TRANSFORMING THE EAST COAST ECER - Driving Development ...

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TRANSFORMING THE EAST COAST ECER - Driving Development ...

TRANSFORMING

THE EAST COAST

A COMMEMORATIVE EDITION OF THE FIRST YEAR ANNIVERSARY OF

THE EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL (ECERDC)

ECER - Driving Development,

Balanced Growth

One year on, the ECER has notched several impressive milestones.

As it moves into its second year of implementation, more benefits,

both social and economic, can be expected to spillover to all of its

4 million people.

5 Economic Clusters

How YOU Can Gain PAGE 8

YOUR UNIQUE INVESTMENT DESTINATION

THAILAND

KELANTAN

KUALA

LUMPUR

PAHANG

TERENGGANU

Kertih

Cukai

Kuantan

Pekan

MERSING

JOHOR

Johor Bahru

SINGAPORE

Introducing ECER SEZ

Details Inside PAGE 12

August 4, 2009

Find out more inside

Transforming Lives

The ECER Way PAGE 18


PAGE 2 August 4, 2009

MESSAGE FROM THE PRIME MINISTER OF MALAYSIA & CHAIRMAN

OF THE EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL

Y.A.B. Dato’ Sri Mohd Najib bin

Tun Haji Abdul Razak

As Chairman of the East Coast Economic

Region Development Council (ECERDC), and

on behalf of the ECERDC Council Members, I

am pleased to note the excellent progress made to

transform the East Coast Economic Region (ECER),

comprising the states of Kelantan, Terengganu and

Pahang and the district of Mersing, Johor, to be a

developed Region by 2020.

It is both my humble duty and a personal privilege

to begin by thanking the former Prime Minister of

Malaysia, Y.A.Bhg. Tun Abdullah bin Haji Ahmad

Badawi, for setting the benchmark in guiding the

ECER towards becoming a developed Region by

2020. His contribution will continue through his role

as the Corridor Development Advisor.

The clear vision for developing the Region has been

carried through by the ECERDC into the first year of

implementation in 2008 as it strives to develop the

ECER into a world-class economic Region, and a

choice destination for investment, work and quality

of life.

ECER projects are being implemented through

five clusters of economic development namely in

Tourism, Oil, Gas & Petrochemical, Manufacturing,

Agriculture and Education.

A total of 189 projects with an estimated value

of RM112 billion will be carried out in stages in

the ECER up to 2020 over the 9th, 10th and 11th

Malaysia Plans.

To spearhead ECER’s development, the Government

has allocated RM2.6 billion under the mid-term

review of the 9th Malaysia Plan covering some 78

projects. In this context, I am pleased to note that

of the 78 projects, a total of 54 high-impact ECER

projects have commenced up to August 2009.

While this positive start augurs well for the ECER’s

vision to be met by 2020, the Government has

moved decisively to fast-track the setting up of the

ECER Special Economic Zone (ECER SEZ). The ECER

SEZ will act as the national development catalyst

for concentrated decentralisation of economic

activities in line with the New Economic Model,

The ECER’s vision is defined by three main characteristics:

• Distinctive • Dynamic • Competitive

The East Coast Economic Region

which aims for a dynamic and competitive Region

of growth.

The first of its kind in Malaysia, the SEZ is a

concentrated area with numerous high-impact

projects currently ongoing in the ECER. By

declaring the area an SEZ and supporting it with

unique privileges and exclusive incentives over and

above those for the ECER, we hope to attract local

and foreign direct investments into the Region,

compensating for any fallback caused by the

prevailing global economic crisis.

I also take this opportunity to announce that all

other projects throughout the ECER will proceed

as scheduled, so that the rewards of economic

development are accessible to each of the 4 million

people residing in the ECER.

Our emphasis in ensuring success also

encompasses the noble objective of people-centric

programmes to accelerate the growth of the Region

in a viable, equitable and sustainable manner –

with the main aim of reducing poverty amongst the

local community.

In this context, I am very pleased to note that the

Pekan Agropolitan Project is a social and human

capital initiative which reflects one of the key

thrusts of the ECER, aimed at increasing income

and entrepreneurial opportunities for the local

community of the Region.

We hope this will contribute positively in uplifting

the lives of the people in the Region and elevate

their standard of living to be at par with the rest of

the nation.

The East Coast Economic Region At A Glance

The vision is for the ECER to be a developed Region by 2020

Mission

• To move the economy up the value chain

• To raise the capacity for knowledge and innovation and to inculcate a “first class” mentality

• To address persistent socio-economic inequalities, constructively and productively

• To improve the standard and sustainability of the quality of life

• To strengthen the institutional and implementation capacity

Our vision is to transform the east coast region to

become a major international and local tourism

destination; an exporter of resource-based and

manufactured products, a vibrant trading centre

and a regional infrastructure and logistics hub.

While this is an effort spearheaded by the

Government, it is also vital that the local community

and Malaysians in general, local and foreign

investors, Federal and State agencies, and the

private sector participate actively to make the ECER

a resounding success by 2020.

It is therefore imperative that the ECER - being a

national development initiative - continues moving

forward with implementation under the 9th, 10th

and 11th Malaysia Plans. In this respect, I can

assure investors and the people of the ECER that

the Government is fully committed to the successful

implementation of ECER projects.

I would like to take this opportunity to record my

sincere appreciation to all those who have, and

continue, to support and implement the ECER projects,

and for their ongoing efforts in driving this crucial

economic development programme towards success,

particularly the Federal and State Governments and

agencies, the private sector, the local community of

the ECER and Malaysians in general.

Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak

Scope of ECER

Land Area : 66,736 sq km (51% of Peninsular Malaysia)

Total Population : 3.9 million (2005), or 14.5% of Malaysia’s total population

Total Initiatives : 189 projects

Total Investment : RM112 billion (2008 – 2020)

Key Clusters

• Tourism

• Oil, Gas & Petrochemical

• Manufacturing

• Agriculture

• Education

Key Enablers

• Social & Human Capital Development

• Transportation

• Infrastructure

• Property

• Environment


August 4, 2009

ECER : DRIVING DEVELOPMENT, BALANCED GROWTH

One year on, the ECER has notched several impressive milestones. As it moves into its second year of implementation, more benefits, both social

and economic, can be expected to spillover to all of its 4 million people. The key now is believing that change is possible.

The people of Malaysia’s east coast states have always

basked in the natural beauty of their surroundings and

enjoyed a tranquil lifestyle envied by other Malaysians

and foreign visitors.

The region’s beaches, resort islands, natural resources

and unique cultural elements have made the states of

Kelantan, Terengganu and Pahang, together with the

district of Mersing in Johor, a haven for travellers from

all over the world.

This region, grouped today as the ECER, has much to

offer in terms of richness in cultural diversity, and in

the depth of its potential for development. The ECER

has become a key focus of the Government in ensuring

that the Region acquires additional dimensions in

keeping pace with development with the rest of the

country.

With an area measuring more than 66,000 sq km, the

ECER covers 51 per cent of the land area of Peninsular

Malaysia. The ECER’s population of about 3.9 million

represents 14.5 per cent of the total population of

Malaysia. By 2020, this will grow to over 4.9 million

people, with a total workforce of about 2 million.

Geographically, the ECER is also the strategic gateway

to the vast markets of the Asia Pacific, with a total

population of 2.2 billion.

To guide the development of the Region, a Master

Plan was developed, which was spearheaded by

PETRONAS. It will transform the ECER into a major local

and international tourism destination; an exporter of

resource-based and manufactured products, a vibrant

trading centre and an infrastructure and logistics hub.

Ultimately, the vision for the ECER is to be a developed

Region by 2020.

Amongst the mission thrusts, the aim to eradicate

hardcore poverty by 2010 within the ECER will be

achieved by enabling the Region’s population to

gain higher household incomes through sustainable

livelihoods and increased job and entrepreneurial

opportunities resulting from investment projects

planned for the Region.

The East Coast Economic Region

“The most important objective of regional development is to achieve

a balanced, focused regional growth by spreading economic

development to embrace all states and regions. This is especially true

for the east coast where tremendous opportunities await.”

Y.A.Bhg. Tun Abdullah bin Haji Ahmad Badawi

Advisor, Corridor Development

The envisaged development in the ECER will

create up to 560,000 jobs by the year 2020. The

target is to raise the average monthly household

income from RM2,267 (2005) to RM5,227, and

increase GDP per capita from RM5,860 (2005) to

RM13,510 by 2020.

The vision and mission that will guide the

transformation of the ECER into a developed Region

by 2020 is defined by three main characteristics –

distinctive, dynamic and competitive.

Projected Growth under the ECER Master Plan

The distinctiveness of the ECER is portrayed

through its natural beauty, abundant resources,

unique culture and heritage known throughout the

world. To maintain this characteristic, a balanced

and sustainable development is emphasised.

The dynamism of the ECER reflects the potential

for the Region to grow and develop at a faster

pace through innovation and a shift in economic

orientation, structure, technology and mindset.

The competitiveness of the ECER lies in its ability

to attract local and foreign direct investments.

2005 2020

GDP growth (in %) 5.7% 7.2%

GDP growth (in RM billion) RM23.1 RM65.9

GDP per capita (in RM) RM5,860 RM13,510

Average Monthly Household Income (in RM) RM2,267 RM5,227

Total Population 3.9 mil 4.9 mil

Projected Number of New Jobs Created 560,000

PAGE 3

With the prevailing economic conditions, the need

to maintain the momentum of development within

the ECER is seen to be very urgent. The Malaysian

Government has thus chosen to fast-track the

setting up of the next phase of the ECER Master

Plan – the Special Economic Zone (SEZ).

In essence, the ECER SEZ is a concentration

of high-impact projects within an integrated

development zone located at the nucleus of the

ECER – the 25km by 140km strip that extends

from Kertih in the north to Pekan in the south and

Gambang in the west.

While projects throughout the ECER will continue

proceeding as planned, those located within

the ECER SEZ will be boosted by the additional

impetus of the unique privileges and exclusive

incentives accorded to a special economic zone,

in order to accelerate development.

A notable emphasis is that while the country has

made significant strides in developing the national

economy, the ECER needs to catch up economically

with the more developed parts of the country.

Although overall progress and development is

sought, it should not come at a price. All ECER

projects are carefully evaluated to determine their

viability, not only in terms of improving lives but

also from the aspect of sustainability on both the

financial and environmental fronts.

The ECER therefore employs a holistic approach

that will ensure responsible development, as

well as preserve the integrity of the environment

for present and future generations. As such, it

is important for all to ensure that all identified

projects are carried out without any delay.

Only by uniting and believing that change is

possible can the Region be transformed into

one that is dynamic and competitive, in the face

of greater regional and global competition and

economic liberalisation.


PAGE 4 August 4, 2009

REPORT FROM THE CHIEF EXECUTIVE OFFICER OF THE

EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL

As the Chief Executive Officer of

the East Coast Economic Region

Development Council (ECERDC),

I am happy to provide an outline

of the progress in the East Coast

Economic Region (ECER).

The launch of the East Coast Economic Region Special

Economic Zone (ECER SEZ) and the Pekan Agropolitan

Project, is a day of special pride to all who have been

involved with the ECER from the inception of the ECER

Master Plan in October 2007. The ECER SEZ will act

as the catalyst for concentrated decentralisation of

economic activities within the framework of national

development. At the same time, all ECER projects

throughout the Region will proceed as scheduled.

The ECER SEZ is a concentration of high-impact

projects within an integrated development zone

located at the nucleus of the ECER – a 25km by

140km strip from Kertih to Pekan. Its economy

will move from labour-intensive industries to hightechnology,

knowledge-based activities and the

service sector, and will create 50% of all jobs as well

as 80% of the economic output of the ECER. It will

transform the ECER into an economic powerhouse

within a heritage environment.

Overall, the ECER has made inroads in its ongoing goal

of transforming the east coast states into a developed

Region by 2020. A total of 189 projects worth an

estimated value of RM112 billion have been identified

for implementation in the Region up to 2020. Of these,

a total of 54 high-impact projects have commenced.

These projects include the launch of the Centres of

Excellence to foster industry-academia collaborations,

the development of the Kenaf industry, Kertih Polymer

Park, Lanchang Permanent Food Production Park and

MILESTONES

29 October 2007

Launch of the ECER Master Plan

Kuala Terengganu, Terengganu

Launch of the ECER Master Plan

Kota Bharu, Kelantan

30 October 2007

Launch of the ECER Master Plan

Kuantan, Pahang

December 2007

The ECER Development Council

Act 2008 (Act 688) passed by

Dewan Rakyat and Dewan Negara

December 2007 - February 2008

Stakeholders Engagement

Roadshow

Kelantan, Terengganu and Pahang

16 -17 February 2008

ECER Seminar on

Entrepreneurship Development,

jointly organised with MeCD

Kuala Terengganu, Terengganu

20 February 2008

East Coast Economic Region

Development Council Act 2008

(Act 688) - date of Royal Assent

25 February 2008

East Coast Economic Region

Development Council Act 2008

(Act 688) - date of publication

in the Gazette

13 June 2008

Date of commencement of the

East Coast Economic Region

Development Council

Act 2008, (Act 688)

14 June 2008

Launch of the East Coast

Economic Region Development

Council (ECERDC)

Kuala Terengganu, Terengganu

Launch of Centres of

Excellence (CoE)

Kuala Terengganu, Terengganu

The East Coast Economic Region

Dato’ Jebasingam Issace John

Modern Farm, Gambang and Pasir Mas Halal Park,

Pekan-Peramu Automotive Industrial Park, Kuantan

Port City, Kuala Berang Goat Research & Innovation

Centre, Goat Multiplier Farm in Kuala Berang, Goat

Commercial Farm in Telaga Papan, Muadzam Shah

Cattle Research & Innovation Centre, upgrading of the

Central Spine Road, Small Office Home Office (SOHO)

Programme, Mersing-Sedili Road, Bentong Mixed

Industrial Park, and the Herbal & Biotechnology Park.

Various social development programmes have also

been initiated, to help the local community improve

their income levels and standard of living as well as

accelerate rural economic growth.

Among these, the Agropolitan Project, designed to

eradicate hardcore poverty through various integrated

agricultural and agro-based development projects,

was initiated in North Kelantan, South Kelantan,

Besut-Setiu, Terengganu and Pekan, Pahang to

enhance the income of participants through primary,

Council Meeting No. 01/2008

Kuala Terengganu, Terengganu

22 August 2008

Launch of the Kenaf Collection,

Packaging & Processing

Centre (CPPC)

Bachok, Kelantan

Council Meeting No. 02/2008

Kota Bharu, Kelantan

12 September 2008

Presentation on Trade, Economic

and Investment Opportunities

in the ECER during China

(Guangdong) - Malaysia Business

Conference

Kuala Lumpur

10 October 2008

Seminar on the ECER with the

Malaysian Chinese Chamber of

Commerce & Industry (MCCI)

Kuala Terengganu, Terengganu

tertiary and support economic activities. The Pekan

Agropolitan Project, in particular, will help a total of

1,450 participants in the Pekan district to engage

in oil palm cultivation and sheep rearing. This will

move them closer towards the ECER’s objective of

eradicating hardcore poverty.

The ECERDC encourages investment and to-date,

some RM24 billion of investments have been

committed in the ECER. This reflects the confidence

of investors who see the Region’s huge potential,

including the Government’s commitment in making

the ECER a success, especially in facing the current

economic challenges.

We are determined to pursue with the development of

the ECER and transform it into a developed Region by

2020. To succeed, we not only have to strive harder,

but also be more resourceful in devising creative and

innovative approaches and solutions to counter the

effects of the economic challenges.

The ECERDC will also continue marketing and

promotion efforts, including domestic roadshows and

overseas trade missions to generate more local and

foreign investments, as well as increase participation

from SMEs.

The establishment of ECERDC State Offices in Kota

Bharu, Kuala Terengganu, and Kuantan will further

ensure projects are smoothly coordinated and

monitored, as well as to enhance facilitation and

smooth coordination with the State Governments and

their agencies during project implementation.

The east coast states have traditionally lagged behind

in economic and social development compared to

other states in Peninsular Malaysia. To help the Region

make the leap forward to be on par with the rest of the

2 December 2008

Seminar on the ECER, jointly

organised with INTAN

Kemaman, Terengganu

Launch of the Kertih Polymer

Park (KPP)

Kertih, Terengganu

13 January 2009

Launch of the national-level

Permanent Food Production Park

and Modern Farm

Lanchang, Pahang

Council Meeting No. 01/2009

Bentong, Pahang

16 February 2009

Launch of ECER’s Centres of

Excellence Seminar: Regional

Centres for Halal Products &

Centre of Biotechnology and

Herbal Research, Universiti Darul

Iman (UDM)

Kuala Terengganu, Terengganu

23 February 2009

Official opening of the ECER

Pahang State Office and 1st

Pahang Implementation &

Coordination Committee

(ICC) Meeting

Kuantan, Pahang

11 March 2009

ECER-PNS Seminar on Franchise

Development Programme

Kuala Terengganu, Terengganu

19 – 29 April 2009

Trade & Investment Mission to

Europe with MIDA

3 May 2009

Official opening of the ECER

Terengganu State Office and 1st

Terengganu Implementation &

Coordination Committee

(ICC) Meeting

Kuala Terengganu, Terengganu

country, the Government has approved a package of

Special ECER Incentives over and above those offered

in other parts of Malaysia.

This will give the Region a competitive edge in

becoming a regional and world-class investment

destination.

Acknowledgements

I am indebted to the leadership of our Prime Minister and

Chairman of the ECERDC, Y.A.B. Dato’ Sri Mohd Najib

bin Tun Haji Abdul Razak, for his vision and direction. I

would like to thank the former Prime Minister, Y.A.Bhg.

Tun Abdullah bin Haji Ahmad Badawi, who saw the

need for a structured regional economic programme

in addressing the socio-economic imbalance and laid

the foundation for the formation of the ECER.

I would also like to record my appreciation to all the

Menteri Besar-Menteri Besar of Kelantan, Terengganu,

Pahang and Johor for their invaluable advice and

guidance in helping to facilitate and fast-track all

ECER projects in their respective states, for the overall

development of the Region and its people.

I also appreciate the guidance and direction of

the Council Members who have brought their

collective experience and personal insights to the

table, to make the implementation of ECER projects

a focused effort. I am also thankful to the Prime

Minister’s Department, the Economic Planning Unit

and the Ministry of Finance, as well as the respective

Federal and State Government departments and

agencies, for their continued support in the facilitation

of projects within the ECER. Without their invaluable

support, the development of the ECER thus far could

not have been fast-tracked.

Dato’ Jebasingam Issace John

18 May 2009

1st Kelantan Implementation &

Coordination Committee

(ICC) Meeting

Kota Bharu, Kelantan

9 June 2009

1st Johor Implementation &

Coordination Committee

(ICC) Meeting

Mersing, Johor

15-17 July 2009

Motivational Programme for

the participants of the Pekan

Agropolitan Project

Cherating, Pahang

4 August 2009

Launch of ECER Special

Economic Zone & Pekan

Agropolitan Project,

Pekan, Pahang


August 4, 2009

ECER STRATEGIC INITIATIVES

Machang

Jeli

Tasik

Kenyir

Gua

Musang

THAILAND

Pasir

Mas

Empangan

Pergau

Ipoh

Pengkalan

Kubor

Kuala

Krai

A

Kuala

Lipis

Bentong

A

Temerloh-

Mentakab

Bukit Bungaa

Lojing

Cameron

Highlands

N

50 0

50 100

KILOMETRE

Fz

Rantau Panjang ang

Raub

KUALA

LUMPUR

Jerantut

Maran

Muadzam

Shah

Kota Bharu

Taman Negara

Lanchang

The East Coast Economic Region

ECER key projects were strategically formulated to ensure the Region and its people achieve

accelerated growth and economic development.

Ulu Tembeling

Pantai

Sri Tujuh

Durian

Mentangau

Endau-

Rompin

Bachok

Kuala

Terengganu

Kuantan

Kota Bharu

City Centre

Fz

Tg. Agas

Kuala

Rompin

Fz

Kemaman Port

Kuantan Port

Johor Bahru

SINGAPORE

Tersat

-HuluTerengganu Bandar Al-Muktafi

Billah Shah

A

Fz

=

Kuantan

Port City

Pantai

Sepat

Gambang

Bandar

Teluk Bidara

Dungun

Cukai

Tok

Bali

Kuala Besut

Ulu

A Setiu

Kg. Penarik

-Merang

Kuala Terengganu

City Centre

Gebeng

Mersing

Chendering

Kertih

Kuala

Pahang

Pekan/

Peramu

Tourism

Cruise Terminal

Urban & Culture

Heritage Tourism

Mainland Coastal Tourism

Recreational Fishing

Primary Ecotourism

Zones

Cross-border Tourism

Mainland Coastal Tourism

Sustainable Island Tourism

Special Management Area

Elephant Sanctuary

Turtle Sanctuary

Petrochemical

Petrochemical Corridor

Kertih Polymer Park

Manufacturing

F z

Primary Manufacturing

Zones

Secondary Manufacturing

Zones

Automotive Trading Hub/

Regional Distribution Centre

Rubber Wood Furniture

Industrial Park

Boat Building & Repair Park

Automotive Industrial Park

Palm Oil Industrial Cluster,

Kuantan

Halal Park

Free Zone

Heavy Industrial Park

Latex-based Industrial Park

Mixed Industrial Park

Processed Food SME

Programme-Fisheries Products

Agriculture Crops

A

Livestock

=

Fisheries

Education

Agro Valley

Highland Agriculture &

Floriculture

Fruit Belt

Herbal & Biotech Park

Kenaf Industry Development

Agropolitan Projects

Establishment of Incubator

Centre for Small &

Micro-food Enterprises

Cocoa Collection Centre

Intensive Goat Rearing

Poultry Processing Plant

Poultry Production Park

Beef Valley

Cattle Breeding

Research Centre

Production of Day-Old-Chicks

Nucleus Goat Breeding &

Research Centre & Training

Outpost in Goat Husbandry

Grain-based Animal Feed

Industry

Fish Processing Park

Integrated Fishery Park

PAGE 5

Fish Collection, Packaging &

Processing Centre (CPPCs)

Brackishwater Fish Seed

Production & Marketing Centre

Vertically Integrated Tilapia

Production Complex

Fresh Water Fish Seed

Production & Marketing Centre

Key Initiatives-New University

Branch Campus

Industry-Academia

Collaboration Centre


PAGE 6 August 4, 2009

Y.A.B. Dato’ Sri Haji Adnan bin Yaakob

Menteri Besar Pahang

At the Pahang ICC Meeting 01/2009

23 February 2009

Y.A.B. Dato’ Haji Abdul Ghani bin Othman

Menteri Besar Johor

At the launch of the ECER Master Plan, Kuantan, Pahang

30 October 2007

At the Kelantan ICC Meeting, 01/2009

18 May 2009

Y.A.B. Dato’ Ahmad bin Said

Menteri Besar Terengganu

At the Terengganu ICC Meeting 01/2009

3 May 2009

IMPLEMENTATION AND COORDINATION COMMITTEE (ICC)

Y.A.B. Dato’ Haji Nik Abdul Aziz bin Nik Mat

Menteri Besar Kelantan

At the state level, an Implementation and Coordination Committee (ICC) for each of the ECER states has also been established and is chaired by the respective Menteri Besar. Among others, the ICCs help to facilitate and fasttrack

strategic development and investment in the ECER with regard to their respective states, as well as monitor the status of all related applications and coordinate the roles and activities of relevant Government entities.

Y.A.B. MB of Pahang at the Pahang

ECERDC State Office.

Y.A.B. MB of Kelantan at the Kelantan

ECERDC State Office.

The East Coast Economic Region

THE ECER DEVELOPMENT COUNCIL

ECERDC Council Members and Management Committee after the Council Meeting No. 01/2009, Bentong, Pahang.

“My trust on the capability of ECER to bring development to the

state of Pahang has been well rewarded. Through the many positive

developments of various projects over the past year, the determination

and will of the ECER Development Council is apparent in

realising the Government’s aim for equal distribution of the nation’s

economic prosperity.”

“All of us in Johor are confident that the ECER will create more

employment and business opportunities for the local communities,

with the ultimate aim of improving the standard of living of

the people.”

Y.A.B. MB of Terengganu at the Terengganu

ECERDC State Office.

To realise the noble vision of transforming the east coast to be a developed

region by 2020, a statutory body known as the East Coast Economic

Region Development Council (ECERDC) was established under the Act of

Parliament - the East Coast Economic Region Development Council Act

2008 (Act 688).

ECERDC is tasked to drive the implementation projects and key programmes

identified under the ECER Master Plan. In addition to providing the proper

direction, policies and strategies in relation to the development within

ECER, the Council is also empowered to coordinate between Government

entities in the promotion of trade, investment, tourism and development

activities within the Region.

The Council is presided over by the Prime Minister of Malaysia with

members consisting of the Deputy Prime Minister, the Menteri Besar-

Menteri Besar of Kelantan, Terengganu, Pahang and Johor, two Federal

Ministers, a representative from the civil service and two members

appointed from the private sector.

“Continuous support from both the Federal and State Government

is important in order to achieve the true aims of ECER, which is to

increase income and reduce poverty incidence amongst the local

population by creating more employment and entrepreneurial

opportunities.”

“I am grateful for the support and co-operation given by the Federal

and State agencies aimed towards the successful implementation of

ECER projects in Terengganu.”

Y.A.B. MB of Johor at the Mersing District Office,

Johor


August 4, 2009

TRANSFORMATION BASED ON INHERENT STRENGTHS

Kelantan

Kelantan’s geographical positioning will enable it to serve as the

principal east coast cross-border trading and tourism centre. The state’s

geographical advantage as a border to Thailand and the Indochina region

will be fully exploited, along with the entrepreneurial talents of its people.

The state’s recognition of the rakyat as its key resource and engine of

economic growth will also be emphasised with the establishment of a

major education hub in Kota Bharu-Bachok and new tertiary institutions

such as the Universiti Malaysia Kelantan (UMK), Universiti Teknologi

MARA (UiTM) and Universiti Sains Malaysia’s medical campus. Kelantan’s

specialities in agro-based activities is duly recognised and projects such

as herbal cultivation in Gua Musang and Jeli, integrated fisheries in Tok

Bali, aquaculture projects in Pergau and poultry production in Gua Musang

and Jeli will be pursued. Activities in other clusters will also be initiated,

including the manufacturing of Halal food and non-food products at Pasir

Mas. With regards to property, the Kota Bharu City Centre will be developed

to spur commercial growth and a new retail and leisure landscape will be

added to the city. Handicraft products by the state’s master craftsmen,

such as silverware and wood-carvings, also have potential for growth and

will be rightly promoted within the ECER.

The way forward for the ECER’s economy will very much center on developing several

key sectors inherent within each state and by leveraging on resources already in

place to develop the ECER’s social and economic landscape.

Mersing, Johor

The district of Mersing in Johor will be developed to

emerge as an important mainland coastal tourism

destination, with highly developed tourist facilities

to accommodate the needs of visitors to the area.

It will be the gateway to the Mersing group of

islands (including Pulau Besar, Pulau Rawa, Pulau

Aur, Pulau Sibu and Pulau Pemanggil) and into the

ecotourism centre of the Endau-Rompin National

Park. Accessibility to Mersing will be significantly

improved through the construction of the East Coast

Expressway, and the upgrading of the coastal road.

Pahang

The East Coast Economic Region

Pahang will be developed as the ECER’s main industrial and logistics hub. It will focus

largely on resource-based downstream manufacturing activities such as rubber-based,

wood-based, Halal food and non-food industries. Through the Kuantan Port City (KPC),

Pahang will also become an integrated industrial and logistics hub for the petrochemical,

palm oil, automotive and container markets, as well as a major industrial and manufacturing

zone serving the entire Asia Pacific region. KPC will also be the site for a Palm Oil Industry

Cluster (POIC), one of its manufacturing components specialising in the downstream palm

oil industry. Pahang will also be developed to excel in ecotourism as the gateway to Taman

Negara and in mainland coastal tourism through Pantai Sepat, which has been earmarked

for resort and hotel development. Human capital will be nurtured through the newlyestablished

Universiti Malaysia Pahang and the International Islamic University Malaysia,

as well as the Universiti Teknologi MARA Jengka campus.

Terengganu

PAGE 7

Terengganu is being strategically positioned to be a dynamic

tourism gateway to the ECER. It will offer diverse and unique

tourism attractions in the areas of mainland coastal tourism

and sustainable island tourism, as well as ecotourism, urban

tourism, and cultural and heritage tourism. The state is also the

leading oil, gas and petrochemical hub in the Region and will

see its petrochemical industry benefiting through interstate

synergy from Kertih to Gebeng, including the establishment of

the Kertih Polymer Park (KPP) with support infrastructure and

services within the petrochemical zone in Kertih. Terengganu

will also be geared to support agro-based activities such as

the Kuala Berang Goat Research & Innovation Centre, Goat

Multiplier Farm in Kuala Berang, Goat Commercial Farm in

Telaga Papan, the planting of Kenaf in Setiu, Fish Collection,

Packaging & Processing Centre (CPPC) in Kuala Kemaman

and aquaculture activities in Kenyir Lake. Additionally, the

state will focus on human capital development through its

concentration of reputable tertiary institutions including

Universiti Darul Iman Malaysia (UDM), Universiti Malaysia

Terengganu (UMT), Kuala Terengganu Polytechnic and Dungun

Polytechnic, as well as the establishment of the Taman Ilmu

(Knowledge Park) in Besut.


PAGE 8 August 4, 2009

The East Coast Economic Region

THE ECER’S FIVE CLUSTERS OF ECONOMIC DEVELOPMENT

The ECER cultivates a positive environment, built on the Region’s strengths in 5 economic clusters and supporting key enablers.

Tourism

This important economic cluster for the ECER states will focus on six distinct segments of tourism, namely

mainland coastal tourism, sustainable island tourism, urban tourism, culture and heritage tourism, crossborder

tourism and ecotourism.

In total, the ECER states will benefit from over 32 tourism projects with an estimated investment value

exceeding RM16 billion and the capacity to generate over 40,000 new jobs within the tourism industry. In

addition, hallmark events that will create a strong multiplier effect and attract an international audience to

the ECER are also being studied for value-added development.

Among them are tourism-related projects at Pantai Seri Tujuh, Tumpat, Kelantan; Kampung Penarik-Pulau

Besar, Merang and Pantai Teluk Bidara, Dungun in Terengganu; Pantai Sepat and Cherating, Kuantan,

Pahang and Pantai Mersing, Johor.

Other main highlights within the tourism cluster include:

Mainland Coastal Tourism

Mersing’s coastal area will soon be transformed into an integrated tourism destination and gateway to

the Mersing group of islands. The project involves the development of coastal resorts and hotels, a new

commercial business area and various other related components. Activities to revitalise ECER’s coastal

strips to take advantage of the pristine sea frontage and exclusivity of many ECER beaches were also

undertaken throughout 2008, including active promotion to potential investors.

Sustainable Island Tourism

Home to some of the most beautiful islands and coral reefs in Malaysia, ECER’s island destinations have

attracted a steady stream of tourists over the years, prompting the future development direction to ensure

preservation and protection of islands, with major tourist accommodation to be shifted on the mainland.

Action plans include maintaining the island’s carrying capacity; ensuring sustainable developments;

improving and upgrading jetties, medical facilities, solid waste treatment and sewerage; as well as

developing sustainability indicators for monitoring and accreditation purposes.

Urban Tourism

Urban centres of the east coast are to be re-energised into vibrant tourism magnets – equipped with modern

comforts, while maintaining its age-old charm and cultural identity. Through this urban development

initiative, much opportunity lies in the development of high-end as well as budget accommodation, food

and beverage outlets with a local or foreign theme, as well as better organised retail outlets for marketing

local handicrafts and delicacies.

Culture and Heritage Tourism

The Homestay / Kampung Stay programmes are developed to enhance the participation of the local

population as well as supplement their income. There are currently more than 40 Homestay / Kampung

High-end PVC pipes

Oil, Gas & Petrochemical

Stay Programmes in the ECER. The notable ones that have gained industry recognition include Kampung

Pasir Belanda in Kelantan; Kampung Teluk Ketapang in Terengganu; Kampung Kuala Medang in Pahang;

and Kampung Air Papan Laut in Mersing, Johor.

Cross-border Tourism

The east coast’s proximity with neighbouring Thailand makes it a strategic gateway for tourism and

commerce, improving the economic activities that have existed at several towns on the Malaysia-Thailand

border in Kelantan and the Indochina region. Border towns such as Pengkalan Kubor, Rantau Panjang and

Bukit Bunga will be transformed into bustling hubs for shopping, dining and recreational activities.

Ecotourism

Unrivalled wealth of biodiversity and natural attractions gives the ECER great potential for development

in ecotourism, especially for adventure based attractions such as rock climbing, white-water rafting,

and boat rides deep into the heart of the rainforests. ECER is also home to numerous protected animals

and plant species, as well as home to Taman Negara, the nation’s primary national park which straddles

the borders of Kelantan, Terengganu and Pahang, and the Endau-Rompin Park, another world-famous

national park.

Hallmark Events

Hallmark events that attract an international audience to the ECER will also create a strong multiplier

effect. They generate employment opportunities and improve the business climate in local communities.

Various hallmark events are being studied for value-added development.

The petroleum industry is well-established in the ECER, with the

installation of major oil, gas & petrochemical facilities and supporting

infrastructure already in place in Kertih, Terengganu and Gebeng,

Pahang.

The development strategy for the oil, gas & petrochemical cluster is

to expand and enhance the value of existing products; and enhance

linkages with the downstream manufacturing-based activities.

The Kertih Integrated Petrochemical Complex (KIPC) focuses on

the ethylene-based product streams, whilst the Gebeng Integrated

Petrochemical Complex (GIPC) focuses on the propylene-based

product streams.

With the availability of polymer resins at these two facilities, there is

a strong potential to develop downstream applications and nurture

the growth of the plastics and polymer industry and the development

of SMEs.


August 4, 2009

Manufacturing

The ECER presents an abundance of opportunities for investors in the manufacturing industries

to establish their manufacturing presence in this Region, taking advantage of the rich resources

and raw materials already in place, extending the current value chain by adding value to existing

feedstock from the Region.

Agriculture

Agriculture has benefited from a renewed

business-focus approach, driven by the

private sector. With the introduction of

high-yielding planting material, new

location of upstream plantations and

modern farming techniques as well

as improved agro-based processing,

biotechnology and delivery systems,

agriculture in the ECER has flourished.

The agriculture cluster has been aligned

to develop along the entire value chain,

from applied research to delivering

quality products to the consumer table,

to fulfil the nation’s goals in increasing

Human Capital

Human capital in the ECER is an integral part of the strategy to ensure the availability of an adequate

pool of a skilled and knowledgeable workforce to meet the demands of accelerated development,

generated through the various clusters.

In the ECER, investors’ human capital needs will be facilitated via smart collaborations with universities

in nurturing a professional and capable workforce for investor-specific industries.

The East Coast Economic Region

The manufacturing strength of the ECER is mainly resource-based, led by the petrochemical, woodbased

and food processing sectors. Non resource-based industries such as automotive assembly

and distribution, heavy industries, handicraft, boat building and repair will be enhanced to be

more competitive.

productivity and competitiveness. In line

with national agriculture policies, the

focus will be on developing sustainable

business components within the entire

value chain of food-based crops,

livestock, herbal and fisheries in an

operationally feasible and financially

viable manner.

The aim is not only to increase productivity

and competitiveness, but also to deepen

links with other sectors, venture into new

frontier areas, and conserve and utilise

natural resources on a sustainable basis.

Centres of Excellence in the ECER

Initiatives Location

Centre for Industry-Academia Collaboration (CIAC) UMK, UMT, UDM, UMP, UiTM Machang,

UiTM Dungun & UiTM Jengka

Regional Centre for Halal Products Universiti Darul Iman Malaysia (UDM)

Centre for Innovativeness & Product Creativity Universiti Teknologi MARA (UiTM)

Machang Campus

Centre for Heritage and Culture Universiti Malaysia Kelantan (UMK)

Hospitality & Tourism Management and Universiti Teknologi MARA (UiTM)

Tourist Guide Training Centre Dungun Campus

Institute of Biodiversity & Marine Oceanography Universiti Malaysia Terengganu (UMT)

Centre for Biotechnology and Herbal Research Universiti Darul Iman Malaysia (UDM)

Skills Training and Accreditation & Certification Universiti Teknologi MARA (UiTM)

Centre for Wood-based Products Jengka Campus

Entrepreneurship & Management Training Programme Universiti Malaysia Kelantan (UMK)

Post-Graduate Studies on Facilities Management Universiti Malaysia Terengganu (UMT)

Biodegradable Products and Biofuel Research Centre Universiti Malaysia Pahang (UMP)

Centre for Social Development Universiti Malaysia Terengganu (UMT)

PAGE 9


PAGE 10 August 4, 2009

ENABLING SUSTAINABLE DEVELOPMENT

Transportation

Projects in the transportation sector are vital in opening up and improving channels of access to enhance the growth

and development in the ECER.

Transportation in the ECER, comprising road, air, maritime and rail facilities, will be upgraded to improve the Region’s

connectivity to other growth areas both nationally and internationally, as well as to increase the inter-modal transport

links within the ECER.

Roads

To enhance connectivity and facilitate a more efficient movement of goods, the upgrading of the Central Spine Road and

construction of the East Coast Expressway are vital to the ECER.

Airports

Kuala Terengganu Airport has become an international airport while Kuantan Airport and Kota Bharu Airport will be

upgraded to be regional airports, allowing for more efficient air connectivity within the ECER.

Sea Ports

Major sea ports such as Kertih Port, Kemaman Port and Kuantan Port will be upgraded to cater to future investors’

needs. Kuantan Port will also be expanded with the construction of a new deep-water terminal, allowing bigger and

more modern ships to berth.

Rail

A feasibility study will be carried out to explore the possibility of expanding the passenger and freight rail linkage, both

within the ECER states and to the west coast of the Peninsular.

The Central Spine Road stretches from Kuala Krai in Kelantan to Simpang Pelangai in Negeri

Sembilan, before connecting to the North-South Expressway at Seremban. The existing road will

be upgraded into a dual two-lane carriageway, connecting many interior towns and creating a

complete network of quality roads from rural to urban areas in the Region.

Infrastructure

The infrastructure sector will be simultaneously enhanced on

several fronts. There will be major flood mitigation projects to

progressively improve drainage conditions in the ECER.

Coastal erosion will be handled systematically to allow ECER’s

development projects to take place with minimal disruption,

and beaches will be rehabilitated to revive the tourism sector.

Electricity, water supply, telecommunications including ICT,

and sewerage will be improved to meet current and projected

demands in the Region.

Area identified for the Gebeng Water Pipeline Project.

The Gebeng Water Pipeline Project will ensure high quality

water supply to the Gebeng industrial area in

Kuantan, Pahang

The East Coast Economic Region

George Town

Real Estate

Property and construction will also be a focus in preparing

sufficient residential, leisure, commercial and industrial properties

to meet the Region’s economic demands and growth.

In promoting the property and construction sectors, efforts are

also focused on enhancing the value of Malay Reserve / Malay

Holding Land to benefit the landowners.

To this end, a Real Estate Trust (RET) will be set up as an

investment vehicle which will provide the owners with joint

development participation in the ECER projects, hence unlocking

the value of their properties.

At the same time, it also provides opportunities for the participation of

the Bumiputera Commercial Industrial Community (BCIC) in the high

potential local property sector.

LEGEND:

Bukit Kayu Hitam

Alor Star

Butterworth

Ipoh

N

50 0

50 100

K I L O M E T RE

THAILAND

To Penang

Lojing

To Thailand

Jeli

Gua Musang

Raub

Bentong/

Karak

KUALA

LUMPUR

Port Klang KLIA

State Growth Conurbation

Intermediate Growth

Conurbation / Large Towns

Small Medium Towns /

Special Feature Towns

Existing Primary Routes

Existing Expressways

Proposed Expressways

Rantau

Panjang

Pengkalan Kubor

Minor Port

Machang

Kuala

Krai

Kuala Lipis

Lanchang

Seremban

Kota Bharu Airport

Kota Bharu

Bachok

Tok Bali Tok Bali Fishing Port

Merang

Segamat

Kg. Raja-Besut

Kuala Berang

Dungun

Kertih

Cukai

Kuantan Port City

Jerantut Tanjung Api

Marann

TTemerloh-

Mentakab

Kuala Terengganu

International Airport

Kuala Terengganu

Marang

Kuantan

Tanjung Agas

Pekan / Peramu

Muadzam Muad Shah

Existing Railway

Kuala Terengganu

Cruise Terminal

Port

Jetty

Tanjung

Pelepas

Kertih Port

Kemaman Port

Kuantan Port

Kuantan Airport

Kuala Rompin

Tanjung Gemuk

Johor Bahru

SINGAPORE

Mersing

Regional Airport

International Airport

Central Spine Road

Environment

The ECER is home to many environmental heritage sites and a

large proportion of water catchment areas within the Peninsular.

These areas include virgin primary forests and national parks

such as Nenggiri and Endau-Rompin, rivers, wetlands, marine

islands and highlands.

In carrying out projects within the ECER, special emphasis

will be placed in conserving the environment to ensure

sustainability for years to come. This is to maintain the

integrity of the natural environment alongside development for

the benefit of future generations.


August 4, 2009

ECER MAKING PROGRESS

While the ECER is still very much in its initial stages, there has been significant progress

in each of the five clusters to date.

Tourism

There are currently more than 40 Homestay / Kampung Stay programmes

in the ECER offering tourists the unique experience of participating in, and

enjoying the traditional and cultural lifestyles of local host families.

Among the Homestay / Kampung Stay programmes that have gained

industry recognition are Kampung Pasir Belanda in Kelantan; Kampung Teluk

Ketapang in Terengganu; Kampung Kuala Medang in Pahang; and Kampung

Air Papan Laut in Mersing, Johor. The programme also includes the initiative

to train Homestay / Kampung Stay operators in collaboration with the Centres

of Excellence (CoE) at UiTM Dungun under the education cluster.

Studies to transform Mersing’s coastal area into an integrated tourism

destination and gateway to the Mersing group of islands were also carried out,

involving the development of coastal resorts and hotels, a new commercial

business area, and various other related components. Activities to revitalise

the ECER’s coastal strips to take advantage of the pristine sea frontage and

exclusivity of many ECER beaches were also undertaken throughout 2008,

including active promotion to potential investors.

Manufacturing

Several emerging industries within the manufacturing sector are being

implemented. They include the production of Kenaf-based products, a valueadded

initiative to produce Kenaf bio-composite products, industry grade

insulators and fibre products. It will also see the integrated development of

Kuantan Port City (KPC), an industrial and logistics hub for the petrochemical,

palm oil, automotive and container markets.

Meanwhile, the Automotive Industrial Park (AIP) at Pekan-Peramu is the site

for the development of a manufacturing and assembly hub for the automotive

industry while the Kemaman Heavy Industrial Park will be developed to

Agriculture

In agriculture, the Lanchang Permanent Food Production Park and Modern

Farm in Pahang will see the participation of the Malaysian Agrifood

Corporation (MAFC) as an anchor company to establish a commercial fruit

farm, targeting premium local and foreign markets for the sale of export

quality tropical fruit.

FELDA, through strategic cooperation with the Malaysian Agricultural

Research and Development Institute (MARDI), is investing in the Muadzam

Shah Cattle Research & Innovation Centre, a multiplier and feedlot farm, a

marketing hub and an abattoir to increase the production of genetically-

improved cattle for breeding.

Other key milestones in the livestock initiative are the implementation

of multiplier goat farms in Telaga Papan and Ulu Tersat, Terengganu, the

development of the Kuala Berang Goat Research & Innovation Centre and

Sheep Rearing Project in Pekan, Pahang.

The fully-integrated Gua Musang Poultry Production Park has also been

initiated, while the Herbal & Biotechnology Park is being set up in Gua

Musang to focus on development of pharmaceutical and nutraceutical

herbal-based products.

Within the fisheries industry, 3 Collection, Packaging & Processing Centres

(CPPCs) will be established in Pengkalan Kubor & Bachok in Kelantan and

The East Coast Economic Region

Among them are stretches of coastline including at Pantai Seri Tujuh, Tumpat,

Kelantan; Kampung Penarik-Pulau Besar, Merang and Pantai Teluk Bidara,

Dungun in Terengganu; Pantai Sepat and Cherating, Kuantan, Pahang and

Pantai Mersing, Johor.

include integrated facilities within designated areas for manufacturing, boat

building and repairs and free zones.

The Kemaman Boat Building and Repair Park will be also located here,

taking advantage of the site’s proximity to port facilities and the upstream

and downstream developments in the oil & gas industry in nearby Kertih.

Other key developments include the Palm Oil Industrial Cluster (POIC), the

Gambang and Pasir Mas Halal Parks, the Bentong Mixed Industrial Park, and

the Herbal & Biotechnology Parks in Temerloh and Raub.

Kuala Kemaman in Terengganu, to assist entrepreneurs to process and

manufacture high value-added products in a systematic manner.

The Kuala Pahang Marine Fish Hatchery & Marketing Centre and the Raub

Freshwater Fish Hatchery & Marketing Centre will also be established.

Goat multiplier and commercial farms in Telaga Papan (top) and Ulu Tersat (bottom).

Human Capital

In June 2008, the ECERDC launched a total of 12 Centres of

Excellence (CoE) in each of the Region’s universities to prepare the

necessary human capital and skills required by the industry.

Additionally, the Centre for Industry-Academia Collaboration

(CIAC) matches the needs of industry with what is offered by

academia mainly in terms of research and job-training to help

drive development. It will also delve into the accumulated research

produced by academics after years of study, and determine how

this rich treasure-trove of knowledge can be used for commercial

purposes in ECER projects.

Oil, Gas & Petrochemical

PAGE 11

First investor in KPP, Hi-Essence Cable Sdn Bhd,is ready to commence operations.

Malaysia’s first fully-integrated plastics park, known as the

Kertih Polymer Park (KPP) project initiative, was set up to

promote further downstream investments in plastics and

polymer industries by tapping into the potential synergies

from integration with the Kertih Integrated Petrochemical

Complex (KIPC).

Covering a total land area of 140 hectares, the KPP site is

nestled within the Kertih-Cukai-Gebeng petrochemical hub.

The development of the project is divided into two phases.

Phase 1 covers 90 hectares while Phase 2 is approximately

50 hectares. 40 hectares of Phase 1 are currently undergoing

land preparation and infrastructure development.

Four investors have committed to invest in the park to-date.

Hi-Essence Cable Sdn Bhd has started construction of its wire

and cable plant; while Latenfield Pipe Industries Sdn Bhd and

FMD Polypipes Industry Sdn Bhd have committed to invest.

To facilitate R&D in the KPP, the PETRONAS Polymer

Technology Centre (PPTC) will be set up to provide technical

support to KPP tenants. When fully operational in 2015, the

KPP is projected to attract over RM2 billion in investments

and create more than 8,000 jobs.


PAGE 12 August 4, 2009

ECER SEZ – THE CATALYST OF TRANSFORMATION

BANDAR AL MUKTAFI BILLAH SHAH

• Furniture Industry Park

KERTIH

• Kertih Integrated Petrochemical Complex

• Kertih Polymer Park

• Polymer Technology Centre

KUANTAN PORT CITY

• Knowledge Innovation Zone

• Kuantan Deep Water Port

• Kuantan Port-Free Zone

• Logistics Centre

• Palm Oil Industrial Cluster

• Automotive Regional Distribution Centre

• Grain-based Animal Feed Industry

• Gebeng Integrated Petrochemical

Complex

• Biofuel Cluster

• Industrial Cluster

• Small Medium Scale Enterprises

• Panching Water Treatment Facility

SG. LEMBING

• Ecotourism & Heritage Mines

• Safari Park

GAMBANG

• Gambang Cyber Centre

• Gambang Science Park

• Gambang Halal Park

• Poultry Processing Park

• SME Incubation Centre for

Food Processing

• Biotech Industrial Park

• Electric and Electronic Supply Centre

PEKAN-PERAMU

• Cultural Heritage Tourism

• Automotive Industrial Park

• Handicraft Village

• Tg. Agas Maritime Industrial Hub

• Tg. Agas-Free Zone

To

Kuala

Lumpur

Major Urban Nodes

Industry Nodes

Tourism Nodes

GAMBANG

Cattle Integration in

Oil Palm Plantations

(Kemaman)

The ECER SEZ is a concentration of high-impact projects within an integrated development zone located at the nucleus

of the ECER – the 25km by 140km strip that extends from Kertih, in Terengganu to Pekan, in Pahang.

It comprises new townships, international tourism sites, 4 ports, 2 airports and knowledge innovation zones. It is the

most ideal stretch along the east coast for further urbanisation, given its established cities and towns.

The ECER SEZ acts as a catalyst for focused decentralisation of economic activities in line with the New Economic Model.

It will accelerate growth with focused concentration, where manufacturing and commercial activities are promoted and

conducted on preferential excise terms, supported by good infrastructure development as well as knowledge-based

and capacity-building programmes.

The ECER SEZ is the only zone of its kind in Malaysia, set to experience unprecedented growth and generate a ripple of

development throughout the ECER through its significant multiplier effects. It is now one of the larger SEZs in Asia with

390,000 hectares comprising 25,000 hectares of SEZ Nodes.

The population of the ECER SEZ will grow to 1.3 million, accompanied by the targeted creation of 220,000 new jobs by

2020. Its economy will move from labour-intensive industries to high-technology, knowledge-based activities and the

service sector.

Although the ECER SEZ forms only 6% of the landmass of the entire ECER, it will have a significant impact as it will

create 50% of all jobs and 80% of the economic output of the ECER.

The ECER SEZ is poised to become a strategic destination for investors given its position to access the vast markets of

the Far East and the Asia Pacific, with a total population of 4 billion and a combined GDP of US$17 trillion. Investment

within the ECER SEZ is estimated to total RM90 billion up to 2020.

EAST COAST EXPRESSWAY (LPT 1 & 2)

Kuantan-Maran

Agro Valley

Agropolitan Project

To Dungun/K.Terengganu

EAST COAST EXPRESSWAY (LPT 4)

R

ECER SEZ CENTRAL LINK

TEMERLOH-MENTAKAB / KT RAIL

To Johor/Singapore

UMP

PERAMU

Value Adds of the ECER SEZ

ECER PRINCIPLES

Economic

Growth

Employment

Generation

Entrepreneurship

Development

Public-private

Partnerships

Productivity

Environment

PAKA

KERTIH

CCHERATING

KUANTAN K

PORT CITY

PANTAI SEPAT

TG. AGAS

KIJAL

CUKAI

KUANTAN

PEKAN

TELUK KALONG /

KKEMAMAN

PORT

KUALA PAHANG

ECER Special

ECER SEZ VALUE ADDS

Concentrating

Investments

Knowledge

Innovation

Market

Connectivity

Focused

Marketing

Improved

Infrastructure

Network

Fast-tracking

Development

KIJAL

• Mainland Coastal Tourism

CUKAI

• Kemaman Boat Building & Repair Park

• Kemaman Heavy Industrial Park

• Kemaman Port Expansion

• Kemaman Port-Free Zone

• SME Development Programme for

Processed Fisheries Products

• Fish Collection, Packaging & Processing

Centre & Fish Landing Port

CHERATING

• Cherating Tourism Town

KUANTAN

• Urban Tourism

• Kuantan Airport Upgrading

• Fish Processing Park & Fish Landing Port

• Kuantan-Maran Agro Valley

• SME Development Programme for

Processed Fisheries Products

• Handicraft Industry Programme

• Kuantan Cyber Centre

• International Islamic University

• Kuantan Sentral Multimodal Transit Hub

PANTAI SEPAT

• Mainland Coastal Tourism

• Recreational Fishing Centre

KUALA PAHANG

• Mainland Coastal Tourism

• Universiti Malaysia Pahang

• Centres of Excellence (Biofuel,

Biodegradable products & Automobile)

• Kuala Pahang Marine Fish & Shrimp

Hatchery & Marketing Centre

To attract and concentrate foreign and

local investments into the Region

Specialised institutions to enhance

skills & competencies to meet specific

industry requirements via services

Strategic linkages to local, regional &

international markets supported by 4 major

ports and multimodal transportation

To provide marketing focus for a larger

area in the ECER, instead of a single node

with many activities

State-of-the-art infrastructure to

support the movement of people, goods

and services

Speedy approvals, customised incentives

& project implementation facilitated by

ECER Development Council


August 4, 2009

Economic Zone

INTERNATIONAL, REGIONAL & NATIONAL POSITIONING OF THE ECER SEZ

The ECER SEZ lies in a belt of development within the ECER that banks on the international, national and regional growth conurbations to fuel

its growth as the hinterland to East Asia. While the focus is to promote international/regional trade linkages and investment, the emphasis is on

protecting and conserving environmentally sensitive areas.

International Positioning

KL Metropolitan

NATIONAL

NCER

ECER

Iskandar Malaysia

SEZ

• Hinterland to East Asia

• Inter-regional hub for China-India

• Integrated industry clusters

Regional Positioning

Gambang Gambang

Gambang Gambang

Kuantan Kuantan

Pantai Pantai Sepat Sepat

KERTIH

INDIA/MIDDLE EAST

Kertih

Pekan Pekan

CUKAI

INDOCHINA

KUANTAN PORT CITY

KUANTAN

GAMBANG

PEKAN

TG. AGAS

Kertih Port Port

SINGAPORE/AUSTRALASIA

Kemaman Kemaman

Kemaman Kemaman Port Port

Kertih-Cukai/Kemaman-

Cherating Local Corridor

Gebeng Gebeng

Gambang-Kuantan-Gebeng

Gambang-Kuantan-Gebeng

Local Local Corridor

Kuantan Kuantan Port Port

KUANTAN KUANTAN CONURBATION

CONURBATION

Kuantan-Pantai Kuantan-Pantai Sepat- Sepat-

Kuala Pahang-Pekan Pahang-Pekan Local Corridor Corridor

Tg. Tg. Agas Agas

CHINA/EAST ASIA

BORNEO/INDONESIA

• Low cost of doing business

• Eastern Gateway of Malaysia

• Promoting international/regional trade linkages and investment

Central Corridor

Kuantan-Melaka Sub-Corridor

East East Coast Corridor

Tourism

Oil, Oil, Gas Gas & & Petrochemical

Manufacturing/Logistics Hub Hub

• Strengthens local economic corridors in Tourism, Oil, Gas & Petrochemical, Manufacturing / Agrobased

Industries and Education clusters through focused concentration in the ECER SEZ

• A regional platform for participating in the development opportunities within the ECER

• Acts as the processing and marketing centre of regional agricultural produce, manufactured products

and mineral resources from the ECER

National Positioning

Port

North South Corridor

Pulau Pinang

Central Corridor

East Coast Corridor

Kuantan-Melaka Sub-Corridor

Ipoh

North South Sub-Corridor

East West Sub-Corridor

Lumut-Gua Musang-KT Sub-Corridor

Focused Development Districts

National Park

Highway / Expressway

Railway

Bandar Al Muktafi

Billah Shah

Gambang

Tasik Chini

Pekan

Thailand

South

Kelantan

Lojing

Kuala

Lumpur

Kuantan

Kota Bharu

Pasir

Mas

Jeli Tok Bali

West

Pahang

Raub

Bentong

Melaka

Paka

Kertih

Cukai

Geliga

Chendor

Kuantan

Port City

Tg. Agas

Gua Musang

Kuala Lipis

Jerantut

Temerloh

Mentakab

Kuala Terengganu

Dungun

Kertih

Kemaman Port

ECER SEZ

Kuantan Port

Kuantan

Pekan-Peramu

Tg. Agas

Muadzam Shah

Mersing

Johor Bahru

Singapore

Regional Growth Conurbation

State Growth Conurbation

International Growth Conurbation/Large Towns

Small Medium Towns/Special Feature Towns

ECER SEZ Geographical Boundary & Key Conservation Areas

140km

Sg. Luit

Telaga Air Panas

Sg. Pahang

Sg. Paka

Sg. Cerut

Bukit Charas

25km

Sg. Jabur

Sg. Ibul

Kemasik

Kijal / Kemasik

Kijal

Environmentally sensitive areas

within the ECER SEZ will be

protected and conserved.

Ecological and environmental

sustainability to underpin

development efforts in the

ECER SEZ.

ECER SEZ Boundary

Forest

Wetlands

Water Catchment

Area of Special Interest

Turtle Landing Site

PAGE 13


PAGE 14 August 4, 2009

FREE ZONES & FOCUS NODES IN THE ECER SEZ

The ECER SEZ will contain several Free Zones and Focus Node Areas within its geographical area where additional special incentives will

apply, above and beyond those offered for other ECER projects.

PETRONAS Petroleum Industry Complex (PPIC)

The PETRONAS Petroleum Industry Complex (PPIC) is a fully-integrated

petroleum industrial hub. Here, the established Kertih Integrated

Petrochemical Complex (KIPC) focuses on the ethylene-based product

streams, whilst the Gebeng Integrated Petrochemical Complex (GIPC)

focuses on the propylene-based product streams. With the availability

of polymer resins at these two facilities, there is a strong potential to

develop downstream applications and nurture the growth of the plastics

and polymer industry and the development of SMEs.

Kemaman Heavy Industrial Park

The Kemaman Heavy Industrial Park is a dedicated heavy industrial park

that adopts a plug-and-play development model whereby the requisite

support facilities and common services are in place, allowing businesses

to immediately start operations.

The manufacturing activities at the Kemaman Heavy Industrial Park

which require movement of raw materials, component parts, machinery

and equipment related directly to the manufacturing processes will

benefit from the synergy of the nearby Kemaman Port which has the

comprehensive facilities of a free zone and able to cater for heavy-

industry freight services.

The park includes a deep-sea boat building and repair industry which

offers an opportunity for investors to leverage on the Region’s pool

of indigenous skills and the expansion of the market expected with

heightened activity in the trade, logistics, fisheries and the oil, gas &

petrochemical industries.

Kuala Pahang Tourism Zone

Kuala Pahang, or specifically Pantai Air Leleh, lies within the Eastern

Mainland Tourism Corridor. Being adjacent to Pekan, the historical

royal town, the initiatives include the enhancement of sections of

this historic town and kampung areas as well as for the riverfront.

Development will also include low-key commercial and Homestay /

Kampung Stay programmes.

The coastal tourism development of Pantai Air Leleh would include

an integrated resort, 4 & 5-Star hotels and coastal parks. Since it is

located close to Universiti Malaysia Pahang (UMP), developments would

also include residential accommodation for staff and students of UMP

together with commercial areas.

ECER Special Economic Zone

Kuantan Port City

(Integrated Development) and

Kuantan Port Free Zone

The integrated development of Kuantan Port City (KPC)

and Kuantan Port Free Zone will elevate the ECER SEZ

to become an integrated industrial and logistics hub for

the petrochemical, palm oil, automotive and container

markets, as well as a major industrial and manufacturing

zone serving the entire Asia Pacific region. KPC will also

be the site for a Palm Oil Industry Cluster (POIC), one

of its manufacturing components specialising in the

downstream palm oil industry.

It is a massive project, covering an area of approximately

12,667 hectares and projected to attract investments

up to RM42 billion by 2020 and RM123 billion by 2040.

When fully completed, Kuantan Port’s total throughput

is estimated to increase from over 9.4 million tonnes

in 2008 to approximately 30 million tonnes in 2020. Its

GDP contribution to the local economy is estimated at

RM9.3 billion by 2020, creating a total of 44,700 jobs.

Tg. Agas Maritime Industrial Hub & Free Zone

The Tg. Agas Maritime Industrial Park in Pekan will be developed as a

maritime hub. The industrial park, covering 4,098 acres, will be a modern

one-stop service centre and offshore base.

Among the facilities to be set up in the Park are a shipyard, fabrication

yard, dredger yard, bulk terminal, petroleum terminal and warehouses,

factories and commercial and residential development.

It will create over 30,000 jobs in 10 years. The first 5,000 jobs are

expected to be generated within the first 3 years, by 2011.

Kertih Polymer Park

Malaysia’s first fully-integrated plastics park, the

Kertih Polymer Park (KPP) is nestled within the

Kertih-Cukai-Gebeng petrochemical hub covering

a total of 140 hectares of land area. Set up to

promote further downstream investments in plastics

and polymer industries, KPP taps into the potential

synergies from integration with the Kertih Integrated

Petrochemical Complex.

Cherating Tourism Town

Situated 47km from Kuantan, Cherating’s fine sandy beach and crystal clear

water makes it one of the most popular tourism destinations in the ECER.

With budget hotels, chalets and 5-Star resorts established within the

area, including local handicraft shops and seafood restaurants, Cherating

offers more than just a relaxing spot to unwind. Under the ECER, it has

been earmarked as one of the Region’s major mainland coastal tourism

and heritage destinations.

Pantai Sepat Tourism Town

Located in a prime area near Kuantan and easily accessible from the

Klang Valley via the East Coast Expressway, Pantai Sepat covers more

than 1,000 hectares of area with over 7km of beautiful continuous beach

frontage, 4 & 5-Star hotels, cultural events and more to cater for diverse

market segments especially foreign and local tourists.

Its southern-most part overlooks pristine wetland and natural coastal

wildlife sanctuaries. Development of large residential and commercial

areas, hotels and resort as well as a fishing jetty and an esplanade are

in the pipeline.

In addition to generating over 1,000 job opportunities for the local

community, the project will also open up opportunities for SME’s,

including lodging, food, transport, and souvenirs.


August 4, 2009

Gambang Halal Park

Within the ECER SEZ, the Gambang Halal Park is another significant ECER manufacturing project. As a part

of value-added industry development, Gambang Halal Park will see the emergence of food and non-food

industries produced in accordance with the Syariah principles. The Halal Park will also house incubation

centres for small and micro-food enterprises.

The MSC Malaysia Pahang Initiative is part of the MSC Malaysia

National Rollout plan which aims to spread MSC Malaysia benefits

and value proposition nationwide, and to reach out to both industry

and the community at large. With Pahang joining the MSC Malaysia

family, it is envisaged that the rakyat in Pahang will embrace and

benefit from ICT in their daily lives.

With the guidance and support of the Federal Government, MSC

Malaysia Pahang Initiative aims to integrate ICT into the mainstream

of various Pahang development programmes and sectoral activities.

MSC Malaysia Pahang Initiative will complement the East Coast Economic Region (ECER), crafting innovative

approaches to develop rural areas, modernise agriculture, enhance industrial productivity and tourism

revenues, uplift education and quality of life, and facilitate public services delivery.

Through a collaborative effort by the State Government and Multimedia Development Corporation (MDeC),

MSC Malaysia Pahang Initiative is conceived to capture holistically all three (3) development thrusts of

MSC Malaysia, namely development of ICT as a growth industry (ICT-I); development of ICT as an enabler

(ICT-E) for Government and economic sectors; and development of ICT for society (ICT-S) to empower and

uplift the quality of life of the rakyat. Fast-tracking critical enablers such as ICT infrastructures and human

capital to support all three development thrusts will be given due emphasis.

In the beginning, MSC Malaysia Pahang will underscore efforts to strengthen demand generation from the

rakyat, public sector and existing industries. Key to this would be accelerating affordable broadband and

convenient computing access (including in the rural areas); enhancing awareness of ICT benefits; boosting the

ICT literacy and adoption rates state-wide; and incorporating ICT and multimedia applications in existing and

new societal development programmes that have mass rakyat participation.

Applications of ICT in pre-indentified socio-economic programmes have been made affirmative by the State

Government, such as those for unemployed youth, uplifting rural and urban poor education programmes, and

new income generation programmes. This would indeed give a better meaning of ICT to the rakyat.

ECER Special Economic Zone

Pekan Automotive Industrial Park

THE MSC MALAYSIA PAHANG INITIATIVE :

COMPLEMENTING ICT INTO ECER DEVELOPMENT

The Automotive Industrial Park (AIP) development will position the Pekan-Peramu area as an automotive

manufacturing and assembly as well as R&D hub. Strategically located close to the Kuantan Port, the AIP

provides a cost-competitive advantage to vehicle and component manufacturers / assemblers looking for an

automotive supply and distribution base for the ASEAN and the Asia Pacific regions.

AIP’s key characteristics include:

• A self-contained park to cater for automotive manufacturing and assembly activities with supporting

facilities, residential and recreational amenities, plug-and-play concept offering infrastructure ready with

ready-built factories for R&D activities and assembly plants

• A one-stop centre providing value-added services for speedy processing in all aspects of business and

operations set-up. Innovative and flexible financial incentives for companies deciding to locate their

operations at the AIP.

AIP is estimated to generate over RM4 billion in investments throughout its 4 stages of development, with a

total of 10,580 jobs expected to be created.

The Building Blocks of MSC Malaysia Pahang and Jumpstart Programmes

ICT - I Programmes ICT - E Programmes ICT - S Programmes

3. MSC Malaysia

Cybercentre@Putra

Square Kuantan

4. MSC Malaysia Incubator

and Technopreneur

Development

5. Pahang Technology

Resources and

Universiti

Malaysia Pahang

Industry-Academia

Programme

6. Pahang e-Pihak

Berkuasa Tempatan

(ePBT)

7. Pahang e-Procurement

8. Pahang Geospatial

- Forestry

9. Teaching and Learning

Made Effective (TELME)

10.Parental Awareness

11.Pahang ICT Awareness

Drive

12.Bridging Community

Through Sports

13. Community

Development

Supply Generation Demand Generation

Fast-tracking Enabler Programmes

1. High Speed Broadband Technology

2. MSC Malaysia Pahang Knowledge Workers Development Initiative

PAGE 15

14. Pahang Workforce Entry

and Efficiency Training

(PWEET)

15. Creativity Development


PAGE 16 August 4, 2009

INTEGRATED FACILITIES – THE FOUNDATION OF THE ECER SEZ

The ECER SEZ has been established to serve as a catalyst in speeding up industrial

and economic activity within the ECER towards achieving the development objectives

for the Region.

The development strategy will focus on the key economic drivers, while the key enabling

projects will increase connectivity and provide the necessary linkages to the clusters. The

ECER SEZ contains 4 major ports and 2 airports which will support its manufacturing and

industrial activities. The main transportation and logistics initiatives include:





The ECER SEZ Central Link which will unlock the development

potential of interior land parcels in the ECER SEZ and serve as

the main traffic connector for the ECER SEZ

The development of an expressway system

- East Coast Expressway 2 (LPT2) : Kuantan – Kuala Terengganu

- East Coast Expressway 4 (LPT4) : Kuantan – Johor Bahru

The regional rail link connecting the industrialised west coast and the ECER SEZ

The proposed Kuantan Sentral Multimodal Transit Hub

The ECER SEZ will incorporate an integrated development approach which comprises

commercial, residential, educational, industrial, service and knowledge components. It

will have an orientation towards building up capacity for knowledge innovation that can

be linked across each component.

A knowledge innovation-based economy is an enabler which takes the form of collaboration,

cooperation, research and development, knowledge sharing and commercialisation of

ideas between the private sector, Government and academia. While traditional factors of

production, such as labour, capital, raw materials and entrepreneurship remain important,

a knowledge-based economy will provide the platform to sustain a rapid rate of economic

growth projected for the ECER SEZ and enhance international competitiveness for

the ECER.

Special Economic Zone Model

Commercial

Tourism

New

Town

Knowledge &

Education

Port Free

Zone

ECER Special Economic Zone

Transport,

Infra &

Utilities

Industrial

Clusters

Economic Pillars of the ECER SEZ

VISION

KEY DRIVERS

ENABLERS

THE MAIN

PILLARS

SUPPORT

SYSTEM

BASIC FOUNDATION

(HARD & SOFT

INFRASTRUCTURE)

High-value

Manufacturing

To be a Catalyst for Focused Growth in the East Coast Economic Region

(Distinctive - Dynamic - Competitive)

Agro-based

Industry

Oil, Gas &

Petrochemical

Tourism /

Real Estate

Knowledge /

Education &

ICT

Supporting Manufacturing Activities, Agro-processing, Financial Services,

Professional and Other Services & Related Services

Supporting Institutions (Industrial Training, R&D,

Government, Private & Social Institutions, Trade Associations,

Communication & Coordination Systems)

Well Developed Physical Infrastructure

Strong Basic Education and Training

Conducive Working and Living Environment

Stable Political & Social Environment

Essential Ingredients of the ECER SEZ

Strategic Infrastructure & Modern Facilities

• Key components to include deep-water harbour, airport and rail connectivity

• Focus on competitive industries that rely on local raw materials

• Establish modern infrastructure – integrated townships with tourism components

• State-of-the-art utilities – broadband, water supply, electricity, infrastructure

• Identify Strategic Nodes within the ECER SEZ with easy access to logistics facilities

• Support small / medium-sized enterprises (SMEs) and resident population

Investment Focus

Logistics

• Improve investment climate and simplify procedures with continuous follow-up

with investors

• Implement long-term planning to identify feasible investment opportunities

• Regionally comparable fiscal incentives to attract local and foreign investors

• Special incentives to encourage certain types of investments, particularly in the technological

and knowledge sectors

• Encourage public-private partnerships for development

• Create positive interaction between investors-cluster and trade associations

Enabling Initiatives

• Expansion of activities on manufacturing, processing, commercial and professional services

• Leverage on local capabilities and available resources

• Provide training courses and incentives to develop human resources

• Give special attention to environmental protection


August 4, 2009

ECER Special Economic Zone

THE ECER : A UNIQUE INVESTMENT DESTINATION

The ECER states in particular hold a special place in the hearts of visitors from far and near,

who never fail to be charmed by the Region’s pristine beaches, a long coastline on the South

China Sea, lush greenery, resort islands and a 100 million year old rainforest.

The distinctive positioning of the ECER is unmatched for its uniqueness, so eloquently

expressed in its culture and heritage, that blends a variety of influences from the Region’s

history of convergence between the East and the West.

Against such a unique backdrop, it is no surprise that many investors and business people

have made the ECER their second home under an innovative scheme by the Government to

encourage foreign citizens to experience Malaysia’s culture and lifestyle.

The cost of living in the ECER is still one of the most competitive in Asia, a surprising fact

given that so much of this spectacular Region is a tourist’s dream destination. The ECER is

well-connected with modern road, rail, air, and sea transportation systems.

All in all, the ECER is an especially attractive Region to invest, live and work in.

Incentives for the ECER

Investors may look forward to an attractive package

of incentives, exclusive to the Region, with the aim of

transforming the ECER into a cost-competitive and

vibrant business hub. The incentives introduced for

investors positions the ECER as one of Malaysia’s

most attractive investment destinations.

Each of the ECER’s five clusters of economic

development has its own package of incentives,

including location-based incentives, specifically

tailored to the Region’s needs. Investors will enjoy

these Special ECER Incentive Packages in addition to

the existing incentive packages offered by Malaysian

Industrial Development Authority (MIDA).

Incentives for the ECER SEZ

In the ECER SEZ, a special package of fiscal and

non-fiscal incentives will be made available in

the SEZ Focus Node, covering investments in

manufacturing, petrochemicals, agro-based

processing, tourism, knowledge, education and

ICT. These attractive incentives specifically for SEZ

Focus Nodes are formulated to spur the investment

in what will become a cost-competitive and vibrant

investment destination for the investors.

4 Free Zones will be created in the ECER SEZ

to promote and concentrate linkages amongst

industry clusters which will have significant impact

on the economy. The ECER SEZ Free Zone entails

Kemaman Port - Free Zone, Kuantan Port City - Free

Zone, Kuantan Airport - Free Zone and Tanjung

Agas - Free Zone. The incentives identified are for

companies developing infrastructure of industrial

parks, industrial park operators and companies

undertaking activities in the ECER SEZ Free Zone.

Fiscal incentives include Income Tax Exemption

of up to 10 years, Investment Tax Allowance (ITA)

amounting to 100 per cent of the qualifying capital

expenditure for up to 10 years, Stamp Duty, Import

Duty and Excise Tax Exemption. Customised

incentives are also given to companies on a caseto-case

basis.

In addition, a set of non-fiscal incentives will also be

available to encourage investors participation in the

ECER SEZ. Prospects to bring in unlimited number of

expatriate knowledge workers for key management

posts will support the objective of the ECER SEZ in

developing and training a skilled workforce among

the local population. To encourage the relocation of

companies in the SEZ Focus Nodes to spur economic

development, competitive utilities tariffs and several

other attractive non-fiscal incentives are waiting to

be enjoyed. Special non-fiscal incentives are also

available to encourage companies to invest in the

knowledge-intensive activities.

These attractive set of fiscal and non-fiscal

incentives, coupled with improvements in

infrastructure, consistent pro-business policies, and

a good living and working environment are set to

experience a boost in prospective investors flocking

to the ECER SEZ.

The One-Stop Centre for Investors

To accelerate the growth and development of the ECER, a one-stop centre has been established to fast-track

investment applications and approvals.

The East Coast Economic Region Development Council (ECERDC) plays a leading role in promoting and

stimulating economic and social development as well as private sector investment in the Region.

It provides counselling, advisory services and processes tax incentives and non-tax incentives for projects. To

meet the varying needs of investors, the ECERDC also customises incentives on merit basis to be recommended

for approval by the Ministry of Finance (MOF).

Investment Promotion

As part of the ECERDC’s promotion efforts, regular investment and trade missions to key investment

markets worldwide have and will continue to be initiated, as well as participation in specific trade shows,

conferences and seminars related to ECER’s primary economic clusters.

In addition, ECERDC had planned marketing missions both locally and overseas to get more investors

interested and onboard. The acceleration of various ECER projects will see more financial commitments from

investors, which in turn, will create more jobs, enhance income opportunities and business prospects for the

local population.

Joint efforts continue to be undertaken by ECERDC with the States to woo investors.

PAGE 17


PAGE 18 August 4, 2009

THE ECER : TRANSFORMING LIVES THROUGH SOCIAL

DEVELOPMENT INITIATIVES

The local community of the ECER has always been central to the vision for the Region

to be developed by 2020. Without the improvement of their well-being, the economic

progress would be meaningless.

Realising this, ECER’s social and human capital development initiatives focus on

the eradication of poverty and mitigating urban-rural gaps through sustainable

employment and entrepreneurship opportunities.

The social development initiative in the ECER is thus a priority, with various projects

having been launched that will eradicate poverty, raise the income levels and

ultimately improve standard of living.

Agropolitan Project

The Agropolitan Project is an initiative aimed at eradicating hardcore poverty through various integrated

agricultural and agro-based development projects.

A distinctive highlight of the Project is the allocation of a house for the hardcore poor families as well as

land for identified crops and aquaculture initiatives, supported by processing and marketing activities

and re-settlements.

Fishermen Poverty Eradication Programme

The programme engages fishermen in value-added

activities within the fisheries industry. It also trains

and educates them in various alternative occupations

by introducing other sources of income, outside the

fisheries subsector.

The East Coast Economic Region

The initial project will involve approximately 1,000

fishermen from 100 villages along the entire coast

of the ECER from Tumpat in Kelantan to Mersing in

Johor, aiming to increase their household income to

more than RM1,500 per month.

Components of social development in ECER:

• Poverty Eradication

- Agropolitan Project

- Fisherman Poverty Eradication Programme

• Entrepreneur Development

- Bumiputera Commercial and Industrial Community (BCIC)

- SME Development Programme

- SOHO for Women Programme

• Human Capital Development

- Pre-employment, Skill Upgrading &

Entrepreneurship Development Programme

- Graduate Placement Programme

- Contract and Temporary Employment Programme

Bumiputera Commercial and Industrial

Community (BCIC) Programme

Through this programme, Bumiputera participation

within the commercial and industrial activities will be

widened, moving their participation higher up along

the product value chain of the 5 economic clusters

where revenue and profits are higher.

Under BCIC, local entrepreneurs will be able to

enter into smart partnerships with Government-

Linked Companies (GLC) and the services sector. In

widening the scope for entrepreneurs, there will be

strategic collaborations between Bumiputeras and

non-Bumiputeras in areas not commonly penetrated

by the former.

A detailed implementation framework is being

prepared to ensure the generic thrust of BCIC

development in ECER projects is achieved.

One of the BCIC programmes already underway

throughout the ECER is the Franchise Development

Programme, which is aimed at assisting graduates,

youth and women in meeting the vision of nurturing

at least 50 to 100 franchisees in the ECER by

2010. Commissioning of collaborations with related

Government agencies had begun since mid 2008.


August 4, 2009

SME Development Programme

The SME Development Programme upgrades the

capacity, capability and infrastructure of local ECER

businesses to meet regulatory criteria and international

accreditation standards, to gain credibility in widening

their reach into global markets.

Emphasis on product development through

certification and accreditations (Halal, Good

Manufacturing Practice (GMP), Hazard Analysis and

Critical Control Points (HACCP), etc) as well as product

enhancements through packaging, branding and

marketing activities are also underlined. In addition,

Small Office Home Office for Women (SOHO)

The SOHO Programme gives priority to women

who are unable to work away from home, with

little capacity or skills, to be able to generate

income for their household. The programme

provides a variety of opportunities to participants

through three categories – SOHO Home

Producer, SOHO ICT and SOHO Service Provider.

A detailed implementation programme study

was done in 2008, following which 4 pilot

projects were initiated. Among the identified

The East Coast Economic Region

the programme stresses production improvements

and applications of technology, ICT and R&D into the

overall product development process.

Improvements for access into local and international

markets are also carried out, which includes

marketing and advertising and promotion initiatives.

In addition, capacity and capability improvements

have been initiated regularly, including skills training

and human resource management as well as

upgrades in machinery and infrastructure.

SOHO projects are the production of

vermicompost in Bachok, Kelantan, mushroom

farming in Kg. Peringat, Kota Bharu, Kelantan

and Tenun weaving in Kg. Soi, Kuantan and Pulau

Keladi in Pekan, Pahang.

The Programme seeks to supplement the target

group’s income by appromixately RM700 -

RM1,000 a month, by setting up cottage industries

and traditional craft making initiatives.

Human Capital Development

In line with the economic development, ECERDC is also focusing on development

of human capital. Among programmes to be implemented are projects under

the Centres of Excellence. Under the Economic Stimulus Package, the following

programmes for employee training and placement will be implemented:




Pre-employment, Skill Upgrading &

Entrepreneurship Development Programme

Graduate Placement Programme

Contract and Temporary Employment Programme

PAGE 19

One of the ECER’s Centres of Excellence, the Universiti Teknologi MARA (UiTM)

Dungun campus has established a training centre to provide basic training

in ecotourism and hospitality management, particularly for operators of the

Homestay / Kampung Stay Programme.

Meanwhile, the ECERDC has kick started the development of the Region’s Halal

industry with an agreement with the Universiti Darul Iman Malaysia (UDM)

through the establishment of the Regional Centre for Halal Products, the Centre

for Biotechnology and Herbal Products and the Centre of Industry-Academia

Collaboration.The agreement will assist the ECER in carving out a competitive

edge in the Halal food industry.


PAGE 20 August 4, 2009

UPLIFTING LIVES THROUGH THE AGROPOLITAN PROJECT

The 9th Malaysia Plan (2006-2010) has committed to achieve growth with distribution

and set targets of reducing the overall poverty rate to 2.8 per cent to eradicate hardcore

poverty by 2010. It has also set targets to narrow income disparities and improve

equity amongst the rural population of ECER.

As it is, there are over 22,076 families considered to be below the poverty line in the

ECER. Of this, approximately 8,670 are considered to be hardcore poor, earning less

than RM100 per capita per month. The ECER’s main aim is to achieve zero hardcore

poor by 2010.

Based primarily on the objectives of total poverty eradication, the Agropolitan Project

is helping the hardcore poor build self-reliance by taking ownership of their economic

progress through commercial and agricultural activities.

4 Agropolitan Projects have been initiated - North Kelantan (2,000 participants), South

Kelantan (3,000 participants), Besut-Setiu in Terengganu (3,000 participants) and

Pekan (1,450 participants) in Pahang - covering the cultivation of crops and livestock

rearing as primary and secondary economic activities.

To ensure smooth implementation, 2 lead implementing agencies have been appointed.

For the South Kelantan Agropolitan Project, KESEDAR is the lead implementing agency

while FELDA manages the Pekan Agropolitan Project.

A unique feature of ECER’s Agropolitan Project is the allocation of a house for each

of the hardcore poor families, as well as the establishment of primary, tertiary and

support activities for the participating families.

Another key characteristic is that income will not solely be earned by the respective

heads of the household but also by each member of the family, through gains from

secondary and support activities.

The establishment of Collection, Processing and Packaging Centres (CPPCs) and

Collection and Marketing Centres (CMCs), including training and auction centres as

well as abattoirs and meat processing centres, ensure that the participants are well

facilitated to earn more from any inter-related support activities.

In addition, human capital development via training and education will prepare

participants with the right attitude and necessary knowledge and skills to adopt new

technologies and good agriculture practices. It will facilitate entrepreneurship qualities

among participants to benefit from various business opportunities.

The East Coast Economic Region

The South Kelantan Agropolitan Project has recorded remarkable progress with the implementation of the housing

units, complete with primary and secondary economic activities for the participants.

Participants of the South Kelantan Agropolitan Project on their first day of relocation to their new homes. One of the engagement sessions organised by ECERDC and UMK for the participants of the South Kelantan

Agropolitan Project.


August 4, 2009

A NEW LIFE IN MUKIM BEBAR, PEKAN

The first batch of Dorper sheep arrived in Runchang, Mukim Bebar in Pekan on 23 July 2009.

The Pekan Agropolitan Project is a new economic model that enhances the economic value chain through

deployment of an integrated approach, allowing the participants to tap into other non-agriculture based

activities to supplement their income.

Involving a total of 1,450 families, the Pekan Agropolitan Project employs a comprehensive regional

development approach where 700 hardcore poor families are resettled within new areas in Tanjung Batu,

Bebar and Kubang Panjang in Lepar while the remaining 750 Orang Asli families are involved via the

In Situ approach.

Oil palm plantations and sheep rearing have been identified as the primary activities in the Pekan Agropolitan

Project while secondary activities such as downstream initiatives related to oil palm and sheep rearing

activities, as well as bird’s nest cultivation, sewing, aquaculture, aquaphonic and mushroom growing are

also available.

The Pekan Agropolitan Project is estimated to create 5,000 new jobs and elevate the monthly household

income of hardcore poor from RM360 to RM1,500 per month. Here, FELDA as the main implementing

agency will manage the participants, the projects and related activities as well as managing the financial

aspects of the projects.

Meanwhile, ECERDC will act as the Project’s overall facilitator and coordinator, ensuring that each of the

Project’s milestones is completed as planned.

A monitoring system was also developed specifically for this Project to enable participants to gain easy

access to the sheep rearing programme’s operational requirements at any given point of time. Called the

Pekan Dorper Total Management System, it provides vital information about the sheep at a fly - including

weight, breed history, disease history, even the sheep’s next feeding times.

The East Coast Economic Region

Motivational programme for the participants of Pekan Agropolitan Project was attended by UPEN Pahang,

JHEOA, Pekan District Office and ECERDC.

An aerial view of the four completed Animal Production Units (APU) in RPS Runchang, Mukim Bebar.

The Batu 8, Mukim Lepar housing project marking a key milestone for the Pekan Agropolitan Project.

PAGE 21


PAGE 22 August 4, 2009

PRESERVING HERITAGE

The East Coast Economic Region

Deeply embedded within the community, the ECER’s distinctive culture and heritage permeate the Region’s cultural identity.

Batik, Songket, Tenun, Wood-carving and Silverware are among the most recognizable handicrafts of the ECER. While all are characteristically

from the east coast of Peninsular Malaysia, each one embodies the uniqueness and flair of the people of the ECER.

Handicraft preservation is undoubtedly one of the most important cornerstones of ECER’s philosophy. It not only empowers communities as the

ECER rides through the wave of development, heritage preservation also ensures a sustainable future for generations to come.

The ECER is host to major handicraft initiatives, including the development of Handicraft Villages, which act as the production and marketing

centre of niche products for the global market, the implementation of “Head-Start” programmes which help foster the development of new SMEs

in handicraft manufacturing, as well as opening up Centres of Excellence which will gather skilled artisans and their proteges keen on keeping

alive these arts and handicrafts.

Major handicraft initiatives located throughout the ECER are:

• Batik & Silverware : Kota Bharu, Kelantan

• Wood-carving : Temerloh, Pahang and Besut, Terengganu

• Songket Weaving : Chendering, Terengganu

• Tenun Weaving : Pekan, Pahang

• Handicraft Villages : Kota Bharu, Kelantan

Kuala Terengganu, Pulau Pasir and Besut, Terengganu

Pekan, Pahang

• Centres of Excellence : Centre for Heritage and Culture, Universiti Malaysia

Kelantan Skills Training and Accreditation and Certification

Centre for Wood-based Products, Universiti Teknologi MARA


August 4, 2009

ECER – REACHING OUT TO THE RAKYAT

As the development of the ECER is for the local community, here are some of the hopes and aspirations of the rakyat.

On Education

“These days are much better than when I

was younger. Many didn’t go to school then,

but now, with support from the Government,

kids can go to school and learn. For me, this

is development.”

Abdullah Haron, Pekan, Pahang

On Environment Conservation

“Here in the east coast, we are seen to be

lagging in education as compared to the

west coast. ECER, which is tasked to bring

development in the east coast, must focus

on education because only with education

can we develop successfully.”

Amir Hamzah Mohd, Cukai, Terengganu

“Our rich and untapped natural resources are aplenty, especially in the woods. They can be

developed only through proper sustainability management.”

Lew Hong Keat, Mersing, Johor

On Expectations Of ECER

Development should transform and

catalyze the entire east coast region to

become a mega regional hub, one that will

promote development from the perspectives

of economic, social and infrastructure.”

Choiril Mahfuz, Kertih, Terengganu

“There have been significant and clear

changes ever since Pak Lah announced the

RMK9 and the formation of ECER.”

Tok Chee Leong, Kuala Terengganu,

Terengganu

“I hope the same development given to the west coast can be extended to my place”

Mohd Aminuddin Ali, Kuala Lipis, Pahang

The East Coast Economic Region

On the Future

“I wish for all of the east coast’s population to play their part in achieving the objectives

and vision of the ECER. The Government is confident that the prosperity that ensues

will be able to be shared by all, taking the standards of living of our families, our

people, our economy and our country into new heights.”

Y.A.Bhg. Tun Abdullah bin Haji Ahmad Badawi during the launch of the Kertih Polymer Park,

December 2008.

On Development

“As the rakyat of ECER, we hope that whatever political differences between

us should not hinder any local developments. The most important thing is the

economic development, by which we can help develop our local society and our

people. This is our wish.”

Tuan Aziz Tuan Mat, Tumpat, Kelantan

“We were never anti-development. In fact, we long for development, one that is

sustainable and mutually beneficial to all.”

G. Mahathevan, Raub, Pahang

“I hope the Government is truly committed and sincere in developing the east

coast states. Only then will we see true development.”

Nik Amani Mansor, Gua Musang, Kelantan

“I hope ECER can fast-track the development of highway linking the

east and west coast”

Wan Fazlin Wan Sulaiman, Kuala Terengganu, Terengganu

PAGE 23


Transforming life for four million

people in the Region.

The East Coast Economic Region (ECER) comprises Kelantan, Terengganu, Pahang and the district of Mersing in Johor. Covering an area exceeding 66,000 sq km, more than half

the area of Peninsular Malaysia, the ECER is home to four million people or 14.5% of the national population.

Growth will be accelerated in five key economic clusters that have been an integral part of the Region. By attracting foreign and local investors to the Region to implement a range

of high-impact projects, the ECER will create new employment and entrepreneurial opportunities that will increase household incomes over the long-term for the people of the

Region. Hard-core poverty will also be eradicated, as the ECER transforms into a new and vibrant hub of development that is dynamic and competitive.

For more information, contact us.

Kuala Lumpur Office

Level 69, Tower 2

PETRONAS Twin Towers

50088 Kuala Lumpur

MALAYSIA

Tel : +603 2035 0000

Fax : +603 2035 0020

Kelantan State Office

Ground Floor & Mezzanine

Lot 137 & 138, Bangunan Sutera Inn Prima

Jalan Dusun Muda off Jalan Bayam

15200 Kota Bharu, Kelantan

MALAYSIA

Tel : +609 746 0021

Fax : +609 746 0020

E-mail : secretariat@ecerdc.com.my Website : www.ecerdc.com.my

Terengganu State Office

Ground Floor & 1st Floor

100B, Jalan Sultan Zainal Abidin

20000 Kuala Terengganu, Terengganu

MALAYSIA

Tel : +609 620 0021

Fax : +609 620 0020

Pahang State Office

B8002 Sri Kuantan Square

Jalan Teluk Sisek

25050 Kuantan, Pahang

MALAYSIA

Tel : +609 565 0021

Fax : +609 565 0020

Disclaimer:

While every reasonable care has been taken in preparing this document, ECERDC cannot be held responsible for any inaccuracies. All information and specifications are current at the time of preparation and are

subject to change as may be required. Renderings and illustrations are artist’s impressions only and cannot be regarded as representations of fact.

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