Of the five regional corridors that Malaysia has, the Northern Corridor Economic Region is at a more advanced stage of implementation and also fits better within the general idea of an economic corridor development strategy.

What are the prerequisites for a successful interregional economic corridor development program in a country with a federal system of government? This paper addresses this issue through an in-depth study of the design, implementation, and the developmental impact of the Northern Corridor Economic Region in Malaysia, which encompasses the states of Penang, Kedah, Perlis, and Perak. It argues that, in addition to “economic” prerequisites, an adequately equipped suprastate institution with the operational flexibility to align individual state’s interests, and command compliance from all stakeholders is required to achieve the overarching goal of shared regional growth.