# Kedah: one state, three economies — rice, chips and the legacy of Old Kedah

> A profile of Kedah state — the capital Alor Setar, the institution of the Sultanate of Kedah, 12 districts including Langkawi, the state's position as the country's largest rice producer, Kulim Hi-Tech Park as Malaysia's first fully integrated high-technology park, and the Bujang Valley archaeological site.

- Category: states
- Language: en
- Status: published
- Updated: 2026-07-24
- Canonical: https://negaraku.md/en/states/kedah

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In 2024, electrical, electronic and optical products made up 51.1 percent of the
value added in Kedah's manufacturing sector. Rice contributes part of the 10.6
percent of the state's GDP that comes from agriculture.

The state known as the country's rice bowl is, by its own economic accounting,
a factory state.

Both facts are true at once — and understanding why is the best way to
understand Kedah.

## Key facts

| | |
| --- | --- |
| Capital | Alor Setar |
| Head of state | Sultan of Kedah |
| Area | 9,447 km² |
| Administrative districts | 12, including Langkawi |
| Population | 2.23 million (DOSM 2025 estimate) |
| GDP 2024 | RM54.0 billion, growing 4.2 percent |
| Approved investment 2024 | RM45.8 billion — fourth highest among states |
| Rice production 2022 | 834,901 metric tonnes — highest in Malaysia |

Source: official portal of the Kedah State Government, DOSM and MIDA.

## Economic structure: what actually drives GDP

DOSM's media statement on Gross Domestic Product by State 2024 puts Kedah's
GDP at **RM54.0 billion**, growing **4.2 percent** compared with 1.7 percent
in 2023.

Its sectoral breakdown describes the state more accurately than any nickname:

| Sector | Value (2024) | Share of GDP | Growth |
| --- | --- | --- | --- |
| Services | RM30.3 billion | 56.1% | +3.8% |
| Manufacturing | RM16.1 billion | 29.9% | +6.6% |
| Agriculture | RM5.7 billion | 10.6% | +4.0% |
| Construction | RM1.4 billion | 2.6% | −11.1% |
| Mining and quarrying | RM0.1 billion | 0.2% | −3.0% |

The second growth driver is manufacturing, which surged 6.6 percent after
contracting 3.2 percent in 2023. Within that sector, electrical, electronic
and optical products contributed 51.1 percent of value added and grew 6.5
percent.

In other words, more than half of Kedah's factory output — measured by value
— is [electronics and semiconductors](/en/economy/electronics-semiconductors).

## Why Kedah remains the rice bowl

The nickname measures something different: Kedah's share of the nation's
rice supply, not rice's share of Kedah's economy.

According to DOSM's crop dataset for reference year 2022:

| | Kedah | Malaysia |
| --- | --- | --- |
| Rice planted area | 213,718 hectares | 637,935 hectares |
| Rice production | 834,901 metric tonnes | 2,281,739 metric tonnes |

That is about **36.6 percent** of the nation's rice production from a single
state. The second and third producers — Kelantan (272,633 metric tonnes) and
Perak (269,790 metric tonnes) — each come in at under a third of Kedah's
total.

The technical basis is water. The Muda Agricultural Development Authority
(MADA), established under the **Akta Lembaga Kemajuan Pertanian Muda 1972
(Akta 70)**, which came into force on 31 March 1972, manages three dams —
Pedu, Muda and Ahning — that make **two rice crops a year** possible in the
Muda Area.

Without that controlled irrigation, the Kedah plain could manage only one
season a year. It is this institutional structure, not the land alone, that
produces the nickname.

## Kulim Hi-Tech Park: factories beside the paddy fields

In 1996, an industrial park began official operations in Kulim district,
about an hour from the border with [Penang](/en/states/penang).

The official Kulim Hi-Tech Park (KHTP) website describes it as Malaysia's
first fully integrated high-technology park, with the tagline *Leading
Global Science City*.

Its figures and structure:

- **Size:** 4,736 acres
- **Zones:** six — industrial, urban, research and training, institutional,
  amenity, and residential
- **Owner and manager:** Kulim Technology Park Corporation Sdn Bhd (KTPC), a
  wholly owned subsidiary of the Kedah State Development Corporation
  (Perbadanan Kemajuan Negeri Kedah)
- **Location:** within the Northern Corridor Economic Region
- **Focus:** high-technology manufacturing, R&D and technology education
  activities

The most recent phase recorded on the official website is Industrial Zone
Phase 4A, completed in 2023.

The effect shows up in investment data. MIDA reports Kedah attracted **RM45.8
billion** in approved investment in 2024 — the fourth highest after Selangor
(RM101.1 billion), the Federal Territory of Kuala Lumpur (RM91.5 billion) and
Johor (RM48.5 billion), and ahead of Penang (RM32.0 billion).

For a state that supplies about a third of the nation's rice, that is not a
position most people would expect. See also the overview of Malaysia's
[manufacturing sector](/en/economy/manufacturing) as a whole.

## Old Kedah and the Bujang Valley

In Merbok district, at the foot of Gunung Jerai, lies a layer of history far
older than any factory or paddy field.

The National Archives of Malaysia (Arkib Negara Malaysia) records **50
temple sites** found in the Bujang Valley, estimated to have been built
between the **4th and 12th centuries CE**. Those named specifically include
Candi Bukit Batu Pahat, believed to have been built around the 6th century,
as well as Candi Pengkalan Bujang and Candi Pendiat.

Gunung Jerai served as a navigational landmark, and the area became an
important stopover for traders between India and China.

The Bujang Valley Archaeological Museum (Muzium Arkeologi Lembah Bujang),
under the Department of Museums Malaysia (Jabatan Muzium Malaysia), sits
atop Bukit Batu Pahat in Merbok, about 23 km from Sungai Petani. It
officially opened on **23 January 1980** and holds thousands of artefacts
from the 3rd to the 12th centuries — ceramics, glass beads and other
material showing the Bujang Valley as a centre of international trade.

The official Kedah State Government portal states that archaeological
evidence from the Bujang Valley shows a Hindu-Buddhist kingdom ruling
ancient Kedah as early as **110 CE**.

This makes Kedah one of the earliest sites of civilisation in the region —
comparable to the place [Langkasuka](/en/malaysia/langkasuka) holds in the
early history of the Peninsula.

## Royal institution and the state capital

Kedah's head of state is the Sultan of Kedah. The official Kedah State
Government portal states the current head of state is **Kebawah Duli Yang
Maha Mulia Al-Aminul Karim Sultan Sallehuddin Ibni Almarhum Sultan
Badlishah**, the **29th** Sultan of Kedah, proclaimed on **12 September
2017**. The official palace is Istana Anak Bukit, Alor Setar.

The same portal records that the Sultanate of Kedah began in **1136**, when
Raja Phra Ong Mahawangsa converted to Islam and took the title Sultan
Mudzafar Shah. The state subsequently passed through periods under
Srivijayan, Siamese and British influence before joining the Federation of
Malaya in 1948.

Alor Setar itself was founded in **1735** by Sultan Muhammad Jiwa Sultan
Zainal Adilin Mu'adzam Shah II, and is Malaysia's oldest state capital
according to the state local authority portal. It was declared Malaysia's
**9th city on 28 November 2003**.

## Twelve districts, not one face

Kedah is divided into 12 administrative districts. The state's local
authorities show just how different each area's character is:

| Type | Local authority |
| --- | --- |
| City | Majlis Bandaraya Alor Setar |
| Municipal | Sungai Petani, Kulim, Kubang Pasu, Langkawi (Bandaraya Pelancongan) |
| District | Baling, Pendang, Yan, Sik, Padang Terap, Bandar Baharu |
| Special | PBT Taman Perindustrian Hi-Tech Kulim |

Notice three distinct blocs: administration and paddy fields in the north
(Alor Setar, Kubang Pasu, Pendang, Yan), industry in the south (Sungai
Petani, Kulim, Bandar Baharu), and island tourism in the west (Langkawi).

Langkawi is a case of its own. UNESCO lists the Langkawi UNESCO Global
Geopark, which covers the archipelago's 99 islands over an area of 92,000
hectares, featuring Cambrian rock formations more than 550 million years
old. It is Malaysia's first UNESCO geopark.

## Population composition

DOSM's estimate for 2025 puts Kedah's population at **2,228.0 thousand**,
with the following breakdown (thousands):

| Group | Number |
| --- | --- |
| Bumiputera Malay | 1,711.3 |
| Chinese | 246.7 |
| Indian | 128.4 |
| Other Bumiputera | 4.9 |
| Other citizens | 25.9 |
| Non-citizens | 111.0 |

These figures are DOSM's current estimates, not a census count. The
Malaysia Census 2020 count is lower and is published separately by DOSM;
refer to the official census publication for exact figures.

## Common misconceptions

**"Kedah is an agricultural state, so its economy is small and backward."**
Agriculture contributed 10.6 percent of the state's GDP in 2024.
Manufacturing contributed almost three times that amount, and the state
attracted the fourth-highest approved investment in Malaysia in the same
year.

**"Kulim Hi-Tech Park is part of Penang."**
KHTP is located in Kulim district, Kedah, and is owned by a wholly owned
subsidiary of the Kedah State Development Corporation. It neighbours
Penang's electronics cluster but is a Kedah project under Kedah
administration.

**"Langkawi is a separate state."**
Langkawi is one of the 12 districts of the State of Kedah.

**"The Bujang Valley is a single temple site."**
The National Archives records 50 temple sites across the area, not one
single structure.

**"All of Malaysia's rice comes from Kedah."**
About 36.6 percent, according to 2022 DOSM data. Kelantan, Perak, Perlis,
Selangor and Sarawak also contribute meaningful amounts.

## What's next

- DOSM's publicly available crop dataset still ends at reference year 2022
  — Kedah's rice figures for more recent years should be rechecked once
  DOSM updates that catalogue.
- DOSM's GDP by state statement is published each mid-year; the 2025
  figures will show whether that 6.6 percent manufacturing momentum holds.
- For national context, see the [overview of Malaysia's
  GDP](/en/economy/gdp-overview) and the [tourism
  sector](/en/economy/tourism), which covers Langkawi.
- This article deliberately does not name the state's political
  officeholders. For a current list, refer to the official Kedah State
  Government portal.

## Sources

- Mengenai Kedah — Portal Rasmi Kerajaan Negeri Kedah Darul Aman — https://www.kedah.gov.my/index.php/mengenai-kedah/ (Kerajaan Negeri Kedah Darul Aman)
- Kesultanan Kedah — Portal Rasmi Kerajaan Negeri Kedah Darul Aman — https://www.kedah.gov.my/index.php/kesultanan-kedah/ (Kerajaan Negeri Kedah Darul Aman)
- Gross Domestic Product (GDP) by State, 2024 — https://www.dosm.gov.my/portal-main/release-content/gross-domestic-product-gdp-by-state-2024 (Jabatan Perangkaan Malaysia (DOSM))
- Crop Area and Production by State (set data tanaman mengikut negeri) — https://open.dosm.gov.my/data-catalogue/crops_state (Jabatan Perangkaan Malaysia (DOSM) / OpenDOSM)
- Population Table: States (anggaran penduduk mengikut negeri, 1970–2025) — https://open.dosm.gov.my/data-catalogue/population_state (Jabatan Perangkaan Malaysia (DOSM) / OpenDOSM)
- Malaysia Records Historic High RM378.5 Billion in Investments in 2024 — https://www.mida.gov.my/media-release/malaysia-records-historic-high-rm378-5-billion-in-investments-with-14-9-y-o-y-growth-generating-more-than-207000-jobs-in-2024/ (Lembaga Pembangunan Pelaburan Malaysia (MIDA))
- Our Story — Kulim Hi-Tech Park — https://www.khtp.com.my/corporate/our-story/ (Kulim Technology Park Corporation Sdn Bhd)
- Lembah Bujang — Pustaka Ilmu, Mercu Tanda — https://pustakailmu.arkib.gov.my/index.php/ms/pustaka-ilmu/mercu-tanda/lembah-bujang (Arkib Negara Malaysia)
- Muzium Arkeologi Lembah Bujang — https://www.jmm.gov.my/ms/muzium/muzium-arkeologi-lembah-bujang (Jabatan Muzium Malaysia)
- Muda Agricultural Development Authority Act 1972 (Akta 70) — https://lom.agc.gov.my/act-detail.php?act=70&lang=BI (Pejabat Peguam Negara Malaysia (AGC))
- Info Alor Setar — Portal PBT Kedah — https://pbt.kedah.gov.my/index.php/info-alor-setar-mbas/ (Pihak Berkuasa Tempatan Negeri Kedah)
- Langkawi UNESCO Global Geopark — https://www.unesco.org/en/iggp/langkawi-unesco-global-geopark (UNESCO)

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Source of truth: https://github.com/negaraku-md/NegaraKu.md
License: CC BY-SA 4.0