Kelantan

Kelantan exists because the Kelantanese exist—and because cultural distinctiveness became economic divergence in Malaysia's most politically autonomous state. Governed continuously by the Islamic Party (PAS) since 1990, Kelantan enforces stricter religious codes than other states: gender-segregated supermarket queues, restrictions on entertainment venues, and attempts at Shariah criminal law. This 'Malay heartland' identity preserved traditions while deterring certain investments. The economy expanded just 2.4% to RM25.8 billion GDP, among Malaysia's lowest, yet construction productivity surged 20.5% in 2024—highest nationally—suggesting infrastructure finally reaching this historically neglected state. Petroleum royalty disputes with the federal government persist: Kelantan claims entitlement to royalties from offshore fields similar to Sabah and Sarawak, a position rejected by Putrajaya. The border economy with Thailand via Rantau Panjang drives informal trade, while Kota Bharu (the capital, 2.1 million metro population) maintains traditional crafts including batik and songket. Unlike western coast states integrated into global supply chains, Kelantan's economy remains domestically oriented—insulated from global shocks but disconnected from high-value manufacturing. By 2026, the state tests whether Malay cultural preservation and economic development can coexist or whether young Kelantanese continue migrating to KL and Singapore.