The client is a state agency entrusted to spearhead the economic development and socio-economic growth in a state of an ASEAN country. Its primary goal is to spur economic growth in the state so as to transform the economic landscape and elevate the living standards of the people. Working with a diverse group of consultant comprises of master planner, town planner and business strategist, the client aspired to establish a Concept Masterplan and Economic Development Strategy for the state.
FULL STORY
In performing the roles as a state agency, the client has been striving to develop the state by investing in various infrastructure and social welfare projects that were planned to spur economic growth and drive development. The region is mainly an agricultural and forested area with built-up area only accounting for less than 10% of the region while the rest is non built-up area. Besides, it is situated at a rather remote area and the connectivity to major cities are limited.
The GDP contribution of the state only accounted for a trivial amount to the national GDP. The GDP per capital of the state is significantly lower than the national average while land productivity is also far lower than average. The situation gets worse when the population is at a historical low level and more people are moving out to other major cities due to better education and job opportunities.
The client realized that there is an imperative need to strategize a state level economic development plan that can transform the current situation and boost up the economic growth. With the team’s substantial expertise in masterplanning and business strategy, the consultant identified a basket of catalytic projects that were customized to leverage on the competitive advantages of the state along with a greater portfolio of complementary projects that will bring sustainable economic growth in the long term.
KEY OUTCOMES
The team begins with a detailed sectoral analysis on a selected list of industry based on import and export data. The result was a sectoral prioritization matrix which shortlisted key sectors that the client should focus on by looking at the sectoral growth and support level from government. These selected sectors were then further detailed out to include the economic activities from upstream to midstream and then the downstream. The team had identified a list of potential business opportunity that could be developed into a project.
As a state agency, sometimes the client can only provide assistance in a particular project and the main driver for the projects shall come from private sectors. Hence, the team had gone one step further to identify a list of industry players, both local and foreign based, that could be interested to invest in the business opportunities identified.
The key to a successful regional masterplan was to invest the limited resources and time on the projects that could catalyze other projects. To achieve this, the team had analyzed the competitive advantages of the region from geographical and natural resources aspects, to identify the Catalytic Projects. Finally, the team had devised 15 Economic Catalyst Projects which will serve as the enablers and accelerator for the 72 other economic development projects around the study areas. A high-level spatial plan was also developed to further fortify the feasibility of the ideas.
Another critical facet of the projects is the funding for the economic development projects. The team had developed a financial model for each of the projects proposed and conducted cost-benefit analysis to justify the viability of the masterplan. By quantifying the socio-economic benefits to be generated, the client is in a better position to gain concerted support from the federal and state government in the implementation of the masterplan.
Important Notice: *We take our clients’ confidentiality seriously. While we keep their names anonymous, the results are real. *This project was delivered by the core team of 27Group during their tenure in a Netherland-based engineering consulting firm. While it may not deliver under 27Group, we hereby declare that the contents above and our involvement are authentic and genuine.
