ECONOMIC CORRIDOR DEVELOPMENT TRAINING FOR COMPETITIVE AND INCLUSIVE ASIA

“THE EXPERIENCE OF THE EAST COAST ECONOMIC REGION”

BLOCK B5, ECONOMIC PLANNING UNIT, PUTRAJAYA | 23 AUGUST 2016

Confidential PRIVATE & CONFIDENTIAL CONTENT

1 Introduction

2 Projects & programmes in ECER

3 Investment status

4 Moving forward The establishment of 5 Economic PRIVATE & CONFIDENTIAL Corridors in

5 economic corridors was initiated under the Ninth Malaysia Plan to address development imbalances throughout the country while pushing forward the country’s economic growth using public-private partnership (PPP) approach 3 RMK-11 has positioned Corridor Authorities PRIVATE & CONFIDENTIAL as strategic enablers to enhance inclusiveness CHAPTER 3: Enhancing inclusiveness towards an equitable society Regional corridor authorities (RCAs) will Focus Area C of RMK-11: Encouraging more facilitate investors to ensure committed private investment in rural areas investments are • Efforts will be implemented in collaboration with regional realised. This investor corridor authorities to provide a more conducive business facilitation model will environment to attract higher value added investment to rural also ensure that areas. authorities continue to facilitate investors once Focus Area D of RMK-11: Accelerating regional businesses are in growth for better geographic balance operation, to address • Regional corridor authorities (RCAs) will continue to spur implementation economic growth to address inter and intra-regional challenges and imbalances and increase inclusivity. encourage future • RCAs will continue to accelerate investments by enhancing reinvestment. facilitation for investors, improving connectivity and mobility; and intensifying R&D and commercialisation.

4 PRIVATE & CONFIDENTIAL About ECER QUICK FACTS ECER MASTER PLAN States: , , & () The main objective of the ECER Master Plan is Population: 4.2 million (15% of Malaysia population) to bridge the regional disparity by: Total area: 66,736 sq km/ 51% of the Peninsular land area. • Developing the economy of the ECER in a competitive, balance and sustainable manner State Income gap (2012) • Implementing programmes and projects to Kelantan 1 : 0.63 raise income levels and eradicate poverty Terengganu by generating job prospects and 1 : 0.79 entrepreneurialism through high impact Pahang 1 : 0.75 projects and investments to spearhead the development of the Region. Projects Investment Jobs Inflows ECER has 5% of total ECER’s Vision as stated in the Master Plan 5% 6% 5% approved manufacturing projects , attracts only A Developed Region by 2020

6% of the total foreign (Distinctive – D yn a m i c – Competitive) 95% 94% investment inflows and 95% Key

Drivers Oil, Gas & Human Agriculture Tourism Manufacturing generates 5% of job Petrochem Capital Dev. Malaysia ECER

opportunities. Logistic, ICT, Finance and Support Services ECER represents Meanwhile, average income level in 8.9% of the total ECER is 73% of the national average Enablers Physical Infrastructure and Education & Training GDP of Malaysia. (Year 2012)

ECER 8.9% Year 2012 RM5,000 RM3,967 RM3,745 RM3,168 Today is the Start of GDP a Brighter Tomorrow

Other places in Malaysia Kelantan Pahang Terengganu Malaysia 5 PRIVATE & CONFIDENTIAL ECERDC Formation

WHO WE ARE? CHAIRMAN The East Coast Economic Region Development Prime Minister Council (ECERDC) is a statutory body established under an Act of Parliament, the East Coast MEMBERS OF THE COUNCIL Economic Region Development Council Act 2008 • Deputy Prime Minister (Act 688). • Menteri Besar (Pahang, Terengganu, Kelantan & Johor) OUR ROLE • Finance Minister II 1. To drive the implementation projects • Minister in the Prime Minister’s Department and key programmes identified in the • Chief Secretary to the Government ECER Master Plan to transform ECER into a developed region by 2020. • Private Sector Representatives - PETRONAS 2• To provide the proper direction, - DIALOG GROUP BHD policies and strategies in relation to the development within the East Coast Economic Region. 3• To facilitate the coordination between Government entities in the promotion of trade, investment, tourism and development activities within the East Coast Economic Region (ECER). 6 PRIVATE & CONFIDENTIAL Approved Governance Structure

MEETING RESPONSIBILITIES FREQUENCY

• Review progress of individual project. ECERDC BOARD Quarterly • Approval and Strategic Issue Resolution to EPPs MEETING(FEDERAL) and enabler projects in ECER • Ensure alignment of regulatory framework, vision Chairman: YAB Prime MInister and policies

• Review progress of individual project IMPLEMENTATION & Quarterly • Approval and Strategic Issue Resolution to EPPs and enabler projects at respective state. COORDINATION COMMITTEE • Ensure alignment of regulatory framework, vision (STATE) and policies Chairman: YAB Menteri Besar

• Drive the implementation and outcomes of the EPPs Monthly ECERDC MANAGEMENT • Provide guidance / direction to project and program implementation teams. COMMITTEE • Seek and execute mandate from the Board Chairman: CEO, ECERDC • Endorse new or potential investors for new projects • Propose new or improved polices and procedures to enhance the effectiveness of the project and program implementation. 7 Seven Key Development Areas PRIVATE & CONFIDENTIAL (KDAs) of ECER

Tumpat

Bachok Node Cross border development Besut 2 Jeli

Kuala Node KELANTAN Terengganu KTCC – Kenyir Kuala Gua Musang Berang – Dungun 3 Node Gua Dungun Musang - 5 KDA Kuala Lipis PAHANG ECER Special Node Raub Economic Node – Bentong Zone (SEZ) 1 Raub KDA Gambang 6 Pekan

Bandar Muadzam Shah Node Node 4 DARA – Jengka KDA 7 Pulau Mersing –Rompin Tioman KDA Rompin

Mersing MERSING 8 PRIVATE & CONFIDENTIAL Regional Positioning Of The ECER

Eastern Gateway to almost 4 billion population of ASEAN, Asia Pacific & Far East, with US$17 trillion combined GDP

Serve as building blocks to the ASEAN Economic Community (AEC) initiative

Export platform of resource- based and manufacturing products

Positioned as infrastructure and logistics hub ECER

Major tourism destination

Promotes synergy through government-to-government initiative e.g. MCKIP development

9 PRIVATE & CONFIDENTIAL Achieving Transformation

RAISE THE LIVING STANDARDS OF THE RAKYAT IN ECER

10 PRIVATE & CONFIDENTIAL Achieving Transformation

Raise The Living Standards Of The Rakyat In ECER

Private Total investment RM90.7 bilion • Incentives • ECER SEZ • One Stop Centre

ETEP Total Cost RM6.6 bilion TERAJU@ECER ECER developed by 2020

Projects entrepreneur ECER RMK-10 Projects & Human Capital programmes Development Projects Suri@Home empower RMK-9 ECER Agropolitan

11 PRIVATE & CONFIDENTIAL CONTENT

1 Introduction

3 Projects & programmes in ECER

4 Investment status

5 Moving forward ECER Special Economic Zone PRIVATE & CONFIDENTIAL (ECER SEZ)

• The catalyst of transformation INDUSTRIAL PARKS • Positioned as infrastructure and logistic hub 1. Kertih Integrated Petrochemical Complex (KIPC) • Concentration of high-impact projects 2. Integrated Petrochemical Complex (GIPC) 3. Malaysia-China Kuantan Industry Park (MCKIP) 4. Pekan Automotive Park (PAP) 5. Gambang Halal Park (GHP) 6. Kertih Biopolymer Park (KBP) 7. Kuantan Integrated Bio Park (KIBP) 8. Pahang Technology Park (PTP) 9. Kemaman Heavy Industry Park (KHIP)

LOGISTIC & UTILITIES INFRASTRUCTURE 1. (New Deep Water Terminal) 2. Kuantan Port Link Roads 3. Water Supplies (Water Treatment Plant) TOURISM 1. Pekan Heritage Waterfront 2. Mainland Coastal Tourism AGRIBUSINESS 1. Kuantan Fish Processing Park RM97 billion 120,000 957,486 2. Pekan Agropolitan Investment by 2020 New jobs acres

13 PRIVATE & CONFIDENTIAL Industrial Parks in ECER

Malaysia-china Investment Halal Park Investment (MCKIP) Kuantan RM15.1 RM21 Pasir Mas Industrial Park bil mil 35 Private 20,015 Jobs Jobs investment in 2020 Gambang Halal Park Investment RM154 RM27.5 Kertih Biopolymer Investment mil billion Park RM4.78 bilion 75 Jobs Private 5,119 Kertih Jobs investment Kuantan Integrated Investment RM24.7 Kemaman Heavy Investment Biopark RM80 Industrial Park RM3.4 mil billion bilion Kuantan 70 6,985 Jobs Gambang Jobs 33,499 Pekan Jobs Pekan Automotive Investment Park RM1.22 bilion

1,200 Jobs

14 Generate agricultural sustainability via appointment of anchor company to operate large scale and commercial farms

PRIVATE & CONFIDENTIAL Agribusiness projects

Agriculture still forms a substantial 1 component of the economy in the East Coast, 17% of the total GDP. 10 agribusiness projects have been implemented in ECER which aligned 2 with Entry Point Projects (EPP) initiative NKEA Pertanian dan Makmal Cities & Corridor (C&C).

Goat & Sheep Fisheries cluster Herbal & Biotechnology Pineapple cluster Farming Cluster EPP 4 : Integrated Cage Farming cluster EPP 7: Premium Fruits & EPP1:High-Value Herbal Makmal Cities & EPP 6 : Zone (IZAQ) Vegetables Products Corridor (C&C) EPP 8 : Food Park

Kuantan Fish Processing Park Rompin Integrated Herbal Integrated Cluster Telaga Papan Goat Farm Pineapple Plantation Development, Chegar Perah CPPC Dairy cluster EPP 13: Dairy Clusters Tok Bali Integrated Fisheries Park Sheep Herbal Integrated Cluster Breeding & Innovation Development, Pasir Raja Muadzam Shah Cattle Centre Marine Fish Hatchery And Fish Research & Innovation Seed Marketing Centre, Merchong Centre

15 Generate agricultural sustainability via appointment of anchor company to operate large scale and commercial farms

PRIVATE & CONFIDENTIAL Agribusiness projects

* Business model for fisheries project

Generate agricultural sustainability via appointment of anchor company to operate large scale and commercial farms 16 Achievement for Agribusiness PRIVATE & CONFIDENTIAL projects

COLLECTION, PROCESSING ROMPIN INTEGRATED MUADZAM SHAH CATTLE TELAGA PAPAN & PACKAGING CENTRE PINAPPLE PLANTATION RESEARCH & INNOVATION COMMERCIAL GOAT FARM (CPPC) (RIPP) CENTRE

Anchor Company: Anchor Company: Anchor Company: Anchor Company: Perusahaan Warisan Rompin Integrated Urban Agro Yields Sdn Bhd The Holstein Milk Company (PWK) Pineapple Industries Sdn Sdn Bhd Bhd

17 PRIVATE & CONFIDENTIAL Tourism projects in ECER

Sustainable development to enhance tourism offerings and attract high-value tourism

Unique culture & heritage Urban/ coastal tourism

Laman Teruntum, Kuantan Waterfront

Serambi Pekan

Cherating Beach

18 Tourism projects in ECER PRIVATE & CONFIDENTIAL

Eco-tourism

Tasik Chini Biosphere Taman Negara Reserve Endau- Rompin 1 2 3 5 Management Plans Taman Negeri Setiu Setiu Wetlands Lojing Highland Wetlands 4 5

TNER Taman Tasik Chini Negara

Management Zones

19 Tourism projects in ECER PRIVATE & CONFIDENTIAL

Pahang island Island tourism Terengganu islands

Pulau Perhentian Kecil Pulau Perhentian Pulau Jeti Kg. Air Batang Pulau Perhentian Besar Perhentian Kecil Kg.Salan g Location for Pulau Redang ‘boardwalk’ Jetty maintenance at Kg. Teluk Aur Penuba Kg. Air BatangTaman Pulau Redang Laut Kg. Tekek Terengganu Sg. Tekek bridge

Berjaya Tioman Kuala Beach Resort Kg. Juara Kg. Paya Terengganu Pulau Kapas Jeti Teluk Siang Jeti Teluk Kalong Kg. Genting PULAU TIOMAN Batang Sabut Pulau Kapas Bridge Kg. Nipah

Kg. Kg. Bridge Jetty Mukut Asah Sg. Said Bridge

Mersing islands Pulau Tinggi Pulau Aur Pulau Pemanggil

Pulau Tioman Pulau Pemanggil Pulau Acheh Mosque Upgrading Bridge construction Jetty and retaining wall construction PULAU AUR Endau Pulau Besar Pulau Sibu

PULAU BESAR

PULAU TINGGI

Jeti Mersing Construction of PIPTLSI and water treatment Bridge construction, Walkwat & signages Jeti Tg. Leman PULAU SIBU system 20 PRIVATE & CONFIDENTIAL Human Capital Development

2 THRUSTS of Human Capital Development

• To create a skilled workforce, with the appropriate skill sets and talents to meet the demands of existing and emerging industries in ECER. • To create a pool of entrepreneurs and small medium enterprises for the Region’s four clusters – Tourism, Oil, Gas & Petrochemicals, Manufacturing and Agriculture.

empower ECER

TERAJU entrepreneur @ECER ECER Human Capital Development

SURI@ ETEP Home

Centre of Excellence (COE) 21 Human capital development PRIVATE & CONFIDENTIAL - empower programme COMPONENT

ACADEMIC TRAINING SKILLS & ENTREPRENEURSHIP DEVELOPMENT PROGRAMME

This program targets This program is directed at academically weak students unemployed graduates, youth and adults and single parents to motivating them to excel in develop entrepreneurial skills studies. and business acumen.

INDICATOR INDICATOR

• 100% Passes (UPSR, PMR, SPM) • Increase income through skills training, • 30% improvements in all subjects with 80% job placement or start own businesses

ACHIEVEMENT ACHIEVEMENT

• Number of students: 41,495 (as of June • Number of participants: 14,095 (as of 2016) June 2016) • Increment in participants’ income through • 98% of students have achieved 100% their own businesses aand direct passes in UPRS, PMR and SPM employment examinations 22 PRIVATE & CONFIDENTIAL Human capital development - entrepreneur ECER

1,886 1,069 Participants Participants 2,045 1,172 Participants Participants

10,148 empower ECER 97% Micro entrepreneurs 4,092 3% SME companies entrepreneur ECER

Grand total 14,240 432 118 Participants Participants 5,785 1,733 Participants Participants

As of June 2016

Increased local people participation in entrepreneurship 23 PRIVATE & CONFIDENTIAL Human capital development - entrepreneur ECER

40% RM5,000- Average RM 300,000 increase in Monthly income range income

SIRIM 148 entrepreneurs Developed 4,297 Agrobank MAYBANK 2,579 1,411 micro entrepreneurs entrepreneurs entrepreneurs and SME companies ENTREPRENEUR ECER with additional PROGRAMME TeraS income of 40% with Suri@HOME 92 39 income range of Companies Special Participants project RM2,000 – 28 Entrepreneurs RM300,000

28 Business opportunities As of June 2016

Increase in income and improved quality of life 24 Human capital development PRIVATE & CONFIDENTIAL - Agropolitan programme Total Participants Development Objectives 1,087 • Hardcore poverty eradication programme among residents in Pekan, Besut-Setiu and Gua Musang area

Economy Human Rural SOUTH KELANTAN project Capital development development AGROPOLITAN

Income RM1,400

Participant AGROPOLITAN 625 PHASE 1 (1-3 years) PHASE 2 (3-10 years) PHASE 3 (>10 Target income: Target income: years) RM1,000 RM1,500-3,000 Target income: RM3,000-5,000 Primary income Primary & secondary income >10 years Primary activity Activities • Oil palm • Oil palm • Dorper Cooperative • Cocoa farming Secondary activity Cooperative will • Cooperative • Cocoa, chicken rearing, manage the project Towards a High Income Communities cash crop professionally Besut Setiu South Kelantan Pekan 435 participants Bt 8, Lepar Runchang 100 participants 552 participants Tg. Batu participants (300 new participants) 100 participants 102 213 participants

Income range RM1,100 – Income Range RM1,000- Income Range RM900-RM 1,800 RM 1,600 RM 1,900 25

25 Cross-border projects PRIVATE & CONFIDENTIAL - Kampung Laut Tourism Development

PROJECT OBJECTIVE: To consolidate the future growth of Kampung Laut as a Heritage Tourism Village that will be a medium to create impact on local communities in terms of creating entrepreneurship, employment as well as improving local economy through tourism activities.

26 Cross-border projects PRIVATE & CONFIDENTIAL - Kampung Laut Tourism Development

PROJECT COMPONENTS . Preparation of Master Plan, layout plan and detailed design . Land acquisition . Development of Small & Medium Enterprise (SME) and Handicraft Centre . Information centre . Relocation of Kg Laut mosque . Upgrading of infrastructure such as road expansion and jetty

PROJECT STATUS

Land acquisition process is being carried out by Kelantan State government. Principal consultant for detail design has been appointed in 19 February 2016. Appointment of contractor is targeted on Q1 2017 and the construction period is within 2 years.

27 Cross-border projects PRIVATE & CONFIDENTIAL - Pasir Mas Halal Park PROJECT BRIEF PROFILE COMPONENTS

Pasir Mas Halal Park (PMHP) is an integrated halal industrial park with the total area of 108 acres and was given a Halmas status by Halal Industry Development Corporation (HDC).

PMHP is envisaged to become the food center for this region supported by an Entrepreneur Business Complex (EBC) abundant supply of raw materials from this region and .

PMHP will focus on producing high value- add halal products such as nutraceuticals /herbs, sauces, snacks, agro-based products, spices and meat products.

Industrial lot 28 Cross-border projects PRIVATE & CONFIDENTIAL - Pasir Mas Halal Park PROJECT STATUS

ENTREPRENEUR BUSINESS COMPLEX (EBC) . Kolej Universiti Islam Sains & Teknologi (KUIST) has moved into EBC on 16 February 2015 by occupying 17 units of SME and office units. . Jaazura Resources Sdn Bhd and Cengaljati Sdn Bhd are expected to commence their business in August 2016.

INDUSTRIAL LOT . ECERDC is currently in the discussion with four potential investors on commercial terms. . The next step is to table the land purchase request in the Implementation Committee meeting for approval. 29 Cross-border projects PRIVATE & CONFIDENTIAL - Tok Bali Integrated Fisheries Park (TBIFP) PROJECT BRIEF PROFILE COMPONENTS

An integrated fisheries park comprising fish- a) Public based industries and product manufacturing  First level infrastructure and support services. This will include an b) Private industrial fish processing park and  Jetty commercial, business and logistic  Ice factory & cold room infrastructure.  Logistics, collection & distribution center

 SME cluster There will be three phases to the  Incubators implementation: • Phase1 – To optimize resources and industry structure within TBIFP STATUS • Phase 2 – Intensify resources and The contractor has begun mobilization of expand to downstream industries physical work for Phase 1 in early August • Phase 3 – Leverage TBIFP’s position and 2015 . The work for Phase 1 is expected to develop it into a Regional Fisheries Hub be completed by end of January 2017

30 Cross-border projects PRIVATE & CONFIDENTIAL - IMT-GT Plaza PROJECT BRIEF PROFILE COMPONENTS SOUTH KELANTAN The IMT-GT Plaza will include a market for Market AGROPOLITAN fresh produce and dry products, retail shop - Retail spaces & F&B outlets Income lots as well as an information and distribution RM1,400 center for selected products from IMT-GT Participant countries. Business complex 625

- Office lot, retail shops Objective of this Plaza: and RTC a. To showcase the products from local, Indonesia and Thailand as well as a Supporting facilities marketplace for fresh produce from - Surau, toilets, Malaysia and Thailand; and playground, landscaping, b. To create a trade platform for SME to parking introduce, exhibit and market their products. Internal infrastructure - Water supply, drainage, sewerage system

31 PRIVATE & CONFIDENTIAL CONTENT

1 Introduction

2 Projects & programmes in ECER

3 Investment status

4 Moving forward Investment Status as at June 2016 PRIVATE & CONFIDENTIAL

FUNDING FROM GOVERNMENT:

Potential RM RM 24.6 bilion 6 bilion RMK-9 & RMK-10 RM Comitted 21.8 Investment bilion RM 90.7 bilion RM 208 Jobs million 133,756 RM Facilitation Approved 67.9 Fund bilion

33

RM14.06 13,094 Bilion Pekerjaan PRIVATE & CONFIDENTIAL CONTENT

1 Introduction

2 Projects & programmes in ECER

3 Investment status

4 Moving forward PRIVATE & CONFIDENTIAL ECERDC’s Strategic initiative

RMK-9 RMK-10 RMK-11

Regional Economic Corridor Focus on selected clusters Accelerating regional growth initiative commenced based on geographical and for better geographic balance sectoral advantages 35 Project Implementation PRIVATE & CONFIDENTIAL Strategy 1) Cross-border development • Infrastructure and industrial park project 3) SEZ ECER & Node 3 • Human capital – Capital and High- development Node 2 Tech Based programme Terengganu Economic Activity • Infrastructure and industrial park project Kelantan Node 3 • Human capital development 2) Rural & urban Node 5 programme development • Tourism development • Human capital ECER project development SEZ Node programme 1 • Social infrastructure Node 6 project • Tourism development project Node 7 • Environmental Pahang Preservation and Node 4 Conservation project • Agribusiness project Mersing 36 PRIVATE & CONFIDENTIAL Cross-border Development REGIONAL COLLABORATION 3 Studies IMT-GT JDS Malaysia -Thailand /Implementation Blueprint

CONNECTIVITY IMPLEMENTATION BY ECERDC 1. Pasir Mas Halal Park 2. Tok Bali Integrated Fisheries Park 3. CPPC Pengkalan Kubor 4. Bukit Bunga-Jeli Cross Border Tourism & Trade Development 5. Development of Kampung Laut 6. Tok Bali Industrial Park IMPLEMENTATION BY OTHER AGENCIES Road/ bridge 1. -Pengkalan Kubor bridge 2. Kota Bharu Inner Ring Road Jalan Wakaf Baru – Tumpat (D21) 3. Palekbang Bridge 4. (LPT) Phase 3

Airport & Port 1. Upgrading of Sultan Ismail Petra Kota Bharu Airport 2. Tok Bali Port

Industrial Area 1. Industrial Park

Rail 1. East Coas Rail Line 37 PRIVATE & CONFIDENTIAL Conclusion PROJECTS

67 26 18 35 RMK-9 projects RMK-10 projects RMK-10 projects to Applied projects under completed completed be completed RMK11 (2017)

INVESTMENT RM90.7bil RM110bil As of June 2016 JOBS Target 2020 JOBS 133,756 200,000 As of June 2016 Target 2020 38 COME AND DISCOVER ECER YOUR UNIQUE INVESTMENT DESTINATION

• THANK YOU

For more information please contact :

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