The East Coast Economic Region: Poised For Transformation 3

The ECER At A Glance 4

The ECER Special Economic Zone (ECER SEZ) 6

The Manufacturing Cluster 7

The Global Halal Industry 8

The ECER Halal Parks 13

Gambang Halal Park 14

Pasir Mas Halal Park 15

Investment Opportunities 16

The ECER Incentives Package - Halal Parks 17

Contact Us 21

The East Coast Economic Region (ECER), covering the states of Kelantan, Terengganu, Pahang and the district of Mersing in Johor, is now poised to become a dynamic region in South East Asia by offering various opportunities to manufacturers and investors.

Strategically located in the east coast of Peninsular Malaysia, the ECER has the potential to become the main gateway for trade and industry within the Asia Pacific region, which commands a total population of about 2 billion people.

The vision and mission that will guide the transformation of the ECER into a developed Region by 2020 is defined by three main characteristics – distinctive, dynamic and competitive.

The distinctiveness of the ECER is portrayed through its natural beauty, abundant resources, unique culture and heritage known throughout the world. To maintain this characteristic, a balanced and sustainable development is emphasised.

The dynamism of the ECER reflects the potential for the Region to grow and develop at a faster pace through innovation and a shift in economic orientation, structure, technology and mindset. The competitiveness of the ECER lies in its ability to attract local and foreign direct investments.

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To accelerate the growth and development of the ECER, a special vehicle has been established through the East Coast Economic Region Development Council (ECERDC).

The ECERDC plays a leading role in promoting and stimulating economic and social development as well as private sector investment in the Region. The Council acts as the one-stop centre to fast track investment applications and approvals.

It provides counselling, advisory services and processes tax incentives and non-tax incentives for projects. To meet the varying needs of investors, the ECERDC also customises incentives on merit basis to be recommended for approval by the National Committee on Investment (NCI).

Scope of ECERLand Area : 66,736 sq km (51% of Peninsular Malaysia)Total Population : 3.9 million (2005), or 14.5% of Malaysia’s total populationTotal Initiatives : 189 projectsTotal Investment : RM 112 billion (2008 – 2020)

Key Enablers• Social & Human Capital Development

• Transportation

• Infrastructure

• Property

• Environment

Key Clusters• Tourism• Oil, Gas & Petrochemical• Manufacturing• Agriculture• Education

Mission• To move the economy up the value chain• To raise the capacity for knowledge and innovation• To address persistent socio-economic inequalities,

constructively and productively• To improve the standard and sustainability of the quality of life• To strengthen the institutional and implementation capacity

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

• Distinctive • Dynamic • Competitive

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

Key Clusters

Key Enablers

Source: Strategic Framework for the ECER SEZ

ECER Projected Growth by 2020:-

2020

GDP Growth Rate 8.5%

GDP RM 65,930 million

GDP Per Capita RM 13,510

Population 4.88 million

Major Urban Nodes

Industry Nodes

Tourism Nodes

PAKAKERTIH

CHERATING

SE

Z C

EN

TR

AL

LIN

K

KUANTANPORT CITY

PANTAI SEPAT

KUALA PAHANGUMP

GAMBANGTo

KualaLumpur

PERAMU

TG. AGAS

To Dungun / K.Terengganu

KIJAL

CUKAI

KUANTAN

PEKAN

TELUK KALONG /KEMAMAN PORT

Cattle Integration inOil Palm Plantations

(Kemaman)

Kuantan-Maran

Agro Valley

K

To Johor / Singapore

TEMERLOH-MENTAKAB / KT R

AILEAST C

OAST EX

PRE

SS

WA

Y (

LPT

1 &

2)

EA

ST

CO

AS

T E

XP

RE

SS

WA

Y (

LPT

4)

Agropolitan Project

6 7

Cosmetics/ Personal Care

64.6%

Agricultural (Food/Non Food)

15.1%

Pharmaceuticals11.0%

Logistics

0.1%

Travel Industry

0.1%

Islamic Finance9.1%

Total Value : USD$ 274.1 Billion

Cosmetics/Personal CareUSD$ 177B f (64.6%)

Agricultural (Food/Non Food)USD$ 41.5B ** (15.1%)

PharmaceuticalsUSD$ 30.0B ff (11.0%)

Islamic FinanceUSD$ 25.0B *** (9.1%)

Travel IndustryUSD$ 0.13B fff (0.1%)

LogisticsUSD$ 0.17B * (0.1%)

NorthAmerica

USD15.3 billion

USD0.82 billion

Central & SouthAmerica

USD155.9 billion

Africa

USD1.6 billion

Australia

USD69.3 billion

Europe

USD418.1 billion

Asia

Source: *Adapted from World Halal Forum Europe 2010

REGIONAL HALAL MARKET VALUES*

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Source:* Cass Logistics Annual State Logistics Report, Piper Jaffray Research,** FAO Stats 2007, *** Gulf Daily News 2007, Moody’s Investors Services,f Halal Journal 2009, ff Frost & Sullivan 2006, fff S-Smith, B., Chiozza, E., Edin. M.

Potential Area for Growth in The Global Halal Industry (2009/2010)

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positive attributes associated with Halal. ECERDC is in collaboration with HDC to support development of the Halal Industry in ECER.

for the local and export market, that will focus on high value products; that will comply to halal requirements and global standard to ensure high level quality assurance inclusive of GMP and HACCP.

Commercially driven Halal Industry Business Parks with co-located supporting industries and shared facilities will provide an enabling environment and support the growth of SMEs.

A number of Halal hubs will be established in several locations. Gambang, Pahang will focus on food and non food-based Halal products while Pasir Mas, Kelantan will concentrate on crops, poultry and beef based products.

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The Gambang Halal Park (GHP) in Pahang is developed on a 200 acre site, initially for the production, p rocess ing , cer t i f i ca t ion and accreditation of Halal produce.

The Gambang Halal Park will also be supported with supporting industries, common facilities, as well as an incubator centre for industrial micro traditional and speciality food processors.

Its competitive advantage is its location to Kuantan Port which is jut 30 km away via the East Coast Expressway. Raw products are also easily available nearby.

As well as serving as a Halal Park for food and non food products, Gambang Halal Park concentrates on high-value added industries supplying ingredients to the cosmetics and personal health care industries. It takes advantage of the abundance of palm oil by-products that can be used to obtain oleochemicals - the main ingredients to produce cosmetics and health care products.

Gambang Halal Park is also ideally situated to take advantage of R&D joint-efforts with the ECER Centre of Excellence (CoEs), namely the Universiti Sultan Zainal Abidin (UniSZA) Malaysia’s Regional Centre for Halal Products.

Focus Industry:

- F&B Ingredients- Snacks- Spices- Nutraceuticals / Herbs- Sauces- Agro based products

The Pasir Mas Halal Industrial Park (PMHP), developed on a 108 acre site, will initially house the Central Marketing, Production & Processing Complex manufacturing plant facilities for food-based products and an incubator centre for micro traditional and specialty food processors.

Strategically located near the Malaysia - Thai border, the Pasir Mas Halal Industrial Park is easily accessible by road and rail. Raw products are also easily available within the vicinity.

Pasir Mas Halal Park concentrates on the production of high-value added additives and ingredients that have numerous applications, from food additives to raw materials for food and beverage area, taking advantage of the abundance of local supplies as well as supplies from South Thailand.

Pasir Mas Halal Park is also ideally situated to take advantage of R&D joint-efforts with the ECER Centre of Excellence (CoEs), namely the Universiti Sultan Zainal Abidin (UniSZA) Malaysia’s Regional Centre for Halal Products.

Focus Industry:

- Agro based products- Nutraceuticals / Herbs- Snacks- Marine Products- Meat- Sauces- Spices

FUTURE DEVELOPMENT

FUTURE DEVELOPMENT

CLUSTER 1

CLUSTER 2

CLUSTER 3

CLUSTER 4

CLUSTER 5

CLUSTER 6

CLUSTER 7

INBOUND LOGISTICS WAREHOUSESTORAGE

MANAGEMENTOPERATION

COMMERCIAL

TENANTPARKING

PUBLICPARKING

INFRASTRUCTURE& UTILITIES

RECREATIONALDISTRIVBUTION

PACKAGINGCENTRE

OUTBOUND LOGISTICS

TO KUANTAN

RE

ZA

B J

ALA

N 6

6’

STATE LAND

TO RANTAU PANJANG

JALAN PASIR MAS-RANTAU PANJANG (100’)

TO PASIR MAS

CLUSTER 1NUTRASEUTICALS/HERBAL REMEDY/

CHEMICALS

CLUSTER 2

CLUSTER 3BAHAN-BAHAN F&B

DAN/ATAU SNEK

CLUSTER 4(SPICES)

SAUCES

CLUSTER 5AGRO-BASED PRODUCT

CLUSTER 6

OPENSPACE

OPENSPACE

BONDEDWAREHOUSE

OUTBOUNDLOGISTIC

UTILITY

CPPC

MANEGEMENTOPERATION

CENTRE

MEAT(BEEF & CHICKEN)

COMMERCIAL- Management Operation Centre- Shop Office- Factory Outlet- Food Court- Public Parking- Surau

LOGISTICTENANTPARKING

WET & DRYWAREHOUSE

INFRASTRUCTUREWaste Water TreatmentSTPTNBWater TankDetention PondCentralised Waste Depo

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

Companies developing infrastructure of industrial park:

•Incometaxexemptionof100%for10yearscommencingfromtheyearcompany derives statutory income, or

•Incometaxexemptionequivalentto100%ofqualifyingcapitalexpenditure(Investment Tax Allowance) for 5 years

•Stampdutyexemptiononinstrumentsofacquisitionorleasingofpropertyrelating to industrial park

Companies undertaking promoted activities in the industrial park:-

•Customisedincentivesbasedonmeritofeachcase,or

•Incometaxexemptionof100%for8yearscommencingfromtheyearcompany derives statutory income, or

•Incometaxexemptionequivalentto100%ofqualifyingcapitalexpenditure(Investment Tax Allowance) for 5 years

Application to be submitted to ECERDC

•Importdutyandsalestaxexemptiononrawmaterials,components,machinery, equipment, spare parts and consumables that are not produced locally and used directly in the activity.

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CoE for Biotechnology and Herbal Research, Universiti Sultan Zainal Abidin (UniSZA), Terengganu Centre of Excellence (CoE) for Regional Centre for Halal Products, Universiti Sultan Zainal Abidin (UniSZA), Terengganu

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ECER

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© East Coast Economic Region Development Council (ECERDC) 2010All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner (ECERDC).

Disclaimer: While every reasonable care has been taken in preparing this document, ECERDC cannot be held responsible for any inaccuracies. All information and specifications are current at the time of preparation and are subject to change as may be required. Renderings and illustrations are artist’s impressions only and cannot be regarded as representations of fact.

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Kuala Lumpur Office

Level 69, Tower 2PETRONAS Twin Towers50088 Kuala LumpurMALAYSIATel : +603 2035 0000Fax : +603 2035 0020

Terengganu State Office

Ground Floor & 1st Floor100B Jalan Sultan Zainal Abidin20000 Kuala TerengganuTerengganu, MALAYSIATel : +609 620 0021Fax : +609 620 0020

If you are an investor planning to establish or expand your business opportunities in the East Coast Economic Region (ECER) we will provide you with professional assistance. We will be the first point-of-contact for all your investment inquiries.

Companies planning to start or expand operations in the ECER can obtain information and assistance from the East Coast Economic Region Development Council. We will help you harness the ECER’s competitive edge and capabilities to achieve your business objectives.

East Coast Economic Region Development Council (ECERDC)Tel : +603 2035 0021/22Fax : +603 2035 0020E-mail : secretariat@ecerdc.com.myWebsite : www.ecerdc.com.my

Kelantan State Office

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

Pahang State Office

B8002 Sri Kuantan SquareJalan Teluk Sisek25050 Kuantan, PahangMALAYSIATel : +609 565 0021Fax : +609 565 0020