Pelan Induk Dan Pelaksanaan ECER - En. Azmi Yahya

East Coast Economic Region (ECER)
Master Plan & Implementation
2 DECEMBER 2008
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Presentation Outline
INTRODUCTION
TOURISM
OIL, GAS & PETROCHEMICAL
MANUFACTURING
AGRICULTURE
EDUCATION
TRANSPORTATION
INFRASTRUCTURE
REAL ESTATE & CONSTRUCTION
IMPLEMENTATION
INCENTIVES
CONCLUSION
.: INTRODUCTION
ECER: Brand Identity
WILAYAH EKONOMI PANTAI TIMUR

EAST COAST ECONOMIC REGION
Economic Growth Corridors in Malaysia
ECER Key Facts
GEOGRAPHY
Area - States : Kelantan, Terengganu,

Pahang & District of
Mersing
Size : 66, 736 sq.km
PEOPLE
Population : 3.9 million (2005) and

4.9 million (2020)
Workforce : 1.36
1 36 million (2005) and
1.92 million (2020)
ECONOMY
GDP Growth : 5.7% (2005) and

7.2% (2020)
ECER : GDP Growth Rate by State (2005-2020)
7.5% 22.5
2005
7.6 2020
6.3%
659.0 TERENGGANU
BILLION
28.2
7.5%
RM Bil
RM B
262.0 2005
7.2 % 9.5 2020
65.9
23 1
23.1
PAHANG
MALAYSIA ECER 6.4% 15.2
2005 2020 2005

6.0
2020
GDP g
growth rate in ECER has to be higher
g than the
national GDP growth rate to correct imbalance
KELANTAN
Source : 2005 figures by state are based on DOS Data Bank 2005, for Malaysia based on Ninth Malaysia Plan
*Note : Growth rates based on ECER Master Plan 5
ECER : GDP per Capita by State (2005-2020)
17,594
5.8 %
4.6 % 7,527 2005

19,134 2020
5.7 %
13,510
TERENGGANU
TERENGGANU
15,495
9,794
5.8 %
M Bil
5 860
5,860
RM
M
6,648 2005
2020
PAHANG
PAHANG
8,545
MALAYSIA ECER
5.2 %
2005 2020 3,987
2005
2020
GDP p
per capita
p is expected
p to increase significantly
g y
by RM7,650
KELANTAN
KELANTAN
*Note : Growth rates based on ECER Master Plan
6
ECER : Major Sectors GDP by State (2005-2020)
– in RM million
ECER Pahang
34,284 14,340
2005 2020 2005 2020
19,120 8,322
11 686
11,686 5,277
,
4,555
8,571
5,996 1,866 1,876
3,702
916 1,780 840 2,176 119 271 363 712
Agriculture Mining Manufacturing Construction Services Agriculture Mining Manufacturing Construction Services
10,866
Kelantan Terengganu
9,078
7 458
7,458
3,844
3,339 3,176
2,565
2 565
2,129 1,887
1,509
1,088 0 944 749 797 800
0 664 353
124
Agriculture Mining Manufacturing Construction Services

Agriculture Mining Manufacturing Construction Services
Services,* Manufacturing and Agriculture sectors are the principal sources of growth
Source :ECER Master Plan Note * : Services Includes : Tourism,& Hospitality Industries, Education, Utility Services, Logistic Services, Distribution
Trade, Professional Services, Commercial Services, Personnel Services, Public Services, Security Services, Social Services etc
ECER : Employment by State (2005-2020)
516
2.6 % 164,000
352
2005
2.1 %
2020
14,790
TERENGGANU
TERENGGANU
10,895
739
2.2 % 207,00
532 0
‘000
0
23%
2.3
2005
1,357 1,917
2020
PAHANG
PAHANG
MALAYSIA ECER 2.3 % 190,000

663
2005 2020 473
2005
2020
Incremental Number (2005-2020):
(2005 2020):
560,000 direct employment KELANTAN
KELANTAN
*Note : Growth rates based on ECER Master Plan
ECER : Challenges Facing the Region
• Regional imbalance - widening disparities between the

developed West Coast States and the less developed Eastern
Region.
• Income inequalities between rural and urban areas
areas.
• High incidences of hard core poverty.
• Accessibility to the Region.
Region
• Basic infrastructure (e.g. flood mitigation, water supply &
g systems).
sewerage y )
• Optimising property sector, including Malay Reserve Land
potential.
The resolution of these key issues is fundamental in forging

this region towards 2020
ECER Key Strengths
• Strong resources endowment

• Considerable labour pool
• Competitive
C titi wage rates
t
• Strong potential for property development
• Lower cost of living
• Good education system and basic community services
• Advantageous geographical orientation
Oil, Gas & Petrochemical, Tourism,

Focus Clusters: Manufacturing, Agriculture and Education
ECER : The Master Plan
• The ECER Master Plan has addressed existing

challenges and will be the basis for guiding the
development of the region for the next 12
years, up to year 2020.
• The Plan covers 3 Malaysia Plans:
o 9th Malaysia Plan (2006 – 2010)

ECER : Development Focus & Objectives
• The main objective of the ECER Master Plan is to accelerate the growth of the
East Coast Economic Region in a viable, equitable and sustainable manner.
• This is undertaken via programmes and projects to raise incomes and reduce
poverty by expanding employment prospects & entreprenuership through the
introduction of high impact projects to spur development in the region.
• The Master Plan focuses on the key initiatives derived from selected clusters:
o Tourism
o Oil,, Gas & Petrochemical
o Manufacturing
o Agriculture
o Education
Supported by key enablers :
o Transport
o I f t
Infrastructure
t
o Environment
• In addition, Catalyst Funds will be set up to further stimulate growth in
the key clusters & enablers.
ECER : Vision and Mission Driven Development
TO BE A DEVELOPED REGION BY YEAR 2020

VISION - DISTINCTIVE - DYNAMIC - COMPETITIVE -
MISSION THRUSTS
MISSION 1. To move the economy up the value chain
2. To raise the capacity for knowledge and Innovation
3. To address persistent socio-economic inequalities constructively and productively
4. To improve the standard and sustainability of Quality of Life
5. To strengthen the institutional and implementation capacity
STRATEGIC
DEVELOPMENT STRATEGIC THRUSTS STRATEGIC PROJECT INITIATIVES
THRUSTS
TOURISM Tourism Strategic Initiatives
ECONOMIC OIL GAS PETROCHEMICAL

OIL,GAS, Oil Gas
Oil, Gas, Petrochemical Strategic Initiatives
MANUFACTURING Manufacturing Strategic Initiatives
SOCIAL AGRICULTURE Agriculture Strategic Initiatives
EDUCATION Education Strategic Initiatives
PHYSICAL OTHER ENABLING SECTOR Other Enabling Sector Strategic Initiatives
ECER MASTER PLAN

ECER : Economic Development Strategic Thrusts
1. Strengthen existing principal economic drivers
2. Develop new sources of growth in each sector and

explore the possibilities of developing certain incipient
clusters and/or seed new clusters
3. Strengthen support industries including SMEs/BCIC*
Economic 4. Strengthen the key enabling factors and basic

economic i foundations
f d ti including
i l di both
b th ‘hard’
‘h d’ and
d ‘soft’
‘ ft’
Development infrastructure
5. Induce greater investment both domestic and FDI to all

sectors
t
6. Strengthen national and international economic

linkages
7. Enhance growth in Labour and Total Productivity in all

sectors through the Enhancement of Investment in
Skills Upgrading,
pg g, the acquisition
q and application
pp of
Modern Technology and Innovations
Source : ECER Master Plan
* Bumiputera Commercial and Industrial Community
ECER : Social Development Strategic Thrusts (1)
1. Reducing poverty incidence by

increasing both the farm and non-farm
income of households
Social 2. Improve opportunities for Non Farm

Development household income growth
3 Facilitate the growth and upgrading of

3.
Rural micro enterprises and SMEs
Source : ECER Master Plan

ECER: Strategic Thrust to Eradicate Hardcore Poverty -
Agropolitan
g p Projects
j
Agropolitan Area(Ha) Hardcore
Poverty
Kelantan Selatan 10,000 3,000
Kelantan Utara 10,000 2,000
B
Besut &S
&Setiu
i 4 000
4,000 3 000
3,000
Pekan 3,000 1,000
Total 27,000 9,000
Agropolitan projects are integrated

projects that function as catalysts to
accelerate the growth and development
of rural areas, optimising economic
activity-mix in the Agropolitan Zone
• This includes the anchor crop (either oil
palm or rubber),
rubber) short and long term
crops, livestock, herbs and the primary
processing of such products along the
value chain.
The main objective is to upgrade the
income level for the hard core poor.
ECER : Social Development Strategic Thrusts (2)
1. Enhance Bumiputera SMEs
2. Enhance the level of participation

Social (BCIC) off
Development Bumiputera properties, including
Malay reserve land
3. Increase the level of participation

of
Bumiputera workers in the higher
skill, professional and management
categories
ECER : Bumiputera Commercial & Industrial
Communityy ((BCIC))
Specific programs in the five key clusters (tourism; oil, gas &
petrochemicals; manufacturing; agriculture; education) and enabling
sectors will be implemented :
• Enhance participation of Bumiputera SME and micro entreprises in
high value components along the value chain.
chain
• Strengthen the Bumiputera SME and micro entreprises in handicraft
industry – batik, songket weaving, silverware, wood carving & fish-
b
basedd food
f d processing.
i
(Example : Anchor Vendor Program, Incubator Program, Skills Development
Program
g and Global Supplier
pp Program)
g )
• Indentifying GLCs to be in smartpartnership, providing “mentoring”
and support to Bumiputera entrepreneurs.
• Relevant agencies to provide a more effective and better coordinated
service to Bumiputera entrepreneurs.
23
International Positioning of ECER
• Eastern Gateway
to Asia Pacific
• Tourism, trade,
infrastructure &
l i ti hub
logistics h b
ECER : Focusing on Existing Corridors
Within ECER, several growth corridors

have emerged and developed strongly
along the main transportation and
communication routes.
The transport network is still a major

determinant where development will
occur and influence scale of growth.
Primary Corridors in the ECER:

• East Coast Corridor
• Central Corridor
Sub-Corridors:
• East West Corridor
• North
North-South
South Corridor
Segamat
• Lumut-Gua Musang-
KualaTerengganu Corridor
• Kuantan-Segamat-Melaka Corridor
ECER : Overall National Economic Positioning
A. SERVICE INDUSTRIES
1. Major local and international tourism destinations
•Mainland Coastal & Islands
• Highland
Hi hl d
•Eco Tourism
•Cultural Tourism
2. Educational Services
•Development of educational and training services in line with
the national and ECER needs
needs.
•Educational services as a major export product.
3. Logistics & Distribution
•Logistics & Distribution services including value chain
management of imported goods and products
B. CENTRE FOR AGRO AND OTHER RESOURCE BASED
INDUSTRIES
• Highland agricultural activities including Floriculture
• Food & Halal Processed Products
• Wood Based Products
• Palm Oil Cluster
Mersing • Rubber Based Products
• Plastics/Polymers
C. NON RESOURCE BASED INDUSTRIES
• Boat Building & Repair
• Automotive/Transport Equipment
• Handicraft, Textiles & Apparel
• Heavy Industries
KEY ENABLING FACTORS

• Enhancement of transportation connectivity and economic linkages with Western Corridor especially the Klang Valley through the
Major Corridors and Sub-Corridors
• Enhancement of transportation connectivity and economic linkages with Sabah, Sarawak and ASEAN countries through air and
sea linkages
• Human Resource Development
ECER : Mission, Key Indicators & Enablers
Equitable Distribution
Accelerated Growth
Of Income
• GDP & Value Added Contribution • Address low income groups
MISSION
N
• Projects Investments • More equitable distribution

• Spillover considerations
Poverty Eradication SME/BCIC Participation Conservation,

& Employment Enhancement Sustainability of Culture
• Job creation • BCIC involvement in high impact projects • Environmental consideration
• Zero hard core poverty • Creation of SMEs • Heritage preservation
Employment Growth GDP Growth (%) GDP Per Capita (RM) Monthly Household Income (RM)
(million) 3.91
14.80
9,340
3 088
3,088
NDICATORS
19,134
10.89 1.5% 2,960 6,337
0.5% 7,650
7.2% 5,227
6.5% 13,510
5.7% 6.0%
KEY IN
0.56
9,794 3,249
2,267
1.36 1.92
5,860
2005 2020 2005 2020 2005 2020 2005 2020 2005 2020 2005 2020 2005 2020 2005 2020
ECER Malaysia ECER Malaysia ECER Malaysia ECER Malaysia
ABLERS
* 1987 price
• Human resource development Infrastructure • Accessibility

Education • Skilled workforce • Basic infrastructure as enablers
ENA
Projects
The Main Targets are to correct regional imbalance

ECER : Basic Structure of Economy (2020)
ECER ECONOMY 2020
VISION
To Be A Developed Region By 2020
(Distinctive Dynamic-Competitive)
(Distinctive- Dynamic Competitive)
KEY OIL, GAS

Thee Main
a AND
DRIVERS TOURISM MANU- EDU-
Pillars PETRO- AGRICUL
FACTURING -TURAL CATION
CHEMICAL
Supporting Manufacturing Activities, Logistics, ICT, Financial Services,

Support and Related Services
System
Supporting Institutions (Education, R&D, Government, Private and social institutions, trade
associations, communications and coordination system)
ENABLERS
Adequate Physical Infrastructure
Basic
Foundation Strong Basic Education and Training
(Hard & Soft
Conducive Working and Living Environment
I f
Infrastructure)
t t )
Stable Political & Social Environment
ECER : The Way Forward
Total capital investment from both the public & private

sectors in per capita terms must be considerably increased
The level of public sector

sector’s
s effort to strengthen the
“supporting system” and “basic foundation” in all forms in
the ECER must be drastically upgraded with complementary
private sector initiatives
p
The application of more efficient technology in all sectors

and
d the
h upgrading
di off skills
kill must be
b accelerated
l d to increase
i
productivity and household income
Private sector to act as a stimulus to spearhead investment

in this region in all sectors-
Tourism,, Agriculture,
g , Manufacturing
g and Services and
supporting the SMEs, while the government to provide
support infrastructure
.: TOURISM
ECER: Strategies in Tourism
• To develop integrated strategic tourism flagship projects
• To enhance capability building and entrepreneurship skills
• To intensify tourism marketing and promotion programmes
• To craft a strong destination brand that will deliver tourist

expectations
• To showcase local arts and crafts as tourism products
• To improve
p air,, land and maritime infrastructure to have g
greater
connectivity to the ECER as tourist destination of choice
44
Tourism Resources in ECER
Pristine Beaches World Class Islands
The ECER has

Diverse Eco-Tourism Spots diverse tourism
resources that
have the potential
to be developed
as world class
tourist attractions
Forecast of Tourist Arrivals for ECER (2005-2020)
Tourist Arrivals (mil) 28.8
20.3
14.3
10.2
ECER
2005 2010 2015 2020
• Total tourist arrival in ECER is 28.8 million (2020)

• Demand for accommodation in ECER will increase
threefold in the next 15 years.
Main Tourism Development Areas
• Opportunities to establish
large scale or boutique
resorts and other real estate
development.
Mainland Coastal Tourism
Codes Initiatives Location

TUMPAT
Tumpat (Pantai Seri (Pantai Seri
Tujoh)
Tujoh),
j ), K.
Coastal Hotel & Besut, Merang, Dun K.BESUT
Resort Development gun, Pantai Sepat MERANG
, Kuala Pahang &

Mersing MARANG
Gateway Towns to RANTAU

ABANG
Islands
• Pulau Perhentian & Rhu Kuala Besut, Kuala DUNGUN
• Pulau Lang Terengganu
Tengah, Redang &
Bedong M
Marang, D
Dungun, T
Tg
• Pulau Kapas & Gemia . Gemok & Mersing
• Pulau Tenggol
• Pulau Tioman & Mersing PANTAI
Group of Islands SEPAT
KUA A
KUALA
Global Marine Turtle PAHANG
Rantau Abang
Observatory
TG.
GEMOK
• Integrated and incremental coastal MERSING
resort development.
• Suitable for high and low
budget international and domestic
budget,
tourists.
Eco-Tourism
Taman Negara, Endau-

Focused MACHANG
R
Rompini ,KKenyir
i
Eco Tourism JELI
Lake, Lojing, Machang
Centres
& Gua Musang STONG
HILLS
SETIU
WETLANDS
NENGGI
RI
Kenyir
K i Lake,
L k T’ganu
T’ DABONG
KENYIR
KUALA
BERANG
Hills, Setiu LAKE
State Park LOJIN
Wetlands, Chini G GUA MUSANG
TAMAN NEGARA
Lake, Nenggiri & Stong PASIR RAJA
Hills TERENGGAN
U HILLS
Jeli, Gua KUALA LIPIS
Homestay Musang, Lojing, Dabon

Programmes g, Kuala Lipis, Kuala KUALA
Berang, Pasir GANDAH
Raja, Kahang &

CHINI LAKE
Mersing
Elephant Kuala Gandah & Kenyir
Sanctuary Lake
ENDAU ROMPIN MERSIN
Establish eco-lodges and homestay KAHAN

G
programmes incorporating modern G
technology with specialised eco

eco-
tourism operators.
Urban Tourism
Kota Bharu Waterfront Kota Bharu

& Commercial Areas City Centre
Kuala
Tourism
T i Gateway
G t to
t Terengganu
ECER City Centre
Develop strategic urban areas to

maximise tourism and economic benefits.
Ensure good accessibility to public
transportation, amenities and availability
off accommodation.
d ti
Main Components :
KTCC – Marina, Cruise
Terminal, g
Integrated
Mall, Entertainment Centre
MICE, Hotels & Water Sport
amphitheatre.
KBCC – Hotels, Shopping
Mall, Convention Centre, Main Square
and Grand Bazaar.
Cultural Heritage Tourism

TUMPAT
Cultural Heritage
Kota Bharu,
Art & Craft MERANG
Kuala Terengganu
-Handicraft Village SETIU
& Pekan
-Historic Areas PULAU DUYONG
DUNGUN
Kota
Bharu, Tumpat, K.T’
ganu, Pulau KEMAMAN
Duyong, Setiu, Mera

Homestay
ng, Dungun, Kema
Program
man, Jerantut, Pant JERANTUT
ai Sepat, Kuala PANTAI SEPAT
Pahang Pekan &

Pahang, KUALA PAHANG
Rompin PEKAN
Encourage development of traditional ROMPIN
arts, crafts, dance, music and others.

Upgrade traditional arts and crafts
Develop heritage city and arts & crafts
tours.
Main Tourism Development Areas
Codes Initiatives Location PENGKALAN KUBOR
RANTAU PANJANG
BUKIT
Pengkalan BUNGA
Kubor, Rantau
Cross Border Tourism
Panjang & Bukit
Bunga
Improve cross-border trading

linkages with neighbouring countries
Identify facilities for
shopping, dining, entertainment and
recreation.
Upgrade amenities
amenities, religious
pilgrimages training facilities, retail
outlets, etc
ECER : Sustainable Island Tourism
Perhentian Island
Kota Bharu
Promoting the islands as
Lang Tengah Island
“Playground Destinations” while
(Jetty)
focusing development only on Kuala Besut Redang Island
mainland coastal areas.
Penarek Bidong
Merang Island
Action plans to protect the marine
environment will include: Kuala Terengganu
Gemia Island
Kapas Island
o Enforcing development guidelines (Jetty)
Marang
based on the carrying capacity
th
threshold
h ld limits.
li it TERENGGANU Tg. Jara
Tenggol Island
o Upgrading support facilities –

jetties, medical facilities, solid PAHANG Tioman
Island
Tg. Gemok Harimau Island
waste management and sewerage.
sewerage Pemanggil Island
(Jetty)
Rawa Island
o Development of sustainability Mersing Aur Island
JOHOR
Besar Island
indicators for monitoring purposes (Jetty)
Tinggi
and sustainability
y accreditation. Tg. Leman Island
Sib IIsland
Sibu l d
(Jetty)
Ayer Kluang
Hitam
Kota Tinggi
Desaru
Johor Bahru
Bahr
Singapore
ECER : Hallmark Events
; Monsoon Cup ; Sultan’s Endurance Challenge
Â Proposed Future Events

1) Terengganu International Islands Boat Race - as part of any established boat race
worldwide .
2) Kota Bharu International Cultural Fest - cultural festivities featuring traditional performing
arts
3) Nenggiri-Stong International Extreme Sports Competition - to revive white water rafting
competition and complemented by other extreme sports.
4) Rompin Royal Billfish Competition - High potential to attract anglers worldwide.
5) Red Bull Air Race World Series
6) IGFA World Angling Championship
7) Mersing Eco-Challenge
More Hallmark Events to attract tourist worlwide

.: OIL, GAS & PETROCHEMICAL
9
ECER: Strategies in the Petrochemical Cluster
• Expanding and enhancing the value-added

value added of existing products.
products
• Enhancing linkages with other downstream manufacturing clusters
(automotive, electrical and electronics, and packaging industry
clusters).
• Diversifying into manufacturing-based activities (plastics and plastics-
related industries).
industries)
• Upgrading the capabilities of existing support industries, particularly
developing more SMEs providing support and ancillary services to the
upstream
t as well
ll as downstream
d t activities.
ti iti
• Further integrating the operations of three different locations (Kertih,
Chukai,, Gebeng)
g) where current cluster is already
y established.
• Ensure sustainable and sufficient energy supply while promoting
market-based approach for efficient resource allocation.
66
PETRONAS Petroleum Industry Complex (PPIC)
A fully y integrated
g petroleum
p
industrial hub
T
Two major
j downstream
d t complexes
l
in Kertih, Terengganu and
Gebeng, Pahang
Gebeng Integrated Petrochemical Complex
• The Gebeng Integrated

Petrochemical Complex (GIPC)
foc ses on propylene-based
focuses prop lene based
petrochemical product
streams, e.g. :
o MTBE
o Propylene
o Polypropylene
o Acrylic Acid
o Butyl Acrylate
o 2-EH Acrylate
o 2-E-Hexanol
o Phthalic Anhydride
o DOP/DINP
o Butyl Acetate
o Formic Acid
o Butanediol
o N-Butanol
There is a potential to develop

downstream applications of
propylene-based
l b d products
d t
Potential Applications of Propylene-based Products
Automotive
Coatings & Parts, Batteries,
Adhesives
Adhesives, Solvent & Lacquer Oriented PP Films
Films,
Paints, Binders, Coatings Stretched Tape, Fiber,
Emulsifiers, Polishes, Injection Moulding
Paper & Leather & Extrusion
Pet Food, Film, Fiber

Food &
Propylene Base Filaments &
Pharmaceuticals Appliances
Unsaturated
Pol ester
Polyester,
Textiles, Oilwell Parts, Resins, Liquid Laundry
Apparel, Fuel Cell Liners, Detergents, Cosmetics,
Home Furnishings Hoses, Gasket, Oil Seals Paints, Coatings
& Flocculant, & Foam
Enhanced Oil
Recovery
Private sector can p

partake in the development
p of downstream applications
pp
of propylene-based products
Kertih Integrated Petrochemical Complex
• The Kertih Integrated

Petrochemical Complex (KIPC)
f
focuses on ethylene-based
h l b d
petrochemical product
streams, including :
o Ethylene
o Polyethylene
o Paraxylene
o Benzene
o VCM
o PVC
o Acetic Acid
o Ammonia
o Ethylene Oxide
o Ethylene Glycol
o LDPE
o Ethanolamines
o Ethoxylates
There is potential to develop
downstream applications of
ethylene-based
ethylene based products
Potential Applications of Ethylene-based Products
Adhesives &
Antifreeze,
Polyester, Fibre & Films,
Sealants,
Industrial Hose Pipes & Fittings,
Fittings
Polyurethanes, Natural
Gas Dehydration, and Belting. Rigid Films,
Refinery Solvent & Sheets, Wall &
Textile Agents Floor Covering.
Film, Injection
Automotive Parts,
Moulding, Blow Ethylene Base Wire & Cable
Moulding Pipes &
Moulding,
Conduits
Housewares,,
Pharmaceutical,
Pharmaceutical
Expandable Building
Household
Latex Paint, Insulation,
Detergents Food Containers, Tires,
& Cleaners Paint Solvent
& Fabric Footwear
Binder
Private sector can partake in the development of downstream applications

of ethylene-based products
ECER: Key Initiative - Kertih Plastics Park
• First plastics park in the country
• Close proximity to petrochemical

feedstock
Total Lot Q area = 1000 acres

KPP Phase 1 = 220 acres
KPP Phase 2 = 120 acres
Kertih Plastics Park: Collaboration Between
Various Stakeholders
• Land approval • Funding to SMEs

• Land clearing and • Identify potential
preparation investors
Development
D l off
Kertih Plastics Park
• Feedstock and utilities
• Promotional activities supply
• Assist with permits, • Promotional activities
licences & incentives • Technical & marketing g
• Identify potential investors support
• Supply chain services
68
Kertih Plastics Park: Project Objectives
To capture more resource-based value domestically via

d
downstream
t integration
i t ti off polymer
l and
d related
l t d plants
l t within
ithi
the existing petrochemical complex
Ensures a competitive base for local producers through:
- tapping into operational and infrastructural synergies at site

- obtaining security of raw materials supply (Just
(Just-In-Time)
In Time)
- reaping economies of scale & direct cost savings
(vide centralised services, freight savings, etc.)
To promote development of a ECER downstream petrochemical

hub by encouraging FDIs in higher-end applications, and
technological and other skills base for the nation
KPP will be the first Plastics Park in the country, focusing on

plastics & plastics-related industries.
69
Kertih Plastics Park: Project Rationale
To add value to hydrocarbon

y resources byy moving
g up
p the product
p value
chain, in line with the goals of the IMP-3
To respond to the need to enhance the competitiveness of Malaysian
plastics industry
Provide a “focused” development to cater for the specific needs of
plastics industry
To capture more value domestically by utilising the available feedstock
f ffor
downstream applications in domestic facilities instead of exporting the
plastic resins
To expand employment and entrepreneurship opportunities as well as
create demand for other ancillary services
To attract domestic and foreign
g investments in p
plastics and plastics-
p
related industries
To facilitate the transfer of technology, knowledge and skills to local SMEs
involved in plastics and plastics related industries
70
Kertih Plastics Park: Target Industries /
Investors
SMEs with the following profile :-
- export-oriented domestic manufacturers (especially those
seeking expansion)
- foreign-based companies seeking overseas ventures
- companies aspiring to reach global markets
Specialty plastic compounders
Higher-end processors/plastic moulders
Packaging manufacturers (e.g. specialty packaging, pallet
suppliers))
Logistics and other special service providers (e.g. HSE/
waste management, bonded warehousing, etc.)
Expected investment from the private sector for KPP is

approximately RM2 billion, generating about
7 000 employment opportunities
7,000
71
.: MANUFACTURING
ECER: Manufacturing Strategies
Manufacturing activities to be focused on selected industrial
parks
Strengthen the value chain & focus on high value activities
Strengthen linkages with other clusters,

clusters e.g.
eg
Agriculture - Food Processing.
Tourism - Handicrafts
Develop effective promotion, marketing, packaging & branding

programmes
Develop skills training programmes in synergy with ECER

industrial development plan
Focus on R&D activities for related manufacturing products
Upgrade infrastructure to make the ECER an attractive investment

destination
73
ECER: Manufacturing Sector Key Initiatives
Initiatives Main Focus
• “Integrated halal parks in line

with Malaysia’s vision ‘to be
Food & Halal the global halal hub for the
world’”
Processed Product
• Locations: Gambang,g, Pahang
g
& Pasir Mas, Kelantan
ECER: Food & Halal Processed Initiatives
Kelantan
Pasir Mas : Food Processing (Crops, Beef &
P lt Based)
Poultry B d)
Tok Bali : Fish Processing, Integrated
Fisheries Park
Bachok : Fish Processing
Gua Musang : Herbs/ Bio-tech
Bio tech Ind & Food
Processing (Beef & Poultry Based)
Kuala Krai : Food Processing (Beef & Poultry
Based)
Terengganu
Chendering, KT: Food Processing (Fish & Poultry
Based)
Kuala Kemaman : Food Processing (Fish Based)
Pahang
P h
Gambang : Food (Crops, Poultry & Beef Based)
& Non-Food Processing
Tg. Api : Fish Processing
Development of Incubation Centres for Micro Food

Processors in:
Pasir Mas : Traditional & Specialty Food
Gambang g p y Food
: Traditional & Specialty
• “Key site for downstream

Palm Oil Industry
y activities with close proximity
t the
to th Kuantan
K t Port”
P t”
Cluster
• Location: Kuantan Port City,
P h
Pahang
• “Concentrated sites for boat-

building and repair industry
Boat Building
g& in the Region”
Region
Repair Parks
• Locations: Tok Bali, Kelantan,
Pulau Duyong and Kemaman
Kemaman,
Terengganu
• “Dedicated Park supported by

Automotive / Trading Hub & Regional
Distribution Centre in Kuantan
Transport Port City
Equipment
• Location:
ocat o Pekan
e a Peramu,
e a u, Pahang
a a g
• Focusing on Rubber Forest

Plantation, Furniture Parks &
Rubber Wood Latex-based Industrial Park
Products
• Location: Temerloh, Mentakab,
Bandar Al-Muktafi Billah Shah,
Kuala Krai & Machang
• Location: Pengkalan Kubor,

Kuala Terengganu Airport,
F
Free Zones
Z Kemaman Port & Kuantan Port
City
ECER: Free Zones Initiatives
Pengkalan Kubor
Focus on:
¾ Commercial Services
(warehouses, packing, logistics, etc.)
¾ Manufacturing
¾ Retail
Kuala Terenggganu Airport

Focused as distribution centre for:
¾ Creative Industry/ICT
¾ Floriculture Product
¾ Other Long Term Prospects
• Kemaman Port – Heavy Industries

Focus on:
¾ Iron & steel and downstream activities
with port linkages
• Kuantan Port City

Focus
Foc s on
on:
¾ Manufacturing and commercial
services
¾ Regional Distribution Centres (RDC)
¾ International Procurement Centres
(IPC)
Note : Subject to further study on AFTA Implementation impact

.: AGRICULTURE
ECER: Agriculture Sector Strategies
• Expanding large-scale commercial farming

• Wider application of modern technology
• Development of value added activities
• Improving supply chain management
• Participation of private sector as anchor companies
• Strengthening marketing and global networking
• Increasing non-farm opportunities
• Poverty eradication in focus development area
• Implement Balance of Trade (BOT) Plan in Food Production
88
ECER : Agriculture Clusters
Crop-Based Clusters Livestock-Based Clusters Fish-Based Clusters
• Fruit & Vegetable • Beef • Marine Capture

• Highland Agriculture/ • Mutton Fisheries
Floriculture • Brackishwater
• Poultry
• Herbs Aquaculture
• Breeder Animals
• T b
Tobacco • Freshwater
• Animal Feed Production Aquaculture
• Kenaf
• Recreational Fisheries
• Rice
• C
Cocoa
ECER: Agriculture Sector Initiatives – Crops
Upstream
• Fruits & Vegetables Key Sites

• Herbs • Agrovalleys
• Kenaf • Permanent Fruit Parks
• Dungun
g Citrus Valley y
• Herbal & Biotech Park
• Collection, Processing, Packaging
and Distribution Centres (CPPCs)
( )
Downstream /
Market
• Principal inputs to downstream processing parks in the ECER:

• Halal, Herbal & Biotech Parks
• CPPCs
• Export markets with value
value-added
added products
ECER : Fruit and Vegetable Cluster
1: Vegetable & Fruit Valley

i. Bachok-Setiu-K.Berang : 5,000 ha
ii Kuantan-Maran
ii. K t M : 1,000
1 000 ha
h
iii.Pekan-Rompin-Mersing : 4,000 ha
Crops: Chilly, Sweet Potato, Water
Melon, Pumpkins, Roselle, Sweet Corn &
Leafy Vegetables
2: Citrus Fruits Valley (KETENGAH)

i. Durian Mentangau, Dungun: 1,414 ha
3: Fruit Agricultural Park

i. Lanchang, Temerloh : 3,500 ha
ii. Ulu Tembeling, Jerantut : 5,000 ha
Crops: Papaya, Bananas, Dragon
Fruit, Starfruit, Jackfruit & Guava
4 : Integrated Pineapple Projects

i. Pekan : 2,000
, ha
ii. Rompin : 5, 400 ha
Integration with cattle based clusters on feedlot
using pineapple waste
ECER : Highland Agriculture/Floriculture Cluster
Permanent Agriculture Park

L ji
Lojing
• A 1,000ha land has been proposed for
the floriculture and vegetable
plantation.
l t ti
• Strategies will ensure sustainable
development of the agriculture areas in
Lojing.
Lojing
ECER : Herbal Product Cluster
Herbal Parks
Gua Musangg
• Area : 1000 ha.
• Satellite herbal farm in Jeli (Kuala Balah) : 50 ha.
• Four Major Components : Applied Research
Centre, Organic Herbal Farm, Processing Centre &
I
Incubation
b ti C t & Training.
Center T i i
• Promoted Products : Misai Kucing, Pegaga, Aloe
Vera, Tongkat Ali, Ginger Plants for essential oil.
Temerloh
• Lanchang : 200 ha for the establishment of a herb
garden.
Raub
• Technology Park Malaysia has also been allocated a
200 ha land in Raub to establish a herbal park and
processing facilities.
Dungun
• T
Terengganu : 20 ha h off Ginger
Gi and
d Serai
S i Wangi
W i in
i
every district.
• Establishment of 200 ha Herbal Park as nucleus in
Dungun (KETENGAH).
• Herbal Research Centre is proposed to be located in
Universiti Darul Iman, Besut, Terengganu.
Kenaf & Green Animal Feed:
The Tobacco Alternative
Development of the Kenaf Industry 1. Plantation of Kenaf
Under the National Tobacco Board
• Kenaf industry is expected to create more
jobs in the rural areas especially in the
tobacco areas in Bachok, Pasir
Puteh, Besut, Setiu and Marang (10,000
ha).
• The
Th project
j t will
ill be
b implemented
i l t d on a
nucleus farm model whereby anchor
companies will plant Kenaf as an estate to
support organised smallholders.
• The anchor company will also undertake
processing of the Kenaf fiber.
2. Green Animal Feed Production

• Good potential to support livestock
production.
• Can be grown in the bris soil area as an
alternative to kenaf.
• Zone earmarked for green feed production
includes Kota Bharu, Bachok and Pasir
Putih.
• Among the fodder that can be grown:
napier grass, (rumput gajah), maize, alfalfa
and sorghum.
ECER : Rice Cluster
Granary Area Hectares

KADA 30 240
30,240
Kemasin-Semerak 9,306
KETARA 10,987
Pekan/Rompin 3,521
Strategies
• 90% self-sufficiency
lf ffi i level
l l
• Increase yield through:
- Mini-estate and group farming
- Improvement in irrigation & drainage
infrastructure
• Proposed Cattle Feedlot in Granary
Areas
i. KADA (Tumpat,
(T t Bachok
B h kNNorth
th &
K. Bharu) : 100 ha
ii. Kemasin/Semerak (Bachok South &
P. Putih) : 100 ha
iii KETARA areas (Besut
iii. (B t ) : 100 h
ha
ECER : Cocoa Industry Cluster
Cocoa planting will be encouraged to

supplement income of smallholders in
depressed areas to raise incomes and
reduce poverty through intercropping.
Identified areas for cocoa
intercropping (with fruit trees) by
Malaysian Cocoa Board (MCB) :
Targeted Area (ha)

State District
2007 2020
2007-2020
Raub, Lipis,
Pahang 6,000
Jerantut & Maran
Jeli, Machang,
Kelantan Tanah Merah & 2,300
Gua Musang
Kuala Berang &

T’ganu 2,250
Ulu Besut
In 9MP, MCB will set up two dry

beans collecting centres in Maran
andd Machang.
M h
ECER: Agriculture Sector Initiatives – Livestock
Upstream
Key Sites
• Beef Industry
• Nucleus Breeding & Research
• Mutton Industry Centres
• Poultry Industry • Feedlots Integration in Plantation
Areas
• Integrated Processing & Production
Parks
• Collection & Marketing Centres
(CMCs)
Downstream /
Market

• Halal & Poultry Processing Parks
• CMCs
• Export markets with value
value-added
added products
ECER : Beef Industry Cluster (1/2)
1. Nucleus Cattle Breeding & Research

Centre
• Genetic improvement and Breeding of
Cattle
• FELDA to play the anchor role
• Location : Beef Valley Muadzam Shah
Downstream processing linked to the
Gambang and Pasir Mas Food Park
2 Beef
2. B f Valleys
V ll f Cattle
for C ttl Feedlot
F dl t
Land Size Targeted
Area
(ha) Heads
Kuala Krai (Slow Temiang) 600 45,000
Pasir Putih (Gong Datok) 135 20,000
Marang (Tg. Gadoh) 95 15,000

Lipis (TAC Lipis) 200 20,000
Rompin (Muadzam Shah) 400 35,000

ECER : Beef Industry Cluster (2/2)
3. Cattle Integration in Oil Palm Plantations

Land Size Targeted
A
Area
(ha) Heads
TAC Gua Musang (FELDA Chiku
55,000 15,000
& Aring)
TAC Tanah Merah (FELDA
7,200 2,000
Kemahang)
TAC KETENGAH (FELDA Tersat
& Mengkawang in Ulu T’ganu
26,000 10,000
and FELDA Jerangau & Rasau in
Dungun)
TAC Kemaman / Kuantan (FELDA
Seberang Tayor, Neram, Bukit 70,500 18,000
Sagu
g & Lepar)
p )
TAC Jengka, TAC Bera & TAC

Muadzam (FELDA Jengka, 200,000 50,000
Triang, Keratong & Chini)
• Downstream processing linked to the Gambang and Pasir

Mas Food Park
• FELDA - lead agency
TAC = Targeted Area of Concentration

ECER : Mutton Industry Cluster
1. Integration in Rubber Area
Area: 2,000 ha of rubber areas in Besut
and Hulu Terengganu under RISDA
2. Intensive Nucleus Goats Farm
Area: 655 ha of grazing reserve in 7
districts
Centre Farm– Kuala Berang, Hulu
Terengganu (900 ha)
3. Breeding Centre
Nucleus Goat Breeding & Research
Centre
Location – Kuala Berang, Hulu
Terengganu
Focusing on genetic improvement and
breeding of goats for breeder stock
Supported by University Malaya
R
Researchh Group
G in
i collaboration
ll b ti with
ith
University Darul Iman, Besut
4. Rearing of Goats Under Intensive System
Area: 60 hectares of grazing field in
Machang, Kelantan
ECER : Poultry Industry Cluster
1. Poultry Park in Gua Musang

Focus Area: 100 ha of new Permanent
P lt Production
Poultry P d ti ParkP k (PPPP) in
i Gua
G
Musang (KESEDAR)
Supply will be sourced from three Poultry
Production Zones: Gua Musang, g, Jeli and
Bachok
2. Poultry Processing Park in Chendering
Supply
pp y will be sourced from 4 Poultry
y
Production Zones: Setiu, Hulu
Terengganu, Dungun and Kemaman
3. Poultry Processing Park in Gambang –
Kuantan
Supply will be sourced from 6 Poultry
Production Zones in Pahang: Raub,
Maran Bera
Maran, Bera, Pekan
Pekan, Kuantan and Pekan
4. Poultry Feed Production (Grain Feedmill) in
Gebeng-Kuantan
Location is in proximity to Kuantan Port
(10 ha).
ECER: Agriculture Sector Initiatives – Fisheries
Upstream
• Marine Capture Fisheries Key Sites
• Brackishwater Aquaculture • Integrated Fisheries Park
• Freshwater Aquaculture • Seed Production & Marketing
Centre
• Collection, Processing, Packaging
and Distribution Centres (CPPCs)
Downstream /
Market

• Integrated Fisheries Park
• Halal and Fish Processing Parks
• CPPCs
• Export markets with value-added products
ECER : Marine Capture Fisheries Cluster
Integrated Fisheries Park in Tok Bali, Kelantan
• The integrated fisheries project revolves around a few core areas:

Ö The Deep Sea Fishing (DSF) Station located on an abandoned platform or island.
Ö Deep-sea fishing vessels to secure supply of fish and a ‘mother vessel’ that links
DSF Station and the Fisheries Industrial Park.
Ö Fishery Industrial Park comprising of residential, marketing and supporting
industrial and services components.
• The integrated fisheries project may lead to the improvement of local living standards and
Malaysia’s deep-sea fishing capabilities.
• Feedstock for the Tok Bali Processing Centre will be linked to Pergau & Kenyir
Aquaculture projects.
• Potential Downstream Projects: Breaded Fillets, Nuggets, Marinated Fillets and Fish
Leather-Based Product (Fashion Accessories).
ECER : Freshwater & Marine Aquaculture Cluster
1. Integrated Tilapia Farms in KENYIR AND

PERGAU
• Two nucleus farms are proposed:
Pergau & Kenyir – productive area of
10,000 sq m with total of 1,000 cages
each
2. Freshwater Fish Seed Production

and Marketing Centre
• To be located in Telemong,g, Bentong
g
• 40 ha site including ponds, hatchery
and buildings
• Acts as an central
collection,, quarantine
q and marketing
g
centre
3. Brackishwater Fish Seed Production and

Marketingg Centre
Located in Kuala Pahang, Pekan
40 ha site including ponds, hatchery
and buildings
ECER : Recreational Fisheries Cluster
Project Initiative
• Development of Recreational Fishing
Centres in Tumpat, Merang-Setiu,
Tanjung
j g Sepat,
p , and Kuala Rompin
p
• Establishment of angling centres and
based on the food court business model
• Each centre will consist of:
- Outdoor angling (fee) ponds for marine and
brackishwater fish. The proposed hub
would have at least five 1-ha ponds
- Indoor angling (fee) ponds for udang galah
- Jetty and boat services for offshore angling
- Chalet, Restaurants, Souvenir/supply shops
- Entertainment outlets
.: EDUCATION
ECER: Strategies in Education
• Enhancing access to quality education at the primary school, secondary

school and tertiary education levels
• Ensuring adequate supply of professional and skilled workforce to meet

the needs for accelerated development,
p , technological
g upgrading,
pg g, g
global
and regional competitiveness
• Improving skills training to create competitive local entrepreneurs,

t h
technopreneurs andd skilled
kill d workforce
kf th
thatt meett llocal,
l regional
i l and
d national
ti l
needs
• Enhancing tertiary education through good & adequate physical and

educational facilities, qualified local and foreign lecturers and well
equipped R & D facilities
• Encouraging the involvement off women in skills training to ensure

improvement in their participation levels in local industries
118
ECER: Education Overview
In the ECER,
ECER the education sector plays a dual role:
• The sector is an economic driver and a catalyst for growth in the ECER
• Education is a key enabler that supports the growth of other sectors such
as agriculture, manufacturing and tourism in term of human resource
and capability development
ECER: Polytechnics & Community Colleges
Source: New Community Colleges approved under Ninth Malaysia Plan

ECER: Existing Universities
Open University (OUM) :

Kota Bharu, Besut, Chendering, Kuantan,
Kuala Lipis, Mentakab
University (UiTM) :
Machang, Dungun, Jengka, Kuantan,
Bukit Besi, Kota Bharu
Programmes
Engineering Social Science,
Engineering, Science Art and Design
Design,
Artistic & Creative Technology, Hotel and
Tourism Management and Business
Management
Branch Universities :
• USM Kubang Kerian
(Medical Science and Dental Health)
• UIA Kuantan
(Medical Science, Pharmacy, Allied
Health Science and Nursing Faculties)
• UNITEN Muadzam Shah
ECER: New University Campuses (2006)
Universiti Malaysia Location Land Area Programmes
Kelantan (UMK) • Bachok 583 acres • Entrepreneurship & Business
• Jeli 200 acres • Agro-industry and Natural Resources
• Creative
C ti T Technology
h l anddHHeritage.
it
Total 783 acres • Emphasis on SME Development and 3rd Language usage.
Universiti Darul Iman

Terengganu (UDM) Location Land Area Programmes
• KUSZA 350 acres • Islamic Studies
• City (Kota) 4 acres • Accounting & Business
• Besut 1000 acres • Agriculture & Biotechnology
• Food Technology & Processing
Total 1354 acres • Animal Science
• Information Multimedia Technology
Universiti Malaysia
• Arabic & Education.
Terengganu (UMT)
Location Land Area Programmes
formerly known as Kolej • K. T’ganu 1000 acres Science & Technology; Economics & Management; Agro-
Universiti Sains & Teknologi
Malaysia (KUSTEM)
technology & Food Sciences; Marine Science; Oceanography;
Tropical Aquaculture and Marine Biotechnology
Universiti
U i iti Malaysia
M l i
Location Land Area Programmes
Pahang (UMP)
• Pekan 722 acres • Engineering
• Gambang Rented • Technology-based Sciences
Total 722 acres

Centres of Excellence
• Bio-fuel • Halal
• Bio Degradable Products
Products
• Facilities
UMP,
Pekan COE UDM,
Besut • Herbs
• Bio-tech
Management
• Bio-Diversity
s
UMT,, K UiTM,
• Social
Development T Jengk • Wood-based
product
• Oceanography a
UMK,
UMK
• Innovative & UiTM,
Design Bachok UiTM,
Machang Dungun •Tourism
& Jeli
• Innovative &
Design
• Product
Based R&D
•Heritage
& Culture
• Entrepreneurship
.: TRANSPORTATION
ECER: Transportation Overview
Enhancing accessibility to
y to its
the ECER is key
growth and development
ECER: Transportation – Road Sector Key Issues
• Capacity of existing road networks could be enhanced to

improve safety and reduce travelling time
• Better accessibility from rural areas to key regional town
centres will enhance economic opportunity
• Improved inter-modal transport connectivity in the region and
in its key cities will spur development and encourage potential
investors
ECER: Transportation – Road Sector Strategic Thrusts
Strategic Thrust One:

Establishment of quality expressway “spine”
expressway network
t k iin main
i corridors
id
Strategic Thrust Two:

Establishment/strengthening of quality federal
roads serving the identified sub-corridors
Strategic Thrust Three:

Upgrading of supporting road networks
ECER : Transportation - Road Sector
Key Projects
Road Sector :
Strategic
g Thrust Two – Federal Roads
ECER: Transportation – Road Sector Project Benefits
When fully completed, the road projects will:
• Improve movement of goods and services

from urban to rural areas
• Save traveling time significantly between
destinations
• Improve access to facilities for the local
population
• Act as catalyst to the eradication of
hardcore poverty
ECER: Transportation – Maritime Sector Key Issues
• ECER’s port facilities can be developed to take up more

th
throughput
h t tonnage
t
• The established position and better shipping line linkages of West
Coast and Singapore ports pose a major challenge to ECER
ECER’ss
ports
• However, ECER’s
However ECER s ports have good potential to be developed for
trade expansion to Asia Pacific Region due to their geographical
location
ECER: Transportation - Maritime Sector Key Port Initiatives
Strategic Initiatives
Kuantan
K t P Port:
t
To be developed as a regional hub for trading in Petrochemical, Palm Oil,
Automotive, and container markets to China, ASEAN and other East Asian
countries
Kemaman Port:
To be developed as sea port focusing on heavy industry
Kertih Port:
To be further developed as part of oil & gas cluster operations
ECER: Transportation - Maritime Sector Minor Port &
Jetty
y Initiatives
Location Existing/Proposed Initiatives

Pengkalan Integrated Border Gateway to
Kubor Thailand
Tok Bali Integrated fishing and potential
feeder port to Kuantan Port
Kuala Besut Tourism gateway to Pulau Perhentian
Kuala A new cruise ship jetty/terminal as part
Terengganu of tourism flagship project in the region
Chendering Fishing jetty

Marang Tourism gateway to Pulau Kapas.
K. Dungun Tourism gateway to P. Tenggol
T Api,
Tg. A i Ktn
Kt Fi h Processing
Fish P i Park
P k
K.Rompin Integrated Sport fishing
Tg. Gemok Tourism gateway to P. Tioman
Mersing Development of a new all weather
jetty for Tourism gateway to
P. Tioman and other islands off Mersing
.: INFRASTRUCTURE
ECER: Infrastructure Sector Initiatives
• Integrated expressway & • Linking to the

highways national’s railway
network
Road R il
Rail
Air Maritime
• Kuantan Port – regional

g hub
• International and regional airports for trading
with air-freight capabilities • Kemaman Port – deep sea port
focusing on heavy industry
• Kertih Port – p
part of oil & gas
g
operations
ECER: Infrastructure
Electricity
Water Supply
Telecommunication
e eco u cat o
Sewerage
Flood Mitigation
Coastal Protection
ECER: Infrastructure Overview and Challenges
ECER has adequate electricity supply to meet the projected

demand until 2020
Water supply capacity in ECER is sufficient except for Kelantan

where it needs to be enhanced to meet demands
ECER iis well

ll served
dbby fi
fixed
d li
line communication
i ti ffacilities
iliti and
d able
bl
to meet projected demand until 2020. However, the rate of
penetration for Cellular Lines, Internet Dial Up and Broadband
in the region is lower than the national standard and needs to be
upgraded
Sewerage
g services in the ECER need to be upgraded
pg in stages
g to
meet the development requirements
ECER: Infrastructure - Flood Mitigation
The recurrence of floods during

the monsoon season remains a
challenge in the ECER.
Construction of Lebir Dam in

Kuala Krai, Kelantan is one of the
key projects to alleviate the
situation.
Flood Prone Areas (100 Years
Average Recurrence Interval)
Flood Prone Areas (1 Year

Average Recurrence Interval)
Major River
State Boundary
St t Capital
State C it l
ECER: Infrastructure – Coastal Erosion
Within the ECER, there are critical

coastal erosion incidences:
i) Kelantan
- Pantai Sabak, Kota Bharu
- Pantai Cahaya Bulan, Kota Bharu
ii) Terengganu
- Sg.Terengganu River Mouth
- Kuala Ibai, K.Terengganu
- Pantai Chendering, K. Terengganu
- Seberang Takir,
Takir K
K. Terenggan
Terengganu
- Dungun
- Teluk Puchong
- Kg. Kuala Kemaman
iii) Pahang
- Teluk Chempedak & TelukSisek
Certain parts of - Taman Gelora, Gebeng
ECER experience - Sg. Kuantan River Mouth
severe coastal erosion - Sg.Pahang River Mouth
- Between Kuantan and Chukai
- Nenasi
- PulauTioman
Source : National Coastal Erosion Study, EPU, 1985

.: REAL ESTATE & CONSTRUCTION
ECER: Property Sector Overview
• In 2006, the ECER’s share of total Malaysia’s property

transactions was:
– Residential : 9.1%
– Commercial : 6.5%
– Industrial : 8.3%
• There were substantial transactions in agriculture (24.2%) and

development land (22%) property
• In terms of total value, the residential sector constituted 4.2%;

commercial 5.3%; industrial 2.6%; agriculture 12.4% and
development land 4.9%.
There is a huge potential to boost the property sector in ECER

ECER: Real Estate & Construction
• ECER offers great potential and opportunities in real estate

development, particularly in leisure, commercial and residential
properties
• Development of key clusters of tourism, manufacturing, oil, gas

& petrochemical, agriculture and education will create spin-off
construction activities
ECER: Commercial Property Development Projection in
Capital Cities
Sq. Meter.(‘000)
Additional need for

ECER’s state capitals
in year 2020:
395
395,144 sq. metres
Legend:
108 152 Existing Occupied Stock

(sq.metre) in 2006
135 289 Additional needed
125 114 (sq.metre) in 2020
47
Kota Bharu Kuala Kuantan ECER Capital
Terengganu Cities
The property sector in ECER’s capital cities is expected

t more th
to than double
d bl its
it currentt size
i byb 2020
ECER: Affordable Housing in 2020
323,822
50% of affordable
137,079
137 079 h
housing
i tot be
b built
b ilt
by private sector:
48,573 units
105,814
97,147
80,930
41,124 48,573
31,744
24,279
20,562 15,872
12,139
Pahang Terengganu Kelantan ECER

Legend:
Urban Housing Need Notes:
1) 30% of total housing stock is affordable housing
Affordable Housing Need 2) It is
i assumedd that
th t 50% off th
the llow-costt housing
h i will
ill b
be provided
id d b
by th
the G
Governmentt
Affordable Housing by Public Sector 3) Affordable housing cost at RM35,000 per unit
ECER: Optimisation of Malay Reserve Land
Key Issue Resolution
• Setting up of ECER Real Estate

Corporation (ECER REC) as an
Investment Holding Company with
capitalisation
p from government
g under
• To optimise
T ti i theth the ECER Development Council.
development • ECER REC investment strategy is to
invest in high growth sectors such as
potential of tourism, manufacturing and education
Malay Reserve projects.
Land in ECER • Land owners inject their land into ECER
REC in exchange for ECER REC shares
and this shall be administered by a
Trustee.
• As a beneficial shareholders in ECER
REC, the land owners benefit through
recurring
i paymentt off dividends.
di id d
ECER REC will allow Malay Reserve Land owners to unlock their
property
p p y value and maximise their returns on investment.
148
.: IMPLEMENTATION
ECER: Key Projects 2007 - 2020
• RM112 Billion covering 227 projects over 12

years (9th, 10th & 11th Malaysia Plans)
• Funding by Private Investors

(20%), Government Linked Companies
(14%), Federal Government (39%) and Private
Finance Initiative (27%)
ECER: Highlights on implementation of Key Projects
• Agropolitan Projects (South Kelantan, Besut-Setiu and Pekan) - Business Strategy &
Implementation Plans have been completed. Initial implementation stage.
• Goat Production Cluster – BSIP completed. Multiplier Farm and Commercial Farms will be
constructed by March 2009.
• C ttl P
Cattle Production
d ti Cl Cluster
t – BSIP ongoing.
i
• Poultry Production Cluster – BSIP ongoing.
• Lanchang
L h Modern
M d Agriculture
A i lt Park
P k – Scheduled
S h d l d tto b
be llaunched
h d iin JJanuary 2009
2009. ECERDC will
ill
facilitate implementation. 25 out of 34 companies have commenced operations.
• Development of Kenaf Industry – One project launched in Bachok (SASB). Other kenaf projects
will
ill b
be iimplemented
l t d iin Pasir
P i P Puteh
t hKKelantan;
l t B
Besut,
t Setiu
S ti & Marang
M in
i Terengganu.
T Total
T t l areas
targeted = 10,000 ha
• Kg Penarik / Pulau Besar–Merang Mainland Coastal Tourism – Potential investment from a mid-
eastt company.
• Homestay / Kampung Stay Tourism Development – BSIP ongoing.

ECER: Highlights on implementation of Key Projects
• Kuantan Port City (Development of Kuantan Port City; Urban Drainage Improvement Kuantan
Port ; Palm Oil Industry Cluster, Automotive Industrial Park Pekan-Peramu; Free Zone -
Kuantan Port) – discussing with relevant state agencies and parties concerned; appointment of
Consultant by year-end.
• Central Spine – working closely with JKR; target to start construction by Q3, 2009.
.: INCENTIVES
ECER: Incentives Package for Investors
• The incentives introduced places the Region in good standing to

b
become one off Malaysia’s
M l i ’ mostt attractive
tt ti investment
i t t destinations.
d ti ti
• New fiscal incentives include, among others, the following areas:
Investment tax allowance (ITA)

Income tax exemption up to ti tto 100% off qualifying
amounting lif i
10 years capital expenditure for 5 years
Stamp duty exemption Import duty and sales

tax exemption
• Customized incentives given to companies on a case-to-case basis

Note: For more info on ECER Incentives Package
Package, please refer to “Due
Due East – An Investment Guide to the ECER”
ECER or
visit our website at www.ecerdc.com.my
Investment Guide to ECER and Website
www.ecerdc.com.my
ECER Incentives Package - Tourism
• Mainland Coastal Incentives given to owner or owner operator of hotels & resorts:
(To qualify for these incentives, companies must commence
• Cross Border operations before 31 December 2015)
•10 year income tax exemption or investment tax allowance (ITA)
• Urban & Cultural Heritage amounting to 100% of qualifying capital expenditure for 5 years
•Stamp duty exemption on land acquired for development
•Withholding
Withh ldi t exemption
tax ti on royalty
lt and
d technical
t h i l fees
f f 10 years
for
• Ecotourism Project must qualify as tourism project with minimum investment of RM

5 million :
(To qualify for these incentives, companies must commence operations
before 31 December 2015)
•Income tax exemption for 5 years or ITA amounting to 100% of
qualifying capital expenditure for 5 years.
• Hallmark Events
Incentives given to companies sponsoring the event :
•Single deduction up to maximum of RM 1 million per assessment year
for sponsors
Note : Incentive only for activities in places designated in the ECER Master Plan
ECER Incentives Package – Petrochemical & Manufacturing
• Petrochemical Incentives given to companies developing infrastructure of industrial

• Manufacturing park:
operations before 31 December 2015)
p
•Income tax exemption for 10 y
years for p
petrochemical sector and 5
years for manufacturing sector from the year company derives
profit, or ITA amounting to 100% of qualifying capital expenditure for
5 years for companies developing infrastructure of industrial park
–Qualifying
Qualifying capital expenditure for ITA and industrial building
allowance / capital allowance to include building, infrastructure
and amenities cost
•Double deduction for expenses incurred for promotion of park
overseas
•Stamp duty exemption on instruments of acquisition or leasing of
property relating to industrial park
Incentives given to companies operating in the park:
•Customised incentive given to companies undertaking activities in

the park (based on merit)
ECER Incentives Package - Manufacturing
•Manufacturing
Manufacturing Incentives given to companies investing:
– Rubber Forest Plantations operations before 31 December 2015)
Investor investing in the project :
•An investor investing in the project is entitled to a tax deduction
equivalent to the amount of investment made in the subsidiary
company undertaking forest plantation; plus
A Company undertaking the project :
•The company undertaking the project is entitled to an income tax
exemption for 10 years from the first year company derives profit; or
•Funding is available for the company undertaking the forest
plantation project under the Ministry of Plantation Industries &
Commodities
ECER Incentives Package – Agriculture 1/2
• Crops For crop production & processing, livestock (excluding poultry) & fisheries:
• Livestock
Investor investing in the project:
• Fisheries •There is no minimum investment required to be entitled to these
incentives
•The company investing in a subsidiary company that undertakes
project is entitled to a deduction equivalent to the amount of
investment made (Company must have at least 70% shareholding in
subsidiary company)
•The company or individual investing in subsidiary company that
undertakes
d t k project j t is
i entitled
titl d to
t a deduction
d d ti equivalent
i l t to t the
th amountt
invested in seed capital and early stage financing; and
Company undertaking the project :
•Income tax exemption for 10 years from the date company derives
profit,
fit or ITA amountingti t 100% off qualifying
to lif i capital
it l expenditure
dit f 5
for
years
•Tax exemption on dividends paid to shareholders from tax exempt
income
•Stamp duty exemption on instruments of acquisition or leasing of
property
•Import duty and sales tax exemption on raw materials, components,
machinery, spare parts, consumables and equipment on the condition
th t the
that th saidid items
it are nott available
il bl locally
l ll
ECER Incentives Package – Agriculture 2/2
• CPPC & CMC Investors in Collection, Processing, Packaging Centres (CPPC)

and
d Collection
C ll ti & M Marketing
k ti CCentres
t (CMC)
(CMC):
operations before 31 December 2015)
Investor investing
g in the project:
p j
•Income tax exemption for 10 years; or an Investment Tax
Allowance (ITA) amounting to 100% of qualifying capital
expenditure for 5 years
•Stamp duty exemption on land acquired for development
•Funding is available for farmers undertaking crop, livestock &
fisheries projects in ECER
ECER Incentives Package – Education, ICT Development
and Culture & Heritage
• Education Operators and investors in educational projects:

operations before
f 31 December 2015))
•Income tax exemption for 10 years
•Withholding tax exemption on royalty and technical fees for 10
years
• ICT Development Operators and investors in ICT development projects:

p
operations before 31 December 2015))
•Income tax exemption for 10 years
•Withholding tax exemption on royalty and technical fees for 10
years
• Culture & Heritage

Operators and investors in culture and heritage projects: (To qualify
for these incentives, companies must commence operations before
31 December 2015)
•Income tax exemption for 10 years, or Investment Tax Allowance
(ITA) of 100% qualifying capital expenditure for 5 years
Implementation via Special Purpose Vehicle
The
“East Coast Economic Region
Development Council (ECERDC)”,
chaired by
YAB Prime Minister of Malaysia,
has been established to drive the
implementation of the
ECER Development Plan
Main Functions of Council
Ensure effective implementation of the ECER

Master Plan
Promote & stimulate the ECER as a

trade, investment & tourist destination
Facilitate the development of

tourism, infrastructure, agriculture, industry &
commerce
ECER Development Council Members
Y.A.B.
Y AB D Dato’
t ’SSerii Abd
Abdullah
ll h bin
bi Haji
H ji Ahmad
Ah d Badawi
B d i (Prime
(P i Minister
Mi i t )-Chairman
) Ch i
Y.A.B. Dato’ Sri Mohd. Najib bin Tun Abdul Razak (Deputy Prime Minister )
Y.A.B. Dato’
Dato Haji Nik Abdul Aziz bin Nik Mat (Menteri Besar Kelantan)
Y.A.B. Dato’ Sri Adnan bin Yaakob (Menteri Besar Pahang)
Y.A.B. Dato’ Ahmad bin Said (Menteri Besar Terengganu)
Y.A.B. Dato’ Haji Abdul Ghani bin Othman (Menteri Besar Johor)
Y.B. Tan Sri Nor Mohd bin Yakcop (Minister Of Finance II )

Y.B. Senator Tan Sri Amirsham bin A Aziz (Minister in the Prime Minister’s Department )
YBhg. Tan Sri Mohd Sidek bin Haji Hassan (Chief Secretary to the Government )
YBhg. Tan Sri Dato’ Sri Mohd Hassan bin Marican (Chief Executive Officer and
P id t PETRONAS)
President,
YBhg. Tan Sri Dato’ Lee Shin Cheng (Executive Chairman , IOI Group)
ICC Membership
An Implementation & Coordination Committee at each state will be set

up to enhance coordination of implementation activities. The ICC
members are :
• Menteri Besar (as Chairman);

• Secretary State (as Deputy Chairman);
• Chief Executive Officer ECERDC;
• Representative of Ministry of Finance;
• Representative of Ministry of International Trade & Industry;
• Representative of Ministry of Entrepreneur Development and
Co-operative Development ;
• Representative of Economic Planning Unit , Prime Minister’s
Department ;
• Director General of Economic Planning Unit ;
• Director of Land and Mines Department ;
• Director of Town & Country Planning ;
• State Development Officer; and
• Representatives from private sector
Functions of ICC (Section 28)
• identifying proposed major or strategic development and investment in the

ECER
• monitoring the status of all applications relating to the proposed major or
strategic development and investment
• coordinating the roles and activities of all relevant Government entities to
expedite the implementation of the proposed major or strategic development
and investment
• liaising with the Council or any of its delegatees on the status of the
implementation of the proposed major or strategic development and
investments
• identifying any difficulties or issues arising during the implementation of the
proposed major or strategic development and investments
• taking or recommending appropriate steps and administrative actions to
resolve the difficulties or issues
• performing any other functions or duties as directed by the Council.
.: CONCLUSION
ECER : Key Milestones
February 2008
•Royal Assent on ECERDC Act and
Gazettement of ECERDC Act
J
June 2008
•Commencement of ECERDC Act
•ECERDC Launched
•Announcement of ECER Incentives
May 2007
Package
g
Presentation to National
•Presentation
•First ECERDC Board Meeting
Implementation Task Force (NITF)
•Centre of Excellence (COE)
October 2007 Launched
•ECER Masterplan Launched August 2008
•2nd ECERDC Board Meeting
December 2007 •Kenaf project launched and first
October 2006
•ECER Development Council shipment of kenaf to Korea.
• ECER Masterplan
(ECERDC) Act passed Dewan Rakyat December 2008
Kick-Off
& Dewan Negara •Kertih Plastic Park (KPP) Launched
2006 2007 2008
ECER : Critical Success Factors
• The ECER Master Plan is created for the people of the ECER. Hence,
ownership at all levels of the populace is crucial.
• The Master Plan undertook a regional approach, leveraging on the
strengths and resource base of each State. To achieve the Master Plan’s
objectives,
bj ti each
h State
St t mustt complement
l t rather
th than
th competet with
ith each
h
other.
• The ECER
ECER’s
s unique focus and areas of specialisation are intended to
complement IDR and NCER.
• The recommended key projects & programmes are achievable with
specific implementation time line. The creation of the ECER Development
Council will ensure effective implementation of the Master Plan’s projects.
• The success of the implementation of the ECER Master Plan is dependent
on the commitment and cooperation of all.
Working together in a united and cohesive manner towards a common goal:

Growth, Distribution & Sustainability.
THANK YOU
For more information pls contact :
ECER Development Council

Tel : +603-2331 0021 or +603-2331 0022
Fax : +603-2331 0020
E il secretariat@ecerdc.com.my
Email: t i t@ d
Web: www.ecerdc.com.my

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East Coast Economic Region (ECER)

Master Plan & Implementation

OIL, GAS & PETROCHEMICAL

REAL ESTATE & CONSTRUCTION

WILAYAH EKONOMI PANTAI TIMUR

Area - States : Kelantan, Terengganu,

Population : 3.9 million (2005) and

GDP Growth : 5.7% (2005) and

MALAYSIA ECER 6.4% 15.2

2005 2020 2005

4.6 % 7,527 2005

Agriculture Mining Manufacturing Construction Services

MALAYSIA ECER 2.3 % 190,000

2005 2020 473

• Regional imbalance - widening disparities between the

The resolution of these key issues is fundamental in forging

• Strong resources endowment

Oil, Gas & Petrochemical, Tourism,

• The ECER Master Plan has addressed existing

• The Plan covers 3 Malaysia Plans:

o 9th Malaysia Plan (2006 – 2010)

TO BE A DEVELOPED REGION BY YEAR 2020

ECONOMIC OIL GAS PETROCHEMICAL

MANUFACTURING Manufacturing Strategic Initiatives

SOCIAL AGRICULTURE Agriculture Strategic Initiatives

EDUCATION Education Strategic Initiatives

PHYSICAL OTHER ENABLING SECTOR Other Enabling Sector Strategic Initiatives

ECER MASTER PLAN

1. Strengthen existing principal economic drivers

2. Develop new sources of growth in each sector and

3. Strengthen support industries including SMEs/BCIC*

Economic 4. Strengthen the key enabling factors and basic

5. Induce greater investment both domestic and FDI to all

6. Strengthen national and international economic

7. Enhance growth in Labour and Total Productivity in all

1. Reducing poverty incidence by

Social 2. Improve opportunities for Non Farm

3 Facilitate the growth and upgrading of

Source : ECER Master Plan

Kelantan Selatan 10,000 3,000

Kelantan Utara 10,000 2,000

Pekan 3,000 1,000

Total 27,000 9,000

 Agropolitan projects are integrated

1. Enhance Bumiputera SMEs

2. Enhance the level of participation

3. Increase the level of participation

Within ECER, several growth corridors

The transport network is still a major

Primary Corridors in the ECER:

KEY ENABLING FACTORS

• Projects Investments • More equitable distribution

Poverty Eradication SME/BCIC Participation Conservation,

• Human resource development Infrastructure • Accessibility

The Main Targets are to correct regional imbalance

ECER ECONOMY 2020

KEY OIL, GAS

Supporting Manufacturing Activities, Logistics, ICT, Financial Services,

Total capital investment from both the public & private

The level of public sector

The application of more efficient technology in all sectors

Private sector to act as a stimulus to spearhead investment

• To develop integrated strategic tourism flagship projects

Agropolitan projects are integrated

Establish eco-lodges and homestay KAHAN

Develop strategic urban areas to

Encourage development of traditional ROMPIN

Improve cross-border trading

To capture more resource-based value domestically via

Ensures a competitive base for local producers through:

To promote development of a ECER downstream petrochemical

To add value to hydrocarbon

Strengthen the value chain & focus on high value activities

Strengthen linkages with other clusters,

Develop effective promotion, marketing, packaging & branding

Develop skills training programmes in synergy with ECER

Focus on R&D activities for related manufacturing products

Upgrade infrastructure to make the ECER an attractive investment