SEREMBAN: Negri Sembilan risks locking itself into a dormitory role for the Klang Valley unless the next state government brings better-paying jobs closer to where people live, an economist says.
Centre for Market Education chief economist Alvin Desfiandi said the state’s challenge was no longer attracting investment but ensuring it translated into better-paying jobs for residents.
He said the state recorded a record RM19.1bil in approved investments in 2025 and is targeting between RM8bil and RM10bil this year.
“The structural problem is not a lack of investment, but a mismatch between where capital lands and where labour actually works,” he said.
Alvin said transport connectivity should take precedence, as it underpinned the state’s industrial ambitions, supported agrofood supply chains and improved access to tourism destinations.
However, he suggested that it should be constructed to allow residents to work closer to home rather than commuting out of the state.
“Housing is important for equity but should follow once job clusters and transit corridors are defined,” he said.
“Building affordable housing ahead of connectivity risks recreating the commuter-dormitory pattern the state is trying to escape.”
Rather than industrial parks generating mainly low-skilled assembly jobs, he said the state should pursue high-value clusters under the Malaysia Vision Valley 2.0 master plan, including semiconductors, aerospace, electric vehicles, pharmaceuticals, food technology and maritime logistics.
“The binding constraint is human capital, not land,” he said, adding that technical and vocational education and training programmes should be designed with major employers so that graduates gain skills that match industry demand.
He also suggested tying investment incentives to company commitments on local hiring and higher wages.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid took a different view, saying the state should capitalise on the commuter flow rather than resist it.
“Looking at the state’s proximity with the Klang Valley, especially Kuala Lumpur, we know that there are many commuters who make the daily trip between Seremban and the nation’s capital,” he said.
“We are also observing more Kuala Lumpur residents living in areas like Nilai and Seremban due to better property prices. This potential should be capitalised by the state administration to power the economy.”
Mohd Afzanizam, who is from Seremban, said housing and transport infrastructure should be addressed to make the daily trip to Kuala Lumpur easier.
“If the situation can be improved, the effects will definitely trickle down,” he said.
Both economists placed transport at the top of the list, though for different ends.
Transport Minister Anthony Loke said yesterday that one of the ministry’s strategies was to encourage more people to live in Seremban and commute to the Klang Valley, and that train frequency would rise once the Klang Valley Double Track Phase 2 project and the new Seremban Sentral station are completed.
Mohd Afzanizam said the state should also look beyond Port Dickson in tourism, pointing to Adat Perpatih and the Istana Seri Menanti Museum in Kuala Pilah as selling points.
He said agrofood is a strategic sector for boosting rural incomes amid energy and food security pressures.
Mohd Afzanizam highlighted chilli as a key state crop, adding that the circular economy is also worth exploring.
Polling day is on Aug 1, with early voting on July 28.
