INTRODUCTION OF EAST COAST ECONOMIC REGION DEVELOPMENT COUNCIL (ECERDC), 34TH JAMECA-MAJECA JOINT CONFERENCE “DEEPENING AND STRENGTHENING THE ECONOMIC COLLABORATION BETWEEN MALAYSIA & ”

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% GDP Per Capita Per GDP

The region is rich with an abundance of natural resources which from the basis for transforming the economy

5 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 : Strategic Location

The strategic location of Kuantan Port, fronting the South 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 km 140

Kemaman Port 吉兰丹 KELANTAN • The ECER SEZ stretches Jabor from the district of Kertih, Terengganu in SEZ the north to the district 彭亨 Sungai of Pekan, in the Pahang Lembing south. PAHANG Kuantan Port • The SEZ is being KUANTAN developed in line with the objective of achieving concentrated Gambang decentralization. • 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 1.62 million Population 1.08 million Kelantan Terengganu Location • Comprises of 10 districts. Location. • East Coast of Peninsular Malaysia. • State capital – Kelantan • Comprises of 7 districts • Border state to Thailand and Kelantan • State capital - 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 • 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 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 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 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

• 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 Accessibility • Kuantan Seaport - 53km • Kuantan Airport - 15km

• Halal food and non-food Logistics Hub Types of • Nutraceuticals / Herbs Preferred • Pharmaceuticals Industry • Agro-based products • Meat-based products • Spices and Sauces

194 Acres Commercial zone Area

RM2 billion Private Investment by 2020

7,500 New jobs in 2020 20 Pasir Mas Halal Park (PMHP)

Industrial Zone EBC CPCC

Warehouse • - 10km Accessibility • Kota Bharu - 21.5km • Kota Bharu Airport - 30.1km

• F&B Ingredients Types of • Snack, Spices & Sauces Preferred • Halal food-based products Logistics Hub Industry • Nutraceuticals/herbs • Agro-based products • Meat

108 Acres Area

Commercial Zone RM611 million Private Investment by 2020

4,200 New jobs in 2020 21 Development

FUTURE DEVELOPMENT TOK BALI INDUSTRIAL PARK Tok Bali Town

Tok Bali Integrated Fisheries Park (TBIFP) Tok Bali Port Total 257 acres Area Tok Bali Integrated • Fish Landing Port • Primary Processing Fisheries Park • Types of Downstream Preferred Processing • Industry Ice Making and Supply AVAILABLE LOTS

• Commercial Areas • Tourism Activities • Upstream (Fish • etc. landing) • Shared facilities • Industrial lots • Logistics

22 Malaysia – China Kuantan Industrial Park (MCKIP)

RESIDENTIAL AREA

RESIDENTIAL AREA • Existing Kuantan Port - 5km • Kuantan City - 15km Accessibility • Kuantan Airport - 20 km • Connected to East Coast Highway

LOGISTIC PARK • Equipment for plastic and metal industries • Automotive components • Fibre cement board Types of • Stainless steel products Preferred • Carbon fibre Industry • Electric & Electronic (E&E) • Information Communication WATERFRONT BUSINESS PARK Technology (ICT) • Renewable energy • Petrochemical • Non-ferrous metal

1500 acres WETLAND PARK MEDIUM INDUSTRY HEAVY INDUSTRY Area

RM7.5 billion Private Investment by 2020

8,500 New jobs in 2020 23 Overview of Tourism Industry in ECER

Segments of Tourism in ECER

Tourism is one of the key contributors to the economic growth of ECER. Blessed with pristine beaches, beautiful islands, ancient forests and other natural assets, tourism’s potential to attract investments and promote economic development of the Region is immense.

1 2 Urban & 3 Environment & 4 Heritage & Culture Coastal Tourism Ecotourism Island Tourism

• Wood carving,wau • 900 km Beachfront • 4,343 km² • 2,010 km² Ocean Park making,traditional boats, • 900 Species of birds, • 67 islands native crafts fish and mammals • Lifestyle, dances, games, traditional foods

24 Tourism Investments in ECER’s States

Japanese Village The world’s First Japanese Tea House in the Tropical Forest. • Investment from Berjaya Corporation Berhad. • Located 3,500 feet above sea. Ramada Hotel at Plaza Tok Bali • level and the air here is cold. Its’ garden was designed by Kaio Ariizumi, • Investment by Dyan Duta . this garden is in a tropical rainforest and the main attractions here are Sdn. Bhd. Japanese Tea House, Botanical Garden, Tatami Spa, Ryo Zan Tei Japanese • 7-storey Ramada Hotel at Restaurant and Ume Tatami Suite Plaza Tok Bali which is 3.8 acres in size. The resort consist of 8 units of chalets and 224-key four star resort in Plaza Tok Bali

20th Century Fox World Genting theme park, Pahang • Investment from United States. Mövenpick Hotels & Resorts • Located 6000 feet in the highlands will be 25 acres in size and will feature • Investment from Switzerland. around 25 thrill rides and attractions based on films and franchises from • 30-storey Mövenpick Hotel Kota popular movies and cartoons. Bharu, Kelantan, a 453-key five- star resort in Kelantan 25 Tourism Attractions in ECER’s States – TERENGGANU

• Development components include Endau-Rompin National Park Theme park, Entertainment, retails outlet and Commercial and residential. It Integrates the existing Kuala Terengganu urban areas by merging them into a vibrant Heritage Waterfront City.

Kuala Terengganu • KTCC will be linked across the estuary by City Centre (KTCC) the KTCC drawbridge, an iconic KTCC Development involves: landmark, the first in South East Asia • 40 acres of land in Muara South housing an observation platform, gallery • 140 acres of land in Muara North • and cafés. The Endau-Rompin National Park is the second largest national park in Peninsular Malaysia and is well positioned to be: I. A great eco-tourism destination II. The Region’s Rainforest to Reef (R2R) ecotourism concept which is based on the connectivity between a clutch of rainforest destination and world class beaches, islands and reefs. • The largest man-made lake in South East Asia with an area of 260,000 hectares. • Home to numerous species of freshwater fishes and exotic wildlife. With a water catchment area of 38,000 hectares. • Successfully developed for eco-tourism with resorts on its shore. 26 East Coast Rail Line (ECRL)

West Line

Mid East Line

hru

• The East Coast Rail Line (ECRL) is part of the infrastructure development plan for ECER which involves a 620km rail track from Tumpat in Kelantan to Kuantan Port in Pahang and connecting to Kuala Lumpur. • ECRL will be integrated into the Mid Line of Trans Asia Railway, starting from Kunming, China, connecting all of the countries of mainland Southeast Asia, to .

27 Human Capital Development Program in ECER

28 Human Capital Development

Collaborating with 185,000 investors & other MALAYSIA government agencies. 20,000 WITHIN ECER i.e., TalentCorp and BiotechCorp to develop 10,000 customised human capital programme to Source: Ministry 2,000 Higher Education, meet investors’ requirements. 2010

TOTAL GRADUATES SCIENCE AND TECHNICAL GRADUATES

29 ECER Talent Enhancement Programme (ETEP)

Committed investment will contribute to 70,000 job ETEP opportunities OBJECTIVES

To increase job opportunities and quality of life of the local ETEP Recipients: 64 Participants involved from Kaneka(M) SB at The collaboration , Pahang. To train labor to with private sector in meet investor expertise and cost demand Ratio of 50:50 100 ETEP Participants involved from HICOM Manufacturers (M) SB at Pekan, Pahang

30 Amenities & Lifestyle

Bungalow residence Bungalow residence

KPJ Private Hospital Kuantan Salam Private Hospital Terengganu

The development approach in ECER consists of commercial, residential, education, industries, service & knowledge components that are closely interlinked where liveability will be elevated to world class standards. 31 Amenities & Lifestyle

Tanjung Jara Club Med Cherating Swiss Garden Beach Resort

Awana Genting Golf Resort Royal Pahang Golf Club

East Coast Region is rich with serene beaches, pristine islands, impressive highlands, beautiful resorts, golf courses, and32 natural heritages such as caves , National Park that has amongst world’s oldest rainforest. 32

Royal Pahang Golf Club Amenities & Lifestyle

Genting Highland Colmar Tropicale French Theme Resort

Gambang Water Park Pekan Interactive Museum

33 33 Amenities & Lifestyle in ECER

Teluk Cempedak

Serene beaches, and pristine islands.

Kota Gelanggi Cave Cameron Highland National Park

Impressive Highlands and Natural Heritages 34 34 Amenities & Lifestyle

Kuala Lumpur, one of world’s most beautiful Kota Bharu 60 minutes 583 km metropolis, is easily accessible from ECER. Kuala Terengganu 55 minutes 450 km

Kuantan 50 minutes 233 km

Kuala Lumpur

35 10 Reasons to invest in ECER

Strong support from Federal and State Governments Competitive wage rates compared to the West Coast with pro-business and liberal investment policies states

Advantageous geographical orientation - Eastern Multilingual workforce speaking two or three Gateway of Malaysia to Europe, US & Asia Pacific languages, including English & Mandarin

Strong resources endowment - crude oil, natural Large & established foreign business community in gas, tin, timber, palm oil, rubber and others all business sectors

Market-oriented economy - exporter of Abundance of land to set up diverse range of resource based & manufacturing products business facilities

Good accessibility and connection by highways, ECERDC is the One-Stop Center for investor airports, seaports and railway management facilitating the incentive application for approval

37 -THANK YOU-

38 NEW DEEP WATER TERMINAL (NDWT)

COME AND DISCOVER ECER. YOUR UNIQUE INVESTMENT DESTINATION.

We invite individuals and corporations to explore the various business opportunities in ECER, especially in Tourism, Oil, Gas & Petrochemical, Manufacturing, Agriculture and Education. For more information please contact : ECER Secretariat

Tel : +603-2035 0021 or +603-2035 0022 Email : Fax : +603-2035 0020 [email protected] 39 Web : www.ecerdc.com.my