Kedah is considered the "rice bowl" of Malaysia, producing one third of Malaysia's total production of rice. Other agricultural products, including rubber, oil palm and tobacco are also important. Tourism, particularly on the island of Langkawi is of growing importance.
Although predominantly an agriculture-based State, Kedah is undergoing rapid development in all sectors. With sound economic planning and a supportive policy environment, the State has successfully utilised its advantageous location and rich human and natural resources to create a broadly diversified economy. The State has entered a new era, shifting its economic thrust from agriculture to industry. It has attracted a range of supporting industries, creating thousands of new jobs and hundreds of business opportunities are readily available for foreign and domestic investors.
High technology and heavy industries have made their way into Kedah and the State is stepping up its pace to become an industrialised state in 20 years' time. Developing and upgrading physical infrastructures and other supporting services to the industrial sector and the existence of Kulim Hi-Tech Park, the first high technology park in Malaysia, gives added advantage in boosting the state's economic growth.
The State is also taking advantage of its strategic location within the Northern Growth Triangle. Several successful private-sector's initiated business ventures are now in operation on a joint-venture basis between Indonesia, Malaysia and Thailand. Although high priority is given to industrial development, agriculture and tourism sectors are also being emphasised upon.