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Introduction of East Coast Economic Region INTRODUCTION OF EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL (ECERDC), MALAYSIA 34TH JAMECA-MAJECA JOINT CONFERENCE “DEEPENING AND STRENGTHENING THE ECONOMIC COLLABORATION BETWEEN MALAYSIA & JAPAN” TOKYO, JAPAN. 1st June 2016, WEDNESDAY 2016 About ECERDC Membership of Council CHAIRMAN : Prime Minister 2 Leveraging of Key Strengths of ECER CLUSTERS NATURAL HUMAN CAPITAL RESOURCES /EDUCATION Palm Oil Fisheries Iron Ore Oil & Gas Abundant land Livestock • Multilingual • Multicultural • Educated Islands Beaches Economic growth in ECER leverages on abundant local natural resources and human capital 3 Strategic Location of the ECER The East Coast Economic Region (ECER)’s advantageous geographical location makes it strategic investment gateway to ASEAN, Asia Pacific and the Far East and even the Americas. This provides an excellent opportunity for the business community from around the world to further enhance the regional positioning. 4 ECER Key Statistics 66,736 sq.km of the 51% Peninsular Malaysia GDP Per Capita Per GDP The region is rich with an abundance of natural resources which from the basis for transforming the economy 5 KUANTAN PORT: New Deep Water Terminal (NDWT) • 18-metre draught • 200,000 DWT vessels • 4,700 m length of breakwater • 700 m arrival / turning basin • 2.6 km stopping distance • 6,040 m berth length • 295 ha land area KUANTAN PORT EXPANSION • Upgraded & expanded as the main gateway to the Asia Pacific Region. • Include construction of a new deep water terminal Commencement date : April 2013 Completion date : August 2017 6 KUANTAN PORT: Strategic Location The strategic location of Kuantan Port, fronting the South China Sea making it as the investment gateway to ASEAN and the Far East that has a combined GDP of USD17 trillion. 7 ECER Special Economic Zone (SEZ) Bandar Al Paka Muktafi Billah Shah Kertih Kertih Terminal 140 km Kijal Kemaman Port 吉兰丹 Kelantan Terengganu KELANTAN Chukai • The ECER SEZ stretches Jabor from the district of Kertih, Terengganu in SEZ the north to the district Sungai of Pekan, Pahang in the 彭亨 Pahang Lembing south. PAHANG Kuantan Port • The SEZ is being KUANTAN developed in line with the objective of achieving concentrated Gambang decentralization. Mersing • It is envisioned to be the 957,486 acres key engine of economic Area Pekan growth in ECER and serves as the growth centre where liveability RM97 billion will be elevated to world Private Investment by 2020 class standards through improvements in 120,000 25km infrastructure, public New jobs in 2020 transport and logistics. Briefing Document To HE Ambassador of Japan to Malaysia, 28 September, 2015. 8 8 States of ECER 2 Area 14,92235,960 kmkm 2 Area 12,995 km 2 Population Population 1.08 million 1.62 million Kelantan Terengganu Location • Comprises of 10 districts. Location. • East Coast of Peninsular Malaysia. Kelantan • State capital – Kota Bharu • Comprises of 7 districts • Border state to Thailand and Kelantan • State capital - Kuala Terengganu the Indo-China Region. Kelantan Tourism • Urban and coastal tourism, island Important cross-border Terengganu tourism and trade centre. Gateway to tourism, ecotourism, cultural and ECER heritage tourism. Economic • Agro-based activities - fisheries, • Activities aquaculture, herbal cultivation Oil, Gas, & Kertih Integrated Petrochemical Petrochemical Complex’s (KIPC) 11 plants and poultry production. Pahang Cherating • Halal food and product Pahang cluster attracting global petrochemical manufacturing Pahang players to its shore. 2 Mersing, 2 Area 35,960 km Area 24 km Johor Population 1.53 million Population 69,947 Pahang District of Mersing, Johor Location • Largest state in Peninsular Malaysia. • Comprises of 11 districts. Location • One of the district which located on the North East • State capital – Kuantan Coast of Johor. • Ranges from mountainous country in its west to its coastline in the east. Tourism • Highly developed tourist facilities • Kuantan Port – one of the major port in Malaysia. Gateway • A centre for ecotourism - gateway the Endau Rompin National Park. Industrial • Resource based downstream manufacturing • Point of embarkation to the islands of Pulau & Logistic activities. Tioman, Pulau Besar, Pulau Rawa, Pulau Aur, Pulau Hub • Hub for automotive manufacturing, assembly and Sibu and Pulau Pemanggil, all known for their distribution. pristine beauty. 9 Japan Companies in ECER Free from Major Natural Disasters Why Competitive Cost of Doing ECER Business Malaysia Educated Work Force No Restriction of Foreign No Executive Restriction Political & Multilingual on Foreign Social and Equity Stability Multiracial 10 Japan Companies in ECER Suzuki Malaysia Automobile Sdn. Bhd. Kaneka Malaysia Group consists of consists of three subsidiaries. Manufacturing and five companies in Malaysia. Chemical, assembly of Motorcycle. 45 years of operation in PVC and Paste Manufacturer in Malaysia Pahang State. 20 years of operation in Malaysia. Daikin Malaysia Sdn Bhd one of the leading manufacturer of HVAC products (heating, Rohm Wako Electronic Sdn Bhd ventilation and air-conditioning). In Pahang. the largest overseas operator in 25 years of operation in Malaysia. Kelantan, manufactures electronic components. Polyplastics Asia Pacific Sdn.Bhd. Solution platform for engineering plastics. 19 years Mitsubishi FUSO Malaysia of operation in Pahang. The world’s largest commercial vehicle manufacturer. Assembly Plant in Pekan. Automotive Park, Pahang. 11 years of Terrengganu Silica Consortium Sdn. Bhd. operation in Malaysia located in Terengganu state, The largest silica resource proven reserve of more than 60 . Tosoh Corporation’s first overseas million ton of high purity grade silica. facility of high silica zeolite (HSZ®). Terengganu state in Malaysia was Nankai Nikke (Terengganu) Sdn Bhd located in chosen for the reliability and Terengganu state, a recognized internationally Japan stability of customer supply. company involved in wool industry. Toyo Engineering & Construction Toray BASF PBT Resin Sdn Bhd is a 50:50 joint Sdn Bhd. venture between BASF SE and Toray Industries Located in Pahang state, providing Inc. of Japan. The two companies partnered to services in Engineering. 30 years of build and operate a world-scale Polybutylene operation in Malaysia. Terephthalate (PBT) plant in Pahang 11 Japan Manufacturer in Malaysia MITSUI CHEMICALS JV TOYOTA TYUSHO & MALAYSIA SILICA ASAHI BEST BASE JV BASF & TODA KOGYO CORP PROTIGAM FOOD KAMAYA ELECTRIC OHTA PRECISION) SMK ELECTRONICS 12 Competitive Incentive Packages The following incentives can be granted to qualified investors in ECER : Fiscal Incentives • (or) Income tax exemption equivalent to 100% of qualifying capital expenditure (Investment tax allowance) for 5 years • Stamp duty exemption for 100% industrial park development, Non-Fiscal Incentives INCOME TAX EXEMPTION FOR agriculture and tourism projects • Competitive Land Prices • Import duty and sales tax exemption on raw materials, • Industrial park ready with 10 YEARS components, machinery, infrastructure Commencing from the year equipment, spare parts and company derives statutory income consumables that are not produced • Flexibility in employment of locally and used directly in the expatriates production activity • Facilitation of human capital • UKAS Facilitation Fund development 13 Industrial Parks in ECER 14 Kertih Biopolymer Park (KBP) SME Complex Thiochemicals Plant Steam Producing Plant Accessibility • Kertih Airport - 8km • Kertih Port - 3km • Kuantan Seaport - 87km Types of Preferred • Biomass, Biopolymer/Chemicals, KBP Expansion Industry Polymer, Petrochemicals 420 Acres RM5 billion 750 Area Private Investment by 2020 New jobs in 2020 15 Industrial Parks in ECER Fully integrated industrial parks complete with supporting industries and common services.Equipped with primary infrastructure Well-connected by Each park is managed by a Park highways, airports and sea Manager corporation ports. Kertih Integrated Petrochemical PEKAN AUTOMOTIVE PAHANG TECHNOLOGY KUANTAN INTEGRATED Complex (KIPC) PARK PARK BIO PARK Gebeng Integrated Petrochemical Complex(GIPC) MALAYSIA-CHINA KUANTAN GAMBANG HALAL PARK INDUSTRIAL PARK (MCKIP) Manufacturing Agribusiness Integrated Development 16 16 PASIR MAS HALAL PARK KERTIH BIOPOLYMER PARK Pekan Automotive Park (PAP) Location Pekan Peramu, Pahang Size 881 acres Accessibility • 35 km to Kuantan Airport Phase 3 • 50 km to Kuantan Seaport 345 acres • 30 km to Kuantan Town • 260 km to Kuala Lumpur • Focusing on automotive sector, manufacturing and training • Phase 1: Fully taken up Phase 2 • Phase 2: 87 acres remaining 237 acres • Phase 3: Planned future expansion Existing Players in PAP: Phase 1 299 acres Activities in Pekan Automotive Park Vehicle Produce/assemble in Pekan Automotive Park Assembly Parts and components R&D Center R&D Passenger Commercial Military 17 Pahang Technology Park (PTP) With the development of the PTP, Gambang will become the first high-tech and cyber city in the ECER 18 Kuantan Integrated Bio Park (KIBP) Size 245 ha / 605 acres Accessibility • Kuantan Port : 5km • Kuantan City : 15km • Kuantan Airport : 20km • Connection to East Coast Highway Infrastructure • Water, electricity, sewerage • Telecommunications • Marketing office, support services Preferred Industry • Biomass-based products, i.e. biochemicals, phytonutrients, KIBP biofertilizers, advanced carbohydrates, food/feed, surfactants. KUANTAN PORT 19 Gambang Halal Park (GHP) CPPC Industrial Zone Warehouse Administration & Park Manager Office • Kuantan town - 30km
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