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


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 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.


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 


Kota Bharu, Kelantan 



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 


20 February 2008 

East Coast Economic Region 

Development Council Act 2008 

(Act 688) - date of Royal Assent 



Development Council Act 2008 

(Act 688) - date of publication 

in the Gazette 

13 June 2008 

Date of commencement of the 


Development Council 

Act 2008, (Act 688) 

14 June 2008 

Launch of the East Coast 

Economic Region Development 

Council (ECERDC) 


Launch of Centres of 

Excellence (CoE) 



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 


22 August 2008 

Launch of the Kenaf Collection, 

Packaging & Processing 

Centre (CPPC) 

Bachok, Kelantan 



12 September 2008 

Presentation on Trade, Economic 

and Investment Opportunities 

in the ECER during China 

(Guangdong) - Malaysia Business 

Conference 

Kuala Lumpur 


Seminar on the ECER with the 

Malaysian Chinese Chamber of 

Commerce & Industry (MCCI) 


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 


Bentong, Pahang 


Launch of ECER’s Centres of 

Excellence Seminar: Regional 

Centres for Halal Products & 

Centre of Biotechnology and 

Herbal Research, Universiti Darul 

Iman (UDM) 



Official opening of the ECER 

Pahang State Office and 1st 

Pahang Implementation & 

Coordination Committee 

(ICC) Meeting 


11 March 2009 

ECER-PNS Seminar on Franchise 

Development Programme 


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 & 


(ICC) Meeting 


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 & 


(ICC) Meeting 


9 June 2009 

1st Johor Implementation & 


(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


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 


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 


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


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

Menteri Besar Pahang 

At the Pahang ICC Meeting 01/2009 


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

Menteri Besar Johor 

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


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 



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 


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


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 


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.



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: 


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.


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 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


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 



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 


International Airport 


Marang 

Kuantan 

Tanjung Agas 

Pekan / Peramu 

Muadzam Muad Shah 

Existing Railway 


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.


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 


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.


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 


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 


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 


• Recreational Fishing Centre 

KUALA PAHANG 


• 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


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 


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


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.


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. 


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 


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 


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


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 


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



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


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. 


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 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.


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 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.


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 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.


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. 


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


PRESERVING HERITAGE 


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


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 


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.

TRANSFORMING THE EAST COAST ECER - Driving Development ...

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