| Summary: | Historically known as a 'rice bowl' of Malaysia, the state of Kedah has shifted it focus on a more remunerating sector which is industrial-base sector. Although, agriculture remains as a major contributor to GDP of the state, it percentage is declining over the year.Agriculture sector in this country contribute 44% of GDP of the state, it percentage is declining over the year.Agriculture sector in this country contribute 44% of GDP in 1988 and decline to 35% in 1990.Meanwhile, between the year 1994-95 the industrial sector growth rate is 16%, however the agriculture sector growth is only 2.5% primarily resulting from the decrement in the domination of paddy and rubber.In this transformation will face the problem of industrial distribution inequality between regions.Industries with a modern technology based will be more concentrated in the developed regions while the less developed regions will continue to be left behind.In addition, this transformation process will also bring the migration problem especially by the male population and this will increase the population dependency ratio in the rural area.By using the " Location Quotient" the researcher will list the imbalance diffusion in the industrial specialization location by regions and regional specialization location by industry in Kedah.
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