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Robust Business and Investment Opportunities in East Coast Economic Region

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Robust Business and Investment Opportunities in East Coast Economic Region ROBUST BUSINESS AND INVESTMENT OPPORTUNITIES IN EAST COAST ECONOMIC REGION 1 About ECERDC Membership of Council Chairman : Prime Minister 2 2 EAST COAST ECONOMIC REGION MALAYSIA ECER Malaysia is an economic corridor that is steadily positioning itself TERENGGANU as a distinctive, dynamic KELANTAN and competitive destination for investment. South China PAHANG Sea The East Coast Economic Straits of Malacca MERSING, region consists of 3 States JOHOR and 1 Districts: Kelantan, 51% Terengganu, Pahang and of the Peninsular Mersing in Johor. Malaysia Population (2019) Natural Resources 4.88 mil & Human Capital Oil Palm Oil & Gas Mineral Economic growth in ECER leverages on Labour Force abundant local natural resources and Fisheries Livestock Land 1.91 mil human capital Source: Department of Statistics Malaysia, 2019 Human Capital Crop Island & Beach 3 Strategic Location of ECER, Malaysia Resource Based Eastern Investment Tourism ECER Manufac- Gateway Destination Destination Positioning tured Products OBOR (One Belt One Road Initiative) is a network of infrastructural projects with a $1 trillion investment fund. Free trade throughout the Asia Pacific Region (21 member economies). EU Trade Agreement – 446 million consumers. USD3.0 trillion GDP 2.3 billion (ASEAN combined population Regional Comprehensive GDP in 2018) (ASEAN & East Economic Partnership (RCEP) Asia in 2018) between ASEAN countries and Australia, China, India, Japan, USD4,601 USD2.8 trillion South Korea and New Zealand - 6.1% growth rate ASEAN Trade 3.4 billion people with a ASEAN GDP per Volume (2018) combined GDP of approx. 4 capita (2018) USD50 trillion. Private Sector Investments 2006-2019 Logistics 1% Education 1% Agriculture 2% RM120.5 Services 2% Infrastructure 3% RM111.6 RM113.5 Real Estate 5% 23% Compounded Bioeconomy Average Growth RM91.6 7% Rate Oil, Gas & Manufacturing Petrochemicals 11% 50% RM70.9 Tourism 18% RM55.9 RM120.5 Billion RM35.5 Annual Cumulative Total of RM29.3 Investment Received in ECER, 2006- RM23.2 2019 (RM Billion) RM17.6 RM14.9 Cumulative Job Opportunities: RM11.9 RM9.7 117,500 2006/7 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 9th Malaysia Plan 10th Malaysia Plan 11th Malaysia Plan 5 Private Sector Investments 2006-2019 Electronics Thiochemicals Rohm-Wako Arkema • The economic Japan France linkage of the Steel Mercedes Automotive region to the Alliance Steel China Germany international value -Benz chains and the Automotive Chemicals ZF Chassis Huntsman markets of foreign Germany United States FDI countries BASF- Petrochemicals Chemicals Kaneka • Bring in Petronas Netherlands Japan internationally Biochemicals Wind energy recognised best CJ Bio South Korea CS Wind South Korea practices, skills and knowledge RM66.5 Bil RM54.0 Bil • Highest provider of Tourism Terengganu DRB-Hicom Automotive Job Opportunities Genting Group & Pahang Group Pahang • Forms the base of OGP Detik Biomass Fuel regional and state Petronas Terengganu Aturan Terengganu economies Bukit Gambang Tourism Geliga Ship Repair Facilities DDI • There is no transfer Resort Pahang Slipway Terengganu of funds abroad PNB Tourism Tok Bali Marine Supply Base Terengganu • Most businesses in Commercial Supply Kelantan the countryside are Manufacturing Base M&E DDI Avialite Terengganu UDPS Terengganu 6 ECER Industrial Parks 7 Industrial Parks in ECER Pasir Mas Halal Park (PMHP) • Fully integrated industrial parks complete with supporting industries and common Tok Bali Integrated Fisheries Park services. Equipped with primary (TBIFP) infrastructure Tok Bali Industrial Park (TBIP) • Each park is managed by a Park Manager corporation KELANTAN • Well-connected by TERENGGANU highways, airports and sea ports. Kertih Integrated Petrochemical Complex (KIPC) PAHANG Kertih Biopolimer Park (KBP) MCKIP3 Malaysia-China Kuantan Industrial Park (MCKIP) Gebeng Integrated Petrochemical Complex (GIPC) ECRL Main line Gambang Halal Park (GHP) Pahang Technology Park Manufacturing (PTP) Pekan Automotive Park (PAP) Digital Technology District of Park managed by Mersing ECERDC JOHOR 8 Industrial Parks In ECER PEKAN AUTOMOTIVE KERTIH BIOPOLYMER PARK PARK Pekan, Pahang Kertih, Terengganu Automotive Industry Bio-based, Cluster Petrochemicals and Speciality Chemicals PASIR MAS HALAL MALAYSIA-CHINA KUANTAN INDUSTRIAL PARK PARK Pasir Mas, Kelantan Kuantan, Pahang Food-based and Non- General food-based Halal Manufacturing Products PAHANG GAMBANG HALAL TECHNOLOGY PARK PARK Gambang, Pahang Gambang, Pahang IT and Science & Food-Based and Non- Technology Industries Food-Based Halal Products 9 Kertih Biopolymer Park (Kbp) Lot 6 Thiochemicals COMMERCIAL AREA Plant Lot 7 Lot 2 STP Lot 8 Lot 5 LotPPU 3 Lot 4 GAS LINE Lot 4A Lot B Lot C UNDER DEVELOPMENT SME Complex Lot D Steam Producing Accessibility • Kertih Airport - 8km • Kertih Port - 3km 420 Acres Plant • Kuantan Seaport - 87km Total Area Types of • Biomass, 62 Acres Preferred Biopolymer/Chemicals, Available Area Industry Polymer, Petrochemicals 10 Pekan Automotive Park (PAP) - Phase 2 PAP offers investment opportunities : Location Pekan Peramu, Pahang • Manufacturers of automotive parts and components Accessibility • 35 km to Kuantan Airport • Automotive assemblers* • 65 km to Kuantan Seaport • Manufacturers of car accessories • 30 km to Kuantan Town • Hybrid and electric vehicles • 260 km to Kuala Lumpur • Pick-up trucks and commercial vehicles • Motorcycles with engine capacity 237 Acres Existing players in Pekan of 200cc and above Total Area Automotive Park • R&D and technology providers and many more 62 Acres Available Area 22.94 ac Park Specifications Electrical Supply (kV) 11 to 132 Water Supply Capacity (cubic 3,000 metre/day) Sewerage Treatment Plant 13,000 Capacity (PE) 11 11 Pahang Technology Park (PTP) With the development of the PTP, Gambang will become the first high-tech and cyber city in the ECER 12 12 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 169 Acres Commercial zone Total Area 92.5 Acres Available Area 13 Pasir Mas Halal Park (PMHP) Phase 1 Phase 2 Industrial Zone EBC CPCC Warehouse • Rantau Panjang - 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 Commercial Zone 108 Acres Total Area 53.4 Acres Available Area 14 Malaysia-China Kuantan Industrial Park (MCKIP) LOGISTI C HUB COMMERCIAL OFFICE LIGHT SHOPPING INDUSTRIAL MALL & HOTEL 3,500 Acres SERVICED LANDED Total Area RESIDENTIAL APARTMENT CENTRA L PARK GOLF DRIVING 820 Acres RANGE AND Available Area HOSPITAL LEISURE SCHOOL MCKIP 3- LAYOUT PLAN 15 Game-Changing Infrastructure Connecting ECER to the 21st Century Silk Road and the rest of the world 16 Comprehensive Tansportation Network in ECER Highways & Roads: East Coast Highway, Central Spine Road, Federal Routes Maritime Ports: Kuantan Port, Kemaman Port, Kertih Terminal, Tok Bali Supply Base Air Ports: Kota Bharu, Kuala Terengganu, Kertih, Kuantan Rail: East Coast Rail Line (under development) 17 Kuantan Port – Gateway to South East Asia and Asia Pacific One Belt Qinzhou One Road Kuantan 52 Million freight Breakwater profile weight tonnes capacity of throughput per 18 m draught 4,700 m 4.4km (23 berths) year breakwater Cater for 200k 2.6 km stopping 295 ha area size DWT ships distance 18 Aerial view Port operations commenced in September 2018 East Coast Rail Link– Gateway to South East Asia and Asia Pacific Pasir Mas Halal Park Uplift TOK BALI Efficient livelihood and Greater INDUSTRIAL PARK movement of economic Accessibility & goods and status of Mobility services people TERENGGANU SILICA VALLEY Rural Urban Integration KERTIH BIOPOLYMER PARK Further attracts investments into ECER KEMAMAN HEAVY INDUSTRIAL PARK MCKIP / GEBENG INDUSTIRAL AREA Boost Tourism Industry PAHANG TECHNOLOGY PARK GAMBANG HALAL PARK Support Industrial Activities PEKAN AUTOMOTIVE PARK Potential growth for Transit Oriented Developments (TODs) Source: MRL Website 19 The Next Leap ECER Master Plan 2.0 (2018-2025) 20 Background Of ECERDC TO BE A DEVELOPED REGION BY 2025 (DISTINCTIVE - DYNAMIC – COMPETITIVE) [2018 – 2025] RM70bil. 120,000 60,000 Private Investment Jobs Entrepreneur FOCUS SECTORS Logistic and services Manufacturing Oil, gas and Human capital petrochemical Tourism Agribusiness development ECERDC was formed as a Council to facilitate the development of the ECER Region by engaging and complementing the Federal and State Agencies 21 Investment Incentives Investment incentives for ECER are offered ECER Incentive Package was gazetted on to investors: 30 June 2016 OR Encourage higher value-added, 100% 100% INVESTMENT TAX INVESTMENT TAX EXEMPTION tech-intensive and highly-skilled ALLOWANCE (ITA) based for on qualified capital kapital expenditure investments expenditure made for 10 YEARS Commencing from the year 5 YEARS company derives statutory income Investments with low value • Deduction for eligible added but provides unique agricultural projects; proposition to human capital • Exemption for stamp duty; development, job creation and • Witholding tax exemption;and entrepreneurial opportunities will • Tax deduction for hallmark still be considered events The ECER
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