SEZ East Coast Malaysia

TRANSFORMINGTHE EAST COAST

ECER - Driving Development, Balanced GrowthOne 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.

A COMMEMORATIVE EDITION OF THE FIRST YEAR ANNIVERSARY OFTHE EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL (ECERDC)

Transforming LivesThe ECER Way PAGE 18

PAHANG

MERSINGJOHOR

SINGAPORE

KUALALUMPUR

TERENGGANU

Cukai

Kertih

Kuantan

Pekan

Johor Bahru

KELANTAN

THAILAND

Introducing ECER SEZDetails Inside PAGE 12

5 Economic ClustersHow YOU Can Gain PAGE 8

Find out more insideYOUR UNIQUE INVESTMENT DESTINATION

August 4, 2009

s 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,

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.

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

MESSAGE FROM THE PRIME MINISTER OF MALAYSIA & CHAIRMAN OF THE EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL

The East Coast Economic Region At A Glance

MissionTo 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•

Scope of ECERLand Area : 66,736 sq km (51% of Peninsular Malaysia)Total Population : 3.9 million (2005), or 14.5% of Malaysia’s total populationTotal Initiatives : 189 projectsTotal Investment : RM112 billion (2008 – 2020)

Key EnablersSocial & Human Capital Development •Transportation•Infrastructure•Property•Environment•

Key ClustersTourism•Oil, Gas & Petrochemical•Manufacturing•Agriculture•Education•

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

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

• Distinctive • Dynamic • Competitive

The East Coast Economic Region

A

Y.A.B. Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak

PAGE 2 August 4, 2009

ECER : DRIVING DEVELOPMENT, BALANCED GROWTHOne 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 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.

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.

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.

“The most important objective of regional development is to achievea balanced, focused regional growth by spreading economic

development to embrace all states and regions. This is especially truefor the east coast where tremendous opportunities await.”

Y.A.Bhg. Tun Abdullah bin Haji Ahmad BadawiAdvisor, Corridor Development

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

Projected Growth under the ECER Master Plan


PAGE 3August 4, 2009

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 high-technology, 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

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,

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

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.

AcknowledgementsI 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

Dato’ Jebasingam Issace John

REPORT FROM THE CHIEF EXECUTIVE OFFICER OF THE EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL

MILESTONES29 October 2007 Launch of the ECER Master PlanKuala Terengganu, Terengganu

Launch of the ECER Master PlanKota Bharu, Kelantan

30 October 2007 Launch of the ECER Master PlanKuantan, 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 2008ECER Seminar on Entrepreneurship Development, jointly organised with MeCDKuala Terengganu, Terengganu

20 February 2008East Coast Economic Region Development Council Act 2008 (Act 688) - date of Royal Assent

25 February 2008East Coast Economic Region Development Council Act 2008 (Act 688) - date of publication in the Gazette

13 June 2008 Date of commencement of the East Coast Economic Region Development Council Act 2008, (Act 688)

14 June 2008 Launch of the East Coast Economic Region Development Council (ECERDC)Kuala Terengganu, Terengganu Launch of Centres of Excellence (CoE)Kuala Terengganu, Terengganu

Council Meeting No. 01/2008 Kuala Terengganu, Terengganu

22 August 2008 Launch of the Kenaf Collection, Packaging & Processing Centre (CPPC)Bachok, Kelantan Council Meeting No. 02/2008 Kota Bharu, Kelantan

12 September 2008 Presentation on Trade, Economic and Investment Opportunities in the ECER during China (Guangdong) - Malaysia Business ConferenceKuala Lumpur

10 October 2008 Seminar on the ECER with the Malaysian Chinese Chamber of Commerce & Industry (MCCI)Kuala Terengganu, Terengganu

2 December 2008 Seminar on the ECER, jointly organised with INTANKemaman, Terengganu Launch of the Kertih Polymer Park (KPP)Kertih, Terengganu

13 January 2009 Launch of the national-level Permanent Food Production Park and Modern FarmLanchang, Pahang Council Meeting No. 01/2009 Bentong, Pahang

16 February 2009 Launch of ECER’s Centres of Excellence Seminar: Regional Centres for Halal Products & Centre of Biotechnology and Herbal Research, Universiti Darul Iman (UDM)Kuala Terengganu, Terengganu

23 February 2009 Official opening of the ECER Pahang State Office and 1st Pahang Implementation & Coordination Committee (ICC) MeetingKuantan, Pahang

11 March 2009 ECER-PNS Seminar on Franchise Development Programme Kuala Terengganu, Terengganu

19 – 29 April 2009 Trade & Investment Mission to Europe with MIDA

3 May 2009 Official opening of the ECER Terengganu State Office and 1st Terengganu Implementation & Coordination Committee (ICC) Meeting Kuala Terengganu, Terengganu

18 May 2009 1st Kelantan Implementation & Coordination Committee(ICC) MeetingKota Bharu, Kelantan 9 June 2009 1st Johor Implementation & Coordination Committee (ICC) MeetingMersing, Johor

15-17 July 2009 Motivational Programme for the participants of the Pekan Agropolitan Project Cherating, Pahang


4 August 2009Launch of ECER Special Economic Zone & Pekan Agropolitan Project, Pekan, Pahang


Bentong

Temerloh-Mentakab

MuadzamShah

Maran

Cukai

Gebeng

Bandar Al-MuktafiBillah Shah

KualaKrai

EmpanganPergau

Jeli

Machang

Pekan/Peramu

Fz

=Fz

A

BandarTeluk BidaraDungun

Sri ujuhT

KualaPahang

Pantai

Tg. Agas

Sepat

KuantanPort City Kuantan

KualaRompin

Fz

Tersat-Hulu erengganuT

Kertih

ok BaliT

DurianMentangau

GuaMusang

TasikKenyir

KualaLipis

PasirMas

PengkalanKubor

Ulu Tembeling

Taman Negara

Jerantut

Raub

Bukit Bunga

Lojing

CameronHighlands

Kuantan Port

Kemaman Port

Mersing

Endau-Rompin

Gambang

Johor Bahru

SINGAPORE

THAILAND

KUALALUMPUR

Ipoh

N

50 50 1000

K I L O M E T R E

A

Fz

A

A

Lanchang

Rantau Panjang

Pantai

Bachok

Kota BharuCity Centre

Kuala Besut

UluSetiu

Kg. Penarik-Merang

Kuala TerengganuCity Centre

Chendering

Kota Bharu

TerengganuKuala

aaa

anng


Education

Key Initiatives-New UniversityBranch CampusIndustry-AcademiaCollaboration Centre

Integrated Fishery Park

Fish Collection, Packaging &Processing Centre (CPPCs)Brackishwater Fish SeedProduction & Marketing CentreVertically Integrated TilapiaProduction Complex

Fresh Water Fish SeedProduction & Marketing Centre

Fisheries

Fish Processing Park

Livestock

Poultry Processing Plant

Intensive Goat Rearing

Poultry Production Park

Production of Day-Old-Chicks

Nucleus Goat Breeding &Research Centre & TrainingOutpost in Goat HusbandryGrain-based Animal Feed Industry

Beef Valley

Cattle BreedingResearch Centre

=

Herbal & Biotech Park

Agropolitan Projects

Establishment of IncubatorCentre for Small &Micro-food Enterprises

Kenaf Industry Development

A

Cocoa Collection Centre

Agriculture Crops

Agro Valley

Highland Agriculture &Floriculture

Fruit Belt

Petrochemical

Petrochemical Corridor

Kertih Polymer Park

TourismCruise Terminal

Mainland Coastal Tourism

Urban & CultureHeritage Tourism

Recreational Fishing

Primary Ecotourism Zones

Cross-border Tourism

Mainland Coastal Tourism

Sustainable Island Tourism

Special Management Area

Elephant Sanctuary

Turtle Sanctuary

Manufacturing

Primary ManufacturingZones

F z

Secondary Manufacturing Zones

Automotive Trading Hub/Regional Distribution Centre

Rubber Wood FurnitureIndustrial 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 SMEProgramme-Fisheries Products

ECER STRATEGIC INITIATIVESECER key projects were strategically formulated to ensure the Region and its people achieve accelerated growth and economic development.


IMPLEMENTATION AND COORDINATION COMMITTEE (ICC)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 fast-

track 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.

At the Pahang ICC Meeting 01/200923 February 2009

Y.A.B. Dato’ Sri Haji Adnan bin YaakobMenteri Besar Pahang

At the launch of the ECER Master Plan, Kuantan, Pahang30 October 2007

Y.A.B. Dato’ Haji Abdul Ghani bin OthmanMenteri Besar Johor

Y.A.B. Dato’ Ahmad bin SaidMenteri Besar Terengganu

At the Terengganu ICC Meeting 01/20093 May 2009

At the Kelantan ICC Meeting, 01/200918 May 2009

Y.A.B. Dato’ Haji Nik Abdul Aziz bin Nik MatMenteri Besar Kelantan

Y.A.B. MB of Pahang at the Pahang ECERDC State Office.

Y.A.B. MB of Kelantan at the Kelantan ECERDC State Office.

Y.A.B. MB of Terengganu at the Terengganu ECERDC State Office.

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


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.

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

THE ECER DEVELOPMENT COUNCIL

“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.”

“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.”

“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.”

“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.”


TRANSFORMATION BASED ON INHERENT STRENGTHSKelantanKelantan’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.

PahangPahang 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 newly-

established Universiti Malaysia Pahang and the International Islamic University Malaysia,

as well as the Universiti Teknologi MARA Jengka campus.

Mersing, JohorThe 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.

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.


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


TourismThis 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, cross-

border tourism and ecotourism.

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

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

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

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

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

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

Pahang and Pantai Mersing, Johor.

Other main highlights within the tourism cluster include:

Mainland Coastal TourismMersing’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 TourismHome 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 TourismUrban 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 TourismThe 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

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 TourismThe 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.

EcotourismUnrivalled 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.

Oil, Gas & Petrochemical

High-end PVC pipes


AgricultureAgriculture 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

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.

Human CapitalHuman 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.

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)


ManufacturingThe 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.

The manufacturing strength of the ECER is mainly resource-based, led by the petrochemical, wood-based 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 bemore competitive.


ENABLING SUSTAINABLE DEVELOPMENT

N

50 50 1000

K I L O M E T R E

Pengkalan KuborMinor Port

Kuala TerengganuInternational Airport

Kota Bharu Airport

Kuantan Airport

Tok Bali Fishing Port

Kertih Port

Kemaman Port

Kuantan Port

SINGAPORE

THAILAND

Bukit Kayu Hitam

Kota Bharu

Kuala Terengganu

Alor Star

Butterworth

Ipoh

KUALALUMPUR

Kuantan

Seremban

Segamat

Johor Bahru

Port Klang KLIA

To Penang

To Thailand

RantauPanjang

JeliMachang

KualaKrai Merang

Bachok

Tok Bali

Kg. Raja-Besut

Marang

Kuala Berang

Kertih

Cukai

Tanjung Api

Pekan / Peramu

Tanjung Agas

Kuala Rompin

Mersing

TanjungPelepas

Kuantan Port City

Dungun

Gua Musang

Lojing

Kuala Lipis

Jerantut

Raub

Bentong/Karak

Lanchang

Temerloh-Mentakab

Muadzam Shah

Maran

George Town

Existing Railway Regional Airport

Port

Jetty

Kuala TerengganuCruise Terminal International Airport

Central Spine Road

State Growth ConurbationIntermediate Growth Conurbation / Large TownsSmall Medium Towns /Special Feature Towns

Existing Primary Routes

Existing Expressways

Proposed Expressways

LEG

END

:

n

Muad

Tanjung Gemuk

T

TransportationProjects 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.

AirportsKuala 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 PortsMajor 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.

RailA 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.

InfrastructureThe infrastructure sector will be simultaneously enhanced on several fronts. There will be major flood mitigation projects to progressively improve drainage conditions in the ECER.

Coastal erosion will be handled systematically to allow ECER’s development projects to take place with minimal disruption, and beaches will be rehabilitated to revive the tourism sector.

Electricity, water supply, telecommunications including ICT, and sewerage will be improved to meet current and projected demands in the Region.

Area identified for the Gebeng Water Pipeline Project.

The Gebeng Water Pipeline Project will ensure high quality water supply to the Gebeng industrial area in

Kuantan, Pahang


Real EstateProperty 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.

EnvironmentThe 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 PROGRESSWhile the ECER is still very much in its initial stages, there has been significant progressin each of the five clusters to date.

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.

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.

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.

Several emerging industries within the manufacturing sector are being

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

added 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

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.

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

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.

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.

Human Capital

Tourism

Manufacturing

Agriculture

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



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


ECER SEZ – THE CATALYST OF TRANSFORMATION

ECER SEZ VALUE ADDS

ConcentratingInvestments

KnowledgeInnovation

MarketConnectivity

FocusedMarketing

ImprovedInfrastructure

Network

Fast-trackingDevelopment

ECER PRINCIPLES

EconomicGrowth

EmploymentGeneration

EntrepreneurshipDevelopment

Public-privatePartnerships

Productivity

Environment

To attract and concentrate foreign andlocal 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

Value Adds of the ECER SEZThe 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.

PAKAKERTIH

CHERATINGECER

SEZ

CEN

TRAL

LIN

K

KUANTANPORT CITY

PANTAI SEPAT

KUALA PAHANGUMP

GAMBANGTo

KualaLumpur

PERAMU

TG. AGASTo Johor/Singapore

To Dungun/K.Terengganu

KIJAL

CUKAI

KUANTAN

PEKAN

TELUK KALONG /KEMAMAN PORT

EAST COAST EXP

RESS

WAY

(LPT

1 &

2)

Cattle Integration inOil Palm Plantations

(Kemaman)

Kuantan-Maran

Agro Valley

Agropolitan Project

EAST

CO

AST

EXPR

ESSW

AY (L

PT 4

)

Major Urban NodesIndustry NodesTourism Nodes C

K

K

R

BANDAR AL MUKTAFI BILLAH SHAH• Furniture Industry Park

SG. LEMBING• Ecotourism & Heritage Mines• Safari 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

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

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

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

KUALA PAHANG• Mainland Coastal Tourism• Universiti Malaysia Pahang• Centres of Excellence (Biofuel, Biodegradable products & Automobile)• Kuala Pahang Marine Fish & Shrimp Hatchery & Marketing Centre

CHERATING• Cherating Tourism Town

PANTAI SEPAT• Mainland Coastal Tourism• Recreational Fishing Centre

TEMERLOH-MENTAKAB / KT RAIL

ECER Special Economic ZonePAGE 12 August 4, 2009

SEZ

ECER

NATI

ONAL

KL M

etro

polit

an

NCER

INDOCHINA

CHINA/EAST ASIA

SINGAPORE/AUSTRALASIA

BORNEO/INDONESIA

INDIA/MIDDLE EAST

Iskandar Malaysia

KERTIH

CUKAI

KUANTAN PORT CITY

KUANTANGAMBANG

PEKAN

TG. AGAS

International Positioning

• HinterlandtoEastAsia• Inter-regionalhubforChina-India• Integratedindustryclusters

North South Corridor

Port

ECER SEZ

Central Corridor

East Coast Corridor

Kuantan-Melaka Sub-Corridor

North South Sub-Corridor

East West Sub-Corridor

Lumut-Gua Musang-KT Sub-Corridor

Focused Development Districts

Regional Growth ConurbationState Growth ConurbationInternational Growth Conurbation/Large TownsSmall Medium Towns/Special Feature Towns

National Park

Highway / Expressway

Railway

Thailand Kota Bharu

Kuala Lumpur

Johor Bahru

Pulau Pinang

Pasir Mas

Jeli Tok Bali

Dungun

Gua Musang

Kuala Lipis

JerantutWestPahang

Raub

Bentong

TemerlohMentakab

Lojing

SouthKelantan

Kertih

Kemaman Port

Kuantan Port

Pekan-PeramuTg. Agas

Mersing

Singapore

Muadzam Shah

Melaka

Kuala Terengganu

Ipoh

Kuantan

National Positioning

INTERNATIONAL, REGIONAL & NATIONAL POSITIONING OF THE ECER SEZ

Gambang

Kemaman

Pekan

Gebeng

KUANTAN CONURBATION

Pantai Sepat

Gambang

Kuantan

Kertih-Cukai/Kemaman-Cherating Local Corridor

Gambang-Kuantan-GebengLocal Corridor

Kuantan-Pantai Sepat-Kuala Pahang-Pekan Local Corridor

Kertih

Central Corridor


Tourism


Manufacturing/Logistics Hub

East Coast Corridor

Tg. Agas

Kemaman Port

Kertih Port

Kuantan PortGambang

Kemaman

Pekan

Gebeng

KUANTAN CONURBATION

Pantai Sepat

Gambang

Kuantan

Kertih-Cukai/Kemaman-Cherating Local Corridor

Gambang-Kuantan-GebengLocal Corridor

Kuantan-Pantai Sepat-Kuala Pahang-Pekan Local Corridor

Kertih

Central Corridor


Tourism


Manufacturing/Logistics Hub

East Coast Corridor

Tg. Agas

Kemaman Port

Kertih Port

Kuantan Port

Strengthens local economic corridors in Tourism, Oil, Gas & Petrochemical, Manufacturing / Agro- • based 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

Forest

ECER SEZ Boundary

Wetlands

Water Catchment

Area of Special Interest

Turtle Landing Site

Kuantan

KuantanPort City

Chendor

Bandar Al MuktafiBillah Shah

Tasik Chini

Tg. AgasPekan

Geliga

Kijal / Kemasik

Kertih

Paka

Cukai

Gambang

Kijal

Kemasik

Sg. Pahang

Sg. Luit

Sg.

Ibul

Sg.

Jab

ur

Sg.

Pak

a

Telaga Air Panas

Bukit Charas

Sg. Cerut

14

0k

m

25km

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 Geographical Boundary & Key Conservation AreasRegional Positioning

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.

Economic Zone

• Lowcostofdoingbusiness• EasternGatewayofMalaysia• Promotinginternational/regionaltradelinkagesandinvestment


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.

FREE ZONES & FOCUS NODES IN THE ECER SEZThe 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.

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.

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.

Kuantan Port City (Integrated Development) andKuantan 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.

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.

ECER Special Economic Zone


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 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 MSC MALAYSIA PAHANG INITIATIVE : COMPLEMENTING ICT INTO ECER DEVELOPMENT

The Building Blocks of MSC Malaysia Pahang and Jumpstart Programmes

3. MSC Malaysia Cybercentre@Putra Square Kuantan

4. MSC Malaysia Incubator and Technopreneur Development

5. Pahang Technology Resources and Universiti Malaysia Pahang Industry-Academia Programme

6. Pahang e-Pihak Berkuasa Tempatan (ePBT)

7. Pahang e-Procurement

8. Pahang Geospatial - Forestry

9. Teaching and Learning Made Effective (TELME)

10.Parental Awareness

11.Pahang ICT Awareness Drive

12.Bridging Community Through Sports

13. Community Development

14. Pahang Workforce Entry and Efficiency Training (PWEET)

15. Creativity Development

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

Supply Generation Demand Generation

Fast-tracking Enabler Programmes1. High Speed Broadband Technology2. MSC Malaysia Pahang Knowledge Workers Development Initiative


To be a Catalyst for Focused Growth in the East Coast Economic Region(Distinctive - Dynamic - Competitive)

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)

High-valueManufacturing

Agro-basedIndustry

Oil, Gas &Petrochemical

Tourism /Real Estate

Knowledge /Education &ICT

Logistics

Well Developed Physical Infrastructure

Strong Basic Education and Training

Conducive Working and Living Environment

Stable Political & Social Environment

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INTEGRATED FACILITIES – THE FOUNDATION OF THE ECER SEZEconomic Pillars of the ECER SEZ


Strategic Infrastructure & Modern Facilities • Keycomponentstoincludedeep-waterharbour,airportandrailconnectivity• Focusoncompetitiveindustriesthatrelyonlocalrawmaterials• Establishmoderninfrastructure–integratedtownshipswithtourismcomponents• State-of-the-artutilities–broadband,watersupply,electricity,infrastructure• IdentifyStrategicNodeswithintheECERSEZwitheasyaccesstologisticsfacilities• Supportsmall/medium-sizedenterprises(SMEs)andresidentpopulation

Investment Focus• Improveinvestmentclimateandsimplifyprocedureswithcontinuousfollow-up with investors• Implementlong-termplanningtoidentifyfeasibleinvestmentopportunities• Regionallycomparablefiscalincentivestoattractlocalandforeigninvestors• Specialincentivestoencouragecertaintypesofinvestments,particularlyinthetechnological and knowledge sectors• Encouragepublic-privatepartnershipsfordevelopment• Createpositiveinteractionbetweeninvestors-clusterandtradeassociations

Enabling Initiatives• Expansionofactivitiesonmanufacturing,processing,commercialandprofessionalservices• Leverageonlocalcapabilitiesandavailableresources• Providetrainingcoursesandincentivestodevelophumanresources• Givespecialattentiontoenvironmentalprotection

Special Economic Zone Model

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 SEZThe development of an expressway system •- East Coast Expressway 2 (LPT2) : Kuantan – Kuala Terengganu - East Coast Expressway 4 (LPT4) : Kuantan – Johor BahruThe 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.

Commercial

Tourism

NewTown

Knowledge &Education

Port FreeZone

Transport,Infra &Utilities

IndustrialClusters

Essential Ingredients of the ECER SEZ



THE ECER : A UNIQUE INVESTMENT DESTINATION The One-Stop Centre for Investors

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.

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 PromotionAs 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.

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.

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.

Incentives for the ECER

Incentives for the ECER SEZ

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).

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 case-

to-case basis.

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


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.

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

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.

Agropolitan Project

Bumiputera Commercial and Industrial Community (BCIC) Programme

Fishermen Poverty Eradication ProgrammeThe 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.

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.



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

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.

Small Office Home Office for Women (SOHO)

Human Capital Development

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,

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.

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•

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 hard-core 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 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.

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

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.



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, KelantanWood-carving : Temerloh, Pahang and Besut, Terengganu•Songket• Weaving : Chendering, TerengganuTenun• Weaving : Pekan, PahangHandicraft Villages : Kota Bharu, Kelantan • Kuala Terengganu, Pulau Pasir and Besut, Terengganu Pekan, PahangCentres of Excellence : Centre for Heritage and Culture, Universiti Malaysia • Kelantan Skills Training and Accreditation and Certification Centre for Wood-based Products, Universiti Teknologi MARA

PRESERVING HERITAGE


“I hope ECER can fast-track the development of highway linking the east and west coast”

Wan Fazlin Wan Sulaiman, Kuala Terengganu, Terengganu

ECER – REACHING OUT TO THE RAKYATAs the development of the ECER is for the local community, here are some of the hopes and aspirations of the rakyat.

“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

“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

“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

On Environment Conservation

“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 Education

On Development

“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 the Future



Kuala Lumpur Office

Level 69, Tower 2 PETRONAS Twin Towers50088 Kuala LumpurMALAYSIA

Tel : +603 2035 0000Fax : +603 2035 0020

Kelantan State Office

Ground Floor & MezzanineLot 137 & 138, Bangunan Sutera Inn PrimaJalan Dusun Muda off Jalan Bayam15200 Kota Bharu, KelantanMALAYSIATel : +609 746 0021Fax : +609 746 0020

Terengganu State Office

Ground Floor & 1st Floor100B, Jalan Sultan Zainal Abidin20000 Kuala Terengganu, TerengganuMALAYSIA

Tel : +609 620 0021Fax : +609 620 0020

Pahang State Office

B8002 Sri Kuantan SquareJalan Teluk Sisek25050 Kuantan, PahangMALAYSIA

Tel : +609 565 0021Fax : +609 565 0020

E-mail : [email protected] Website : www.ecerdc.com.my

For more information, contact us.

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.

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.

Documents

SEZ East Coast Malaysia