Malaysia’s 4 northern states start company to boost economy. Can it plug wealth gap?

The opposition-led states of Kedah, Kelantan, Perlis and Terengganu on Monday launched their company, SG4 Group, with a target to increase revenue across multiple industries including infrastructure, logistics, trade, agriculture, education and human capital.

But setting up such an entity could curb interest among private companies — Malaysian and overseas – to invest in the four states due to the combined clout of the local authorities, analysts warn.

“By launching a government company that they said would be involved in very broad areas, the four governments are sending a message that private investors are not welcomed as the company would dominate all the key sectors,” political analyst and Malaysia expert Adib Zalkapli told This Week in Asia.