pelan induk dan pelaksanaan ecer - en. azmi yahya

East Coast Economic Region (ECER)East Coast Economic Region (ECER)Master Plan & Implementation

2 DECEMBER 2008

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Presentation OutlineINTRODUCTION

TOURISM

MANUFACTURING

OIL, GAS & PETROCHEMICAL

MANUFACTURING

AGRICULTURE

EDUCATION

TRANSPORTATION

REAL ESTATE & CONSTRUCTION

INFRASTRUCTURE

INCENTIVES

IMPLEMENTATION

CONCLUSION

.: INTRODUCTION

ECER: Brand Identity

WILAYAH EKONOMI PANTAI TIMUREAST COAST ECONOMIC REGIONEAST 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

Size : 66, 736 sq.km

Population :

Workforce :

3.9 million (2005) and 4.9 million (2020)

1 36 million (2005) and

ECONOMY

Workforce : 1.36 million (2005) and 1.92 million (2020)

GDP Growth : 5.7% (2005) and 7.2% (2020)

ECER : GDP Growth Rate by State (2005-2020)

7.5%7.5% 22.5

2005

6.3%6.3%659.0 TERENGGANU

7.620052020

BIL

LIO

N

RM Bil

28.27.5%7.5%

RM

B

7.2 %7.2 %262.0

23 165.9

9.520052020

MALAYSIA ECER

23.1PAHANG

6.4%6.4% 15.2

2005 2020

GDP growth rate in ECER has to be higher than the

6.0 20052020

g gnational GDP growth rate to correct imbalance

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

KELANTAN

5

ECER : GDP per Capita by State (2005-2020)17,594

5.8 %5.8 %

19,134

13,510

4.6 %4.6 %

5.7 %5.7 %

7,527 20052020

9,794

5 860

13,510

M Bil

M

TERENGGANU

15,495

TERENGGANU

5.8 %5.8 %

5,860

RM 6,648 2005

2020

MALAYSIA ECER8,545

PAHANGPAHANG

5.2 %5.2 %

2005 2020

GDP per capita is expected to increase significantly

3,987 20052020


p p p g yby RM7,650

KELANTANKELANTAN

6

ECER : Major Sectors GDP by State (2005-2020)– in RM millionin RM million

14,3402005 2020

34,2842005 2020

PahangECER

5,277

8,322

2005 2020

11 686

19,120

2005 2020

1,866119

1,876363

,4,555

271 7123,702916

5,996840

11,6868,571

1,780 2,176

7 458

10,866

Agriculture Mining Manufacturing Construction Services

9,078


TerengganuKelantan

3,1762 565

7,458

3,8443,339


749 797 353

2,5651,887 1,509

800


1,088 0 944124

2,129

0 664


Source :ECER Master Plan

Services,* Manufacturing and Agriculture sectors are the principal sources of growthNote * : 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)

352

516 164,0002.6 %2.6 %

14,7902.1 %2.1 % 2005

2020

TERENGGANU

0

10,895

2 3 %2 3 %

TERENGGANU

532

739 207,000

2.2 %2.2 %

‘000

1,357 1,917

2.3 %2.3 %20052020

MALAYSIA ECER663

PAHANG

190,000

PAHANG

2.3 %2.3 %

Incremental Number (2005-2020):

2005 2020 473

20052020

Incremental Number (2005 2020):560,000 direct employment


KELANTANKELANTAN

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• Income inequalities between rural and urban areas.• High incidences of hard core poverty.• Accessibility to the Region• Accessibility to the Region.• Basic infrastructure (e.g. flood mitigation, water supply &

sewerage systems).g y )• Optimising property sector, including Malay Reserve Land

potential.

The resolution of these key issues is fundamental in forging this region towards 2020this region towards 2020

ECER Key Strengths

• Strong resources endowment

• Considerable labour pool

C titi t• Competitive wage rates

• Strong potential for property development

Lower cost of living• Lower cost of living

• Good education system and basic community services

• Advantageous geographical orientation• Advantageous geographical orientation

Oil, Gas & Petrochemical, Tourism, Manufacturing, Agriculture and EducationFocus Clusters:

ECER : The Master Plan

• The ECER Master Plan has addressed existing• The ECER Master Plan has addressed existingchallenges and will be the basis for guiding thedevelopment of the region for the next 12development of the region for the next 12years, up to year 2020.

• The Plan covers 3 Malaysia Plans:

o 9th Malaysia Plan (2006 – 2010)o 9 Malaysia Plan (2006 2010)

o 10th Malaysia Plan (2011 – 2015)

o 11th Malaysia Plan (2016 – 2020)

ECER : Development Focus & Objectives

• The main objective of the ECER Master Plan is to accelerate the growth of theEast Coast Economic Region in a viable, equitable and sustainable manner.

• This is undertaken via programmes and projects to raise incomes and reducepoverty by expanding employment prospects & entreprenuership through theintroduction of high impact projects to spur development in the region.

• The Master Plan focuses on the key initiatives derived from selected clusters:o Tourismo Oil, Gas & Petrochemical,o Manufacturingo Agricultureo Educationo Education

Supported by key enablers :o Transport

I f t to Infrastructureo Environment

• In addition, Catalyst Funds will be set up to further stimulate growth inthe key clusters & enablers.

ECER : Vision and Mission Driven Development

TO BE A DEVELOPED REGION BY YEAR 2020- DISTINCTIVE - DYNAMIC - COMPETITIVE -VISION

MISSIONMISSION THRUSTS

1. To move the economy up the value chain2. To raise the capacity for knowledge and Innovation 3. To address persistent socio-economic inequalities constructively and productively4. To improve the standard and sustainability of Quality of Life5. To strengthen the institutional and implementation capacity

STRATEGIC DEVELOPMENT STRATEGIC THRUSTS STRATEGIC PROJECT INITIATIVESDEVELOPMENT

THRUSTSSTRATEGIC THRUSTS

TOURISM

OIL GAS PETROCHEMICAL

Tourism Strategic Initiatives

Oil Gas Petrochemical Strategic Initiatives

STRATEGIC PROJECT INITIATIVES

ECONOMIC OIL,GAS, PETROCHEMICAL

MANUFACTURING

AGRICULTURE

Oil, Gas, Petrochemical Strategic Initiatives

Manufacturing Strategic Initiatives

Agriculture Strategic Initiatives

ECONOMIC

SOCIAL AGRICULTURE

EDUCATION

OTHER ENABLING SECTOR

Agriculture Strategic Initiatives

Education Strategic Initiatives

Other Enabling Sector Strategic InitiativesPHYSICAL

ECER MASTER PLAN

ECER : Economic Development Strategic Thrusts

1. Strengthen existing principal economic drivers

2. Develop new sources of growth in each sector andexplore the possibilities of developing certain incipientclusters and/or seed new clusters

3. Strengthen support industries including SMEs/BCIC*

4. Strengthen the key enabling factors and basici f d ti i l di b th ‘h d’ d ‘ ft’

Economic economic foundations including both ‘hard’ and ‘soft’infrastructure

5. Induce greater investment both domestic and FDI to allt

Development

sectors

6. Strengthen national and international economiclinkages

7. Enhance growth in Labour and Total Productivity in allsectors through the Enhancement of Investment in Skills Upgrading, the acquisition and application of

Source : ECER Master Plan

pg g, q ppModern Technology and Innovations

* 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

SocialSocial Development

2. Improve opportunities for Non Farm household income growth

3 Facilitate the growth and upgrading of3. Facilitate the growth and upgrading of Rural micro enterprises and SMEs

Source : ECER Master Plan

ECER: Strategic Thrust to Eradicate Hardcore Poverty -Agropolitan Projects

Agropolitan Area(Ha) Hardcore Poverty

g p j

Kelantan Selatan 10,000 3,000

Kelantan Utara 10,000 2,000

B &S i 4 000 3 000Besut &Setiu 4,000 3,000

Pekan 3,000 1,000

Total 27,000 9,000

Agropolitan projects are integratedprojects that function as catalysts toaccelerate the growth and developmentaccelerate the growth and developmentof rural areas, optimising economicactivity-mix in the Agropolitan Zone

• This includes the anchor crop (either oilpalm or rubber) short and long termpalm or rubber), short and long termcrops, livestock, herbs and the primaryprocessing of such products along thevalue chain.The main objective is to upgrade theThe main objective is to upgrade theincome level for the hard core poor.

ECER : Social Development Strategic Thrusts (2)

1. Enhance Bumiputera SMEs

Social (BCIC) 2. Enhance the level of participation fSocial (BCIC)

Developmentof

Bumiputera properties, includingMalay reserve land

3. Increase the level of participation of

Bumiputera workers in the higher skill, professional and managementcategories

ECER : Bumiputera Commercial & Industrial Community (BCIC)

Specific programs in the five key clusters (tourism; oil, gas &petrochemicals; manufacturing; agriculture; education) and enabling

y ( )

petrochemicals; manufacturing; agriculture; education) and enablingsectors will be implemented :

• Enhance participation of Bumiputera SME and micro entreprises inhigh value components along the value chainhigh value components along the value chain.

• Strengthen the Bumiputera SME and micro entreprises in handicraftindustry – batik, songket weaving, silverware, wood carving & fish-b d f d ibased food processing.

(Example : Anchor Vendor Program, Incubator Program, Skills DevelopmentProgram and Global Supplier Program)g pp g )

• Indentifying GLCs to be in smartpartnership, providing “mentoring”and support to Bumiputera entrepreneurs.

• Relevant agencies to provide a more effective and better coordinatedservice to Bumiputera entrepreneurs.

23

International Positioning of ECER

• Eastern GatewayEastern Gateway to Asia Pacific

• Tourism, trade, infrastructure & l i ti h blogistics hub

ECER : Focusing on Existing Corridors

Within ECER, several growth corridors have emerged and developed stronglyhave 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-South CorridorNorth South Corridor• Lumut-Gua Musang-

KualaTerengganu Corridor• Kuantan-Segamat-Melaka Corridor

Segamat

ECER : Overall National Economic Positioning

A. SERVICE INDUSTRIES1. Major local and international tourism destinations

•Mainland Coastal & IslandsHi hl d• Highland

•Eco Tourism•Cultural Tourism

2. Educational Services•Development of educational and training services in line with the national and ECER needsthe national and ECER 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• Palm Oil Cluster• Rubber Based Products• Plastics/Polymers

C. NON RESOURCE BASED INDUSTRIES• Boat Building & Repair• Automotive/Transport Equipment

Mersing

KEY ENABLING FACTORS• Enhancement of transportation connectivity and economic linkages with Western Corridor especially the Klang Valley through the

Automotive/Transport Equipment• Handicraft, Textiles & Apparel• Heavy Industries

• 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 DistributionOf IncomeAccelerated Growth

• Address low income groups• GDP & Value Added Contribution• Projects InvestmentsN

Poverty Eradication& Employment

• More equitable distribution

• Job creation

• Projects Investments• Spillover considerations

MIS

SIO

N

SME/BCIC ParticipationEnhancement

• BCIC involvement in high impact projects

Conservation, Sustainability of Culture

• Environmental consideration

Monthly Household Income (RM)

• Job creation• Zero hard core poverty

Employment Growth

(million)

GDP Growth (%)

• BCIC involvement in high impact projects• Creation of SMEs

• Environmental consideration• Heritage preservation

GDP Per Capita (RM)

14.803.919,340

3 088

5,227

6,337

ND

ICAT

OR

S

13,510

19,13410.89

5.7%

7.2%6.0% 6.5%

1.5%0.5% 7,650

2,960

3,088

2,267

3,249

KEY

IN

5,860

9,7940.56

1.36 1.92

ECER2005 2020

Malaysia2005 2020

Infrastructure • Accessibility• Basic infrastructure as enablersA

BLE

RS * 1987 price

Education• Human resource development• Skilled workforce

ECER2005 2020 ECER

2005 2020Malaysia

2005 2020ECER

2005 2020Malaysia

2005 2020Malaysia

2005 2020

Projects • Basic infrastructure as enablers

ENA Education • Skilled workforce

The Main Targets are to correct regional imbalance

ECER : Basic Structure of Economy (2020)

ECER ECONOMY 2020

To Be A Developed Region By 2020(Distinctive Dynamic Competitive)To Be A Developed Region By 2020(Distinctive Dynamic Competitive)

VISION

(Distinctive- Dynamic-Competitive)(Distinctive- Dynamic-Competitive)

TOURISMOIL, GAS

ANDThe MainKEY DRIVERS TOURISM AND

PETRO-CHEMICAL

e aPillars AGRICUL

-TURALMANU-

FACTURINGEDU-

CATIONDRIVERS

Supporting Institutions (Education, R&D, Government, Private and social institutions, trade associations, communications and coordination system)

Supporting Manufacturing Activities, Logistics, ICT, Financial Services, and Related ServicesSupport

System

Conducive Working and Living EnvironmentStrong Basic Education and Training

Adequate Physical InfrastructureBasic Foundation (Hard & Soft I f t t )

ENABLERS

Stable Political & Social EnvironmentConducive Working and Living EnvironmentInfrastructure)

ECER : The Way Forward

Total capital investment from both the public & private sectors in per capita terms must be considerably increasedsectors in per capita terms must be considerably increased

The level of public sector’s effort to strengthen theThe level of public sector s effort to strengthen the “supporting system” and “basic foundation” in all forms in the ECER must be drastically upgraded with complementary private sector initiativesp

The application of more efficient technology in all sectors d h di f kill b l d iand the upgrading of skills must be accelerated to increase

productivity and household income

Private sector to act as a stimulus to spearhead investment in this region in all sectors-Tourism, Agriculture, Manufacturing and Services and , g , gsupporting the SMEs, while the government to provide support infrastructure

.: TOURISM

ECER: Strategies in Tourism

• To develop integrated strategic tourism flagship projects• 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 touristexpectations

• To showcase local arts and crafts as tourism products

• To improve air, land and maritime infrastructure to have greaterp , gconnectivity to the ECER as tourist destination of choice

44

Tourism Resources in ECER

Pristine Beaches World Class Islands

Diverse Eco-Tourism SpotsThe ECER has diverse tourism resources that have the potential to be developed as world class tourist attractionstourist attractions

Forecast of Tourist Arrivals for ECER (2005-2020)

Tourist Arrivals (mil)

14.3

20.3

28.8

10.2

14.3

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

LocationTumpat (Pantai Seri

Tujoh), K.

InitiativesCodesTUMPAT

(Pantai Seri Tujoh)j ),

Besut, Merang, Dungun, Pantai Sepat , Kuala Pahang &

Mersing

Coastal Hotel & Resort Development MERANG

K.BESUT

MARANG

Kuala Besut, Kuala Terengganu

M D T

Gateway Towns to Islands• Pulau Perhentian & Rhu• Pulau Lang

Tengah, Redang &

DUNGUN

RANTAU ABANG

Marang, Dungun, Tg. Gemok & Mersing

Tengah, Redang & Bedong

• Pulau Kapas & Gemia• Pulau Tenggol• Pulau Tioman & Mersing

Group of IslandsPANTAI SEPAT

KUA A

Rantau AbangGlobal Marine Turtle Observatory

KUALA PAHANG

TG. GEMOK

• Integrated and incremental coastalresort development.

• Suitable for high and lowbudget international and domestic

MERSING

GEMOK

budget, international and domestictourists.

Eco-Tourism

LocationInitiatives

Focused Taman Negara, Endau-R i K i

Codes

MACHANGFocused Eco TourismCentres

Rompin , Kenyir Lake, Lojing, Machang

& Gua Musang

K i L k T’

SETIU WETLANDS

JELI

STONG HILLS

DABONG

MACHANG

NENGGIRI

Kenyir Lake, T’ganu Hills, Setiu

Wetlands, Chini Lake, Nenggiri & Stong

Hills

State Park

TERENGGAN

KENYIR LAKE

TAMAN NEGARA

GUA MUSANG

PASIR RAJA

DABONG

LOJING

KUALA BERANG

Homestay Programmes

Jeli, Gua Musang, Lojing, Dabon

g, Kuala Lipis, Kuala Berang, Pasir

U HILLS

KUALA GANDAH

KUALA LIPIS

Elephant Sanctuary

Kuala Gandah & Kenyir Lake

Raja, Kahang & Mersing CHINI LAKE

Establish eco-lodges and homestayprogrammes incorporating moderntechnology with specialised eco-

ENDAU ROMPIN MERSING

KAHANG

technology with specialised ecotourism operators.

Urban Tourism

Kota Bharu Waterfront Kota Bharu

LocationInitiativesCodes

Kota Bharu Waterfront & Commercial Areas

Kota Bharu City Centre

T i G t tKuala

Develop strategic urban areas to

Tourism Gateway to ECER

Terengganu City Centre

Develop strategic urban areas tomaximise tourism and economic benefits.Ensure good accessibility to publictransportation, amenities and availability

f d tiof accommodation.Main Components :

KTCC – Marina, CruiseTerminal, IntegratedgMall, Entertainment CentreMICE, Hotels & Water Sportamphitheatre.KBCC – Hotels, ShoppingKBCC Hotels, ShoppingMall, Convention Centre, Main Squareand Grand Bazaar.

Cultural Heritage Tourism

LocationInitiativesCodesTUMPAT

Kota Bharu, Kuala Terengganu

& Pekan

Cultural Heritage Art & Craft-Handicraft Village-Historic Areas PULAU DUYONG

MERANG

SETIU

Kota Bharu, Tumpat, K.T’

ganu, Pulau

DUNGUN

KEMAMAN

Homestay Program

ganu, Pulau Duyong, Setiu, Merang, Dungun, Kemaman, Jerantut, Pant

ai Sepat, Kuala Pahang Pekan &

PANTAI SEPAT

JERANTUT

KEMAMAN

Encourage development of traditional

Pahang, Pekan & Rompin PEKAN

KUALA PAHANG

Encourage development of traditional arts, crafts, dance, music and others.Upgrade traditional arts and craftsDevelop heritage city and arts & crafts

ROMPIN

tours.

Main Tourism Development Areas

PENGKALAN KUBOR

RANTAU PANJANG

LocationInitiativesCodes

BUKIT BUNGA

Cross Border Tourism

Pengkalan Kubor, Rantau Panjang & Bukit Bunga

Improve cross-border trading linkages with neighbouring countries

Identify facilities forIdentify facilities for shopping, dining, entertainment and recreation.

Upgrade amenities religiousUpgrade amenities, religious pilgrimages training facilities, retail outlets, etc

ECER : Sustainable Island Tourism

Kota Bharu Perhentian Island

(Jetty)Lang Tengah Island

Promoting the islands as“Playground Destinations” while

MerangPenarek

Kuala Besut Redang Island(Jetty)

Bidong Island

focusing development only onmainland coastal areas.

Action plans to protect the marineKuala Terengganu

Marang

Kapas Island

TERENGGANU(Jetty)

Gemia Island

Tenggol Island

environment will include:o Enforcing development guidelines

based on the carrying capacityth h ld li it Tg. JaraTERENGGANU Tenggol Island

Tg. GemokPAHANG Tioman

IslandHarimau Island

threshold limits.

o Upgrading support facilities –jetties, medical facilities, solidwaste management and sewerage

Mersing

Tg. LemanJOHOR (Jetty)

(Jetty) Pemanggil Island

Sib I l d

Tinggi Island

Aur IslandBesar Island

Rawa Island

waste management and sewerage.

o Development of sustainabilityindicators for monitoring purposesand sustainability accreditation. Tg. Leman

(Jetty)

DesaruJohor Bahr

Kota Tinggi

Ayer Hitam

KluangSibu Islandy

Johor Bahru

Singapore

ECER : Hallmark Events

Monsoon Cup Sultan’s Endurance Challenge

Proposed Future EventsProposed Future Events1) Terengganu International Islands Boat Race - as part of any established boat race

worldwide .2) Kota Bharu International Cultural Fest - cultural festivities featuring traditional performing

arts3) 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 Series6) IGFA World Angling Championship7) 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 of existing products• Expanding and enhancing the value-added of existing products.

• Enhancing linkages with other downstream manufacturing clusters(automotive, electrical and electronics, and packaging industryclusters).

• Diversifying into manufacturing-based activities (plastics and plastics-related industries)related industries).

• Upgrading the capabilities of existing support industries, particularlydeveloping more SMEs providing support and ancillary services to the

t ll d t ti itiupstream as well as downstream activities.

• Further integrating the operations of three different locations (Kertih,Chukai, Gebeng) where current cluster is already established., g) y

• Ensure sustainable and sufficient energy supply while promotingmarket-based approach for efficient resource allocation.

66

PETRONAS Petroleum Industry Complex (PPIC)

A fully integrated petroleumy g pindustrial hub

T j d t lTwo major downstream complexes in Kertih, Terengganu and Gebeng, Pahang

Gebeng Integrated Petrochemical Complex

• The Gebeng Integrated Petrochemical Complex (GIPC) foc ses on prop lene basedfocuses on propylene-basedpetrochemical product streams, e.g. :

o MTBEo MTBEo Propyleneo Polypropyleneo Acrylic Acido Butyl Acrylateo Butyl Acrylateo 2-EH Acrylateo 2-E-Hexanolo Phthalic Anhydrideo DOP/DINPo DOP/DINPo Butyl Acetateo Formic Acido Butanediolo N-Butanolo N-Butanol

There is a potential to develop downstream applications of

l b d d tpropylene-based products

Potential Applications of Propylene-based Products

Coatings & Adhesives

AutomotiveParts, Batteries,

Oriented PP FilmsAdhesives, Paints, Binders,

Emulsifiers, Polishes, Paper & Leather

Solvent & LacquerCoatings

Oriented PP Films,Stretched Tape, Fiber,

Injection Moulding& Extrusion

Film, FiberFilaments &

Pet Food,Food & Propylene Base

AppliancesPharmaceuticals

Unsaturated Pol esterPolyester,

Resins, Liquid LaundryDetergents, Cosmetics,

Paints, Coatings & Foam

Oilwell Parts, Fuel Cell Liners,

Hoses, Gasket, Oil Seals & Flocculant,

Textiles,Apparel,

Home Furnishings& Foam

Enhanced Oil Recovery

Private sector can partake in the development of downstream applications p p ppof propylene-based products

Kertih Integrated Petrochemical Complex

• The Kertih Integrated Petrochemical Complex (KIPC) f h l b dfocuses on ethylene-based petrochemical product streams, including :

o Ethyleneo Ethyleneo Polyethyleneo Paraxyleneo Benzeneo VCMo VCMo PVCo Acetic Acido Ammoniao Ethylene Oxideo Ethylene Oxideo Ethylene Glycolo LDPEo Ethanolamineso Ethoxylateso Ethoxylates

There is potential to develop downstream applications of

ethylene-based productsethylene based products

Potential Applications of Ethylene-based Products

Antifreeze,Polyester, Fibre & Films, Pipes & Fittings

Adhesives &Sealants,

Industrial HosePolyurethanes, NaturalGas Dehydration,

Refinery Solvent &Textile Agents

Pipes & Fittings, Rigid Films,

Sheets, Wall & Floor Covering.

Industrial Hoseand Belting.

Ethylene BaseFilm, Injection

Moulding, BlowMoulding Pipes &

Automotive Parts, Wire & CableMoulding, Pipes &

Conduits

Housewares, Pharmaceutical

Wire & Cable

,Expandable Building

Insulation,Food Containers, Tires,

Footwear

Latex Paint,Paint Solvent

& Fabric

Pharmaceutical, HouseholdDetergents& Cleaners

Binder

Private sector can partake in the development of downstream applicationsPrivate sector can partake in the development of downstream applications of ethylene-based products

ECER: Key Initiative - Kertih Plastics Park

• First plastics park in the countryFirst plastics park in the country

• Close proximity to petrochemical

Total Lot Q area = 1000 acres

Close proximity to petrochemical feedstock

Total Lot Q area 1000 acresKPP Phase 1 = 220 acresKPP Phase 2 = 120 acres

Kertih Plastics Park: Collaboration Between Various StakeholdersVarious Stakeholders

• Land approval• Land clearing and

preparation

D l f

• Funding to SMEs• Identify potential

investors

Development ofKertih Plastics Park

• Promotional activities• Assist with permits,

licences & incentives

• Feedstock and utilities supply

• Promotional activities• Technical & marketing

• Identify potential investorsg

support• Supply chain services

68

Kertih Plastics Park: Project Objectives

To capture more resource-based value domestically via d t i t ti f l d l t d l t ithidownstream integration of polymer and related plants within the existing petrochemical complex

Ensures a competitive base for local producers through:Ensures a competitive base for local producers through:

- tapping into operational and infrastructural synergies at site- obtaining security of raw materials supply (Just-In-Time)obtaining security of raw materials supply (Just 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 nationtechnological 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 resources by moving up the product value y y g p pchain, in line with the goals of the IMP-3To respond to the need to enhance the competitiveness of Malaysian plastics industryplastics industryProvide a “focused” development to cater for the specific needs of plastics industry

f fTo capture more value domestically by utilising the available feedstock for downstream applications in domestic facilities instead of exporting the plastic resinsTo expand employment and entrepreneurship opportunities as well as create demand for other ancillary servicesTo attract domestic and foreign investments in plastics and plastics-g p prelated industries To facilitate the transfer of technology, knowledge and skills to local SMEsinvolved in plastics and plastics related industriesinvolved 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 marketscompanies aspiring to reach global markets

Specialty plastic compounders

Higher-end processors/plastic mouldersHigher-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

71

7,000 employment opportunities

.: 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 e gStrengthen linkages with other clusters, e.g. 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

Food & Halal

• “Integrated halal parks in line with Malaysia’s vision ‘to be the global halal hub for theFood & Halal

Processed Product the global halal hub for the world’”

• Locations: Gambang, Pahang g, g& Pasir Mas, Kelantan

ECER: Food & Halal Processed Initiatives

Kelantan Pasir Mas : Food Processing (Crops, Beef &

P lt B d)Tok Bali

BachokGua Musang

Poultry Based): Fish Processing, Integrated

Fisheries Park: Fish Processing: Herbs/ Bio-tech Ind & FoodGua Musang

Kuala Krai

Terengganu

: Herbs/ Bio tech Ind & Food Processing (Beef & Poultry Based)

: Food Processing (Beef & Poultry Based)

Chendering, KT

Kuala Kemaman

P h

: Food Processing (Fish & Poultry Based)

: Food Processing (Fish Based)

PahangGambang

Tg. Api

: Food (Crops, Poultry & Beef Based)& Non-Food Processing

: Fish Processing

Development of Incubation Centres for Micro Food Processors in:

Pasir MasGambang

: Traditional & Specialty Food: Traditional & Specialty Foodg p y



Palm Oil Industry • “Key site for downstream

activities with close proximityt th K t P t”

yCluster

to the Kuantan Port”

• Location: Kuantan Port City, P hPahang



Boat Building & • “Concentrated sites for boat-

building and repair industry in the Region”g

Repair Parksin the Region

• Locations: Tok Bali, Kelantan, Pulau Duyong and KemamanPulau Duyong and Kemaman, Terengganu



Automotive / • “Dedicated Park supported by

Trading Hub & Regional Distribution Centre in KuantanTransport

Equipment

Distribution Centre in Kuantan Port City

• Location: Pekan Peramu, Pahangocat o e a e a u, a a g



Rubber Wood

• Focusing on Rubber Forest Plantation, Furniture Parks & Latex-based Industrial Park

Products• Location: Temerloh, Mentakab,

Bandar Al-Muktafi Billah Shah, Kuala Krai & Machang



F Z• Location: Pengkalan Kubor,

Kuala Terengganu Airport,Free Zones Kuala Terengganu Airport, Kemaman Port & Kuantan Port City

ECER: Free Zones Initiatives

Pengkalan KuborFocus on:

Commercial Services (warehouses, packing, logistics, etc.)ManufacturingRetail

Kuala Terenggganu AirportFocused as distribution centre for:

Creative Industry/ICTFloriculture ProductOther Long Term Prospects

• Kemaman Port – Heavy IndustriesFocus on:

Iron & steel and downstream activities with port linkages

• Kuantan Port CityFoc s onFocus on:

Manufacturing and commercial servicesRegional Distribution Centres (RDC)International Procurement CentresInternational Procurement Centres (IPC)

Note : Subject to further study on AFTA Implementation impact

AGRICULTURE.: 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• Increasing non-farm opportunities

• Poverty eradication in focus development area

• Implement Balance of Trade (BOT) Plan in Food Production

88

ECER : Agriculture Clusters

• Marine Capture

Fish-Based ClustersCrop-Based Clusters

• Fruit & Vegetable • Beef

Livestock-Based Clusters

Fisheries• Brackishwater

Aquaculture • Freshwater

• Highland Agriculture/ Floriculture

• HerbsT b

• Mutton • Poultry • Breeder Animals

• Freshwater Aquaculture

• Recreational Fisheries

• Tobacco• Kenaf• Rice

C

• Animal Feed Production

• Cocoa

ECER: Agriculture Sector Initiatives – Crops

• Fruits & Vegetables Key SitesUpstream

• Herbs• Kenaf

• Agrovalleys• Permanent Fruit Parks• Dungun Citrus Valleyg 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 added products• Export markets with value-added products

ECER : Fruit and Vegetable Cluster

1: Vegetable & Fruit Valleyi. Bachok-Setiu-K.Berang : 5,000 haii K t M 1 000 hii.Kuantan-Maran : 1,000 haiii.Pekan-Rompin-Mersing : 4,000 ha

Crops: Chilly, Sweet Potato, WaterMelon, Pumpkins, Roselle, Sweet Corn &Leafy VegetablesLeafy Vegetables

2: Citrus Fruits Valley (KETENGAH)i. Durian Mentangau, Dungun: 1,414 ha

3: Fruit Agricultural Parki. Lanchang, Temerloh : 3,500 haii.Ulu Tembeling, Jerantut : 5,000 ha

Crops: Papaya, Bananas, DragonCrops: Papaya, Bananas, DragonFruit, Starfruit, Jackfruit & Guava

4 : Integrated Pineapple Projectsi. Pekan : 2,000 ha,ii.Rompin : 5, 400 ha

Integration with cattle based clusters on feedlotusing pineapple waste

ECER : Highland Agriculture/Floriculture Cluster

Permanent Agriculture Park

L jiLojing

• A 1,000ha land has been proposed for the floriculture and vegetable

l t tiplantation.

• Strategies will ensure sustainable development of the agriculture areas in LojingLojing.

ECER : Herbal Product Cluster

Herbal ParksGua 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 b ti C t & T i iIncubation Center & Training.

• 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• Technology Park Malaysia has also been allocated a

200 ha land in Raub to establish a herbal park andprocessing facilities.

DungunT 20 h f Gi d S i W i i• Terengganu : 20 ha of Ginger and Serai Wangi inevery district.

• Establishment of 200 ha Herbal Park as nucleus inDungun (KETENGAH).

• Herbal Research Centre is proposed to be located in• Herbal Research Centre is proposed to be located inUniversiti Darul Iman, Besut, Terengganu.

Kenaf & Green Animal Feed: The Tobacco Alternative

1. Plantation of Kenaf• Kenaf industry is expected to create more

jobs in the rural areas especially in the

The Tobacco AlternativeDevelopment of the Kenaf Industry Under the National Tobacco Board

jobs in the rural areas especially in the tobacco areas in Bachok, Pasir Puteh, Besut, Setiu and Marang (10,000 ha).Th j t ill b i l t d• The project will be implemented 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:• Among the fodder that can be grown: napier grass, (rumput gajah), maize, alfalfa and sorghum.

ECER : Rice Cluster

Granary Area Hectares

KADA 30 240KADA 30,240Kemasin-Semerak 9,306

KETARA 10,987

Pekan/Rompin 3,521

Strategies 90% lf ffi i l l• 90% self-sufficiency level

• Increase yield through:- Mini-estate and group farming- Improvement in irrigation & drainageImprovement in irrigation & drainage

infrastructure• Proposed Cattle Feedlot in Granary

Areasi KADA (T t B h k N th &i. KADA (Tumpat, Bachok North &

K. Bharu) : 100 haii. Kemasin/Semerak (Bachok South &

P. Putih) : 100 haiii KETARA (B t ) 100 hiii. KETARA areas (Besut ) : 100 ha

ECER : Cocoa Industry Cluster

Cocoa planting will be encouraged to supplement income of smallholders in depressed areas to raise incomes anddepressed areas to raise incomes and reduce poverty through intercropping.Identified areas for cocoa intercropping (with fruit trees) byintercropping (with fruit trees) by Malaysian Cocoa Board (MCB) :

State DistrictTargeted Area (ha)

2007 20202007-2020

Pahang Raub, Lipis, Jerantut & Maran 6,000

Jeli, Machang, Kelantan Tanah Merah &

Gua Musang2,300

T’ganu Kuala Berang & Ulu Besut 2,250

In 9MP, MCB will set up two dry beans collecting centres in Maran

d M hand Machang.

ECER: Agriculture Sector Initiatives – Livestock

Upstream

• Beef IndustryKey Sites• Nucleus Breeding & Research

• Mutton Industry• Poultry Industry

Nucleus Breeding & Research Centres

• Feedlots Integration in Plantation Areas

• Integrated Processing & Production Parks

• Collection & Marketing Centres (CMCs)

Downstream / Market

• Principal inputs to downstream processing parks in the ECER:• Halal & Poultry Processing Parks • CMCs

• Export markets with value added products• Export markets with value-added products

ECER : Beef Industry Cluster (1/2)

1. Nucleus Cattle Breeding & ResearchCentre

• Genetic improvement and Breeding ofCattle

• FELDA to play the anchor role• Location : Beef Valley Muadzam ShahLocation : Beef Valley Muadzam Shah

Downstream processing linked to theGambang and Pasir Mas Food Park

2 B f V ll f C ttl F dl t

Area Land Size (ha)

Targeted Heads

2. Beef Valleys for Cattle Feedlot

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

A Land Size Targeted Area Land Size (ha)

Targeted Heads

TAC Gua Musang (FELDA Chiku & Aring) 55,000 15,000

TAC Tanah Merah (FELDATAC Tanah Merah (FELDA Kemahang) 7,200 2,000

TAC KETENGAH (FELDA Tersat & Mengkawang in Ulu T’ganuand FELDA Jerangau & Rasau in 26,000 10,000and FELDA Jerangau & Rasau in Dungun)

TAC Kemaman / Kuantan (FELDA Seberang Tayor, Neram, Bukit Sagu & Lepar)

70,500 18,000g p )

TAC Jengka, TAC Bera & TACMuadzam (FELDA Jengka, Triang, Keratong & Chini)

200,000 50,000

• 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 AreaArea: 2,000 ha of rubber areas in Besut and Hulu Terengganu under RISDAand Hulu Terengganu under RISDA

2. Intensive Nucleus Goats FarmArea: 655 ha of grazing reserve in 7 districtsCentre Farm– Kuala Berang, Hulu Terengganu (900 ha)

3. Breeding CentreNucleus Goat Breeding & Research CentreLocation – Kuala Berang, Hulu TerengganuTerengganuFocusing on genetic improvement and breeding of goats for breeder stockSupported by University Malaya R h G i ll b ti ithResearch Group in collaboration with University Darul Iman, Besut

4. Rearing of Goats Under Intensive SystemArea: 60 hectares of grazing field inArea: 60 hectares of grazing field in Machang, Kelantan

ECER : Poultry Industry Cluster

1. Poultry Park in Gua MusangFocus Area: 100 ha of new Permanent P lt P d ti P k (PPPP) i GPoultry Production Park (PPPP) in Gua Musang (KESEDAR)Supply will be sourced from three Poultry Production Zones: Gua Musang, Jeli andg,Bachok

2. Poultry Processing Park in ChenderingSupply will be sourced from 4 Poultry pp y yProduction 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 Pekan Kuantan and PekanMaran, Bera, Pekan, Kuantan and Pekan

4. Poultry Feed Production (Grain Feedmill) inGebeng-Kuantan

Location is in proximity to Kuantan PortLocation is in proximity to Kuantan Port(10 ha).

ECER: Agriculture Sector Initiatives – Fisheries

Upstream

• Marine Capture Fisheries Key Sites• Brackishwater Aquaculture • Freshwater Aquaculture

• Integrated Fisheries Park• Seed Production & Marketing

Centre• Collection, Processing, Packaging

and Distribution Centres (CPPCs)

Downstream / Market

• Principal inputs to downstream processing parks in the ECER:Principal inputs to downstream processing parks in the ECER:• 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:The Deep Sea Fishing (DSF) Station located on an abandoned platform or island.Deep-sea fishing vessels to secure supply of fish and a ‘mother vessel’ that linksDSF Station and the Fisheries Industrial Park.Fishery Industrial Park comprising of residential, marketing and supportingindustrial and services components.

• The integrated fisheries project may lead to the improvement of local living standards and• The integrated fisheries project may lead to the improvement of local living standards andMalaysia’s deep-sea fishing capabilities.

• Feedstock for the Tok Bali Processing Centre will be linked to Pergau & KenyirAquaculture projects.

• Potential Downstream Projects: Breaded Fillets, Nuggets, Marinated Fillets and FishLeather-Based Product (Fashion Accessories).

ECER : Freshwater & Marine Aquaculture Cluster

1. Integrated Tilapia Farms in KENYIR AND PERGAUPERGAU

• 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, Bentongg, g• 40 ha site including ponds, hatchery

and buildings• Acts as an central

collection, quarantine and marketing , q gcentre

3. Brackishwater Fish Seed Production and Marketing Centreg

Located in Kuala Pahang, Pekan40 ha site including ponds, hatchery and buildings

ECER : Recreational Fisheries Cluster

Project Initiative• Development of Recreational Fishing

Centres in Tumpat, Merang-Setiu,Tanjung Sepat, and Kuala Rompinj g p , p

• Establishment of angling centres andbased on the food court business model

• Each centre will consist of:- Outdoor angling (fee) ponds for marine and- Outdoor angling (fee) ponds for marine and

brackishwater fish. The proposed hubwould 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 levelsschool and tertiary education levels

• Ensuring adequate supply of professional and skilled workforce to meet the needs for accelerated development, technological upgrading, global p , g pg g, gand regional competitiveness

• Improving skills training to create competitive local entrepreneurs, t h d kill d kf th t t l l i l d ti ltechnopreneurs and skilled workforce that meet local, regional and national needs

• Enhancing tertiary education through good & adequate physical andEnhancing tertiary education through good & adequate physical and educational facilities, qualified local and foreign lecturers and well equipped R & D facilities

f• Encouraging the involvement of women in skills training to ensure improvement in their participation levels in local industries

118

ECER: Education Overview

In the ECER the education sector plays a dual role:In the 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 resourceand capability developmentand capability development

ECER: Polytechnics & Community Colleges

Source: New Community Colleges approved under Ninth Malaysia Plan

ECER: Existing Universities

Open University (OUM) :Open University (OUM) :Kota Bharu, Besut, Chendering, Kuantan, Kuala Lipis, Mentakab

University (UiTM) :University (UiTM) :Machang, Dungun, Jengka, Kuantan, Bukit Besi, Kota BharuProgrammesEngineering Social Science Art and DesignEngineering, Social Science, Art and Design, Artistic & Creative Technology, Hotel and Tourism Management and BusinessManagement

Branch Universities :• USM Kubang Kerian

(Medical Science and Dental Health)• UIA Kuantan• UIA Kuantan

(Medical Science, Pharmacy, Allied Health Science and Nursing Faculties)

• UNITEN Muadzam Shah

ECER: New University Campuses (2006)

Universiti Malaysia Kelantan (UMK)

Programmes• Entrepreneurship & Business• Agro-industry and Natural Resources

C ti T h l d H it

Land Area583 acres200 acres

Location• Bachok• Jeli

Universiti Darul Iman

• Creative Technology and Heritage.• Emphasis on SME Development and 3rd Language usage.783 acresTotal

Land AreaLocation ProgrammesTerengganu (UDM) Land Area350 acres

4 acres1000 acres

Location• KUSZA• City (Kota)• Besut

Programmes• Islamic Studies• Accounting & Business • Agriculture & Biotechnology• Food Technology & Processing

Universiti Malaysia Terengganu (UMT)

1354 acresTotalFood Technology & Processing

• Animal Science• Information Multimedia Technology• Arabic & Education.

Land AreaLocation Programmes

U i iti M l i

formerly known as Kolej Universiti Sains & Teknologi Malaysia (KUSTEM)

Land Area1000 acres

Location• K. T’ganu

ProgrammesScience & Technology; Economics & Management; Agro-technology & Food Sciences; Marine Science; Oceanography; Tropical Aquaculture and Marine Biotechnology

Universiti Malaysia Pahang (UMP) Land Area

722 acresRented

Location• Pekan• Gambang

Programmes• Engineering• Technology-based Sciences

722 acresTotal

Centres of Excellence

• Bio DegradableProducts

• Bio-fuel • Halal Products• HerbsCOEUMP,

PekanUDM, Besut

• Social• Bio-Diversity

• Bio-tech sPekan

UMT, K

Besut

UiTM,

• Facilities Management

• Social Development

• Oceanography

• Wood-based product

UMK

,T Jengk

a

•Tourism• Innovative &

DesignUMK,

Bachok& Jeli

UiTM, Dungun

UiTM, Machang

• Innovative & Design

• ProductProductBased R&D

•Heritage& Culture

• Entrepreneurship• Entrepreneurship

TRANSPORTATION.: TRANSPORTATION

ECER: Transportation Overview

Enhancing accessibility to the ECER is key to its ygrowth and development

ECER: Transportation – Road Sector Key Issues

• Capacity of existing road networks could be enhanced to• Capacity of existing road networks could be enhanced toimprove safety and reduce travelling time

• Better accessibility from rural areas to key regional townBetter accessibility from rural areas to key regional towncentres will enhance economic opportunity

• Improved inter-modal transport connectivity in the region andin its key cities will spur development and encourage potentialinvestors

ECER: Transportation – Road Sector Strategic Thrusts

Strategic Thrust One:Establishment of quality expressway “spine”

t k i i id

Strategic Thrust Two:

expressway network in main corridors

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 ProjectsKey Projects

Road Sector :Strategic Thrust Two – Federal Roadsg

ECER: Transportation – Road Sector Project Benefits

When fully completed, the road projects will:

• Improve movement of goods and servicesfrom urban to rural areas

• Save traveling time significantly between destinations

• Improve access to facilities for the local• Improve access to facilities for the localpopulation

• 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 h t tthroughput tonnage

• The established position and better shipping line linkages of West Coast and Singapore ports pose a major challenge to ECER’sCoast and Singapore ports pose a major challenge to ECER s ports

• However ECER’s ports have good potential to be developed forHowever, 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 InitiativesK t P tKuantan Port:To be developed as a regional hub for trading in Petrochemical, Palm Oil, Automotive, and container markets to China, ASEAN and other East Asian countriescountries

Kemaman Port:To be developed as sea port focusing on heavy industryTo be developed as sea port focusing on heavy industry

Kertih Port:To be further developed as part of oil & gas cluster operationsTo be further developed as part of oil & gas cluster operations

ECER: Transportation - Maritime Sector Minor Port & Jetty Initiatives

Location Existing/Proposed Initiatives

Pengkalan Integrated Border Gateway to

y

Pengkalan Kubor

Integrated Border Gateway toThailand

Tok Bali Integrated fishing and potentialfeeder port to Kuantan Port

Kuala Besut Tourism gateway to Pulau Perhentian

Kuala Terengganu

A new cruise ship jetty/terminal as part of tourism flagship project in the region

Chendering Fishing jetty

Marang Tourism gateway to Pulau Kapas.

K. Dungun Tourism gateway to P. Tenggol

T A i Kt Fi h P i P kTg. Api, Ktn Fish Processing Park

K.Rompin Integrated Sport fishing

Tg. Gemok Tourism gateway to P. Tioman

Mersing Development of a new all weatherMersing Development of a new all weatherjetty for Tourism gateway to P. Tioman and other islands off Mersing

INFRASTRUCTURE.: INFRASTRUCTURE

ECER: Infrastructure Sector Initiatives

R ilRoad

• Integrated expressway & highways

• Linking to the national’s railway network

RailRoad

MaritimeAir

• Kuantan Port – regional hub • International and regional airports

with air-freight capabilities

gfor trading

• Kemaman Port – deep sea port focusing on heavy industry

• Kertih Port – part of oil & gas p goperations

ECER: Infrastructure

Electricity

Water Supply

Telecommunicatione 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 Kelantanwhere it needs to be enhanced to meet demands

ECER i ll d b fi d li i ti f iliti d blECER is well served by fixed line communication facilities and able to meet projected demand until 2020. However, the rate of penetration for Cellular Lines, Internet Dial Up and Broadbandin the region is lower than the national standard and needs to bein the region is lower than the national standard and needs to be upgraded

Sewerage services in the ECER need to be upgraded in stages to g pg gmeet 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 YearFlood Prone Areas (1 Year Average Recurrence Interval)

Major River

State Boundary

St t C it lState Capital

ECER: Infrastructure – Coastal Erosion

Within the ECER, there are critical coastal erosion incidences: i) Kelantani) Kelantan

- Pantai Sabak, Kota Bharu- Pantai Cahaya Bulan, Kota Bharu

ii) Terengganuii) Terengganu- Sg.Terengganu River Mouth- Kuala Ibai, K.Terengganu - Pantai Chendering, K. Terengganu

Seberang Takir K Terenggan- Seberang Takir, K. Terengganu- Dungun- Teluk Puchong- Kg. Kuala Kemaman

iii) Pahang- Teluk Chempedak & TelukSisek- Taman Gelora, GebengCertain parts of - Sg. Kuantan River Mouth- Sg.Pahang River Mouth- Between Kuantan and Chukai- Nenasi

ECER experience severe coastal erosion

Source : National Coastal Erosion Study, EPU, 1985

- PulauTioman

REAL ESTATE & CONSTRUCTION.: 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• ECER offers great potential and opportunities in real estate development, particularly in leisure, commercial and residentialproperties

• Development of key clusters of tourism, manufacturing, oil, gas & petrochemical, agriculture and education will create spin-off construction activitiesconstruction activities

ECER: Commercial Property Development Projection in Capital Cities

Sq. Meter.(‘000)

Additional need for ECER’s state capitals in year 2020:395,144 sq. metres395

Existing Occupied Stock

Legend:

108 152 Existing Occupied Stock (sq.metre) in 2006

Additional needed (sq.metre) in 2020125

47114

289

108

135

152

The property sector in ECER’s capital cities is expected t th d bl it t i b 2020

Kota Bharu Kuala Terengganu

Kuantan ECER Capital Cities

to more than double its current size by 2020

ECER: Affordable Housing in 2020

137 079

323,822

50% of affordable h i t b b ilt137,079

105,814

housing to be built by private sector: 48,573 units

80,930

97,147

41,124

24,279 31,744

48,573

20,56212,139 15,872

Pahang Terengganu Kelantan ECER

Affordable Housing NeedUrban Housing Need

Legend:Notes: 1) 30% of total housing stock is affordable housing2) It i d th t 50% f th l t h i ill b id d b th G tAffordable Housing Need

Affordable Housing by Public Sector2) It is assumed that 50% of the low-cost housing will be provided by the Government 3) Affordable housing cost at RM35,000 per unit

ECER: Optimisation of Malay Reserve Land

Key Issue Resolution

T ti i th

• Setting up of ECER Real Estate Corporation (ECER REC) as an Investment Holding Company with capitalisation from government under • To optimise the

development potential of

p gthe ECER Development Council.

• ECER REC investment strategy is to invest in high growth sectors such as tourism, manufacturing and education

Malay Reserve Land in ECER

tourism, manufacturing and education projects.

• Land owners inject their land into ECER REC in exchange for ECER REC shares and this shall be administered by aand this shall be administered by a Trustee.

• As a beneficial shareholders in ECER REC, the land owners benefit through

i t f di id d

ECER REC will allow Malay Reserve Land owners to unlock their property value and maximise their returns on investment.

recurring payment of dividends.

p p y

148

IMPLEMENTATION.: 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 d ti Cl t BSIP i• Cattle Production Cluster – BSIP ongoing.

• Poultry Production Cluster – BSIP ongoing.

L h M d A i lt P k S h d l d t b l h d i J 2009 ECERDC ill• Lanchang Modern Agriculture Park – Scheduled to be launched in January 2009. ECERDC will facilitate implementation. 25 out of 34 companies have commenced operations.

• Development of Kenaf Industry – One project launched in Bachok (SASB). Other kenaf projects ill b i l t d i P i P t h K l t B t S ti & M i T T t lwill be implemented in Pasir Puteh Kelantan; Besut, Setiu & Marang in Terengganu. Total areas

targeted = 10,000 ha

• Kg Penarik / Pulau Besar–Merang Mainland Coastal Tourism – Potential investment from a mid-teast 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 f M l i ’ t tt ti i t t d ti tibecome one of Malaysia’s most attractive investment destinations.

• New fiscal incentives include, among others, the following areas:

Income tax exemption up toInvestment tax allowance (ITA)

ti t 100% f lif iIncome tax exemption up to 10 years

amounting to 100% of qualifying capital expenditure for 5 years

Stamp duty exemption Import duty and sales tax exemption

Note: For more info on ECER Incentives Package please refer to “Due East An Investment Guide to the ECER” or

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

Note: For more info on ECER Incentives Package, please refer to Due East – An Investment Guide to the 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

• Cross Border

Incentives given to owner or owner operator of hotels & resorts: (To qualify for these incentives, companies must commence operations before 31 December 2015)

• Urban & Cultural Heritage •10 year income tax exemption or investment tax allowance (ITA)amounting to 100% of qualifying capital expenditure for 5 years

•Stamp duty exemption on land acquired for development

Withh ldi t ti lt d t h i l f f 10•Withholding tax exemption on royalty and technical fees for 10 years

• 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% ofqualifying capital expenditure for 5 years.qualifying capital expenditure for 5 years.

• Hallmark EventsIncentives given to companies sponsoring the event :


•Single deduction up to maximum of RM 1 million per assessment yearfor sponsors

Note : Incentive only for activities in places designated in the ECER Master Plan

ECER Incentives Package – Petrochemical & Manufacturing

• PetrochemicalIncentives given to companies developing infrastructure of industrial

• Manufacturing park:(To qualify for these incentives, companies must commence operations before 31 December 2015)

•Income tax exemption for 10 years for petrochemical sector and 5p y pyears for manufacturing sector from the year company derivesprofit, or ITA amounting to 100% of qualifying capital expenditure for5 years for companies developing infrastructure of industrial park

–Qualifying capital expenditure for ITA and industrial buildingQualifying capital expenditure for ITA and industrial buildingallowance / capital allowance to include building, infrastructureand amenities cost

•Double deduction for expenses incurred for promotion of parkoverseasoverseas

•Stamp duty exemption on instruments of acquisition or leasing ofproperty relating to industrial park

Incentives given to companies operating in the park:

•Customised incentive given to companies undertaking activities inthe park (based on merit)the park (based on merit)


ECER Incentives Package - Manufacturing

Manufacturing Incentives given to companies investing:•Manufacturing– Rubber Forest Plantations

Incentives given to companies investing:(To qualify for these incentives, companies must commence operations before 31 December 2015)

Investor investing in the project :

•An investor investing in the project is entitled to a tax deductionequivalent to the amount of investment made in the subsidiarycompany undertaking forest plantation; plus

A Company undertaking the project :A Company undertaking the project :

•The company undertaking the project is entitled to an income taxexemption for 10 years from the first year company derives profit; or

•Funding is available for the company undertaking the forestplantation project under the Ministry of Plantation Industries &Commodities


ECER Incentives Package – Agriculture 1/2

• Crops• Livestock

For crop production & processing, livestock (excluding poultry) & fisheries:(To qualify for these incentives, companies must commence operations before 31 December 2015)

• FisheriesInvestor investing in the project:•There is no minimum investment required to be entitled to theseincentives

•The company investing in a subsidiary company that undertakesproject is entitled to a deduction equivalent to the amount ofinvestment made (Company must have at least 70% shareholding insubsidiary company)

•The company or individual investing in subsidiary company thatd t k j t i titl d t d d ti i l t t th tundertakes project is entitled to a deduction equivalent to the amount

invested in seed capital and early stage financing; andCompany undertaking the project :•Income tax exemption for 10 years from the date company derives

fit ITA ti t 100% f lif i it l dit f 5profit, or ITA amounting to 100% of qualifying capital expenditure for 5years

•Tax exemption on dividends paid to shareholders from tax exemptincome

•Stamp duty exemption on instruments of acquisition or leasing ofproperty

•Import duty and sales tax exemption on raw materials, components,machinery, spare parts, consumables and equipment on the conditionth t th id it t il bl l llthat the said items are not available locally


ECER Incentives Package – Agriculture 2/2

• CPPC & CMC Investors in Collection, Processing, Packaging Centres (CPPC) d C ll ti & M k ti C t (CMC)and Collection & Marketing Centres (CMC):


Investor investing in the project:g p j

•Income tax exemption for 10 years; or an Investment TaxAllowance (ITA) amounting to 100% of qualifying capitalexpenditure 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: (To qualify for these incentives, companies must commence

f )operations before 31 December 2015)

•Income tax exemption for 10 years

•Withholding tax exemption on royalty and technical fees for 10yearsyears

• ICT Development Operators and investors in ICT development projects: (To qualify for these incentives, companies must commence operations before 31 December 2015)p )

•Income tax exemption for 10 years

•Withholding tax exemption on royalty and technical fees for 10years

• Culture & HeritageOperators 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 bychaired by

YAB Prime Minister of Malaysia, has been established to drive thehas 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 aPromote & 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 D t ’ S i Abd ll h bi H ji Ah d B d i (P i Mi i t ) Ch iY.A.B. Dato’ Seri Abdullah bin Haji Ahmad Badawi (Prime Minister )-ChairmanY.A.B. Dato’ Sri Mohd. Najib bin Tun Abdul Razak (Deputy Prime Minister )

Y.A.B. Dato’ Haji Nik Abdul Aziz bin Nik Mat (Menteri Besar Kelantan)Y.A.B. 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, PETRONAS)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

• Menteri Besar (as Chairman);• Secretary State (as Deputy Chairman);

members are :

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• State Development Officer; and• Representatives from private sector

Functions of ICC (Section 28)

• identifying proposed major or strategic development and investment in theECERECER

• monitoring the status of all applications relating to the proposed major orstrategic development and investment

• coordinating the roles and activities of all relevant Government entities toexpedite the implementation of the proposed major or strategic developmentand investment

• liaising with the Council or any of its delegatees on the status of theimplementation of the proposed major or strategic development andinvestments

• identifying any difficulties or issues arising during the implementation of theproposed major or strategic development and investments

• taking or recommending appropriate steps and administrative actions to• taking or recommending appropriate steps and administrative actions toresolve the difficulties or issues

• performing any other functions or duties as directed by the Council.

.: CONCLUSION

ECER : Key Milestones

J 2008

February 2008•Royal Assent on ECERDC Act and Gazettement of ECERDC Act

May 2007Presentation to National

June 2008•Commencement of ECERDC Act•ECERDC Launched•Announcement of ECER Incentives Package

•Presentation to National Implementation Task Force (NITF)

October 2007•ECER Masterplan Launched

g•First ECERDC Board Meeting•Centre of Excellence (COE) LaunchedAugust 2008•2nd ECERDC Board Meeting

October 2006• ECER Masterplan

Kick-Off

December 2007•ECER Development Council (ECERDC) Act passed Dewan Rakyat & Dewan Negara

•2 ECERDC Board Meeting•Kenaf project launched and first shipment of kenaf to Korea.

December 2008•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 thestrengths and resource base of each State. To achieve the Master Plan’s

bj ti h St t t l t th th t ith hobjectives, each State must complement rather than compete with eachother.

• The ECER’s unique focus and areas of specialisation are intended toThe ECER s unique focus and areas of specialisation are intended tocomplement IDR and NCER.

• The recommended key projects & programmes are achievable withspecific implementation time line. The creation of the ECER DevelopmentCouncil will ensure effective implementation of the Master Plan’s projects.

• The success of the implementation of the ECER Master Plan is dependent

Working together in a united and cohesive manner towards a common goal:

• The success of the implementation of the ECER Master Plan is dependenton 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 :For more information pls contact :

ECER Development CouncilTel : +603-2331 0021 or +603-2331 0022Fax : +603-2331 0020E il t i t@ dEmail: [email protected]: www.ecerdc.com.my

pelan induk dan pelaksanaan ecer - en. azmi yahya

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