Mergong Barrage Industrial Area (KPMB) was developed in 1988 with a total area of ​​100.49 acres in three phases of development. KPMB is located 5 km from downtown Alor Setar.

Continental Sime Tyre Sdn Bhd, tyre manufacturer is the main investor operating here. Other industries are consists of vehicle components, steelworks, timber, electrical and electronics, concrete products, and automotive workshops.

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