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East Coast Economic Region Malaysia EAST COAST ECONOMIC REGION MALAYSIA HOW TO BUILD A LARGE-SCALE BIOECONOMY MEGACLUSTER REGION WORLD CONGRESS ON INDUSTRIAL BIOTECHNOLOGY JUNE 17, 2013 1 MALAYSIA KEY ECONOMIC INDICATOR 2010 2011 2012 Area (km2) 330,803 Real Gross Domestic Product 7.4% 5.1% 5.6% Population in millions 28.1 29.0 29.49 Work Force in millions 12,303.9 12,675.8 13,119.6 Export (RM in million) Oils & Animal and Vegetable fats 54,139.4 73,252.2 63,497.8 Mineral Fuels, Lubricants, and 101,958.4 123,203.6 142,798.4 Other Materials Chemistry 40,618.3 46,208.8 46,152.9 Source: Department of Statistic, Malaysia 5 ECONOMIC CORRIDORS NCER: Northen Corridor PERLIS Economic Region SDC: Sabah Development KEDAH ECER: East Coast Corridor PENANG Economic Region KELANTAN SABAH PERAK TERENGGANU PAHANG SELANGOR SARAWAK NEGERI SEMBILAN MELAKA JOHOR SCORE: Sarawak Corridor of Renewable IRDA: Iskandar Malaysia Energy East Coast Economic Region is a resource rich region and established to promote growth in a viable, equitable and sustainable manner. EAST COAST ECONOMIC REGION MALAYSIA ECER KEY FACTS 2010 Estimated 2020 Population 4.2 million (14% 5 million of national population) Workforce 1.6 million 2 million Jengka GDP Growth 6.2% 7.2% Node 7: DARA - LKWJ KDA GDP Per Capita RM5,900 RM15,720 66,736 sq.km OR Rich with an abundance of natural resources which form the basis for of the Peninsular transforming the economy 51% Malaysia 2 LEVERAGING ON THE KEY STRENGTH OF THE ECER REGION NATURAL RESOURCES CLUSTERS HUMAN CAPITAL/EDUCATION Manufacturing Palm Oil Fisheries Oil, Gas & Petchem Agriculture Iron Ore Oil & Gas Tourism Abundant land Livestock Education • Hardworking • Enterprising • Creative Islands Beaches Economic growth in the East Coast will leverage on abundant natural and human capital resources in the Region 5 ECER SPECIAL ECONOMIC ZONE (ECER SEZ) ECER SEZ is a concentrated of high-impact projects supported by good infrastructure development Focus Nodes & Project Free Zones Port City • Kuantan Port City (Integrated Development) • Kertih Port • Kertih Integrated Petrochemical Complex • Kertih Biopolymer Park • Kemaman Heavy Industrial Park • Kemaman Boat Building & Repair Park Industrial Parks • Kuantan Integrated Bio Park • Malaysia-China Kuantan Industrial Park • Pahang Technology Park • Gambang Halal Park • Gebeng Integrated Petrochemical Complex • Pekan Automotive Industrial Park • Cherating Tourism Town Tourism Zones • Kuala Pahang Tourism Zone • Kemasik- Kijal Tourism Zone USD 32 B 250,000 387,481 Investment by 2020 New Jobs hectares 6 REGIONAL POSITIONING OF THE ECER Eastern Gateway to almost 4 billion population of ASEAN, Asia Pacific & Far East, with US$17 trillion combined GDP. Major Tourism Destination. Exporter of Resource-based and Manufacturing products. Positioned as infrastructure and logistics hub. 7 LINKAGES TO GOVERNMENT INITIATIVES VISION 2020 THE CORRIDORS AND CITIES HIGH INCOME TRANSFORMATION PROGRAMME INCLUSIVENESS SUSTAINABILITY NEW ECONOMIC MODEL Government Economic Corridors and Cities Bioeconomy Transformation Transformation Transformation Transformation Programme (GTP) Programme (ETP) Programme Programme (BTP) • 14 EPPs for 6 National Key 8 Strategic Reform Capitalizing Result Areas Initiatives (SRIs) Corridors biotechnology • 4 EPPs for City resouces for business GOVERNMENT SUSTAINABILITY COMMITMENT To reduce the carbon footprint by 40% in terms of emission intensity of GDP by 2020 compared to the 2005’s levels 8 BIOECONOMY TRANSFORMATION PROGRAMME (BTP) Private Investments: USD 3.3 B New Jobs Creation: 33,154 Development Development Development of Agricultural of Healthcare of Industrial Biotechnology Biotechnology Biotechnology AGRICULTURE HEALTHCARE INDUSTRIAL Herbal Cluster Pharmaceutical Biopolymer Fisheries Nutraceutical Biochemical Dairy Cattle Bioremediation Goat & Sheep 9 THE VALUE CHAIN POTENTIAL BIO-BASED PRODUCTS NATURAL RESOURCES CLUSTERS Food & feed Manufacturing Specialty chemicals Palm Oil Fisheries Oil, Gas & Petchem (Base) chemicals & materials Agriculture Fuels Specialty Herbs Oil & Gas BY-PRODUCT Power Education Energy/Steam Abundant land Livestock BY-PRODUCT Value chain integration will result in ZERO waste output 10 BIOECONOMY MEGACLUSTER APPROACH – THE DEFINITION Manufacturing . Connect Linkages Between Existing Industries . Leveraging On Current Availability Of Feedstock And Infrastructure Oil, Gas & Petchem . Enhancing Infrastructure For Development Of Total Ecosystem . Driven By High Impact Projects With Significant Agriculture Size Of Investment . ECER Malaysia is well positioned to be a premier bioeconomy megacluster 11 ECER MEGACLUSTER APPROACH Focus Nodes & Free Project Zones • Kertih Integrated Petrochemical Complex • Kertih Biopolymer Park • Kemaman Heavy Industrial Park Industrial • Kuantan Integrated Bio Park • Malaysia-China Kuantan Industrial Parks Park • Pahang Technology Park • Gambang Halal Park • Gebeng Integrated Petrochemical Complex • Pekan Automotive Park 12 FEEDSTOCK AS THE FOUNDATION FOR MEGACLUSTER 1 M ha Kertih Biopolymer forest and oil palm plantation Park ganu 4.6 M mt Kuantan Integrated Dry Weight Biomass BioPark Biopolymer, biochemical and bioremediation focus Private New Jobs Investments: Creation: USD 3B 9,010 13 KERTIH BIOPOLYMER PARK KERTIH BIOPOLYMER PARK (KBP) KERTIH, TERENGGANU Located in Kertih, Terengganu Asia’s Largest Second Generation Biorefinery Complex KERTIH BIOPOLYMER PARK Phase 2 • Kertih Airport: 8km Accessibility • Kertih Port: 3km Phase 1 Location Kertih, Terengganu Kertih Biopolymer Park (KBP) Kertih Industrial Total Area 140 ha Area Type of Preferred Biomass, Biopolymer Industry 750 ha USD 2 B 140 Private Investment New Jobs 15 KERTIH BIOPOLYMER PARK (KBP) KERTIH, TERENGGANU First in the world production of L- SME Methionine using fermentation process and FUTURE EXPANSION HI-ESSENCE CABLE PLAN RAILWAY LINE Asia’s first Thiochemicals platform World’s first bio-isobutonol from biomass manufacturing plant FUTURE INVESTOR Steam producer from biomass 16 FEEDSTOCK FOR KERTIH BIOPOLYMER PARK (KBP), TERENGGANU 1 1 Conversion Fermentation Process Process Animal Feed 36,000 Hectares Biomethionine Leucaena 2 leucocephala Plantation 2 Wood Chips Cellulosic Sugar Bio-Isobutanol Wood Chip Mill INTERMEDIARIES : Ammonia, Hidrochloric acid etc from the LOCAL DOWNSTREAM Petrochemical Clusters FEEDSTOCK INDUSTRIES 17 KERTIHSYNERGY BIOPOLYMER WITH THE KERTIH PARK (KBP)INTEGRATED KERTIH, TERENGGANUPETROCHEMICAL COMPLEX KERTIH INTEGRATED PETROCHEMICAL COMPLEX Support Infrastructure: Kertih–Kuantan Railway System Two bulk transport port and One liquid cargo port Kertih Centralized Emergency & Fire Fighting Services (CEFS) PETRONAS Centralized Utility Facilities (CUF) 18 KUANTAN INTEGRATED BIOPARK KUANTAN INTEGRATED BIOPARK (KIBP), PAHANG KUANTAN INTEGRATED BIOPARK Accessibility • Existing Kuantan Port : 5km • Kuantan City : 15km • Kuantan Airport : 20km • Connected to East Coast Highway Location Kuantan, Pahang Infrastructure Provide first level of infrastructure KIBP Readiness such as water, electricity, telecommunication, stp. Total Area 245 ha Type of Downstream palm oil industries Preferred (food and non-food) Industry 20 FEEDSTOCK AVAILABILITY IN KIBP UPSTREAM FEEDSTOCK DOWNSTREAM Advanced Carbohydrates 2.8M MT New Jobs CRUDE PALM OIL Creation Biofertilizer 700,000 HA BIOMASS OIL PALM 70 8,300 PLANTATION MILLS Surfactants BIOMASS Private Investment Biomaterials 2.0 M MT DRIED BIOMASS USD 1B Food/Feed 10,000 HA WOODY BIOMASS BIOMASS 1.2 M MT Phytonutrients DRIED WOODCHIPS 21 KUANTAN INTEGRATED BIOPARK (KIBP), PAHANG Layout (the clean version) Polyol / Polyutherane EBC and Management office Complex Industrial Zone Surfactant Complex SME Zone Phytonutrients Complex Food Processing Complex Bulking Facility 22 KEY FEATURESSUPPORTING INFRASTRUCTURE KUANTAN PORT CITY Sport Complex / Newly Planned Residential Sport University Areas KIBP Tourism Maritime Training Centre Kuantan Port Commercial Industrial Area 23 SUPPORTING INFRASTRUCTURE KUANTAN PORT EXPANSION • Upgraded and expanded as the main 4.7km Breakwater gateway to the Asia Pacific Region. • Include construction of a new deep water terminal NEW KEY FEATURES: (a) 18-metre draught (b) 200,000 DWT Vessel (c) 4700m Length of Breakwater (b) 700m Arrival/Turning Basin (c) 2.6 km Stopping distance (d) 6,040m Berth length (e) 295ha Land area 24 SYNERGY WITH OTHER EXISTING PARKS Over 3,000 acres of combined areas ready for investment within Kuantan Port City PAHANG TECHNOLOGY PARK GEBENG INTEGRATED KIBP PETROCHEMICAL COMPLEX GAMBANG HALAL PARK MALAYSIA CHINA KUANTAN INDUSTRIAL PARK PEKAN AUTOMOTIVE INDUSTRIAL PARK 25 SUPPORTING INDUSTRIES FOR THE MEGACLUSTER 26 PHARMACEUTICAL AND NUTRACEUTICAL BASED INDUSTRIES INITIATIVES Tok Bali Integrated RESOURCES Fisheries Processing OUTPUT Park Pasir Raja Herbal & Biotechnology Park Herbal Product Derivative Pasir Mas Halal Skin Products Processed Foods - Pasir Raja Sugar Park ganu Gelatine Herbs extract Raw Materials from Oleochemicals Muadzam Shah, Gambang K. Berang Halal Park Pharmaceutical Cosmetic Strategic development for Livestock Fisheries Products - Merchong & downstream processing in Kuantan pharmaceutical and nutraceutical based industries. New Jobs Private Creation: Investment: 12,881 USD360M 27 HUMAN CAPITAL DEVELOPMENT Collaborating with other government agencies such as TalentCorp and BiotechCorp to develop human capital program to meet investors requirements MALAYSIA WITHIN ECER 185,000 10,000 2,000 20,000 TOTAL SCIENCE AND GRADUATES TECHNICAL TOTAL SCIENCE AND IN MALAYSIA
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