TRANSFORMING THE EAST COAST ECER - Driving Development ...

August 4, 2009
ECER : DRIVING DEVELOPMENT, BALANCED GROWTH
One year on, the ECER has notched several impressive milestones. As it moves into its second year of implementation, more benefits, both social
and economic, can be expected to spillover to all of its 4 million people. The key now is believing that change is possible.
The people of Malaysia’s east coast states have always
basked in the natural beauty of their surroundings and
enjoyed a tranquil lifestyle envied by other Malaysians
and foreign visitors.
The region’s beaches, resort islands, natural resources
and unique cultural elements have made the states of
Kelantan, Terengganu and Pahang, together with the
district of Mersing in Johor, a haven for travellers from
all over the world.
This region, grouped today as the ECER, has much to
offer in terms of richness in cultural diversity, and in
the depth of its potential for development. The ECER
has become a key focus of the Government in ensuring
that the Region acquires additional dimensions in
keeping pace with development with the rest of the
country.
With an area measuring more than 66,000 sq km, the
ECER covers 51 per cent of the land area of Peninsular
Malaysia. The ECER’s population of about 3.9 million
represents 14.5 per cent of the total population of
Malaysia. By 2020, this will grow to over 4.9 million
people, with a total workforce of about 2 million.
Geographically, the ECER is also the strategic gateway
to the vast markets of the Asia Pacific, with a total
population of 2.2 billion.
To guide the development of the Region, a Master
Plan was developed, which was spearheaded by
PETRONAS. It will transform the ECER into a major local
and international tourism destination; an exporter of
resource-based and manufactured products, a vibrant
trading centre and an infrastructure and logistics hub.
Ultimately, the vision for the ECER is to be a developed
Region by 2020.
Amongst the mission thrusts, the aim to eradicate
hardcore poverty by 2010 within the ECER will be
achieved by enabling the Region’s population to
gain higher household incomes through sustainable
livelihoods and increased job and entrepreneurial
opportunities resulting from investment projects
planned for the Region.
The East Coast Economic Region
“The most important objective of regional development is to achieve
a balanced, focused regional growth by spreading economic
development to embrace all states and regions. This is especially true
for the east coast where tremendous opportunities await.”
Y.A.Bhg. Tun Abdullah bin Haji Ahmad Badawi
Advisor, Corridor Development
The envisaged development in the ECER will
create up to 560,000 jobs by the year 2020. The
target is to raise the average monthly household
income from RM2,267 (2005) to RM5,227, and
increase GDP per capita from RM5,860 (2005) to
RM13,510 by 2020.
The vision and mission that will guide the
transformation of the ECER into a developed Region
by 2020 is defined by three main characteristics –
distinctive, dynamic and competitive.
Projected Growth under the ECER Master Plan
The distinctiveness of the ECER is portrayed
through its natural beauty, abundant resources,
unique culture and heritage known throughout the
world. To maintain this characteristic, a balanced
and sustainable development is emphasised.
The dynamism of the ECER reflects the potential
for the Region to grow and develop at a faster
pace through innovation and a shift in economic
orientation, structure, technology and mindset.
The competitiveness of the ECER lies in its ability
to attract local and foreign direct investments.
2005 2020
GDP growth (in %) 5.7% 7.2%
GDP growth (in RM billion) RM23.1 RM65.9
GDP per capita (in RM) RM5,860 RM13,510
Average Monthly Household Income (in RM) RM2,267 RM5,227
Total Population 3.9 mil 4.9 mil
Projected Number of New Jobs Created 560,000
PAGE 3
With the prevailing economic conditions, the need
to maintain the momentum of development within
the ECER is seen to be very urgent. The Malaysian
Government has thus chosen to fast-track the
setting up of the next phase of the ECER Master
Plan – the Special Economic Zone (SEZ).
In essence, the ECER SEZ is a concentration
of high-impact projects within an integrated
development zone located at the nucleus of the
ECER – the 25km by 140km strip that extends
from Kertih in the north to Pekan in the south and
Gambang in the west.
While projects throughout the ECER will continue
proceeding as planned, those located within
the ECER SEZ will be boosted by the additional
impetus of the unique privileges and exclusive
incentives accorded to a special economic zone,
in order to accelerate development.
A notable emphasis is that while the country has
made significant strides in developing the national
economy, the ECER needs to catch up economically
with the more developed parts of the country.
Although overall progress and development is
sought, it should not come at a price. All ECER
projects are carefully evaluated to determine their
viability, not only in terms of improving lives but
also from the aspect of sustainability on both the
financial and environmental fronts.
The ECER therefore employs a holistic approach
that will ensure responsible development, as
well as preserve the integrity of the environment
for present and future generations. As such, it
is important for all to ensure that all identified
projects are carried out without any delay.
Only by uniting and believing that change is
possible can the Region be transformed into
one that is dynamic and competitive, in the face
of greater regional and global competition and
economic liberalisation.