the increase in the presence of ‘others’ and ‘non-citizens’
in Kuala Lumpur, who now constitute about 9.0 percent of the City’s
population. |
| |
Table 4.5: Population by Ethnic Groups, 1980 - 2000 |
| 85. |
The City Centre population
has decreased from 156,980 in 1980 to 128,720 in 2000. During the
same period, and the percentage of the City’s population living
within the City Centre compared to the City as a whole has dropped
from 17.1 percent to 9.0 percent. This has set back the optimisation
of the infrastructural investment put in place over the last two decades. |
| |
• Decline in the population
of the City Centre. |
| 86. |
In order to create an economic
framework for the City which will enable it to achieve its vision
to be A World-Class City, CHKL aims to:
• enhance the City’s global and regional economic role as
a leading centre of the Knowledge-Based Economy;
• attain a strong and well diversified economic base;
• integrate with and complement the activities within the Multimedia
Super Corridor; and
• attain an optimum population size and distribution. |
| 4.4 |
Employment
and population target |
|
| 87. |
Kuala Lumpur needs to attain
employment and population sizes that are optimum in relation to its
economic activities, land resources, infrastructure and community
facilities. To this end, an employment of 1.4 million and a population
of 2.2 million are targeted for the year 2020 (refer Table 4.6). |
| |
Table 4.6: Population and Employment, 2000 - 2020 |
| 4.5.1 |
Economic
base and employment |
| a) |
A leading
centre of the knowledge-based economy |
| 88. |
Being part of the MSC,
Kuala Lumpur can anticipate that it will attract many multinational
and local enterprises involved with information and communication
technology.
| Policy |
| EC 1 |
: |
CHKL
shall implement measures to develop Kuala Lumpur as a centre of
the Knowledge-Based Economy. |
|
| b) |
An international
commercial & financial centre |
| 89. |
To enhance the role of
Kuala Lumpur as an international commercial and financial centre,
it is important for the City to enhance its attractiveness to international
businesses. |
| |
Photo 4.2: ... Kuala Lumpur as a centre of the Knowledge- Based
Economy. |
| |
| Policy |
| EC 2 |
: |
CHKL
shall implement measures to attract international organisations
and business entities. |
|
| c) |
An attractive
tourist destination |
| 90. |
In Kuala Lumpur, as in
other major cities, the tourism sector plays an important part in
its economic life, providing income, employment and expanding business
opportunities. The tourism industry requires a very wide range of
services and facilities provides employment across all sectors of
the population and helps to diversify the City’s economy. The
potential of tourism sector therefore must be developed and promoted
as a major economic generator. |
| |
Photo 4.3: The tourism industry requires a very wide range
of services and facilities, provides employment ... |
| |
| Policy |
| EC 3 |
: |
CHKL
shall develop and promote tourism as an important economic sector. |
|
| d) |
An international
shopping centre |
| 91. |
Enhancing and developing
Kuala Lumpur as an international shopping centre is based on a sound
foundation as Kuala Lumpur is already the premier shopping centre
of the country. |
| 92. |
Modern retail formats including
mega malls, duty-free shopping outlets and discount stores have been
developed which have enhanced the attractiveness of Kuala Lumpur as
a shopping centre. Building on its wide variety of shopping facilities,
Kuala Lumpur has the opportunity to become an international ‘shopping
paradise’. |
| |
| Policy |
| EC 4 |
: |
CHKL
shall enhance and develop Kuala Lumpur as an international shopping
centre. |
|
| |
Photo 4.4: ... Kuala Lumpur has the opportunity to become an
international ‘shopping paradise’. |
| e) |
A major
meetings, incentives, conventions and exhibitions centre |
| 93. |
Business and conference
tourism has expanded in recent years and is becoming a very important
component of the industry. As a strategy in developing the tourism
sector, more state-ofthe- art Meetings, Incentives, Conventions and
Exhibitions Centre (MICE) facilities will be provided. In addition,
there shall be concerted efforts among the government and non-governmental
organisations to organise and host international MICE events in Kuala
Lumpur.
| Policy |
| EC 5 |
: |
CHKL
shall promote the development of MICE facilities and encourage
the holding of international events in the City. |
|
| f) |
A dynamic
cultural and entertainment centre |
| 94. |
Culture and entertainment
not only help to make an attractive living environment but can also
be developed as important economic goods in their own rights. Cities
like London, New York, Sydney and Frankfurt have succeeded in making
music, theatre and art as viable commercial activities and by such
success are very attractive to international
tourists and investors. |
| 95. |
Within the context of the
overall KLC, Kuala Lumpur continues to serve as the principal cultural
and entertainment centre where the best restaurants, nightclubs, theatres,
concert halls and art galleries are located. |
| 96. |
To make Kuala Lumpur an
international centre for culture and arts entertainment, it is pertinent
to build upon its multi-racial, multi-religious and multi-cultural
character in line with the National Cultural Policy. The anticipated
influx of expatriates to Kuala Lumpur and its conurbation in response
to the various development strategies and programmes, will also provide
a stimulus for increasing the variety of cultural and arts entertainment
facilities in the City.
| Policy |
| EC 6 |
: |
CHKL
shall encourage and facilitate the development of cultural and
entertainment facilities. |
|
| g) |
A regional
educational and health centre |
| 97. |
Education and health services
are becoming increasingly important economic activities and are being
promoted aggressively as major commercial services for the local and
export markets. To promote the development of educational and health
services, more and improved facilities need to be provided.
| Policy |
| EC 7 |
: |
CHKL
shall encourage, promote and facilitate the development of education
and health as commercial services. |
|
| |
Photo 4.5: ... health services are becoming increasing important
economic activities and are being promoted aggressively as major commercial
services for the local and export markets. |
| h) |
A revitalised
manufacturing sector |
| 98. |
In order to provide a balance
in the City’s economic base, a strong manufacturing component
must be retained. Existing and new manufacturing industries that meet
the criteria of being clean and non-polluting industries shall be
selectively retained or encouraged. In step with the development of
the MSC, knowledge-based industries including
those concerned with software development need to be promoted without
neglecting traditional industries that are skill intensive.
| Policy |
| EC 8 |
: |
CHKL
shall facilitate the restructuring and sustenance of the manufacturing
sector in favour of knowledge-based and high skills industries. |
|
| 4.5.2 |
An
Optimum Population |
|
| 99. |
In order to reach an optimum
population of 2.2 million in the year 2020, a population growth rate
that is faster than that attained in the last decade needs to be achieved.
Measures must be implemented to attract more people to live in the
City.
| Policy |
| EC 9 |
: |
CHKL
shall implement measures to reverse the declining population
growth rate in order to achieve an optimum population by
the year 2020. |
|
| 100. |
There is a need to increase
the residential population of the City Centre not only to optimise
the infrastructural investment, but also with a view to making the
City Centre a more vibrant and dynamic place which can attract local
and international businesses.
| Policy |
| EC
10 |
: |
CHKL
shall implement measures to attract more people to live in the
City Centre. |
|
| 101. |
The increase in the population
of the teenager, youth and aged and the growth of expectations for
a better standard of living require that greater attention be given
to the needs of the teenager, youth and aged in terms of the quality
and range of accommodation and other facilities.
| Policy |
| EC
11 |
: |
CHKL
shall take into consideration the needs of the teenager, youth
and aged population in all aspects of planning and development. |
|
|
