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ECERDC Formation ECONOMIC CORRIDOR DEVELOPMENT TRAINING FOR COMPETITIVE AND INCLUSIVE ASIA MODULE 2: DRIVERS OF ECONOMIC CORRIDOR DEVELOPMENT “THE EXPERIENCE OF THE EAST COAST ECONOMIC REGION” CENTRE FOR IMT-GT SUBREGIONAL COOPERATION (CIMT), PUTRAJAYA 2 SEPTEMBER 2015 Confidential PRIVATE & CONFIDENTIAL CONTENT 1 Introduction 2 ECERDC formation 3 Projects & programmes in ECER 4 Investment status 5 Moving forward PRIVATE & CONFIDENTIAL Corridor Authorities in Malaysia 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 PRIVATE & CONFIDENTIAL About ECER QUICK FACTS ECER MASTER PLAN Population: 4.2 million (15% of Malaysia population) The main objective of the ECER Master Plan is to bridge the regional disparity by: 66,736 sq km/ 51% of the Peninsular land area. Total area: • Developing the economy of the ECER in a The East Coast Economic Region (ECER) has a population of State Income competitive, balance and sustainable manner about 4.2 million (2013) representing 15% of Malaysia population. gap (2012) The total area of the Region is 66,736 sq km or 51% of the • Implementing programmes and projects to Kelantan Peninsula land area. 1 : 0.63 raise income levels and eradicate poverty Terengganu 1 : 0.79 by generating job prospects and Pahang entrepreneurialism through high impact 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 Average monthly household income in ECER opportunities. Logistic, ICT, Finance and Support Services and Malaysia for 2012. 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 4 PRIVATE & CONFIDENTIAL ECER Master Plan TO BE A DEVELOPED REGION BY YEAR 2020 VISION - DISTINCTIVE - DYNAMIC - COMPETITIVE - MISSION THRUSTS 1. To correct the regional imbalance by raising the living standards of the population in ECER; MISSION 2. To move the economy up the value chain; 3. To strengthen human capital and talent capacity; and 4. To drive sustainable development and growth. STRATEGIC THRUSTS STRATEGIC PROJECT INITIATIVES STRATEGICSTRATEGIC DEVELOPMENTDEVELOPMENT THRUSTSTHRUSTS TOURISM Tourism Strategic Initiatives OIL,GAS, PETROCHEMICAL Oil, Gas, Petrochemical Strategic Initiatives ECONOMIC ECONOMIC MANUFACTURING Manufacturing Strategic Initiatives AGRICULTURE Agriculture Strategic Initiatives SOCIALSOCIAL HUMAN CAPITAL DEVELOPMENT Human Capital Development Strategic Initiatives OTHER ENABLING SECTORS Other Enabling Sectors Strategic Initiatives PHYSICALPHYSICAL ECER MASTER PLAN 5 Seven Key Development Areas PRIVATE & CONFIDENTIAL (KDAs) of ECER Tumpat Kota Bharu Bachok Node Rantau Panjang Cross border Tok Bali Bukit Bunga development Besut 2 Jeli Kuala Node KELANTAN Terengganu KTCC – Kenyir Kuala Gua Musang Berang – Dungun 3 Node Gua Dungun Musang - 5 Kuala Lipis KDA Kuala Lipis Kerteh PAHANG Bandar Tun Abdul Razak ECER Special Node Raub Economic Node Bentong – Kuantan Bentong Zone (SEZ) 1 Raub KDA Gambang 6 Pekan Bandar Muadzam Shah Node Node 4 DARA – Jengka KDA 7 Endau Pulau Mersing –Rompin Tioman KDA Rompin Mersing MERSING 6 Regional Positioning Of The PRIVATE & CONFIDENTIAL ECER Eastern Gateway to almost 4 billion population of ASEAN, 1 Asia Pacific & Far East, with US$17 trillion combined GDP 2 Major Tourism Destination Exporter of Resource-based 3 and Manufacturing products Positioned as infrastructure 4 and logistics hub 7 Cluster Approach is aligned with the NKEAs under PRIVATE & CONFIDENTIAL the Government’s Economic Transformation (ETP) 14 EPPs FOR CORRIDOR Cluster Jobs Private investment 14 EPPs Agriculture For corridor Aquaculture 4,516 94% Dairy Cattle 1,026 86% Goat & sheep 3,727 83% Cassava 4,200 76% Tourism Coastal 32,358 94% Eco tourism 2,056 91% Island tourism 3989 95% C&C LAB IDENTIFIED 18 Entry4 EPPs Point Manufacturing ProjectsFor cities in Automotive 28,338 94% ENTRY POINT PROJECTS (EPPs)SEZ assembly Modern Amenities Downstream palm 8,259 88% Essential Services (EPPs) oil Kuantan Waterfront Flood Mitigation 4 EPPs FOR CITIES IN SEZ Public Investment: RM237 mil Public Investment: RM653 mil Cluster Public investment Private investment Halal Hub 12,881 89% Private Investment: 90% Oil, Gas & Petrochemicals Sewerage Management Modern amenities Connectivity Public Investment: RM926 mil Kuantan Waterfront 237 mil 90% Polymer 3,229 97% Buses & Taxis Connectivity Supply Base 14,010 95% Public Investment: RM56 mil Services Buses & taxis 56 mil - Enablers - Infrastructure Essential services Kuantan Port 8,638 75% Flood mitigation 653 mil - Expansion Sewerage management 926 mil - Roads & Rail - 3.4% 8 PRIVATE & CONFIDENTIAL CONTENT 1 Introduction 2 ECERDC formation 3 Projects & programmes in ECER 4 Investment status 5 Moving forward ECERDC Formation: To Narrow PRIVATE & CONFIDENTIAL Regional Disparity 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 & OUR ROLE 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 • Minister of Transport ECER Master Plan to transform ECER into a • Chief Secretary to the Government developed region by 2020. • Private Sector Representatives 2• To provide the proper direction, - PETRONAS policies and strategies in relation to the - DIALOG GROUP BHD 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). 10 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. 11 PRIVATE & CONFIDENTIAL Shared Values (ALIP) Raise the living standards of Rakyat in ECER Our Roles… Our Shared Values…… Trustee As ONE Promoter Consolidate Catalyst Deliver Sustain Professionalism Facilitator Loyalty Integrity Implementer 12 ECERDC KPI Strategy PRIVATE & CONFIDENTIAL Framework 13 PRIVATE & CONFIDENTIAL Achieving Transformation Raise The Living Standards Of The Rakyat In ECER Private Total RM78 investment 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 14 PRIVATE & CONFIDENTIAL CONTENT 1 Introduction 2 ECERDC formation 3 Projects & programmes in ECER 4 Investment status 5 Moving forward Infrastructure Projects- Generate PRIVATE & CONFIDENTIAL private investment in ECER SEZ ECER SPECIAL ECONOMIC ZONE . SEZ covers 6% of ECER area . Contributes 50% of job opportunities and 80% of economic output for the ECER Public investment Private 100% Investment • Kuantan Port expansion RM2.2 a. Breakwater 80% bilion RM37.5 b. Supporting / external infrastructure 60% • Kuantan Port City development billion 40% a. Port Link Road – to connect MCKIP and Kuantan Port 20% b. Water Storage Tank (R2 & R8) for Gebeng 0% Industrial Area ECER ECER ECER ECER Jobs Land Projects Jobs GDP • Panching Water Treatment Plant, Kuantan Within SEZ Outside SEZ • Ganchong Water Treatment Plant, Pekan 31,772 Panching Water Treatment Plant Loji Rawatan Air Panching Breakwater KPC Port Link Road R8 Water Storage Tank 16 PRIVATE & CONFIDENTIAL Industrial Parks in ECER KERTIH PASIR MAS HALAL PARK BIOPOLYMER Pasir Mas PARK Private investment in 2020 RM27.5 billion Private Kertih investment GAMBANG HALAL PARK RM24.7 MALAYSIA-CHINA (MCKIP) billion KUANTAN INDUSTRIAL PARK Kuantan Gambang 14,809 Pekan Jobs PEKAN KUANTAN INTEGRATED AUTOMOTIVE BIOPARK PARK 17 Generate agricultural sustainability
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