EAST COAST ECONOMIC REGION: The Next Leap COAST ECONOMIC REGION - NODES & CORRIDORS KELANTAN PAHANG...
Transcript of EAST COAST ECONOMIC REGION: The Next Leap COAST ECONOMIC REGION - NODES & CORRIDORS KELANTAN PAHANG...
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EAST COAST ECONOMIC REGION:
The Next Leap
National Economic Corridors Conference
Le Meridien, Kota Kinabalu
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INTRODUCTION
Launching of East Coast Economic Region (ECER) 29 October 2007
INTRODUCTION
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20 Feb 2008 East Coast Economic
Region Development
Council Act (Act 688)
was unanimously
approved by the
Parliament.
13 Jun 2008 East Coast Economic
Region Development
Council (ECERDC) was
formed as the Federal
Statutory Body under
the Act 688 to oversee
the implementation of
ECER projects and
programmes.
The East Coast Economic Region (ECER) of Malaysia covers the states of PAHANG,
TERENGGANU, KELANTAN and the district of MERSING in JOHOR, covering 51% of
the total area of Peninsular Malaysia.
ROLE OF
ECERDC Accelerate the
implementation of
strategic high impact
projects and programs
towards achieving a
developed Region by
2020.
Facilitate and
coordinate the private
investment, trades,
tourism and
socioeconomic
development in ECER.
BACKGROUND
ECER was established to address the issue
of Regional Imbalance within the region by
tackling the following…
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INDUSTRY
CLUSTERS
Palm Oil
HUMAN
CAPITAL
Fisheries
Minerals Oil & Gas
Abundant land Livestock
Islands Beaches
NATURAL
RESOURCES
• Multilingual • Multicultural • Educated
Economic growth in ECER leverages on abundant
local natural resources and human capital
ECER : A Resource-rich Region
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ECER Achievement – Key Game Changers
Strategic
Infrastructure
Industrial
Parks
Special
Economic
Zone (SEZ)
Human Capital
Development
Programs
Incentives –
regional
perspective
Agribusiness
Anchor
Company
Model
Rural-Urban
Integration -
KDAs
GAME CHANGER
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EAST COAST ECONOMIC REGION - NODES & CORRIDORS
KELANTAN
PAHANG
TERENGGANU
Mersing
S O U T H
C H I N A
S E A
Besut
Tok Bali
Bachok
Kota Bharu Tumpat
Rantau Panjang
Bukit Bunga
Jeli
Kuala Terengganu
Dungun
Kuala Berang
Kerteh
Gambang
Kuantan
Pekan
Endau
Rompin
Mersing
Pulau Tioman
Gua Musang
Kuala Lipis
Raub
Bentong
Bandar Tun
Abdul Razak
Bandar
Muadzam
Shah
East Coast Corridor
Central East – West Corridor
Lumut – Gua Musang – Kuala Terengganu Sub-Corridor
East-West Sub-Corridor
Kuantan – Muar Sub-Corridor
North – South Sub-Corridor
Pasir
Mas
Maran
Temerloh -
Mentakab
NODE 2 Cross Border Development Kota Bharu- Jeli - Besut
NODE 3 Kuala Terengganu Growth
Area KTCC – Kenyir - Dungun
NODE 5 Gua Musang – Lojing Highlands-
Kuala Lipis
Central Spine Development
NODE 6 West Pahang Growth Area
Bentong - Raub
NODE 7 DARA - Jengka
NODE 4 Mersing - Rompin Rainforest to Reef (R2R)
NODE 1 ECER Special Economic
Zone (SEZ) Kertih - Kuantan
NODE 2 Cross Border Development
Kota Bharu – Jeli - Besut Key Clusters Cross Border Trade , Cultural Tourism
Positioning Cross Border Trade and Development
NODE 3 Kuala Terengganu Growth Area
KTCC – Kenyir - Dungun Key Clusters Tourism, Education
Positioning Gateway to Terengganu Islands
& Free Trade Zones
NODE 4 Mersing – Rompin
Rainforest to Reef (R2R) Key Clusters Ecotourism, Island Tourism , Agribusiness
Positioning Rainforest to Reef Experiential Tourism
NODE 5 Gua Musang –Lojing Highlands -
Kuala Lipis
Central Spine Development Key Clusters Ecotourism , Agribusiness
Positioning Ecotourism and AgroTourism focussing on
the Natural Endowments
NODE 6 West Pahang Growth Area
Bentong - Raub Key Clusters Tourism, Logistics
Positioning Gateway to Greater Kuala Lumpur Region
NODE 7 DARA – Jengka
Temerloh – Mentakab - Maran Key Clusters Agribusiness
Positioning Agriculture Development
& Rural Transformation
NODE 1 ECER Special Economic Zone (SEZ)
Kertih - Kuantan Key Clusters High Value Manufacturing, OGP, Logistics
& Education
Positioning ECER SEZ as the Growth Engine of ECER
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4
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2
1
1
1
6 5
6
6
1
2
3
4
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ECER Key Development Areas (KDAs) Concentrated Decentralization Development with Emphasis on Rural- Urban Integration
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Highways & Roads: Coast Highway,
Central Spine Road,
Federal Routes
Maritime Ports: Kuantan Port, Kemaman Port,
Kertih Terminal,
Tok Bali Supply Base
Airports: Kota Bharu, Kuala
Terengganu, Kertih,
Kuantan
Rail: East Coast Rail Link
(under development)
Comprehensive Transportation Network in ECER further boost development of
the Region
Strategic Infrastructure
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Special Economic Zone and Industrial Parks in ECER Fully integrated industrial parks complete with supporting industries , common services and
equipped with primary infrastructure
Pekan
Automotive
Park
Pahang Technology Park
Kuantan Port
Kemaman Port
Kertih Terminal
140 k
m
Kemaman
Heavy
Industrial Park
Gebeng Industrial Area
and Petrochemical
Complex MCKIP
Gambang Halal Park
Kertih Biopolymer Park
and Petrochemical
Complex
– from the catalyst of
concentrated decentralisation
of development into the
hinterland and urban-rural
integration, to the
transformation into a regional
destination for high-value
industry and investment PASIR MAS
HALAL PARK
KERTIH
BIOPOLYMER
PARK
PEKAN AUTOMOTIVE
PARK
PAHANG
TECHNOLOGY PARK
MALAYSIA-CHINA
KUANTAN
INDUSTRIAL PARK
(MCKIP)
GAMBANG
HALAL PARK
Well-connected with highways,
airports and port
Managed by Park Manager
Corporation
Industrial Parks
Special Economic Zone and development of Industrial Parks in ECER plays a key role in attracting
investments into the region which create economic Spill-over to the Local Communities 8
SPECIAL ECONOMIC
ZONE (SEZ)
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100% INCOME TAX EXEMPTION FOR
10-15 YEARS Commencing from the year company derives statutory income
Import duty exemption on raw materials, components, machinery, equipment, spare parts and consumables
(or) Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years(or) Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years
Stamp duty exemption for transfer of property/real estate
ECER Incentive Package Special Incentives for Investors in ECER
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ETEP Programme
50:50 Cost-sharing
Skilled local workforce
Technical training
Incentive to investors
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10 Human Capital Development Programs- empower ECER, ETEP & entrepreneur ECER reaching 29 districts across ECER
Nurture
Growth
Expand
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Private investment
RM111.6bil
108,401
additional Jobs representing
5% ECER Labour Force
9,662
RMK 9 2008-2010
RM1.4bil.
RMK 10 2011-2015
RM4.8bil.
RMK 11 2016-2017
RM1.6bil.
TOTAL Public Investment
RM7.8bil.
Public Investment
(DE Budget)
CAPITAL ECONOMY – Achievement the last 10 years
RM110bil.
Private Investment
200,000 Jobs
60,000 Entrepreneurs
ECER Master
Plan Target 2020
Business Opportunities
DDI 46%
FDI 54%
Achievement
9.7 11.9 15.0 20.2
28.3 37.1
55.8
72.3
84.0
100.9 111.6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
4,910 102,285 108,401 92,335 54,600 43,247 31,030 28,404 18,280 14,711 8,348
Accumulated Job Opportunities created through Private Investment until Nov. 2017
Cumulative Committed Investment (RM'bil) until Dec 2017
RM
54.3
bill
ion
Rea
lized
Inve
stm
ent
Other FDI – 22%
China – 51%
USA – 12%
Korea & France – 7%
Germany – 3%
Japan & Taiwan – 5%
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50% Investment
Realised to
date
Ratio Public to
Private Investment 1:14
RM52.5 bil RM60.2 bil
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empower
ECER
Agropolitan 1,092 participants
RM2,100 monthly
income with
housing and
facilities
entrepreneur
ECER
Inclusive
Human Capital
Development
Program
29 districts
in ECER
Academic
Program
Skills &
Entrepreneurship
Program
51,400 students
77% increase in academic
performance
14,500 participants
RM1,000 – RM10,000 additional monthly income
TARGETS Poverty Eradication
Entrepreneur Development
Women Participation
Development of Human Capital
Bumiputera Agenda and Inclusiveness
11% of ECER
population
490,000 Beneficiaries
(directly and indirectly)
from ECER Human Capital
Development Program
INCREA$E in
INCOME through
Entrepreneurship
An inclusive approach which
benefited
6,450 participants
RM10,000 – RM300,000 additional monthly income
40,995 jobs
21,196 entrepreneurs
B40 97% Group beneficiaries Male
38%
Female
62%
93% Malay
3.0% Chinese
2.6% Orang Asli &
Others
1.2% Indian
People Economy – Achievement the last 10 years
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Jobs opportunities
Total investment
Bumiputera companies in ECER
50 Companies
50 Companies
76 Companies
1 Company
RM16.6m 41 Jobs
RM16.22 bil
19,101
177
Investment by sectors
RM5.0 billion 6,498 Jobs RM4.0 billion
7,907 Jobs
RM7.2 billion 4,655 Jobs
Realised investment 75%
The bumiputera community is playing a significant role in the development of ECER -
‘AGENDA PEMERKASAAN EKONOMI BUMIPUTERA’
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ECER – The Next Leap
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Source:
Household Income and Basic Amenities
Survey Report 2016 (DOSM 2017)
Median Household
Income 2016
GDP per Capita 2016
59.7
24.7 19.3 15.7
61.3
24.2 20.1 17.0
ECER Pahang Kelantan Terengganu
Number of In-Migrants
Number of Out-Migrants
15
Despite the significant achievements and improvements in the ECER over the past decade, ECER
remains a Lagging Region when compared to other areas in the Peninsular Malaysia in terms of
Productivity (GDP/capita) and Median Household Income
Internal Migration in ECER States 15-64 years old, 2014
–1,600
+500 –800 –1,300
There is a need for continued and concerted Government incentives and socioeconomic and
infrastructure development initiatives for investments and job creation in high value added
industries to further reduce the regional imbalance 15
1 • Low productivity growth especially in the services sector
2
• Industrial activity dominated by commodity-related industries, which are subject to volatility
3 •Relatively small/micro enterprises limit scale economies
4
•High proportion of working age population including youth outside the labor force
The underlying challenges…
GDP per
Capita RM27,268
RM4,694
TERENGGANU
GDP per
Capita RM12,812
RM3,079
KELANTAN
GDP per
Capita RM32,244
RM3,979
PAHANG
GDP per
Capita
ECER
RM23,387
RM3,812
GDP per
Capita RM101,420
RM9,073
KLANG VALLEY
GDP per
Capita
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The continued intervention will enable ECER to be DYNAMIC (to the regional/global
changes) and remain COMPETITIVE whilst maintaining its DISTINCTIVENESS
Benefiting 1.6 million people representing 37 % of the total ECER population
and prioritizing the wellbeing of Rakyat whilst creating critical mass for
sustainable growth of ECER
RAKYAT
TOUCH
POINTS
Improving
Livelihood
Provide New
Opportunities
Preventing
Future Poor
Education –
Skills &
Knowledge
16
High Income
Jobs
Graduate
readiness and
employability
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Increase the share of high value
activities, worker skills and the
inflow of Knowledge Workers
Adopt adjacency analysis
to discover new growth
drivers across the
economic clusters
Promote/develop large
scale enterprises with the
ability to compete in
global markets
Address the low levels of
youth and female employment
Leverage on growth
nodes and connectivity
development to spur
further development
ICT broadband
infrastructure requires
attention for digitization
and Industry 4.0 to kick
off
Key Strategic Initiatives to drive growth in ECER
Increase Labour
Productivity
Strategic
Initiatives 6
Diversify the economic
base
Facilitate Economies of
Scale
Mobilize the Labour Force
Leverage Connectivity
Enhance Enablers
Source: ECER Master Plan Strategic
Review Study, UKMP 2017 17
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Policy Focus
7 Special
Economic
Zone
Establishment
of Logistic and
Trade
Facilitation
Cluster
Environment
Preservation &
Conservation
Human Capital
Development
Programs
to
continue Continued
Incentives on
regional
perspective
Infrastructure
development -
Utilities
(Gas)
Application
of Industry 4.0
– ASEAN
Competency
Centre &
Broadband
enhancement
Policy Focus for ECER Next Leap
18
6%
GDP Growth Target
by 2025
120,000 New Job
Opportunity 2018- 2025
60,000 New
Entrepreneurs 2018-2025
RM180bil Private
Investment
RM70 billion
NEW PRIVATE
INVESTMENTS
from 2018-2025
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Splendour of ECER
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NEW DEEP WATER TERMINAL (NDWT)
COME AND DISCOVER ECER. YOUR UNIQUE INVESTMENT DESTINATION.
For more information please contact :
ECER Secretariat
Email : [email protected] Web : www.ecerdc.com.my
Tel : +603-2035 0021 or +603-2035 0022 Fax : +603-2035 0020
We invite individuals and corporations to explore the various business opportunities in ECER, especially in Tourism, Oil, Gas & Petrochemical, Manufacturing, Agriculture and Education.