An agro-based economy of padi and rubber cultivation and fisheries is fast being overtaken by a tourism-driven economy, taking into consideration the natural, unspoiled, ecological beauty of the island and major governmental emphasis.
The Northern Corridor Economic Region (NCER) development program is a Malaysia Government initiative to accelerate economic growth in the north of Peninsular Malaysia – encompassing the states of Perlis, Kedah, Penang and the north of Perak.
The target for NCER is to achieve increased tourism receipts per visitor from MYR1,890 (US$600) in 2005 to MYR3,034 (US$963) by 2012.
Annual tourist expenditure is targeted to increase from MYR9.0 billion (US$2.86 billion) in 2005 to MYR21.8 billion (US$6.9 billion) in 2012 and MYR64.5 billion (US$20.4 billion) in 2020.
