Tourism projects in ECER PRIVATE & CONFIDENTIAL Eco-tourism

Taman Negara -Rompin islands

Setiu Wetlands

Kepulauan

Taman Negara Taman Negara Tasik Chini Endau Rompin 5 Management Plan Setiu Wetlands Lojing

24 Taman Negara Taman Negara Tasik Chini Endau Rompin PRIVATE & CONFIDENTIAL

Tourism projects in ECER Island tourism

KepulauanTerengganu Terengganu islands Pulau Perhentian Kecil Pulau Perhentian Pulau Pulau Perhentian Perhenti Besar an island Pulau Kecil Redang

Jetty maintenance at Pulau Tioman Pulau Redang Teluk Aur Terengganu Jeti Kg. Air Batang Pulau Tioman Kuala Kg.Salang Terengganu Jeti Teluk Siang Jeti Teluk Kalong Location for Pulau ‘boardwalk’ Kapas Pulau Kapas Kg. Penuba Jetty Kg. Air Bridge Batang Taman Laut Surau Kg. Tekek Sg. Tekek bridge

Berjaya Tioman Beach Resort Kg. Juara Kepulauan Terengganu KepulauanMersing Mersing islands KEPULAUAN MERSING Kg. Paya

Pulau Tinggi Kg. Genting PULAU Pembaikan Masjid Kuala Pulau Tioman TIOMAN Batang Sabut Bridge Pulau Rompin Kg. Nipah Pulau Acheh Pemanggil PULAU AUR Kg. Mukut Kg. Endau Asah Pulau Aur PULAU BESAR Sg. Said Bridge PULAU TINGGI Jeti Mersing Pembinaan 2 Jambatan Jeti Tg. Leman PULAU SIBU Pulau Sibu Pulau Besar Upgrading works Upgrading works, Jetty and retaining and construction construction of wall construction of 3 bridges Information Centre and water treatment system 25 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) 26 PRIVATE & CONFIDENTIAL Agropolitan programme Total Participants Development Objectives 842 • Hardcore poverty eradication programme among residents in Pekan, Besut-Setiu and Gua Musang area

Economy Human Rural project Capital development PEKAN BESUT-SETIU SOUTH development AGROPOLITAN AGROPOLITAN AGROPOLITAN

Income Income Income RM1,400 RM1,100 RM1,400

Participant Participant Participant AGROPOLITAN 415 102 625 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 415 participants Bt 8, Lepar Runchang 100 participants 625 participants Tg. Batu participants (300 new participants) 100 participants 102 213 participants

Average Income RM1,100 Average income RM980 Average income RM1,400 Average income RM1,500 Average income RM1,2004

4 PRIVATE & CONFIDENTIAL Agropolitan programme

PEKAN AGROPOLITAN Primary activity:

Secondary activity: Dorper sheep rearing at Secondary activity at Tg Batu Secondary activity of chicken Batu 8 & Runchang farming by Cooperative

BESUT -SETIU AGROPOLITAN

Primary activity:

Dorper sheep rearing at Besut- Participants house Fodder management Setiu Agropolitan SOUTH KELANTAN AGROPOLITAN Primary activity:

Secondary activity:

Agronomy activity at SKA Cocoa planting Cocoa empower ECER –Academic programme

This program targets academically weak students motivating them to excel in studies

Achievement 20 locations

Bachok 33,439 Students 1,674 Besut 5A Jeli 100% And above Passes (UPSR, PTP & SPM) Hulu Terengganu Dungun students 13,941 Completed the programme Lipis Kemaman Target group Raub Selection criteria for students (UPSR, PT3 & SPM) Kuala Pahang

Bera • Weak students 2010

• Poor students 2011

2012 Rompin 2013 2014 Mersing

Started Started year 2015 29 empower ECER – Skills & Entrepreneurship development

To develop entrepreneurial skills and business acumen for youths and adult Achievement 20 locations 5,476 11,695 Women Bachok Ketereh Participants Besut Jeli 4,650 84% Started Completed business/ employed Hulu 7,045 Terengganu Dungun Actively participating Kerteh Cameron Highlands Collaboration partners Lipis Kemaman • District office Jerantut • Local councils Raub Kuantan • Jabatan Tenaga Kerja (JTK) Maran Bentong Kuala Pahang

Bera 2010 Temerloh

2011

2012 Rompin 2013 2014 Mersing

Started Started year 2015 30 PEMBANGUNAN MODAL INSAN PRIVATE & CONFIDENTIAL ECERAGROPOLITAN Entrepreneur PEKAN programme ProgramIMPAK PELAKSANAAN entrepreneur ECER Easy financing in collaboration with Maybank and Agrobank

AGROBANK MAYBANK FUND FUND

39 469 ECERDC ECERDC ENTREPRENEURS ENTREPRENEURS FUND FUND 513 126 Increase in Increase in income income 605 30% 228 30%

75 2 Smart partnership with Financial assistance with lower interest rate (finance `topping-up’ rate) banks

Improving loan Direct funding to the entrepreneurs repayment 31 PEMBANGUNAN MODAL INSAN PRIVATE & CONFIDENTIAL ECERAGROPOLITAN Entrepreneur PEKAN programme ProgramIMPAK PELAKSANAAN entrepreneur ECER Product development and marketing program in collaboration with SIRIM

Guidance Product development Halal & MeSTI Marketing

Planning for market Improving product quality Consultation services and Quality improvement penetration (local & guidance to obtain Packaging and brand international) HALAL or MeSTI certification registration

Help consultation and guidance to Increase in procurement HALAL certification or MeSTI income 35 5 NUMBER OF ENTREPRENEURS FOR EACH STATE Obtained Obtained >25% halal “MeSTI” status certification

5 entrepreneurs have reached export standard level 31 and will continue with promotion activities in Nanning, China in September 2015 14 • Mitra Food Industries (Instant coffee - Kelantan 28 • MH Mohd Industries (Sauce - Kelantan) • Adilah Products Sdn Bhd (Soy sauce, sauce- Kelantan) Total Participants • Softa Marketing Sdn Bhd (Fish crackers - Terengganu) 81 • Permata Al-Wahyu Sdn Bhd (Chocolate biscuits - Pahang) 8 32 ECER Talent Enhancement PRIVATE & CONFIDENTIAL Programme (ETEP) Increase job opportunities and skilled labour workforce among graduates and sub-professionals through collaboration with private companies

ETEP COMPONENTS Phase 1- Number of 164 employed participants participants

190 Currently on the participants training

To participate in next 721 programme starting Match & Train Upskilling Train & Place participants year 2015 Participant will be For the existing To build a talent trained and employee to pool via industry Target 830 developed by the enhance their skill, relevant skills 2016 Participants participating knowledge and training and on-the companies performance thru job practical professional 50% of the monthly exposure allowances will be certification borned by ECERDC program

10 33 Suri@HOME di Pahang, PRIVATE & CONFIDENTIAL Kelantan & Terengganu

Objective To generate Job opportunities and improve the economic well-being of women, especially single mothers in ECER

Emphasizes “home- based” industries such as handicraft and agriculture Songket Batik Kelantan • Number of participants 20 • This program will start in • Average additional income ACHIEVEMENT October 2015 RM1,000-RM2,000

Tenun

• Number of participants 18 • Average additional income RM900-RM1,800

34

PRIVATE & CONFIDENTIAL CONTENT

1 Introduction

2 ECERDC formation

3 Latest progress development in ECER

4 Investment status

5 Moving forward ECER’s Competitive Investment PRIVATE & CONFIDENTIAL Incentives

Fiscal Incentives • (or) Income tax exemption equivalent to 100% of 100% qualifying capital expenditure (or Investment tax allowance) for 5 years • Stamp duty exemption for industrial park INCOME TAX development, agriculture and tourism projects EXEMPTION FOR • Import duty and sales tax exemption on raw materials, components, machinery, equipment, spare parts and consumables that are not produced 10 YEARS locally and used directly in the production activity

Commencing from the Non-Fiscal Incentives year company derives • Competitive Land Prices statutory income • Industrial park ready with infrastructure • Flexibility in employment of expatriates • Facilitation of human capital development • Facilitation Fund from UKAS* / TERAJU@ECER * (Public Private Partnership Unit)

Note: Customized incentives are given on merit basis. 36 Investment status as of June PRIVATE & CONFIDENTIAL 2015 80 RM bilion Committed Approved 70 RM78 6,420 Management 60 bilion 50 55.7 40 13,600 Technical 30 22.3 20 23.50 9,700 10 Skilled 0 workers RMKCategory-8 (2001 1-2005) YearCategory 2008 4 – 2014 (RMK-9 and RMK-10) 46,400 Semi- skilled 13,443 workers RMK-8 Jobs

RMK-9 & 10 76,120 (Year 2008 – June 2015) Jobs 37 PRIVATE & CONFIDENTIAL Private investment for KDAs in 2,763 ECER Jobs

Out of KDAs MIDA Tumpat RM0.81 Private Bilion Cross Bachok RM 14.06 investment Nod RM 0.81 border billion 5,574 RM 5.1 billion Bilion develop Besut 13,094 Jobs 2 2,763 jobs ment Jeli jobs

KTCC – Kenyir – Dungun KDA

Kuala Private KELANTAN Terengganu Nod investment Kuala RM 5.1 9,107 Private Gua Gua Musang Berang Bilion Jobs investment Nod Musang - Dungun 3 3,681 RM 6.3 Jobs Bilion 5 KDA Kuala Lipis Kerteh Special Economic Zone ECER PAHANG (ECER SEZ) Private investment Private Nod Raub 31,772 investment Nod Kuantan RM 37.5 7,626 Bentong – Bilion Jobs RM 5.8 Raub KDA Bentong 1 Jobs Bilion Gambang 6 Pekan

Private Nod investment 2,387 Private Jobs investment Nod RM 2.7 DARA – 4 Bilion 116 RM 0.6 Jengka Jobs Bilion KDA Endau Pulau 7 Tioman Mersing –Rompin Rompin KDA

Mersing MERSING 38

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

1 Introduction

2 ECERDC formation

3 Latest progress development in ECER

4 Investment status

5 Moving forward PRIVATE & CONFIDENTIAL Moving forward

In order to ensure all the ECERDC’s strategic initiatives identified in the 11th Malaysia Plan are implemented and achieve its expected outcome, ECER Master Plan remains relevant as it is aligned with the six (6) key thrusts which underpinned the 11th Malaysia Plan

40 PRIVATE & CONFIDENTIAL Issues & Challenges PROJECT IMPLEMENTATION • Limited social & physical infrastructure network & connectivity • Challenging physical geographic condition • Limited funding for the implementation of high priority projects

SOSIO-ECONOMY PRIVATE • Low household income INVESTMENT • Income disparity among the • Uncertain global economic middle and bottom 40% outlook group • Stiff regional competition for • Limited manufacturing sector ECER FDI and pool of entrepreneurs • Lack of value added activities • Limited labor force and high in key economic sectors unemployment rate

ENVIRONMENT Environmental degradation, climate change and unplanned development 41 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 42 Proposed new projects under PRIVATE & CONFIDENTIAL RMK11

KOTA BHARU

KELANTAN TUMPAT

BUKIT BUNGA 10 TERENGGANU

KELANTAN 11

Pelabuhan PAHANG Kemaman PAHANG Pelabuhan Kuantan 14 KUANTAN PEKAN LEGEND:

Agribusiness ACROSS ECER MERSING Tourism Manufacturing 2 5 Human Capital MERSING development/ Agropolitan Special Economic Zone 43 PRIVATE & CONFIDENTIAL Cross-border Development REGIONAL COLLABORATION 3 Studies IMT-GT JDS Malaysia -Thailand /Implementation Blueprint

CONNECTIVITY IMPLEMENTATION BY ECERDC 1. Halal Park 2. Tok Bali Integrated Fisheries Park 3. CPPC 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. Tak Bai-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 44 PRIVATE & CONFIDENTIAL Conclusion PROJECTS

67 25 21 43 RMK-9 projects RMK-10 projects RMK-10 projects Proposed projects completed completed to be completed under RMK11 INVESTMENT RM78bil RM110bil As of June 2015 Target 2020

JOBS JOBS 76,120 200,000 As of June 2015 Target 2020

45 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