An Investment Guide to the ECER

DUE EAST An Investment Guide to the ECERDUE EAST MALAYSIAInvestors' Guide 2MALAYSIAwww.ecerdc.com.myAn Investment Guide to the ECERInvestors' Guide 3

2 Foreword By The Prime Minister Of Malaysia4 The Competitive Edge11 The East Coast Economic RegionDevelopment Council15 State Development FocusKelantanTerengganuPahangMersing, Johor31 A Region Set For Growth36 Key Economic DriversTourismOil, Gas & PetrochemicalManufacturingAgricultureEducationcontents80 The ECER Special Economic Zone90 The ECER SEZ Focus Nodes98 Enabling Sustainable DevelopmentTransportationInfrastructureReal EstateEnvironment102 ECERDC: The One-Stop Centre For Investors104 The ECER Incentives Package120 Malaysia: Living It Up125 Contact Us© East Coast Economic Region Development Council (ECERDC) 2010All rights reserved. No part of this document may be reproduced, stored in a retrieval system,transmitted in any means (electronic, mechanical, photocopying, recording or otherwise)without the permission of the copyright owner (ECERDC)

THE COMPETITIVE EDGEThe East Coast Economic Region (ECER), coveringthe states of Kelantan, Terengganu, Pahang and thedistrict of Mersing in Johor, is rapidly transforminginto one of Malaysia’s most dynamic regions offeringdiverse business opportunities to potential investors.The East Coast Economic RegionPengkalan KuborKota BharuRantau PanjangBukit Bunga Kuala BesutKuala TerengganuKELANTANGua MusangTERENGGANUDungunKertihKuala LipisCukaiPAHANGBentongTemerlohMentakabKuantanGambangPekanTanjung AgasKuala RompinMersing, JohorInvestors' Guide 4Investors' Guide 5

The ECER vision is defined by three characteristics – distinctive, dynamicand competitive.Investors' Guide 6Attractiveincentives designedspecifi callyfor this Region,which includesa Special EconomicZone (SEZ), havebeen formulated tospur investment inwhat will becomea cost-competitiveand vibrantbusiness hub.VISIONKEYDRIVERSENABLERSTHE MAINPILLARSSupportSystemBasicFoundation(Hard & SoftInfrastructure)TOURISMOIL, GAS &PETROCHEMICALMANUFACTURINGSupporting Manufacturing Avtivities, Logistic, ICT, Financial Services and Related ServicesSupporting Institutions (Education, R&D, Government, Private and Social Institutions,Trade Associations, Communication and Coordination System)AGRICULTUREAdequate Physical InfrastructureStrong Basic Education and TrainingConducive Working and Living EnvironmentStable Political & Social EnvironmentSTRATEGIC LOCATIONLocated strategically in the east coast of Peninsular Malaysia, the ECER is wellplaced to become a major trade and industrial gateway, offering investors access tothe vast, burgeoning markets of the Far East and the Asia Pacific, with a totalpopulation of 2 billion and a combined GDP of US$17 trillion.Attractive incentives designed specifically for this Region, which includes a SpecialEconomic Zone (SEZ), have been formulated to spur investment in what will becomea cost-competitive and vibrant business hub.KEY ECONOMIC DRIVERSMajor investments in the Region are currently focused in the oil, gas and petrochemicalsector, but given the abundant non-hydrocarbon resources available in the Region, theECER is also experiencing economic developments in the fast-growing sectors oftourism, manufacturing, agriculture and education.These development initiatives are detailed in the ECER Master Plan, developed byPETRONAS, and will be the basis for guiding the development of this Region until theyear 2020 where it will be transformed into a major local and international tourismdestination, an exporter of agro and resource based products and manufactured goods,a vibrant trading centre and an infrastructure and logistics hub.VISIONThe Master Plan is guided by a well-defined vision and mission that serve as a basis forthe formulation of strategies, programmes and projects that will spur the Region toachieve developed status by the year 2020, in line with Malaysia’s national aspirations.EDUCATIONKey Economic Drivers• Tourism• Oil, Gas & Petrochemical• Manufacturing• Agriculture• EducationThe Region’s distinctive natural resources, culture and heritage will form thebasis for transforming its economy into one that is dynamic and competitive inlight of greater regional and global competition and economic liberalisation.To make this a success, the Government is counting on a mutual partnershipwith the private sector to encourage investment and new economic activitiesin the Region. The Government, on its part, is committed to putting in placephysical, transportation and infrastructure projects to support the developmentinitiatives. Attractive incentives designed specifically for this Region, whichincludes a Special Economic Zone (SEZ), have been formulated to spurinvestment in what will become a cost-competitive and vibrant business hub.ENABLERS TO SUPPORT GROWTHThe Government is investing in the development of key transportation projects,such as a new expressway linking the Region to the central, southern andnorthern regions of the peninsula, improvements on existing Federal roads,upgrading of the Region’s domestic airports to regional and internationalstatus and upgrading of the major ports to cater to the investors’ needs in thefuture. Improvements to ports, airports, roads and highways as outlined in theECER Master Plan will result in the Region being better connected from withinand outside the country.Kuala Terengganu has become an international airport while Kota Bharu Airportand Kuantan Airport will be upgraded to regional status to enable wide bodyaircraft to land, opening the opportunity for increased arrivals and freighthandling, and greater ease and comfort for travellers.Accessibility to the ECER will be further enhanced with the completion of theEast Coast Expressway, which will link the Kuala Lumpur conurbation to KotaBharu and further north to neighbouring Thailand via Pengkalan Kubor. To thesouth, the next phase of this expressway will link Kuantan to Singapore viaJohor Bahru.The Central Spine Road that stretches from Kuala Krai in Kelantan to Simpang Pelangai in Pahang willbe upgraded into a dual two-lane carriageway. It not only connects to the North-South Expresswayto Seremban but also acts as a strategic connection to interior towns thus creating a comprehensivenetwork of quality roads from rural to urban areas in the region. This will improve connectivity from withinand outside the ECER.The Region is also linked to other parts of the peninsula via an efficient railway network operated byKeretapi Tanah Melayu. The main line stretches from Tumpat in Kelantan to Gemas in Negeri Sembilan,before branching out to Padang Besar and Johor Bahru. The railway network also links the ECER toThailand via Rantau Panjang in Kelantan.The proposed expansion of the Region’s ports - Kuantan Port and Kemaman Port - will further enhancethe efficiency of the trans-shipment of goods by sea from and into the ECER.The capacity of major utilities, such as water, electricity and Information and Communication Technology(ICT), as well as the sewerage and solid waste management systems are also being improved.Investors' Guide 7

The Councilplays a leadingrole in setting thedirection, policiesand strategiesin relation tothe Region’sdevelopment.Established by an Act of Parliament, theECERDC aims to stimulate, promote andaccelerate the growth of the ECER in anequitable and sustainable manner, turning it intoa world-class economic region and a choicedestination for investment, work and living.The Council is presided over by the PrimeMinister with members consisting of theDeputy Prime Minister, the Menteris Besarof the states of Kelantan, Terengganu,Pahang and Johor, two Federal Ministers, arepresentative from the civil service and twomembers appointed from the private sector.The ECERDC also has a management team ofprofessionals, led by a Chief Executive Officer,which carries out the strategic planning,execution and implementation of all aspectsof the ECER Master Plan. It also acts as aone-stop centre for facilitating investments inthe Region.The Council plays a leading role in setting thedirection, policies and strategies in relation tothe Region’s development.It also plays the coordinating role betweenGovernment entities in the promotion oftrade, investment, tourism and developmentactivities in the ECER. Among others, theCouncil acts on behalf of the Governmentagencies within the ECER to receive, processand expedite approvals for trade, investmentand development in the ECER. The Councilalso promotes and stimulates economic andsocial development in the Region, as well asprivate sector investment.Investors' Guide 12The ECERDC also establishes policies,direction, strategies and initiatives in relationto sustainable development, includingenvironmental protection, management andconservation in the ECER.Investors' Guide 13

STATE DEVELOPMENT FOCUSWhile characterised by great commonalities,the states covered within the ambit of the ECEReach possess their own distinctive defi ningquality, which very much determines the uniquedevelopmental approach taken to capitalise ontheir existing economic activities, resource baseand inherent strengths.All of the four member states will provide diverseinvestment opportunities anchored in the fi ve maineconomic drivers. This will allow investors andentrepreneurs to seek opportunities in expandedand invigorated segments of the local economies,as well as pioneer the development of new ones asoutlined in the ECER Master Plan.Investors' Guide 14Investors' Guide 15

Kelantanwill focus onhuman capitaldevelopment,in line with thestate’s recognitionof the people asa key resourceand the engine ofeconomic growth.KelantanThe dominantpositioning ofKelantan will enableit to serve as theprincipal East Coastcross-border tradingand tourism centre.The dominant positioning of Kelantan will enable it to serve as the principal East Coast cross-bordertrading and tourism centre. This seeks to fully exploit its geographical advantage as a border and frontlinestate to Thailand and the Indo-China region, together with the entrepreneurial talent of its people.Kelantan will also see the development of halal food and products manufacturing in a big way, centredin Pasir Mas.The Kota Bharu City Centre (KBCC) development will complement the existing urban fabric by addinga new retail and leisure area to the city. Towns such as Rantau Panjang and Bukit Bunga will emergeas important cross-border tourism and trading destinations, with Pengkalan Kubor playing the role ofa major cross-border tourism and trading hub.Kelantan will focus on human capital development, in line with the state’s recognition of the peopleas a key resource and the engine of economic growth. A major education hub will be created in KotaBharu-Bachok with the establishment of the Universiti Malaysia Kelantan (UMK), which will also havea branch campus in Jeli.Investors' Guide 16Kelantan will specialise in agro-based activities, focusing on herbal cultivation (Gua Musang & Jeli),fisheries (Integrated Fisheries Park in Tok Bali, aquaculture in Pergau) and poultry production (GuaMusang & Jeli).Pasar Siti Khadijah, Kota BharuInvestors' Guide 17

Kota Bharu City CentreInvestors' Guide 18Investors' Guide 19

TerengganuEndowedwith rich reservesof oil and gas,Terengganu iswell known as theleading oil, gasand petrochemicalindustry hub inthe Region andpromises excellentmarket access tothe Asian region andthe global market.Terengganu will position itself as a dynamicTourism Gateway to the ECER. It will offerdiverse and unique tourism attractions in theareas of mainland coastal tourism andsustainable island tourism, as well asecotourism, urban tourism, and its distinctivecultural and heritage tourism.The development of the new KualaTerengganu City Centre (KTCC) will strengthenthe image of Kuala Terengganu as a vibrantHeritage Waterfront City. KTCC is expectedto attract tourists eager to experience anurban centre combining modern facilitiesand hospitality with age-old traditions. Thiswill be given a boost with the establishmentof the Kuala Terengganu Airport as theregional airport hub for the region.Endowed with rich reserves of oil and gas,Terengganu is well known as the leading oil,gas and petrochemical industry hub in theRegion and promises excellent marketaccess to the Asian region and the globalmarket.The petrochemical industry will benefit fromthe interstate synergy from Kertih to Gebeng,Masjid Tengku Tengah Zaharahin the fastest growing and most dynamicindustrial region in the ECER. The Kertih Polymer Park, with its cutting-edge support infrastructureand services, is located within the petrochemical zone in Kertih.In the agro-based activities, Terengganu is geared to become the Centre for Goat Breeding & MuttonCluster (Kuala Berang), the development of the Citrus Valley (Durian Mentangau), the planting of kenafin Setiu, and aquaculture activities in Tasik Kenyir.Investors' Guide 20As a regional centre of educational excellence and preferred study destination, the state has aconcentration of reputable tertiary institutions such as Universiti Malaysia Terengganu (UMT), UniversitiDarul Iman and Universiti Teknologi MARA (UiTM), each possessing a strong research and developmentbase. In addition, Taman Ilmu (Knowledge Park) will be established in Besut to promote learning,creativity and heritage appreciation.Investors' Guide 21

Kuala Terengganu City CentreInvestors' Guide 22Investors' Guide 23

PahangPahang willalso become theECER’s centre forecotourism, thanksto its wealth of naturalbeauty and its roleas the gateway toTaman Negara.Pahang will be developed as the ECER’s main industrial and logistics hub. It will focuslargely on resource-based downstream manufacturing activities such as rubber-basedindustries, wood-based industries, halal food (food that is permissible according toIslamic law) and non-food industries.The Kuantan Port City initiative will see the existing harbour facilities vastly upgraded topave the way for Kuantan to become an integrated terminal and logistics hub for thepetrochemical, palm oil, automotive and container market, as well as a major industrialand manufacturing zone. Kuantan’s position as the gateway to the Asia Pacific region willbe used to the best advantage, complementing Malaysia’s other major marine andlogistics hubs located in the west and south of the peninsula.Pahang will also become the ECER’s automotive manufacturing, assembly and distributionhub, as well as the centre for the development of automotive design, with the support ofits educational institutions.Pahang will also become the ECER’s centre for ecotourism, thanks to its wealth of naturalbeauty and its role as the gateway to Taman Negara.In the area of mainland coastal tourism, Cherating and Pantai Sepat have been earmarkedfor resort and hotel development.The newly established Universiti Malaysia Pahang (UMP) will play an important role indeveloping human capital, especially in engineering and technology-based sciences.The agriculture focus for Pahang is to develop and promote pineapple growing andintegration into oil palm plantations in Rompin, vegetable growing in Kuantan, as well asNucleus Cattle Breeding and Research Centre in Muadzam Shah.Investors' Guide 24Kuantan Port CityInvestors' Guide 25

Kuantan Port CityInvestors' Guide 26Aerial view of Pekan-Peramu Automotive Industrial ParkInvestors' Guide 27

MersingMersing will emerge as an important mainland coastal tourism destination, with highlydeveloped tourist facilities to accommodate the needs of visitors to the area.The Mersing group of islands will be developed as an important excursionist destination,allowing more visitors to experience its pristine beauty.Mersing will continue to be developed as the gateway to the islands of Pulau Tioman,Pulau Besar, Pulau Rawa, Pulau Aur, Pulau Sibu and Pulau Pemanggil.Mersing is also envisioned to become an important centre for ecotourism by virtue of itsrole as one of the gateways into the Endau-Rompin National Park.Investors' Guide 28Accessibility to Mersing will be significantly improved through the construction of theEast Coast Highway, and upgrading of the coastal road.Investors' Guide 29

A REGION SET FOR GROWTHThe way forward for the ECER’s economy will verymuch centre on developing key sectors in the services,agro-based and other resource-based industries, aswell as non-resource initiatives.The development of the service industry in the ECERwill see a new focus in the tourism industry, particularlyin segments such as mainland coastal and islandtourism, ecotourism, urban tourism, cultural heritagetourism highland tourism and cross-border tourism.Investors' Guide 30Investors' Guide 31

The development of these institutions reflects the Government’scommitment to enlarge knowledge-based and services-oriented sectorsparallel to spurring growth in the more traditional segments of theECER’s economy.The competitive cost of living and doing business, as well as thedevelopment of designated industrial parks means that new ventures inthe ECER will be able to offer their products and services at much lowercosts, without compromising on quality.The Region’s strategic geographic location also allows it to act as aspringboard for manufacturers and exporters to market their productsand services directly to the Far East and the Asia Pacific region, cuttingdown transportation and freight costs substantially.Investors' Guide 32Due emphasiswill be given to thelogistics and distributionservices, especially in themanagement of goods andproducts, to strengthen theECER’s position as a majortrade and commercial hub.The education sector will witness the development of services and trainingin line with the needs of the Region and the nation. At the same time, thequality of educational services will be enhanced to turn it into a marketableglobal export.Due emphasis will be given to the logistics and distribution services,especially in the management of goods and products, to strengthen theECER’s position as a major trade and commercial hub.The agro and resource-based industries, long a mainstay of the Region’seconomy will receive a boost with agriculture branching out to embrace new areasof interest and technologies. Wood, latex and palm oil-based products, togetherwith plastics and polymers will form much of the ECER’s industrial output for localconsumption and export.At the same time, non-resource based industries such as boat building andrepair, automotive assembly and distribution, handicraft and textile makingand heavy industries will be enhanced to become more competitive.These developments will change the Region’s economic landscape,leveraging on resources already in place awaiting an integrated andsystematic developmental approach.The Region is characterised by its pool of competitive and educatedworkforce, able to drive technologically advanced, skills and knowledgebasedindustries. Education in the Region will be given a boost with theestablishment of new tertiary institutions, which will help develop a greaternumber of professionals to support the ECER’s development growth.The ECER is also blessed with an abundance of natural resources.A major portion of the ECER is forested land with a wealth of biodiversityalmost second to none in the world. This biodiversity, together with theGovernment’s emphasis on tapping its potential, is expected to open upopportunities in the field of herbal research and the production of exoticessential oils.The availability of land also allows investors to participate in large-scaleagricultural ventures, be it in the traditional anchor crops of the Regionsuch as oil palm or newer options such as the kenaf plant. The Regionis irrigated by several major river systems. This provides adequate waterresources for agriculture, as well as presenting opportunities forparticipation in freshwater, brackish water and marine aquacultureventures, supported by efforts to promote research in quality fish seedproduction in the Region.The ECER is also home to long stretches of pristine beaches, unspoiltislands and well preserved coral reefs, long a magnet for tourists fromaround the world. Hence, several locations are awaiting investments inthe form of new hotels and integrated, world-class resort developments.The Region’s strategicgeographic location also allowsit to act as a springboard formanufacturers and exportersto market their products andservices directly to the Far Eastand the Asia Pacifi c region,cutting down transportation andfreight costs substantially.Investors' Guide 33

Regional Economic Growth AreasFor several decades, the Region has also attracted substantial investments in upstream oil andgas exploration and production activities, as well as downstream refining and petrochemicalbased ventures.The wide availability of feedstock means that investors can continue to explore newopportunities and synergies with strategic partners already involved in the Region for manyyears to come, especially in propylene and ethylene based industries.The advent of the ECER Master Plan will allow investors and companies to capitalise on all ofthe Region’s advantages and transform them into viable business ventures, in line with theECER’s development goals.Investors' Guide 34Investors' Guide 35

KEY ECONOMIC DRIVERSFive key economic drivers have been identifi ed tosupport the Region’s socio-economic developmentuntil the year 2020.The fi ve key drivers that will spur the development of the ECER - tourism,oil, gas and petrochemical, manufacturing, agriculture and education - presentvast business and investment opportunities to individuals and corporationskeen to make a mark in a region poised for growth.In addition to the various incentives put in place by the Government, the ECERMaster Plan has also identifi ed a number of promoted locations within the Region tobe developed within the framework of the cluster-based development, all supportedby the corresponding support infrastructure to spearhead growth.Prospective investors are keenly encouraged to take advantage of the investmentopportunities brought about by the Suspendisse implementation potenti. of the Suspendisse ECER Master at Plan andexplore possible venture options, pede. as well Nulla as synergies sed augue. with Phasellus existing and non planned arcu.Vestibulum ante ipsum primis in faucibusinitiatives. While the plan plots out the form and direction of economic growth in theorci luctus et ultrices posuere cubilia Curae;Region, investors will be able to create their own niche opportunities and capitaliseCurabitur blandit leo id lacus condimentumon these, contributing to the region’ssodales.robust growthMaecenasin the future.vitae metus.Investors' Investor's Guide 1 36TourismOil, Gas & PetrochemicalManufacturingAgricultureInvestors' Investor's Guide 137Education

TourismECER Tourism Project SitesCheratingTanjung AgasTourism has long been an important economic driver in the region, with local and foreign visitorsclamouring to visit its many natural and cultural attractions. The region is well-known for itsnatural assets - unspoilt beaches, serene, coral-ringed islands as well as lush rainforests.The ECER is also considered the cradle of Malay culture – where the ancient performing artssuch as Mak Yong, an ancient dramatic form, Wayang Kulit or shadow puppetry and Gamelan,a musical ensemble of gongs, brass keys and drums – continues to be performed andperpetuated. The region is also one of the main sources of Malay handicrafts, where traditionalartisans continue to produce magnificent woven Songket textiles, intricate silver and brassvessels and magnificent wood carvings using fine-grained local timber.Investors in the region can explore vast opportunities in the hospitality industry, tour packagedevelopment, retail and marketing, as well as the manufacture of handicrafts and ethnicinspired gifts as some of the possible ventures in the ECER.Investors' Guide 38While tourism is already a highly developed industry in the ECER’s highland regions, wherevisitors clamour for the relatively cool climes of the highlands, the future direction of the tourismindustry will acquaint them with the ECER’s other untapped resources.Investors' Guide 39

Mainland Coastal TourismOne of the main initiatives investors can look into is the effort to developmore tourism facilities on the mainland, taking developmental pressuresaway from the offshore islands.For the discerning investor, the region’s relatively pristine coastline presentsan opportunity for the establishment of large scale integrated resorts or evenintimate boutique resorts presenting the best of both world class featuresand a distinctive local flavour.Demand for accommodation in the ECER will increase more than threefoldto 24.5 million hotel guests in 2020.The focus on mainland-coastal tourism will also ensure that the delicatebalance of the island’s ecosystem, marine life and coral is not adverselyimpacted by human activity, preserving the natural beauty of these islandsfor generations to come.For this to happen, the ECER has outlined a number of locations whereinvestors can participate in the development of new integrated tourismresort development as well as modest-scaled incremental resortdevelopments for smaller enterprises. These locations has been selected fortheir natural beauty and long-term future potential for accommodating agreater number of visitors.Investing in the mainland-coastal tourism segment will allow investors toestablish their immediate presence in prime beach front areas with greatpotential for future growth.Sustainable Island TourismThe ECER is home to some of the most beautiful islands in Malaysia. Whilethe island destinations have attracted a steady stream of tourists over theyears, the future direction of development in this area will ensure that theislands will be preserved while major tourist installations will be located onthe mainland.Investors' Guide 40By improving the efficiency of transportation to the islands, tourists will havegreater access to many attractive island destinations previously unexploredby visitors, while returning to the comfort of their resorts after a fulfilling daytrip. In addition to the more well known islands of Pulau Perhentian, PulauRedang and Pulau Tioman, the initiative is expected to fully realise thedevelopment potential of destinations such as Pulau Sibu, Pulau Aur andPulau Pemanggil in Mersing to tourists.In exploring the development of the islands as a tourist playground, investorscan consider participating in businesses related to the establishment of tourpackages and logistics which include day trips to the islands.Promoted Locations forIntegrated Resort DevelopmentKelantanTerengganuPahangJohor• Pantai Seri Tujuh,Tumpat• Kuala Besut - Tembila• Kg. Penarik/PulauBesar - Merang• Teluk Bidara, Dungun• Pantai Sepat, Kuantan• Cherating• Pantai Air Leleh,Kuala Pahang• MersingInvestors' Guide 41

Urban TourismThe ECER initiative hopes to turn the vibrant urban centresof the East Coast into tourism magnets – equipped withmodern comforts, while maintaining its age-old charm andcultural identity.In Terengganu, the development of the Kuala TerengganuCity Centre (KTCC) as the Tourism Gateway to the ECER isexpected to turn the area around the Terengganu rivermouth into a world class holiday, shopping and Meetings,Incentives, Conferences and Exhibition (MICE) destination.Its position by the sea is expected to turn it into an attractivevacation resort city, with a stunning new marina, shoppingmall, a cruise terminal, a handicrafts market and hotels all inone location.As the ‘Heritage Waterfront City’, Kuala Terengganu hasalready seen incremental development in the form of touristinfrastructure such as food and beverage outlets and ascenic waterfront facing the sea, as well as new attractionssuch as the Taman Tamadun Islam (Islamic Civilisation Park)in Pulau Wan Man, and the conservation of its existingplaces of interest, such as the traditional boat buildingcentre in Pulau Duyong.In Kelantan, the development of the Kota Bharu City Centre(KBCC) is expected to transform a waterfront district acrossthe river from the existing urban fabric into a complementarydevelopment, with new retail and leisure attractions, completewith new hotels, malls, a main square and a Grand Bazaar.The dynamic waterfront area of the KBCC development willfeature the state’s distinctive culture and way of life whileturning the Kelantan River into a veritable recreationdestination. This urban renewal initiative will leverage onKota Bharu’s already strong reputation as an attractiveleisure and shopping destination for local tourists.Major Urban Tourism Centresin the ECER• KualaTerenggganuCity Centre• Kota BharuCity CentreTourismGatewayTradingHub(Above) The Sultan Ahmad Shah Mosque, Kuantan, PahangInvestors interested in this segment can explore opportunitiesin high-end as well as budget accommodations, commercialand retail businesses, food and beverage outlets with a localor foreign theme, as well as better organised retail outlets formarketing of local handicrafts and delicacies.Investors' Guide 42Investors' Guide 43

Investors' Guide 44Major Cultural Heritage TourismCentresKelantanTerengganuPahang• Kota Bharu• Kuala Terengganu• PekanHomestay Programme LocationsKelantanTerengganuPahang• Kota Bharu• Tumpat• Kuala Terengganu• Setiu• Merang• Dungun• Jerantut• Pantai Sepat• Kuala Pahang• Pekan• RompinCultural Heritage TourismThe Region’s cultural heritage remains one of its strongest unique selling propositions.As the cradle of Malay culture, the region acts as a living museum where ancientcustoms and crafts are perpetuated and practiced side-by-side with modern waysand methods, to create a distinctive way of life. The region’s traditional architectureof timber buildings with sloping rooflines and carved lintels has inspired contemporarystructures embracing the same spirit.The Region is also home to a number of interesting and picturesque historicalattractions such as the ornately carved Istana Jahar in Kota Bharu, or the charming,Mughal inspired architecture of Masjid Sultan Zainal Abidin in Kuala Terengganu, aswell as the magnificent Istana Pekan in Pekan. Newly-created attractions such as theTaman Tamadun Islam, a park showcasing detailed scale models of Islamicmonuments from around the world, will also attract a steady stream of visitors inthe future.The depth of culture distinguishes this region as a place where tourists can enjoy thehospitality of the East Coast, its food, and handicrafts such as batik, songket, tenunweaving, wood carvings, silver and brassware. Entrepreneurs can consider offeringtour packages that allow visitors to experience the historic sights and traditional wayof life in the region. They can also explore the establishment of boutique resorts witha distinctive East Coast style and identity expressed in the architecture, foodand services.While the Government has so far played an important role in perpetuating the artistictraditions of the East Coast, especially in batik making, private investors canparticipate in the development of modern-day adaptation of traditional handicrafts,geared for the tourist and export market. Investors can leverage from the presence ofskilled artisans who have kept alive these art forms for generations, adapting it topresent day sensibilities and needs. The Government has established a number ofhandicraft centres in Kota Bharu, Kuala Terengganu and Pekan to preserve livingcrafts such as batik making, songket weaving and tenun weaving, as well as createa steady supply of quality handicraft products for the retail market.Pekan is a fascinating heritage town primarily known for its status as the seat of theroyal house of Pahang. The influence of the royal family can be seen and felt throughthe magnificent palaces and various mausoleums throughout the town.For smaller scale investors and individuals, a possible entry into the sector is throughtheir participation in the integrated homestay or Kampung-stay accommodationprogramme to allow tourists the opportunities to savour local culture in authenticvillage settings in locations such as Tumpat, Dungun and Mersing. These programmeswill complement other facilities offered by large resorts and hotels.Cross-Border TourismThe East Coast’s proximity with neighbouring Thailand has made it astrategic gateway for cross-border tourism and commerce for decades.Cross-border tourism is expected to play an important role towardsimproving the economic activities that have already existed at several townson the Malaysia-Thailand border in Kelantan. Towns such as PengkalanKubor have long attracted a steady stream of domestic tourists in search ofaffordable imported goods from Thailand and the Indo-China countries.Improving the prospects of cross-border tourism can be done bymaximising the border town’s potential as the tourist and excursionistgateway. From its current image as the destination for cheap, bargaingoods, towns such as Pengkalan Kubor as well as Rantau Panjang andBukit Bunga are expected to be transformed into integrated, moderndestinations for shopping, dining and recreation.Investors can capitalise on the lucrative cross-border trade by developingmass-market retail outlets focusing on duty-free goods. Pengkalan Kuborin particular has been singled out as a major retail, cross border and bartertrade hub with an upgraded port and warehousing facilities that will helpbusinesses tap into the lucrative domestic, Thai and Indo-China markets.Cross-Border Tourism CentresKelantan• Pengkalan Kubor• Rantau Panjang• Bukit BungaInvestors' Guide 45

The ECER's major ecotourism attractionsKelantanTerengganuPahangMersing• Ecotourism centres in Lojing, Machangand Gua Musang• Nenggiri and Stong Hills State Park• Ecotourism centres and Elephant Sanctuaryin Tasik Kenyir• Terengganu Hills and Setiu Wetlands StatePark Terengganu• Global Marine Turtle ObservatoryRantau Abang• Ecotourism centres in Taman Negara• Kuala Gandah Elephant Sanctuary andTasik Chini State Park• Ecotourism centre in Endau RompinEcotourismThe East Coast has a wealth of relatively untapped natural attractions unrivalled in the whole ofMalaysia. The region is home to Taman Negara, the nation’s primary national park. Straddling theborders of three East Coast States of Kelantan, Terengganu and Pahang, the park is home tonumerous protected animal and plant species. The region is also home to Tasik Kenyir, thecountry's largest man-made lake; Tasik Chini, the nation’s UNESCO (United Nations Educational,Scientific and Cultural Organisation) Biosphere Reserve; and Tasik Bera, the Ramsar Convention(Convention on Wetlands of International Importance especially as Waterfowl Habitat) site.In addition to the existing wildlife sanctuaries, a number of new state parks will be establishedunder the ECER, allowing for larger areas to be preserved for posterity.Investors' Guide 46There is great potential for development in this field for individuals and companies interested todevelop tour packages and adventure based attractions such as rock climbing, white waterrafting, as well as boat rides deep into the heart of the rainforests. Interested investors are able torely on the knowledge and experience of the local indigenous population, who are able to providea wide range of assistance and services for visitors venturing into the area. There is also greatpotential in developing the indigenous crafts of the Orang Asli such as basket weaving and woodcarving into viable sources of ethnic decorative items for sale.A number of ecotourism areas present great potential for investors to tap into the vast adventureand nature tourism market.Investors' Guide 47

Hallmark Events in the ECER• Monsoon Cup• Sultan's Cup TerengganuEndurance Challenge• Nenggiri White WaterRafting Challenge• Royal Pahang BillfishInternational Challenge• Rainforest 4X4 ChallengeHallmark EventsHallmark events play an important role in tourism as they involve the hostingand specific focusing of successful events to attract an international audienceto the ECER.The revenues brought about by these hallmark events create a strongmultiplier effect, by generating employment opportunities and improving thebusiness climate in local communities. The Region has, and will play host tosome of the most exciting hallmark events which include the Monsoon Cup,the Sultan’s Cup Endurance Challenge, the Boat Race from Kuala Terengganuto East Coast Islands; Nenggiri White Water Rafting Challenge; RockClimbing/Abseiling at Stong; Cultural Festival at Kota Bharu and Pekan andthe Royal Pahang Billfish International Challenge.Companies can explore possible synergies by organising or sponsoring theseevents, or hosting side-events to complement the existing annual high pointsin the calendar. Their involvement will allow them to capitalize on a greatnumber of branding and promotional opportunities. At the moment, thesuccess of the Monsoon Cup, an international level sailing competition, hasbrought tremendous development to the tourism scene in Kuala Terengganu,while raising its profile to an international audience.The Sultan’s Cup, an endurance horse riding race is also expected to placethe Region in the world’s events calendar as the home of a prestigiousequestrian event, drawing the interest of enthusiasts and spectators alike.Given time and effort and the right support from the Government and privateinvestors, the future would see more hallmark events being held inthe ECER.Tourism Updates• More than 40 Homestay/Kampung Stay Programmes areoperating, among others in Kampung Pasir Belanda,Kelantan; Kampung Teluk Ketapang, Terengganu;Kampung Kuala Medang, Pahang; and Kampung AirPapan Laut in Mersing, Johor• Initiation of programmes to train Homestay/Kampung Stayoperators• Commissioning of studies to transform Mersing’s coastalarea into an integrated tourism destination and gatewayto the Mersing group of islands• Beach revitalisation along the ECER coastlineInvestors' Guide 48Investors' Guide 49

Oil, Gas & PetrochemicalThe oil, gas and petrochemical industry is one of the leadingindustries in Malaysia, with significant hydrocarbon reserveslocated offshore Terengganu, contributing significantly to theNation’s gross domestic product (GDP).In the ECER, the existing oil, gas and petrochemical clustercovers both upstream and downstream activities. Although themajor facilities are already in operation, there still existopportunities to strengthen linkages with other sectors. Thefuture direction of the sector seeks to expand the activities of theindustry in the downstream and manufacturing related sectors toadd more value to existing output. At present, there exist twomajor downstream installations in the ECER located in Kertih,Terengganu and Gebeng, Pahang.Ethylene-Based ProductsThe Kertih Integrated Petrochemical Complex (KIPC) has attractedsome of the world’s leading industry players such as BPChemicals, Sasol Limited, Idemitsu Group and MitsubishiCorporation. Investors can take advantage of the KIPC’s existingsupport and logistics facility and its connectivity to the Region’smajor export hubs.Propylene-Based ProductsFocusing on propylene-based products, the Gebeng IntegratedPetrochemical Complex (GIPC) in Pahang is an integratedpetrochemical complex, located within a key industrial area, whichhas already attracted a number of major investments from local andoverseas companies.New investors can play a complementary role to the existingplayers by completing the supply chain services for the Gebengindustrial area, which is essentially a continuation of the ECER’sother major oil, gas and petrochemical development located inKertih.Investors' Guide 50Malaysia's Integrated Plastics & Polymer ParkThe Kertih Polymer Park (KPP), the first of its kind in the country,will be located within the vicinity of the PETRONAS PetroleumIndustry Complex (PPIC). The KPP aims to promote investmentsto develop the plastics and plastics-related industries bydeepening linkages between the various facilities and moving upthe product value chain. Some 140 hectares of land has beeninitially allocated for this project.Investors' Guide 51

The park takes on an attractive, plug-and-play development model,whereby the requisite support facilities and common services will be put inplace, allowing investors to immediately start their operations uponrelocating to the KPP.Based on the readily available feedstock from the KIPC and Gebeng,investors can explore the development of finished plastic products to meetlocal demand, as well as develop export oriented synergies, no doubtfacilitated by improved road and rail links to Kuantan, which acts as ECER’sregional export hub. Already, a number of investors have indicated theircommitment to start their business in the KPP. The opening of the parkpresents a sterling opportunity for local small medium industries to locatetheir manufacturing facilities in a location with adequate support facilitiesand easy access to a wide range of plastic resins as raw materials for theirproducts. Closely located to the raw materials and support services,investors will be able to offer their products at much more competitiveprices by lowering the cost of doing business and gaining much by the wayof technology transfer.The Park’s development will be supported by world class research anddevelopment (R&D) input from the PETRONAS Polymer TechnologyCentre (PPTC), a market driven technology centre which will enhancecustomer technical services and product improvement and development forplastics applications.The Centre aims to spur the growth and global competitiveness of theplastics industry in the KPP by carrying out R&D for plastics application,joint venture projects with manufacturers and end users and offeringtechnical services including product testing, technology development andtraining. The Centre will also foster a closer working relationship betweenpolymer producers and plastics manufacturers in KPP to raise thestandards of the plastics industry in Malaysia. The Centre has alreadymade strides in the development of environmentally degradable polymerused in the manufacture of environment-friendly products.Indirect opportunities also abound resulting from the KPP development,through participation in the logistics, warehousing, retail industries andother ancillary services to support the efforts of the plastics-basedmanufacturers with operations in the Park.Investors' Guide 52The overall strengthening of the sector in the ECER will allow investors toparticipate in a host of support services, such as the supply of materials,technical and lab services, warehousing, distribution and wholesalingactivities, as well as retailing.Investors' Guide 53Hi-Essence Cable Sdn Bhd

ManufacturingECER Manufacturing Project SitesKuala TerengganuAirportMalaysia continues to forge its strong position as a leading manufacturing centre. Manymultinational companies have shifted their research and development, product development,international procurement and other aspects of manufacturing from their home base toMalaysia.More industries are expected to establish their manufacturing presence in the ECER, takingadvantage of the resources and raw materials already in place in the Region.Tanjung AgasPekan - PeramuKemaman PortKuantan Port CityKuantan AirportTanjung AgasThe new industrial developments proposed for the ECER will see manufacturers extendingthe current value chain by adding value to existing raw materials and feedstock from theRegion, using innovation to tailor the products for the global market.With this in mind, investors in the ECER are encouraged to establish their businesses instrategic locations close to the source of their raw materials, granting them both vastquantities of supply, as well as low transportation cost, which in the end allow them to becost-competitive. All small, medium and large industries will appreciate the various economiesof scale found within the ECER and will be able to take advantage of the opportunitiespresented. A number of locations within the ECER have been earmarked for the establishmentof several major industrial initiatives.Investors' Guide 54A strong focus will be placed on emerging industries with great potential for future expansionsuch as the halal products industry, which is expected to allow manufacturers to tap into avast worldwide market. The strides in the manufacturing sector are supported by thedevelopment of new free zones and specialised industrial parks throughout the Region, aswell as the upgrading of major logistics infrastructure, including the Kuantan Port City (KPC)development, set to be the Region’s export gateway.Investors' Guide 55

Handicraft IndustryLong an economic mainstay in the culturally-rich East Coast, the handicraft industrywill be given a new lease on life, opening greater opportunities for interestedinvestors to develop this niche segment. Among others, the ECER will see theimplementation of the following programmes:- Anchor-Vendor Programme: This programme will spearhead the developmentof SME handicraft firms. The Head Start Programme will develop the anchors,the vendors will be supported by the anchors through product design, productquality, production process, and market the products via the anchors’ marketingchannels.- Incubator Programme: Supports budding handicraft entrepreneurs by providingfinancial and non-financial assistance for the equipment and facility, as well asproviding technical assistance and access to the latest technology.- Skills Development Programme: Supports potential designers who have earnedtheir places in reputable and well-known design school. The principle idea isthat design is closely correlated with fashion and trends.- Global Supplier Programme: Aims to help local SMEs attain the status of globalsupplier. The main base of this programme is to train and help SMEs tounderstand the needs and requirements of international buyers so that they cansupply to the buyers.Boat Building and RepairThe Region’s boat-repair and boat-making industry presents anopportunity for investors with the right kind of technical knowhowto leverage on the ECER’s pool of indigenous skills and theexpansion of the market expected with heightened activity inthe trade, logistics, fisheries and oil and gas sectors. KualaKemaman has been identified as a centre for new investmentfor the industry, thanks to its proximity to port facilities and theupstream and downstream developments in the oil and gasindustry in nearby Kertih.Currently, traditional boat making is experiencing a revivedinterest, as can be seen in the attention given to the worldrenowned boat yards in Pulau Duyong, both as a continuationof an age old industry, as well as an interesting tourist attraction.In the future, investors in the boat-making industry could alsoimprove their design and manufacturing capabilities to enterthe leisure sector, which is expected to experience a boost, intandem with the development of tourism in the Region.Investors' Guide 56Major Handicraft InitiativesBatik and • Kota BharuSilverwareSongket • ChenderingWeavingWood • TemerlohCarvingTenun • PekanWeavingProposed Incubation CentreWood • BesutCarvingThe handicraft cluster will benefit through the linkage with the tourism industry,especially along the “Cultural and Artisan Corridor”, a cultural tourism corridor thatintegrates the existing cultural and natural resources within kampongs andsurrounding villages in the ECER. Factories of the handicraft SMEs can beestablished in Handicraft Villages as tourist attractions where production processcan be demonstrated.Food And Halal ProductsFor food and consumer products manufacturers, the focus in the ECER will be onHalal products produced for the local and export market, as well as fish-based foodproducts such as sauces, condiments and snacks, which have been the hallmarkof the region’s distinctive food culture. A number of Halal hubs will be establishedin locations such as Pasir Mas and Gambang, which will concentrate on crops,poultry and beef based products, as well as Kuala Kemaman, which will focus onprocessing fish-based foodstuff. There will also be a major integrated fisheries parkat Tok Bali. Major development in the Region’s agriculture industry and theexpansion of crop, livestock and fishery production in line with the developmentgoals of the ECER will allow this industrial segment to thrive, thanks to theavailability of plentiful and high-quality raw materials produced locally.Automotive and Transport EquipmentThe automotive industry also welcomes the participation ofplayers keen to develop original component manufacturingbases and assembly plants, which could take advantage of theRegion’s strategic location as the ideal automotive supply anddistribution base for the South East Asian region. The NationalAutomotive Policy has identified the Pekan-Peramu area as asuitable location for the development of a manufacturing andassembly hub for motor vehicles in the country.To complement this, the Kuantan Port City (KPC) developmentwill see the setting up of an automotive distribution centre,which will facilitate the distribution of automobiles to Sabah,Sarawak and the rest of the Asia Pacific region. The AutomotiveDistribution Centre (Free Zone) is projected to turn KuantanPort into the second national gateway for trade in vehicles.Investors' Guide 57

Rubber Wood ClusterIndustries expected to gradually establish a base in the Region include latex-basedmanufacturing, which capitalises on the abundant supply of raw materials in the ECER,backed by a structured initiative to ensure sizeable rubber plantations are put in place tosecure future supply.With the establishment of 200,000 hectares of rubber forest plantation areas in the ECER, therubber wood and latex-based industry will be able to count on a reliable and sustainablesupply of latex and wood for their products. To realise this objective, investors are invited toconsider locating their operations in the designated rubber-wood based furniture parks,located in the Temerloh-Mentakab area, Dungun (Bandar Al-Muktafi Billah Shah) and KualaKrai, as well as the Latex-based Industrial Park in Machang.Palm Oil Industrial ClusterIn Kuantan Port City, a Palm Oil Industrial Cluster (POIC) will be created to allow investors to takeadvantage of the proximity with the country’s major palm oil producing areas, to developdownstream industries yielding consumer products especially tailored for the export market.Investors' Guide 58Among the promoted sectors for POIC are surfactant,biodiesel, food, biofertilizer, animal feedmeal, biomass,phytonutrient, polyurethane and other downstreamproducts. The support services provided at POIC willinclude bulking facilities, SME Park, and research anddevelopment (R&D) centre.Industrial ParksBy the year 2020, the ECER will have a similarmanufacturing foundation comparable to theindustrialised central regions of Peninsular Malaysia. Torealise this goal, more industrial parks will be establishedin the main focus areas of the ECER to keep up withchanging trends and to take advantage of the spill-overbenefits of industries from the Kuala Lumpur conurbation,opening up vast opportunities to investors keen onsetting up their respective manufacturing base here.The Region’s industrial parks will focus on a number of key industries related to its resource-basedmanufacturing focus, as well as its non-resource based industries. The Kemaman Heavy IndustrialPark will focus on the development of heavy industries, particularly iron and steel making, as well asdownstream activities with port linkages. An SME Park will be created to encourage small and mediumentrepreneurs (SMEs) as well as service providers to set up their operations there in support of thecurrent major players in the industrial park.The Mixed Industrial Park in Bentong on the other hand will be built around mixed industrialdevelopment, especially in the promoted sectors of machinery and equipment, and bio-products aswell as in high-technology manufacturing sectors in industrial and consumer electronics.Apart from established export destinations such as Japan, Korea and Australia, investors can also usethe industrial parks within the ECER to manufacture products catering to China’s vast economy. Theindustrial installations are supported by good transport and logistics linkage to the West Coast growthcentres and the international market. In addition, the Region is known for its relatively competitivelabour cost and low cost of living.Investors' Guide 59

Manufacturing Initiatives in the ECERInitiative Project LocationFood and Non Food-based • Halal Park Gambang, PahangFree Zones• Halal Food ParkPasir Mas, KelantanInvestors' Guide 60Free Zones in the ECERKelantanTerengganuPahang• Pengkalan Kubor• Kuala TerengganuAirport• Kemaman Port• Kuantan Port City• Kuantan Airport• Tg. AgasFree zones are a rising industry in Malaysia and the implementation of the ECERplaces great emphasis in the establishment of such zones at strategic locationswithin the Region.Currently, free zones attract manufacturing industries which require theimportation of raw materials, component parts, machinery and equipmentrelated directly to the manufacturing process.Towards this end, Kuantan Port will see incremental improvements which willtransform it into a manufacturing and commercial services hub, as well as aregional distribution and international procurement centre.The initiative will also see major improvements in the facilities located inPengkalan Kubor and Kemaman Port while the Kuala Terengganu Airport will beupgraded to become the Region’s international hub, with better infrastructure tofacilitate the landing of wide-body aircraft and an increased volume in airfreight.Similarly, Kuantan Airport will be upgraded to regional status, and as the Region'slogistics hub, allow for better efficiency and handling of airfreight movements.The Tanjung Agas Maritime Industrial Park in Pekan, covering 4,098 acres, will bedeveloped as a modern one-stop service centre and offshore base.• SME Programme for Fish-basedProductsTok Bali & Bachok, KelantanKemaman, TerengganuTanjung Api & Kemunting, PahangPalm Oil-based • Palm Oil Industrial Cluster (POIC) Kuantan, PahangWood-based • Rubber Forest Plantation Kelantan, Terengganu, Pahang• Rubber Wood Furniture Industrial Kuala Krai, KelantanParkDungun, TerengganuTemerloh & Mentakab, PahangLatex-based • Latex-Based Industrial Park Machang, KelantanBoat Building • Boat Building and Repair Park Tok Bali, Kelantan,Cukai & Pulau Duyong,TerengganuAutomotive • Automotive Industrial Park Peramu-Pekan, Pahang• Automotive Trading Hub/Regional Kuantan Port City, PahangDistribution CentreHeavy Industries • Heavy Industrial Park Kemaman, TerengganuFree Zones • Pengkalan Kubor Free Zone Kelantan, Terengganu,• Kuala Terengganu Airport Free Zone Pahang• Kemaman Port Free Zone• Kuantan Port City Free Zone• Kuantan Airport Free Zone• Tanjung Agas Free ZoneMixed Industry • Mixed Industrial Park Bentong-Karak, PahangPort City • Kuantan Port City PahangInvestors' Guide 61

AgricultureECER Agriculture Project SitesAgriculture has long been the mainstay of the Region’s economy. New innovativeagriculture initiatives have been geared towards implementing high technologyagriculture activities, large scale farming and integrated with premium valueaddedactivities. This initiative explores the introduction of new, high yieldingplanting material, new areas of commercial production, agro-based activitiesand supply chain systems, in ways that will improve the income of smallholders,farmers, fi shermen as well as business investments.Kelantan, Terengganu, Pahang and Mersing, Johor with their vast tracts of land,are major contributors to the agricultural and food sector of the economy.The main challenges facing this sector include ways to increase competitiveness,adoption of new techniques for productivity improvements, deepening linkageswith related sectors along the value chain, pioneering ventures – all of whichrequire more sophisticated upstream crop production system, midstreamprocessing facilities and downstream product distributions and marketing.For this purpose, investors are encouraged to explore possibilities in venturing intolarge scale commercial farming, with wider application of modern technology andimproving supply chain management system, especially those geared towardsexporting to global niche market with high quality value added products.Tanjung AgasTo spearhead developments in the agricultural sectors, investors in the form ofAnchor Companies are invited to set up nucleus contract farming arrangementswith local farmers, as well as establish one-stop Collection, Processing,Packaging and Distribution Centres (CPPC) in the ECER, to collectively increasethe supply-based of high quality raw materials and processed products tomanufacturers and retailers locally and abroad. By improving the value chain andsupply chain management, the produce from the farms within the ECER will beable to penetrate the global market. This move will eliminate the intermediariespresent in the existing supply chain, reduce post harvest losses through betterhandling of produce and ensure a high level of quality control.Investors' Guide 62Other initiatives includes the development of agro-valleys, agropolitan projects,highland agriculture, permanent agriculture production parks as well as herbaland biotechnology project require smart partnership and strategic alliances withthe private investors in order to ensure sustainability of these projects.Investors' Guide 63

The ECER: Agriculture Sub-ClustersCrop-based Livestock-based Fish-basedCrop agricultural initiatives in the ECERProject Size Main Crops• Fruits• Pineapple• Highland VegetableAgriculture and Floriculture• Herbal & Biotechnology• Tobacco• Kenaf• Rice• Cocoa• Cattle• Goat• Poultry• Breeder Animals• Animal FeedProduction• Dairy• Marine Capture Fisheries• Marine Fish & ShrimpAquaculture• Freshwater Aquaculture• Fish-based Processing• Hatchery and Fish SeedProduction• Recreational FishingBachok-Besut-Setiu-Kuala Berang Agrovalley 5,000 Hectares Chilli, sweet potato,watermelon, pumpkin,roselle, maizeKuantan-Maran Agrovalley 1,000 Hectares Leafy vegetables, maizePekan-Rompin-Mersing Agrovalley 4,000 Hectares Watermelon, leafy and fruitbearing vegetables, roselle,maizeCROPSThe ECER states of Kelantan, Terengganu and Pahang are among the largestcontributors to the growth of the agricultural sector in Malaysia. In 2005, theagricultural sector accounted for about 16 per cent of regional GDP and providedemployment for 22.9 per cent of the regional workforce.Based on economic projection up to year 2020, the sector's contribution isexpected to increase as agriculture sector will undergo intensive investment toserve as one of the major engines of national growth. Promoted agriculture cropin the ECER can be divided into two i.e. industrial crops (tobacco, kenaf andhighland floriculture) and food crops (rice, cocoa, fruits, pineapple, vegetablesand herbs).Fruits and VegetablesThe sector is expected to experience tremendous growth, especially with the establishmentof several intensive large scale fruits and vegetable farming initiatives. This will be carriedout in locations such as the Bachok-Besut-Setiu-Kuala Berang Agrovalley, the Kuantan-Maran Agrovalley and the Pekan-Rompin-Mersing Agrovalley, all of which cover an areaof 10,000 hectares. Investors in the three new Agrovalleys are invited to introduce modernagricultural methods, such as green-house based cultivation to increase crop output andsustain production throughout the year.The Bachok-Besut-Setiu-Kuala Berang Agrovalley will mainly produce chillies, sweet potato,watermelon, pumpkin, roselle and sweet corn; the Kuantan-Maran zone will concentrate onleafy vegetables and maize; while the Pekan-Rompin-Mersing zone will see the planting ofvegetables, sweet corn and roselle.An important fruit growing initiative is the expansion of the Citrus Valley in Durian Mentangau,Dungun, which will allow investors to participate in the production of high-quality citrus fruitsfor the domestic and export market.Pekan and Rompin in Pahang will be developed as the major pineapple plantations inMalaysia, which will provide sufficient supplies of fresh and processed pineapple productsfor the local and global food industry. As the continuous effort to leverage on the availableresources, the development will be integrated with cattle feedlot rearing initiatives, where thebiomass and pineapple waste will be utilised as an animal feed.Investors' Guide 64Investors' Guide 65

Highland AgricultureThe Highland regions of the ECER such as the Cameron Highlands in Pahang have already seenextensive sustainable activities of vegetable and temperate fruits cultivation and floriculture fordecades. However, new areas such as the Lojing Highlands in Kelantan are expected to drawfuture investor’s highlights in setting up similar business activities within the ECER framework.Focus will be given to cultivate high value crops using intensive high technology plantingtechnique without compromising on environmental conservations activities.The highland regions will experience an expansion of existing temperate vegetable marketgardens, with the participation of local Bumiputera entrepreneurs.The growing of the kenaf fibre is expected to make a major headway in the region due to its wide rangeof industrial application, making it a viable new cash earner – it can be processed into industrial fibre, ropeand highly durable padding material for the automobile industry. Investors can take the advantage of rapidgrowth of this new industry by setting up the downstream processing and export supply chain to supportthis development.The development of the kenaf plantations will be integrated with the production of green animal feed tosupport the extensive livestock cluster development in the ECER. Investors can look into growing napiergrass, maize, alfalfa and sorghum plants to provide animal feed supplies for this industry.RiceRice is mainly grown in districts around Northern Kelantan and Bachok, as well as in Besut andRompin. The target for the rice industry is to increase the region’s self-sufficiency level to 90 per cent.Investors can join hands by participating in mini-estate and group farming initiatives, leveraging on theimprovements in high quality seeds, irrigation and drainage infrastructure. Several granary areas inTumpat, Bachok and Besut have been identified for the rearing of feedlot cattle.Investors' Guide 66Herbal and Biotechnology ProductsHerbal farming will also be developed to meet the increasing domestic and overseas demandin natural health products, made from varieties of high quality local herbs including MisaiKuching, Pegaga, Hempedu Bumi, Tongkat Ali, Kachip Fatimah, Dukung Anak, Mengkuduand Roselle. Research and development activities in the area of biotechnology will allow theregion to leverage on its wealth of natural resources, opening the door towards thecommercialisation of new pharmaceutical and high-end consumer products in the future.KenafWhile tobacco has been an important cash crop in the region, its potential for development willbe constrainted with the enforcement of AFTA by 2010. Investors are encouraged to participatein the efforts to replace it with alternative industrial crops suitable to local soil conditions andwhich will be able to give economical returns to the local farmers. The kenaf plant has beenidentified as one of the possible and viable alternative to tobacco, taking considerations of itsability to thrive in the existing limitation of bris soil and local climate.CocoaCocoa planting will also be encouraged to diversify the output of farmers in the region, where thecocoa plantations will be intercropped with fruit trees, under an initiative driven by the MalaysianCocoa Board. The identified cocoa growing areas include Gua Musang, Jeli, Kuala Berang and Raub,with two Dry Bean Collection Centres established in Maran and Machang.Investors' Guide 67

The establishment of a Nucleus Farm, the Muadzam ShahCattle Breeding and Innovation Centre in Rompin, will play animportant role in improving the genetic quality of cattle in theECER region, as well as the home of the nucleus herd used toimprove the region’s cattle breeding programme.Major Cattle-Breeding Initiatives in the ECERLIVESTOCKCurrently, livestock rearing is the mainstay for smallholders and participants of land schemessuch as FELDA and it is expected to generate further returns to investors keen to explore newand integrated approaches. There is great domestic demand for meat, dairy and poultryproducts, which has so far been supplemented by imports from overseas, and investors canbe assured of finding a ready market locally in fresh, as well as processed meat, dairy andpoultry products.No12ProjectNucleus Farm• Muadzam Shah Cattle Breeding & Innovation Centre,Rompin, PahangMultiplier Farm• Tanah Merah, Kelantan• Ulu Tersat, Terengganu• Ulu Lepar, PahangInvestors' Guide 68Each of the three anchor states in the ECER will have their own specific livestock specialisation –the poultry cluster in Kelantan, the goat cluster in Terengganu and the cattle cluster in Pahang.Beef ClusterIn Pahang, the cattle cluster will be developed using holistic approach starting from initiating thefirst tier of Nucleus Farm in Muadzam Shah and developing the second tier of Multiplier Farm inUlu Lepar as well as establishment of the third tier of Commercial Farm using integrated system inoil palm plantation and pineapple plantation.3Commercial Farm• FELDA Oil Palm Plantations (Gua Musang, TanahMerah, Ulu Terengganu, Dungun, Kemaman, Kuantan,Maran, Jengka, Bera & Muadzam Shah)• Beef Valley (Kuala Krai, Pasir Putih, Marang, Lipis,Bera, Rompin)• Feedlot in Pineapple Areas (Kg Jemari, Pahang)• Feedlot in Paddy Areas (KADA, KETARA, IADP)Investors' Guide 69

Investors' Guide 70Major Goat Initiatives In ECERNo112233ProjectFarm• Kuala Berang Goat Research & Innovation Centre, TerengganuMultiplier Farm• Kuala Berang Goat Multiplier FarmCommercial Farm• Intensive Goat Rearing at Rubber Plantation (Besut, Hulu Terengganu)• Intensive Goat Rearing at Grazing Area (Machang, Kelantan)• Intensive Goat Rearing under nucleus concept (Telaga Papan,Segading, Padang Seladang, Mengabang Bakong, Tanjung Gaduh,Payang Kayu, Durian Mentangau, Kg Cabang)Goat ClusterThe goat cluster will benefit tremendously from theestablishment of intensive nucleus goat farms andbreeding centres in Terengganu, producing highquality products to meet the ever growing domesticdemand. Investors in this sector can also leverageon the integrated approach employed in the goatcluster, as well as the establishment of nucleus farmsas grazing reserves, backed by a centralised breedingarea. The Kuala Berang Goat Research & InnovationCentre will be established in Terengganu to focus onthe genetic improvement and breeding programme ofgoats for breeder stock. The centre’s research will besupported by the Universiti Malaya research group incollaboration with Universiti Darul Iman and MARDI.Poultry ClusterPoultry industry will grow with the establishment of severalpoultry parks and processing facilities, located mostly inKelantan. Besides participating directly in the poultry industry,investors in this sector can also involve in the new animalfeed production industrial area, set up within a 10 hectareplot near the Kuantan Port City.Major Poultry Initiatives in the ECERNo123ProjectFully Integrated Poultry Processing Park (Gua Musang)Poultry Processing Plant & Day-old-chick Production in Gambang, Pahang &Chendering, TerengganuGrain Based Animal Feed Industry in Gebeng Industrial Park, Kuantan, PahangInvestors' Guide 71

The livestock thrust in ECER seeks new and innovative involvementby the investors to improve the livestock production systems andsupply chain involving anchor companies; intensify breedingprogrammes; introduction of new technologies and improved breedincluding intensive farming methods, feedlotting and provide bettersupport services such as Planned Animal Health and Production(PAHP) services, Beef Herds Improvement Programme (BHIP),better industry incentives and leverage on market development.Inevitably, by raising quality and lowering the production cost oflocally reared livestock, investors are able to wean the market fromthe current dependence on imported meat, dairy and poultryproducts, as local demand for these products is quite substantial.The raw output from the livestock industry will also be the primaryinput to the Halal Hubs in Gambang, Pahang and Pasir Mas,Kelantan, which will cater to domestic and international demand forprocessed halal products.Aquaculture also provides an obviousadvantage where fish production can betailored towards the requirements ofprocessing both in terms of regular anduninterrupted supply as well as the specificquality demands of processing.Due to the increasing demand for fresh fishand fish-based products from both domesticand international markets, there is a potentialfor increased cooperation and joint venturebetween the private and public sectors. Thestrategies for leveraging fisheries cluster inECER will be focusing on the development ofdownstream activities and value-addedproducts such as the Fish Processing Park inKuantan or the Integrated Fisheries Park inTok Bali and its surrounding areas.Investors' Guide 72FISHERIESThe fisheries industry has traditionally been a significant source oflivelihood in the ECER, visibly influencing its socio-economiclandscape. Hence, efforts to uplift the socio-economic well-beingof the Region will have to inevitably focus on this sector.To ensure the maximum utilisation of the available fish resource, itis vital to implement more value-added activities such as processingand identifying alternative sources of production such as aquaculturein marine fish and freshwater fish.For aquaculture, investors can look into the possibility ofparticipating in vertically-integrated farming operations, such asthe Vertically Integrated Tilapia Production Complexes at Pergauand Kenyir as well as in the Aquaculture Industry Zone (AIZ) locatedin the strategic location within ECER.Two high-technology based fish hatcheries and fish seed marketingcentres will be developed in ECER through strategic partnershipwith the private Anchor Company. The hatcheries will be developedin Merchong, Pahang for the Marine Fish Hatchery and in Raub/Bentong for the Freshwater Hatchery.These new strategies in fish production through aquaculture arecrucial in ensuring adequate and constant fish supply in the future.Recreational Fishing LocationsKelantanTerengganuPahang• Tumpat• Merang-Setiu• Tanjung Sepat• Kuala RompinThe Integrated Fisheries Park in Tok Bali canbe considered the very heart of thedownstream fisheries industry in the future,where the marine fish catch is brought forfurther value adding and distribution.The Tok Bali facility supports the downstream development with onshore facilities for marketing, processing andpackaging fish-based products from throughout the region, as well as cold-chain and logistics support. The Parkwill benefit from the increased volumes of feedstock channelled to it from a number of newly-developedfreshwater aquaculture initiatives, as well as the deep-sea fishing industry.Recreational FishingSeveral areas in the ECER have been identified for the establishment of recreational fishing centres, includingTumpat, Merang-Setiu, Tanjung Sepat and Kuala Rompin. These locations will see the establishment of anglingcentres based on the food court model, which will accommodate outdoor angling ponds for marine andbrackishwater fish. Each hub will have at least five ponds, each one about one hectare. To support the centre’sdevelopment, investors can look into the establishment of supporting infrastructure such as jetty and boatservices for offshore angling, chalets, restaurants, souvenir shops and entertainment outlets. These centres willhave great synergies with the ECER’s strong focus on tourism.Investors' Guide 73

- UMK (Bachok), UDM (Besut),- Knowledge Park (Taman Ilmu)Education- UMK (Jeli)- Business Entrepreneurship and ManagementTraining ProgrammeTHAILANDKotaBharuBachok- USM (Kota Bharu), KU Twintech (Kota Bharu),UiTM (Machang)- Centre for Industry-Academia Collaboration (CIAC)- Centre for Innovativeness & Product Creativity Centrefor Heritage & Culture and Entrepreneurship and ManagementTraining Programme (UMK Bachok)- Centre for Innovativeness and Product Creativity (UiTM Machang)- Regional Centre for Halal Products and Centre for Bio-Technologyand Herbal Research (UDM Besut)JeliJertih-Kg. Raja-BesutGeorge Town- UMT (Kuala Terengganu)- UDM (Kota & Kusza),KualaTerengganu- Centre for Industry-Academia Collaboration (CIAC)- Institute of Biodiversity Oceanography and Centre forSocial DevelopmentDungun- UiTM (Dungun)IpohUlu TembelingKertih- Centre for Industry-Academia Collaboration (CIAC)- Hospitality & Tourism Management and TouristGuide Training Centre (UiTM Dungun)Kuala LipisChukai- UMP (Pekan)- UIAM ( Kuantan),Kuantan- Centre for Industry-Academia Collaboration (CIAC)- Post-Graduate Studies on Facilities Management andBiodegradable Products and Biofuel Research Centre(UMP)JengkaTanjung AgasPekan/PeramuThe education cluster is a key component that supports all of the region’s main developmentalthrusts. By improving the quality of education as well as expanding learning opportunitiesand facilities, the ECER is able to generate a pool of skilled and capable workers, which isable to serve the various existing and new industries established in the Region. Additionally,the educational institutions play a vital role in supporting the industries through their researchand development inputs and specialised collaborations, aimed at improving products andservices delivery, thus spurring economic activity further in the Region.- UiTM (Jengka)KUALALUMPUR- Centre for Industry-Academia Collaboration (CIAC)- Skills Training and Accreditation & Certification Centrefor Wood-based Products (UiTM Jengka)MuadzamShah- UNITEN (Muadzam Shah)Kuala RompinMersingIn the ECER, the education cluster plays a dual role. On one hand, the sector is an economicdriver and a catalyst for growth in the ECER. On the other hand, education is a key enablerthat supports other sectors such as agriculture, manufacturing and tourism in terms of humanresources development.NThe knowledge, education and ICT sector is a key component that links all the economicpillars of the ECER SEZ. As the ECER SEZ economy prepares to move up the value-chain, sowill the role of the knowledge and education institutions via their research and developmentinputs and specialised collaborations with other industries.50 050 100KILOMETREJohor BahruSINGAPOREInvestors' Guide 74Industry-Academia CollaborationAs the march towards economic progress continues, there will be close collaboration betweenthe Region's industries and academic centres. In each of the five universities in the ECER,Centres of Excellence (COE) have been established to accelerate the human capitaldevelopment to suit the needs of the industry, particularly in tourism, oil and gas, manufacturing,agriculture, halal products, wood-based products and bio-technology.In return, the industry works closely with the R&D centres to help the universities update theircourse curriculum in tandem with new workplace requirements. These strategic collaborationsare essential towards lifting up the universities' international image and recognition, enablingthem to form more collaboration with foreign universities.LEGENDTownsKey Initiatives SitesPrimary Routes(Existing & Proposed)Expressways(Existing & Proposed)Railway(Existing & Proposed)Key Initiatives-New University/Branch CampusExisting University/Branch CampusCentres of ExcellenceAirportPort> 3 Universities,Colleges +Skills Training Centres2-3 Universities+ Skills Training Centres1 University + Polytechnic+ Skills Training CentresInvestors' Guide 75

For this purpose, the universities in the seven locations (UDM Besut, UMKBachok, UMP Pekan, UMT Kuala Terengganu and UiTM Dungun, Machang andJengka) have set up Centres of Excellence (CoE) for industry-academiacollaboration. The private sector is also invited to work with the universities totailor the curriculum to meet the needs of the industry.The establishment of four new universities as well as the upgrading of variousexisting institutions, polytechnics and branch campuses will bring on-streamgreater numbers of skilled and educated human capital, capable of supportingthe Region’s commerce and economic goals in the coming years.Knowledge ParkThe Knowledge Park is an initiative of the government of Terengganu, whichalso provides the 700 acres of land needed for the project. Located close tothe proposed Universiti Darul Iman Malaysia (UDM) in Besut, Terengganu, theKnowledge Park will be established as a new university township, focussingon educational excellence and inspiring the appreciation of creativity, heritageand culture.The Knowledge Park will also be equipped with the latest technologicalinnovations making it a safe and intelligent city. It will have state-of-the-artinformation and communications systems with advanced multimediacapabilities.The Malaysian Government will give the Knowledge Park a head start byimplementing the following:• An Administration Hall• A Student Centre• A Convocation Hall• A Central Library• A Central Mosque• A Sports Centre• A Student Hostel• Recreation areas for commercial and student activities• Infrastructure and facilities like roads, electricity supply, water supply,sewerage, telecommunictions and other amenities to accommodate theneeds of a population of 100,000 peopleInvestors, including premier universities from around the world are invited to lookat opportunities to establish their regional branch campuses and twinningprogrammes within the specially envisioned development of the Knowledge Park.New Centres of Excellence initiated under the ECERCentreCentre for Industry-Academia Collaboration (CIAC)Regional Centre for Halal ProductsCentre for Innovativeness & Product CreativityCentre for Heritage & CultureHospitality & Tourism Management and Tourist GuideTraining CentreInstitute of Biodiversity & OceanographyCentre for Bio-Technology and Herbal ResearchSkills Training and Accreditation & Certification Centrefor Wood-based ProductsEntrepreneurship and Management Training ProgrammePost-Graduate Studies on Facilities ManagementBiodegradable Products and Biofuel Research CentreCentre for Social DevelopmentNew University Campuses in the ECERInstitutionUniversiti Malaysia Kelantan (UMK)Bachok CampusJeli CampusUniversiti Darul Iman Malaysia (UDM)Besut CampusKuala Terengganu CampusUniversiti Malaysia Terengganu (UMT)Kuala Terengganu CampusInstitutionUMK, UMT, UDM, UMP, UiTM Machang,UiTM Dungun & UiTM JengkaUDMUiTM Machang & UMKUMKUiTM DungunUMTUDMUiTM JengkaUMKUMTUMPUMTCourses offered• Entrepreneurship & business• Agro industry & natural resources• Creative technology & heritage• SME Development• Third language studies• Islamic studies• Accounting & business• Agriculture & biotechnology• Food technology & processing• Animal science• Information multimedia technology• Arabic & education• Science & technology• Economics & management• Agro-technology & food science• Marine science• Oceanography, tropical aquaculture & marine biotechnologyInvestors' Guide 76Universiti Malaysia Pahang (UMP)Pekan Campus, Gambang, Kuantan Campus• Engineering• Technology-based sciencesInvestors' Guide 77

Information Communication Technology DevelopmentThe ECER Master Plan has instituted a number of initiatives to bridge the digital divide, as wellas prepare the region's human capital to confidently participate in a knowledge-basedeconomy.One of the major initiatives is the effort to train locals to set up Small Office Home Officefacilities which will allow them to work from remote locations, with the use of broadband andfixed-line access.Kuala Terengganu is expected to be a major IT hub for the ECER. The focus there will be theestablishment of a Global Animation Centre, which will allow investors to explore opportunitiesin setting up advanced computer animation and digital 3D graphics centres. Investors mightalso want to explore opportunities in outsourcing and contracting animation work for majorglobal production houses and studios from around the world.The establishment of the International Digital Business Exchange (IDBX) in Batu Rakit, KualaTerengganu, as an Internet exchange regional hub at competitive prices is an important movein fast-tracking IT development in the region.The principle objectives of the IDBX include establishing a wider coverage for local businessesand providing affordable broadband services. The IDBX will also optimise the return onIT investments, while facilitating technology transfer.Investors' Guide 78The IDBX’s establishment will result in better fixed-line, fixed-wireless, data/IP and ISPgateway services for the ECER as a whole.Investors' Guide 79Knowledge Park

THE ECER SPECIAL ECONOMIC ZONEACCELERATING DEVELOPMENTThe ECER SEZThe Catalyst Of TransformationPengkalan KuborKota BharuRantau PanjangBukit BungaKELANTANKuala BesutKuala TerengganuTERENGGANUGua MusangDungunThe ECER SEZ acts as acatalyst for concentrateddecentralisation of economicactivities in line with the NewEconomic Model.KertihKuala LipisCukaiPAHANGBentongTemerlohMentakabKuantanGambangPekanTanjung AgasThe ECER SEZ is a concentration of high-impact projectswithin an integrated development zone located at thenucleus of the ECER - the 25 km by 140 km strip thatextends from Kertih, in Terengganu to Pekan, in Pahang.Kuala RompinIt comprises new townships, international tourism sites, four ports, two airports and a knowledgeinnovation zone. It is the most ideal stretch along the east coast for further urbanisation, givenits established cities and towns.Investors' Guide 80Mersing, JohorThe ECERSpecial Economic ZoneThe ECER SEZ acts as a catalyst for concentrated decentralisation of economic activities inline with the New Economic Model. It will accelerate growth with focused concentration, wheremanufacturing and commercial activities are promoted and conducted on preferential exciseterms, supported by good infrastructure development as well as knowledge-based andcapacity-building programmes.ECER SEZ is set to experience unprecedented growth and generate a ripple of developmentthroughout the ECER through its significant multiplier effects. It is now one of the larger SEZsin Asia with 390,000 hectares comprising 25,000 hectares of SEZ Focus Nodes.Investors' Guide 81

ECER SEZKey Project InitiativesTo Dungun/K.TerengganuKERTIH• Kertih Integrated Petrochemical Complex• Kertih Polymer Park• Polymer Technology CentrePAKAKERTIHKIJAL• Mainland Coastal TourismInvestors' Guide 82ToKualaLumpurMajor Urban NodesIndustry NodesTourism NodesGAMBANGBANDAR AL MUKTAFI BILLAH SHAH• Furniture Industry ParkSG. LEMBING• Ecotourism & Heritage Mines• Safari ParkCattle Integration inOil Palm Plantations(Kemaman)EAST COAST EXPRESSWAY (LPT 1 & 2)Kuantan-MaranAgro ValleySEZ CENTRAL LINKECER SEZPERAMUAgropolitan ProjectRETEMERLOH-MENTAKAB / KT RAILEAST COAST EXPRESSWAY (LPT 4)To Johor/SingaporeUMPCHERATINGKUANTANPORT CITYPANTAI SEPATTG. AGASKIJALTELUK KALONG /KEMAMAN PORTCUKAIKUANTANPEKANKUALA PAHANGGAMBANG• Gambang Cyber Centre• Gambang Science Park• Gambang Halal Park• Poultry Processing Park• SME Incubation Centre for Food Processing• Biotech Industrial Park• Electric and Electronic Supply CentrePEKAN-PERAMU• Cultural Heritage Tourism• Automotive Industrial Park• Handicraft Village• Tg. Agas Maritime Industrial Hub• Tg. Agas - Free ZoneCUKAI• Kemaman Boat Building & Repair Park• Kemaman Heavy Industrial Park• Kemaman Port Expansion• Kemaman Port - Free Zone• SME Development Programme forProcessed Fisheries Products• Fish Collection, Packaging & ProcessingCentre & Fish Landing PortCHERATING• Mainland Coastal TourismKUANTAN PORT CITY• Knowledge Innovation Zone• Kuantan Deep Water Port• Kuantan Port City - Free Zone• Logistics Centre• Palm Oil Industrial Cluster• Automotive Regional Distribution Centre• Grain-based Animal Feed Industry• Gebeng Integrated Petrochemical Complex• Biofuel Cluster• Industrial Cluster• Small Medium Scale Enterprises• Panching Water Treatment FacilityKUANTAN• Urban Tourism• Kuantan Airport Upgrading• Fish Processing Park & Fish Landing Port• Kuantan-Maran Agro Valley• SME Development Programme forProcessed Fisheries Products• Handicraft Industry Programme• Kuantan Cyber Centre• International Islamic University• Kuantan Sentral Multimodal Transit Hub• Kuantan Airport - Free ZonePANTAI SEPAT• Mainland Coastal Tourism• Recreational Fishing CentreKUALA PAHANG• Mainland Coastal Tourism• University Malaysia Pahang• Centres of Excellence (Biofuel,Biodegradable Products & Automobile)• Kuala Pahang Marine Fish & ShrimpHatchery & Marketing CentreThe ECER SEZ is poised to become a strategic destination for investors given its positionto access the vast markets of the Far East and the Asia Pacific, with a total population of2 billion and a combined GDP of US$17 trillion. Investment within the ECER SEZ isestimated to total RM90 billion up to 2020.Covering only 6% of the landmass of the entire ECER, the ECER SEZ is projected to providesignificant impact by creating 80% of the economic output of the ECER.Investors' Guide 83

International, National & RegionalPositioning Of The ECER SEZINTERNATIONAL POSITIONINGThe ECER SEZ lies at the geographical centre of SoutheastAsia, serving as a gateway to Indochina and the two mostpopulated countries in the world: China and India (combinedpopulation of 3 billion people).In addition, through its location in Malaysia which is a memberof the Association of South East Asian Nations (ASEAN), theECER SEZ is entitled to privileges under the ASEAN FreeTrade Area (AFTA) Agreement – an area with a combinedpopulation of more than 500 million people. Taken together,the factors above provide ready access for the SEZ into alarger “domestic market”, thus giving a bigger scale ofproduction and bigger base to source for raw materials.• Hinterland to East Asia• Inter-regional hub forChina-India• Integrated industryclusters• Low cost of doingbusiness• Eastern Gateway ofMalaysia• Promotinginternational/regionaltrade linkages andinvestmentREGIONAL POSITIONINGWithin the ECER SEZ, there will be further initiatives taken to strengthen local economic corridorsin Oil, Gas & Petrochemical, Manufacturing, Agro-based Industries, Tourism and Education Clustersthrough focused concentration of investments in selected nodes and clusters.Investors' Guide 84The ECER SEZ lies in a belt of development within theECER that banks on the international, national and regionalgrowth conurbations to fuel its growth as the hinterland toEast Asia.While the focus is to promote international/regional trade linkages and investment, the emphasisis also on protecting and conserving environmentally sensitive areas.NATIONAL POSITIONINGNationally, the ECER SEZ is strategically positioned as a major growth conurbation for the EastCoast states. This conurbation, identified as a National Regional Growth Conurbation (Level 2) inthe National Physical Plan, is expected to have a large population concentration of about 1 millionby 2020.The ECER SEZ is also strategically located at the convergence of two main growth corridors in thepeninsula i.e. the Central Corridor linking KL to Kuantan and East Coast Corridor stretching fromKota Bharu in the north to Johor Bahru in the south. Other sub-corridors that could have an impacton the ECER SEZ will include the Kuantan–Melaka Sub-Corridor.Investors' Guide 85

THE FOUNDATION OF THE ECER SEZThe ECER SEZ has been established to serve as a catalyst inspeeding up industrial and economic activity within the ECERtowards achieving the development objectives for the Region.The development strategy will focus on the key economicdrivers, while the key enabling projects will increase connectivityand provide the necessary linkages to the clusters. The ECERSEZ contains four major ports and two airports which willsupport its manufacturing and industrial activities. The maintransportation and logistics initiatives include:• The ECER SEZ Central Link, which will unlock thedevelopment potential of interior land parcels in the SEZ andserve as the main traffic connector for the SEZ• The development of an expressway system- East Coast Expressway 2 (LPT2):Kuantan - Kuala Terengganu- East Coast Expressway 4 (LPT4):Kuantan - Johor Bahru• The regional rail link connecting the industrialised west coastand the ECER SEZ• The proposed Kuantan Sentral Multimodal Transit HubSPECIAL ECONOMIC ZONE MODELThe ECER SEZ will incorporate an integrateddevelopment approach, which comprisescommercial, residential, educational, industrial,service and knowledge components.CommercialTourismNewTownKnowledge &EducationTransport,Infra &UtilitiesIndustrialClustersIt will have an orientation towards building upcapacity for knowledge innovation that can belinked across each component. The knowledgeinnovation-based economy acting as an enabler,will focus on collaboration, cooperation, researchand development, knowledge-sharing andcommercialisation of ideas between the privatesector, Government and academia.Investors' Guide 86PortFreeZoneInvestors' Guide 87

ECONOMIC PILLARS OF THE ECER SEZThe objective of the ECER SEZ is to become the catalyst for focused growthin the ECER guided by a vision that is supported by a high level of economicgrowth through accelerated development in the six key economic driverswhich include high-value manufacturing; agro-based industry; oil, gas andpetrochemical; tourism and real estate with special focus on knowledge andeducation and Information Communication Technology (ICT); and logistics.LogisticsThe logistics industry is supported by the development of new free zones and specialisedindustrial parks within the ECER SEZ. By the year 2020, the ECER SEZ is envisaged to havea strong manufacturing foundation to be the industrialised centre of the ECER. To realise thisgoal, industrial parks will be developed to open up opportunities to investors who are keen toset up their manufacturing base in the ECER SEZ.In addition, the incremental upgrades of major logistics infrastructure, including the developmentof Kuantan Port City (KPC), will transform the ECER SEZ into a manufacturing and commercialservices hub, as well as a regional distribution and international procurement centre. Apart fromestablished export destinations such as Japan, South Korea, China and India, KPC will becomea major hub for transhipment activities supported by good transport and logistics linkages toEast Asia and the world.Knowledge, Education and ICTThe knowledge, education and ICT sector is a key component that can be linked to all theeconomic pillars of the ECER SEZ. By improving the quality of education and expanding thelearning opportunities and facilities, the ECER SEZ will generate a pool of specialised skills andknowledge workers which will be able to serve the manpower needs of existing and futureindustries.Investors' Guide 88With the ECER SEZ emphasising activities that move up the value-chain, so will the role of theknowledge and education institutions via their research and development inputs and specialisedcollaborations with other industries with the aim of improving product and services delivery.In terms of information communication and technology development, the ECER SEZ aims tobridge the digital divide that will initiate development of the ECER’s human capital to confidentlyparticipate in a knowledge-based economy.Investors' Guide 89

THE ECER SEZ FOCUS NODESKERTIH POLYMER PARKMalaysia’s first fully integrated plastics and polymer park, theKertih Polymer Park (KPP) is nestled within the Kertih-Cukai-Gebeng petrochemical hub covering a total of 140 hectares ofland area. Set up to promote further downstream investments inplastics and polymer industries, KPP taps into the potentialsynergies from integration with the Kertih Integrated PetrochemicalComplex (KIPC).PETRONAS PETROLEUM INDUSTRY COMPLEXThe PETRONAS Petroleum Industry Complex (PPIC) inTerengganu is a fully integrated petroleum industrial hub, whichencompasses about 4,000 hectares of land, with 11 petrochemicalplants, an oil refinery, a condensate splitter and six gas processingplants (GPP).Investors' Guide 90The complex houses the KIPC, which focuses on the ethylenebasedproduct streams.Investors' Guide 91

Ethylene-Based ProductsThe KIPC has attracted some of the world’s leading industry players suchas BP Chemicals, Sasol Limited, Idemitsu Group and MitsubishiCorporation.The KIPC offers investors the capacity to create downstream application ofethylene-based products from its readily available feedstock, turning theminto adhesives, sealants, automotive parts and household detergents.Investors can take advantage of the KIPC’s existing support and logisticsfacility and its connectivity to the Region’s major export hubs.Propylene-Based ProductsFocusing on propylene-based products, the Gebeng IntegratedPetrochemical Complex (GIPC) in Pahang is an integrated petrochemicalcomplex, located within a key industrial area, which has already attracteda number of major investments from local and overseas companies.With the availability of polymer resins at these two facilities (KIPC andGIPC), there is a strong potential to develop downstream applications andnurture the growth of the plastics and polymer industry.New investors can play a complementary role to the existing players bycompleting the supply chain services for the Gebeng industrial area, whichis essentially a continuation of the ECER’s other major oil, gas andpetrochemical development located in Kertih.Investors can also play an active role in developing further the potential ofdownstream application of propylene-based products from the feedstockproduced in this complex, transforming it into products such as textiles,apparel, home furnishing and pharmaceuticals.KEMAMAN HEAVY INDUSTRIAL PARKThe Kemaman Heavy Industrial Park (KHIP) is a dedicated heavy industrial park thatadopts a plug-and-play development model whereby the requisite support facilities andcommon services are in place, allowing businesses to immediately start operations.The manufacturing activities at the KHIP, which require movement of raw materials,component parts, machinery and equipment related directly to the manufacturing processeswill benefit from the synergy of the nearby Kemaman Port which has the comprehensivefacilities of a free zone and able to cater for heavy-industry freight services.The Park includes a deep-sea boat building and repair industry which offers an opportunityfor investors to leverage on the Region’s pool of indigenous skills and the expansion ofthe market expected with heightened activity in the trade, logistics, fisheries and the oil,gas and petrochemical industries.GAMBANG HALAL PARKWithin the ECER SEZ, the Gambang Halal Park is another significant ECER manufacturingproject. As a part of value-added industry development, the Gambang Halal Park will see theemergence of food and non-food industries produced in accordance with Syariah principles.The Halal Park will also house incubation centres for small and micro-food enterprises.CHERATING TOURISM TOWNSituated 47km from Kuantan, Cherating’s fine sandy beach and crystal clear water makesit one of the most popular tourism destinations in ECER.Investors' Guide 92With budget hotels, chalets and 5-Star resorts established within the area, including localhandicraft shops and seafood restaurants, Cherating offers more than just a relaxing spotto unwind. Under the ECER, it has been earmarked as one of the Region’s majormainland coastal tourism and heritage destinations.Investors' Guide 93

PANTAI SEPAT TOURISM TOWNLocated in a prime area near Kuantan and easily accessible from the Klang Valley via the EastCoast Expressway, Pantai Sepat covers more than 1,000 hectares of area with over 7km ofbeautiful continuous beach frontage, 4- and 5-Star hotels, cultural events and more to cater fordiverse market segments especially foreign and local tourists.Its southern-most part overlooks pristine wetland and natural coastal wildlife sanctuaries.Development of large residential and commercial areas, hotels and resort as well as a fishingjetty and an esplanade are in the pipeline.In addition to generating over 1,000 job opportunities for the local community, the project willalso open up opportunities for SME’s, including lodging, food, transport, and souvenirs.KUALA PAHANG TOURISM ZONEKuala Pahang, or specifically Pantai Air Leleh, lies within the Eastern Mainland Tourism Corridor.Being adjacent to Pekan, the historical royal town, the initiatives include the enhancement of sectionsof this historic town and kampong areas as well as for the riverfront. Development will also includelow-key commercial and Homestay/Kampung Stay programmes.KUANTAN PORT CITY (Integrated Development) and KUANTAN PORT CITY - FREE ZONEThe integrated development of Kuantan Port City (KPC) and Kuantan Port City - Free Zone willelevate the ECER SEZ to become an integrated industrial and logistics hub for the petrochemical,palm oil, automotive and container markets, as well as a major industrial and manufacturing zoneserving the entire Asia Pacific region. KPC will also be the site for a Palm Oil Industry Cluster(POIC), one of its manufacturing components specialising in the downstream palm oil industry.The coastal tourism development of Pantai Air Leleh would include an integrated resort, 4- and5-Star hotels and coastal parks. Since it is located close to Universiti Malaysia Pahang (UMP),developments would also include residential accommodation for staff and students of UMPtogether with commercial areas.Investors' Guide 94It is a massive project, covering an area of approximately 12,667 hectares and projected toattract investments up to RM42 billion by 2020 and RM123 billion by 2040. When fullycompleted, Kuantan Port’s total throughput is estimated to increase from over 9.4 million tonnesin 2008 to approximately 30 million tonnes in 2020. Its GDP contribution to the local economyis estimated at RM9.3 billion by 2020, creating a total of 44,700 jobs.Investors' Guide 95

PEKAN-PERAMU AUTOMOTIVE INDUSTRIAL PARKThe Automotive Industrial Park (AIP) development will position the Pekan-Peramu area as anautomotive manufacturing and assembly and R&D hub. Strategically located close to KuantanPort, the AIP provides a cost-competitive advantage to vehicle and component manufacturers/assemblers looking for an automotive supply and distribution base for the ASEAN and AsiaPacific regions.AIP’s key characteristics include:• A self-contained park to cater for automotive manufacturing and assembly activities withsupporting facilities, residential and recreational amenities, plug-and-play concept offeringinfrastructure ready with ready-built factories for R&D activities and assembly plants.• A one-stop centre providing value-added services for speedy processing in all aspects ofbusiness and operations set-up.TANJUNG AGASMARITIME INDUSTRIALHUB & FREE ZONEThe Tanjung Agas MaritimeIndustrial Park in Pekan willbe developed as a maritimehub. The industrial park,covering 4,098 acres, will bea modern one-stop servicecentre and offshore base.Among the facilities to be setup in the Park are a shipyard,fabrication yard, dredgeryard, bulk terminal, petroleumterminal and warehouses,factories and commercial andresidential development.It will create over 30,000 jobsin 10 years. The first 5,000jobs are expected to begenerated by 2011.• Innovative and flexible financial incentives for companies deciding to locate their operationsat the AIP.The AIP is estimated to generate over RM4 billion in investments throughout its four stages ofdevelopment, with a total of 10,580 jobs expected to be created.Investors' Guide 96Investors' Guide 97

ENABLING SUSTAINABLEDEVELOPMENTAIRPORTSKuala Terengganu Airport has become an international airport while Kuantan Airport and KotaBharu Airport will be upgraded to be regional airports, allowing for more efficient airconnectivity within the ECER.TransportationTo enhance the growth and development in the ECER, transportation in the ECER,comprising road, air, maritime and rail facilities, will be upgraded to improve theRegion’s connectivity to other growth areas both nationally and internationally, as wellas to increase the inter-modal transport links within the ECER.ROADSTo enhance connectivity and facilitate a more efficient movement of goods, theupgrading of the Central Spine Road and construction of the East Coast Expresswayare vital to the ECER.• East Coast ExpresswayAccessibility to the ECER will be further enhanced with the completion of the EastCoast Expressway (ECE), which will link the Kuala Lumpur conurbation to KotaBharu and further north to neighbouring Thailand via Pengkalan Kubor. The fourthphase of the ECE is being planned to link Kuantan to Singapore via Johor Bahrufor the southern region connection.PORTSMajor sea ports such as Kertih Port, Kemaman Port and Kuantan Port will be upgraded tocater to future investors’ needs. Kuantan Port will also be expanded with the construction ofa new deep-water terminal, allowing bigger and more modern ships to berth.• Kuantan Port ExpansionAs the biggest port in the East Coast and due to its strategic location, Kuantan Port hasbeen identified under the ECER Master Plan to be the main gateway for the industrial sectorsuch as the petrochemical, palm oil and container based industries.With the existence of the distribution and commercial services centre in the ECER, KuantanPort should be able to explore the booming market for container and other conventionaltransportation.The ECER Master Plan also outlines the development for the overall area within the port tobe an industrial and logistical hub and a vibrant port city. For that purpose, a Free Zone areahas been earmarked within the Kuantan Port.The first phase of Kuantan Port’s expansion will involve the upgrading of the roads anddrainage, and water supply capacity, which began in mid-2009.RAILA feasibility study will be carried out to explore the possibility of expanding the passenger andfreight rail linkage, both within the ECER states and to the west coast of the peninsula.• East West Rail LinkThe Region is also linked to other parts of the peninsula via an efficient railway networkoperated by Keretapi Tanah Melayu. The main line stretches from Tumpat in Kelantan toGemas in Negeri Sembilan, before branching out to Padang Besar and Johor Bahru.The railway network also links the ECER to Thailand via Rantau Panjang in Kelantan.Investors' Guide 98• Central Spine RoadThe Central Spine Road stretches from Kuala Krai in Kelantan to SimpangPelangai in Pahang, before connecting to the North-South Expressway atSeremban. The existing road will be upgraded into a dual two-lane carriageway,connecting many interior towns and creating a complete network of qualityroads from rural to urban areas in the region.The improved Central Spine Road will result in better connectivity from withinand outside the ECER.Investors' Guide 99

ECER InfrastructureBukit Kayu HitamPengkalan KuborMinor PortInfrastructureTHAILANDKota Bharu AirportAlor StarToThailandRantauPanjangKota BharuBachokTok BaliTok Bali Fishing PortGeorge TownButterworthTo PenangJeliMachangKualaKraiKg. Raja-BesutMerangKuala TerengganuInternational AirportKuala TerengganuMarangGua MusangKuala BerangLojingDungunIpohKertihKertih PortKuala LipisCukaiKemaman PortKlang PortNRaubBentongKarakKUALALUMPURKLIALanchangSimpangPelangaiSerembanJerantutTemerloh-MentakabSegamatMaranBandar PelabuhanKuantanKuantanPekan / PeramuMuadzam ShahTanjung ApiKuantan PortKuantan AirportTanjung AgasKuala RompinTanjung GemukMersingKg. SediliBesarThe infrastructure sector will be simultaneously enhanced on several fronts. There will be majorflood mitigation projects to progressively improve drainage conditions in the ECER.Coastal erosion will be handled systematically to allow ECER’s development projects to takeplace with minimal disruption, and beaches will be rehabilitated to revive the tourism sector.Electricity, water supply, telecommunications including ICT, and sewerage will be improved tomeet current and projected demands in the Region.Real Estate50 050 100KILOMET R EState Growth ConurbationExisting ExpresswaysJohor BahruTanjungPelepasSINGAPOREInternational AirportProperty and construction will also be a focus in preparing sufficient residential, leisure, commercialand industrial properties to meet the Region’s economic demands and growth.EnvironmentInvestors' Guide 100LEGENDIntermediate GrowthConurbation / Large TownSmall Medium Towns /Special Feature TownsTownsAirportsMajor PortExisting Supporting RoutesExisting Primary RoutesProposed New ExpresswayProposed Supporting RoutesCentral Spine RoadRegional AirportKuala TerengganuCruise TerminalPortJettyThe ECER is home to many environmental heritage sites and a large proportion of water catchmentareas within the Peninsular.These areas include virgin primary forests and national parks such as Nenggiri and Endau-Rompin,rivers, wetlands, marine islands and highlands.In carrying out projects within the ECER, special emphasis will be placed in conserving theenvironment to ensure sustainability for years to come. This is to maintain the integrity of the naturalenvironment alongside development for the benefit of future generations.Investors' Guide 101PortsExisting Railway

ECERDC:THE ONE-STOP CENTREFOR INVESTORSThe ECERDC plays a leading role inpromoting and stimulating economic andsocial development as well as privatesector investment in the Region.The ECERDC acts as the one-stopcentre to fast track investmentapplications and approvals as well asprovide counseling, advisory services,processes fiscal and non-fiscal incentivesand various solutions to help make theprocess of investment easy forinvestors.The ECER is set to become a costcompetitiveand vibrant investmentdestination for investors.Investors' Guide 102Investors may look forward to anattractive package of fiscal and nonfiscalincentives exclusive to the Region.Customised incentives aimed at meetingthe investors' needs and requirementsare also given to investors on a case-tocasebasis. For more information on theECER Special Incentives, investors aremost welcome to contact the ECERDC.The ECERDC’s role as a one-stop centre is attracting more investors to the Region.Investor's Investors' Guide 103

THE ECERINCENTIVES PACKAGEThe ECER is envisioned as a pro-business and investmentfriendly environment, with attractive incentives which will allowinvestors the opportunity to grow and reap returns from theirprojects and initiatives. The incentives introduced for the regionplaces it in good standing to become one of Malaysia's mostattractive investment destinations.In addition to the current package of incentives, the Governmenthas approved new fiscal incentives for specific activity andidentified locations under the ECER Master Plan. Coupled withthe new and improved transportation networks, the regionis set to experience a boost in its domestic and foreign directinvestment.To be eligible for the special ECER package of incentives, projectshave to be duly approved by the ECER Development Council.Investors' Guide 104Investors' Guide 105

ECER IncentivesECER IncentivesInvestors' Guide 106Activity/Cluster1. TOURISMTourism activities in designated locationsin the ECER Master Plani) Mainland Coastal Tourism• Pantai Sri Tujuh, Kelantan• Kuala Besut - Tembila, Terengganu• Kg. Penarik/Pulau Besar - Merang,Terengganu• Dungun, Terengganu• Kijal, Terengganu• Pantai Sepat, Pahang• Kuala Pahang, Pahang• Cherating, Pahang• Mersing, JohorCross Border Tourism• Pengkalan Kubor, Kelantan• Rantau Panjang, Kelantan• Bukit Bunga, KelantanUrban & Cultural Heritage Tourism• Kota Bharu City Centre, Kelantan• Lojing Highlands Urban Centre,Kelantan• Kuala Terengganu City Centre,Terengganu• Cukai, Terengganu• Pekan, Pahang• Kuantan, Pahang• Sungai Lembing, PahangECER Incentives Package(To qualify for these incentives, companies must commenceoperations before 31 December 2015)To qualify as a tourism project, a company must have a minimuminvestment of RM5 million.Incentives given to owner or owner operator of hotels and resorts,Integrated resorts, Themeparks, Amusement and family entertainmentcentres, Cultural centres, Conference centres, Exhibition centres,Regional operation of hotel and leisure services• Customised incentives based on merit of each case, or• Income tax exemption of 100% for 10 years, or• Income tax exemption of 100% for 5 years for eco-tourism, or• Investment tax allowance (ITA) of 100% on qualifying capitalexpenditure for 5 years• Stamp duty exemption on land acquired for development• Withholding tax exemption on royalty and technical fees for 10 yearsApplication to be submitted to ECERDC• Import duty and sales tax exemption on machinery, equipment, andconsumables that are not produced locally and used directly in theactivity.Activity/Clusterii) Eco tourism• State Parks- Kelantan: Nenggiri & Stong Hills- Terengganu: Tasik Kenyir, TerengganuHills, Setiu Wetlands- Pahang: Chini Lake• Gua Musang Integrated Transport,Rest & Recreational Centre, Kelantan• Terengganu Global Marine TurtleObservatory• Kuala Gandah Elephant Sanctuary,Pahangiii) Hallmark EventsSuch as:• Taman Negara Eco Challenge, Pahang• Royal Pahang International BillfishChallenge, Pahang• Monsoon Cup, Terengganu• Sultan’s Cup Endurance Challenge,Terengganu2. PETROCHEMICALPetrochemical and Industrial ParkDevelopment projects in designatedlocations in the ECER Master Plan• Kertih Integrated PetrochemicalComplex (KIPC), Terengganu• Kertih Polymer Park, Terengganu• Gebeng Integrated PetrochemicalComplex, PahangECER Incentives PackageRefer to the previous page• Single deduction up to a maximum of RM1 million per assessment year forsponsors of event approved by ECERDCClaims to be submitted to Inland Revenue BoardCompanies developing infrastructure of industrial park:• Income tax exemption of 100% for 10 years commencing from the yearcompany derives statutory income, or• Investment tax allowance (ITA) of 100% on qualifying capital expenditurefor 5 years• Stamp duty exemption on instruments of acquisition or leasing of propertyrelating to industrial parkCompanies undertaking promoted activities in the park:• Customised incentives based on merit of each case, or• Income tax exemption of 100% for 8 years commencing from the yearcompany derives statutory income, or• Investment tax allowance (ITA) of 100% on qualifying capital expenditurefor 5 yearsApplication to be submitted to ECERDC.• Import duty and sales tax exemption on raw materials, components,machinery, equipment, spare parts and consumables that are notproduced locally and used directly in the activity.Investors' Guide 107

ECER IncentivesECER IncentivesActivity/ClusterECER Incentives PackageActivity/ClusterECER Incentives Package3. MANUFACTURINGi) Manufacturing and Industrial ParkDevelopment projects in designatedlocations in the ECER Master PlanKelantan• Halal Park - Pasir Mas• Rubber Wood Furniture Industrial Park -Kuala Krai• Latex-based Industrial Park - Machang• Herbal & Biotech Park - Gua Musang• Food & Processed Products - Pasir Mas,Tok Bali, Bachok, Gua Musang, Kuala Krai,Kota BharuTerengganu• Furniture Industry Park - Bandar Al-MuktafiBillah Shah• Heavy Industry Park - Kemaman• Boat Building and Repair Park - Kemaman• Rubber Wood Furniture Industrial Park -Dungun• Herbal & Biotech Park - Dungun• Food & Processed Products - Chendering,Kuala Kemaman(To qualify for these incentives, companies must commenceoperations before 31 December 2015)Companies developing infrastructure of industrial park:• Income tax exemption of 100% for 5 years commencing from the yearcompany derives statutory income, or• Investment tax allowance (ITA) of 100% on qualifying capital expenditurefor 5 years• Stamp duty exemption on instruments of acquisition or leasing of propertyrelating to industrial parkCompanies undertaking promoted activities in the industrial park:• Customised incentives based on merit of each case, or• Income tax exemption of 100% for 8 years commencing from the yearcompany derives statutory income, or• Investment tax allowance (ITA) of 100% on qualifying capital expenditurefor 5 yearsApplication to be submitted to ECERDC.• Import duty and sales tax exemption on raw materials, components,machinery, equipment, spare parts and consumables that are notproduced locally and used directly in the activity.• Handicraft Industry Programme - Kuantan• Automotive Industrial Park - Pekan Peramu• Rubber Wood Furniture Industrial Park -Temerloh-Mentakab, Kuantan Port City• Mixed Industrial Park - Bentong• Herbal & Biotech Park - Temerloh, Raub• Food & Processed Products - Gambang,Tanjung Api, Kuantan• Tanjung Agas Maritime Industrial Park,Pekan• Halal Park - Gambangii) RUBBER FOREST PLANTATION• Kelantan• Terengganu• Pahangiii) SPECIAL ECONOMIC ZONE (SEZ)FREE ZONE*Application to be submitted to Halal Development Corporation forcompanies undertaking activities in Gambang Halal Park.Investor investing in the project• A deduction equivalent to the amount of investment madeCompany undertaking the project• Income tax exemption of 100% for 10 years commencing from the yearcompany derives statutory incomeApplication to be submitted to ECERDC.• Funding available for the company undertaking the forest plantationproject under the Ministry of Plantation Industries & CommoditiesApplication to be submitted to Malaysia Timber Industry Board (MTIB)Investors' Guide 108Pahang• Gambang Technology Cluster- Gambang Cyber Park- Gambang Science Centre- Biotech Industrial Park- Electric & Electronic Supply Centre• Palm Oil Industry Cluster - Kuantan PortCity• Gebeng Industrial Estate - Kuantan PortCity• Automotive Trading Hub/RegionalDistribution Centre - Kuantan Port City• Heavy Industry - Kuantan Port City• Biofuel - Kuantan Port City• SME Park - Kuantan Port CityPromoted projects and Industrial ParkDevelopment projects in the SEZ FreeZones:• Kemaman Port Free Zone, Terengganu• Kuantan Port City Free Zone, Pahang• Kuantan Airport Free Zone, Pahang• Tanjung Agas Free Zone, PahangCompanies developing infrastructure of industrial parks and undertakingpromoted activities in the designated park:• Customised incentives based on merit of each case, or• Income tax exemption of 100% for 8 years commencing from the yearcompany derives statutory income, or• Investment tax allowance (ITA) of 100% on qualifying capital expenditurefor 5 yearsApplication to be submitted to ECERDC.• Companies undertaking activities in SEZ will also enjoy a set of non-fiscalincentives such as competitive utility tariffs, land premium, andaccessibility to grants based on merit of each case.Investors' Guide 109

ECER IncentivesECER IncentivesInvestors' Guide 110Activity/Cluster4. AGRICULTUREInvestors investing or undertakingAgriculture/Agro-based projects indesignated locations in the ECERMaster Plani) Crops:• Agrovalley (Fruits & Vegetables)- Bachok - Kelantan- Setiu, Kuala Berang - Terengganu- Kuantan, Maran, Rompin, Pekan - Pahang- Mersing - Johor• Agropolitan Projects- Gua Musang - Kelantan- Hulu Setiu - Terengganu- Kemubu Agriculture DevelopmentAuthority (KADA) - Kelantan- Kuala Lipis, Pekan - Pahang• Kenaf Industry- Bachok, Pasir Puteh - Kelantan- Besut, Setiu, Marang - Terengganu• Highland Agriculture Vegetable &Floriculture- Lojing, Kelantan• Dungun Citrus Fruit Valley- Terengganu• Permanent Fruit Agriculture Park- Lanchang, Ulu Tembeling - Pahang• Integrated Pineapple Park- Pekan, Pahang and Rompin, Johor• Herbal & Biotech Industry- Gua Musang - Kelantan- Dungun - Terengganu- Temerloh, Raub - PahangECER Incentives Package(To qualify for these incentives, companies must commenceoperations before 31 December 2015)Investor investing in the project:• A company investing in a subsidiary company that undertakes anagricultural/agro-based processing project is entitled to a deductionequivalent to the amount of investment made.• A company or an individual investing in a subsidiary company thatundertakes project is entitled to a deduction equivalent to the amountinvested in seed capital and early stage financing.To qualify, the investing company or individual must own at least 70%shareholding in that subsidiary company.Company undertaking the project:• Customised incentives based on merit of each case, or• Income tax exemption of 100% for 10 years commencing from the yearcompany derives statutory income, or• Investment tax allowance (ITA) of 100% on qualifying capital expenditurefor 5 years.• Stamp duty exemption on instruments of acquisition or leasing of property.Company undertaking Collection, Processing, Packaging Centres (CPPC)and Collection & Marketing Centres (CMC):• Customised incentives based on merit of each case, or• Income tax exemption of 100% for 10 years, or• Investment tax allowance (ITA) of 100% on qualifying capital expenditurefor 5 years.• Stamp duty exemption for land acquired for developmentApplication to be submitted to ECERDC.• Import duty and sales tax exemption on raw materials, components,machinery, equipment, spare parts, and consumables that are notproduced locally and used directly in the activity.Activity/Cluster• Cocoa Industry- Jeli, Machang, Tanah Merah,Gua Musang - Kelantan- Kuala Berang, Ulu Besut -Terengganu- Raub, Lipis, Jerantut, Maran - Pahangii) Livestock:• Nucleus Cattle Research & BreedingCentre- Muadzam Shah/Gambang, Pahang• Nucleus Goat Research & BreedingCentre- Kuala Berang, Terengganu• Poultry Parks- Gua Musang, Jeli, Bachok - Kelantan- Chendering, Setiu, Hulu Terengganu,Dungun, Kemaman - Terengganu- Gambang, Kuantan, Raub, Maran,Bera, Pekan - Pahang• Grain Based Animal Feed Industry- Gebeng, Pahang• Cattle Integration in Oil PalmPlantantions- Gua Musang, Tanah Merah - Kelantan- Lembaga Kemajuan TerengganuTengah (KETENGAH), Kemaman -Terengganu- Kuantan, Jengka, Bera, Muadzam -Pahang• Cattle Feedlot in Beef Valleys- Kuala Krai, Pasir Puteh - Kelantan- Marang, Terengganu- Kuala Lipis, Rompin - Pahang• Cattle Feedlot Integration in PaddyAreas- Kemubu Agriculture DevelopmentAuthority (KADA), Kemasin - Semerak -Kelantan- Besut Integrated AgriculturalDevelopment Project (KETARA) -TerengganuECER Incentives PackageRefer to the previous pageInvestors' Guide 111

ECER IncentivesECER IncentivesInvestors' Guide 112Activity/Cluster• Beef Feedlot Integration in PineappleArea- Pekan, Pahang- Rompin, Mersing, Johor• Intensive Goat Rearing in RubberAreas- Besut, Hulu Terengganu• Intensive Goat Rearing in GrazingAreas- Machang (under Rubber IndustrySmallholder Development Authority(RISDA), Kelantan• Green Animal Feed Production(Forage & Silage Industry)- Bachok, Kota Bharu, Pasir Puteh -Kelantan• Poultry Processing Park- Gambang, Pahang• Grain-based Animal Feed Industry- Kuantan Port City, Pahangiii) Fisheries:• Integrated Fisheries Park- Tok Bali, Kelantan• Fish Processing Park- Bachok, Kelantan- Kuantan, Pahang• Development of Fish Collection,Processing and Packaging Centre(CPPCs)- Pengkalan Kubor, Kelantan- Kuala Kemaman, Terengganu- Cukai, Terengganu• Brackfish Water Fish SeedProduction & Marketing Centre- Kuala Pahang, Pahang• Vertically Integrated TilapiaProduction Complex- Pergau & Kenyir Lake, TerengganuECER Incentives Package(To qualify for these incentives, companies must commenceoperations before 31 December 2015)Refer to the previous pageActivity/Cluster• Freshwater Fish Seed Production &Marketing Centre- Bentong, Pahang• Marine Fish Landing Port- Cukai, Terengganu- Kuantan, Pahang• Kuala Pahang Marine Fish & ShrimpHatchery and Marketing CentreUniversities, collages, skill traininginstitutions, R&D institutions, regionaltraining centres in places designated inthe ECER Master Plan:• Petronas Polymer Technology Centre- Kertih, Terengganu• Gambang Technology Cluster,Pahang- Gambang Cyber Park- Gambang Science Centre• Terengganu Advanced TechnicalInstitute (TATI) University College- Cukai, Terengganu• Knowledge Innovation Zone- Kuantan Port City, Pahang• Cyber Centres- Kuantan, Pahang• University Malaysia Pahang (UMP)- Pekan, Pahang• University Malaysia Pahang (UMP -Branch Campus)- Gambang, Pahang• University Technology Mara (UiTM)- Kuantan Port City, Pahang• New Private Sector Schools,Universities and Colleges- ECER• Educational Institutions- Knowledge ParkECER Incentives PackageRefer to the previous page5. KNOWLEDGE, EDUCATION AND ICT DEVELOPMENTInvestors and operators in educational and ICT development projects:• Customised incentives based on merit of each case, or• Income tax exemption of 100% for 10 years,• Withholding tax exemption on royalty and technical fees for 10 yearsApplication to be submitted to ECERDC.• Import duty and sales tax exemption on machinery and equipment thatare not produced locally and used directly in the activity.Investors' Guide 113

ECER IncentivesECER IncentivesActivity/ClusterECER Incentives PackageActivity/ClusterECER Incentives PackageCentres of Excellence• Industry-Academia Collaboration• Halal Product Regional Centre- Universiti Darul Iman Malaysia (UDM)Besut, Kelantan• Innovativeness and ProductCreativity Centre- UiTM Machang, Kelantan- Universiti Malaysia Kelantan (UMK)• Heritage & Cultural Centre- UMK Bachok, Kelantan• Institute of Biodiversity andOceanography- Universiti Malaysia Terengganu (UMT)• Bio-technology & Herbal ResearchCentre- UDM, Besut, KelantanRefer to the previous pageICT DEVELOPMENT• Skills training in ICT in ECER- E-Learning & ICT Services in ECER- International Digital Business Exchange -Batu Rakit, Terengganu- Global Animation Centre - Kuala Terengganu- Edu-ICT Development Programme in ECER- SOHO opportunity for enterprising women6. CULTURE & HERITAGE• Batik• Songket• Brassware• Silverware• Royal tenun• Wood carving• Kite makingRefer to the previous pageInvestors and operators in culture & heritage projects:• Income tax exemption of 100% for 10 years, or• Investment tax allowance (ITA) of 100% on qualifying capitalexpenditure for 5 years.• Bio-degradable Products & BiofuelResearch Centre- UMP Pekan/ Gambang• Business Entrepreneurship &Management Programmes- UMK• Training Programmes on FacilititesManagement- UMP• Tourist Guide & Hospitality IndustryTraining Programme- UiTM, Dungun, Terengganu• Wood-based Skills Training &Research Centre- UiTM Jengka, Pahang• Social Development Programmes- UMTInvestors' Guide 114Investors' Guide 115

Other IncentivesOther IncentivesActivity/ClusterIncentivesActivity/ClusterIncentivesThese incentives are mutually exclusive /to be utilised upon expiry ofECER Incentives Package.These incentives are mutually exclusive /to be utilised upon expiry ofECER Incentives Package.ALL CLUSTERSTourismTraining• Investment in buildings used for industrial,technical or vocational training approved bythe Minister• Cash contribution to non-statutory incomeoriented vocational training institutions andthose established and maintained by astatutory body• Royalty payments to non-residents(franchisors) for franchised educationprogrammes approved by the Ministry ofEducationResearch and Development (R&D)• Cash contribution to approved researchinstitutes,• Payments made for the use of the servicesof approved research institutes andcompanies• Research on commercialization of researchfindings• Industrial Building Allowance: Initial allowance of 10%, and annualallowance of 3%.• Single deduction• Withholding tax exemption• Double deduction on cash contribution• Double deduction of payments for services rendered• 50% tax exemption on income (honorarium/royalty) receivedThe above claims to be submitted to the Inland Revenue Board• Licensed Tour Operators• Promotion of- International Conference- Trade Exhibitions (approved by Matrade)in Malaysia• Promotional activities overseas by Hoteland Tour Operators• Participation in Trade Fairs approved byMITI in Malaysia• Cultural performance – sponsoring of anyarts, cultural or heritage activities approvedby the Ministry of Information,Communications and Culture• Car Rental Operators – purchase ofNational Cars• Tax exemption on statutory income derived from:- bringing in more than 500 foreign tourists by group-inclusive tour peryear of assessment- domestic tourism packages for more than 1,200 local tourists per yearof assessmentThe incentive is available until year of assessment 2011• Tax exemption on income derived from:- bringing in at least 500 foreign participants into the country- bringing in at least 500 foreign visitors per year• Double deduction on qualifying expenditure incurred• Double deduction on revenue expenditure incurred, excluding exhibits• Single deduction on expenditure incurred for- Sponsoring up to RM500,000 per year for local performances,of which sponsorship of foreign performances shall not exceedRM200,000.The above claims to be submitted to the Inland Revenue Board• Full exemption on excise duty• Tour Operators – purchase of locallyassembled 4WD vehicles• 50% exemption on excise dutyApplications to be submitted to Ministry of FinanceInvestors' Guide 116Investors' Guide 117

Other IncentivesOther IncentivesActivity/ClusterIncentivesThese incentives are mutually exclusive /to be utilised upon expiry ofECER Incentives Package.Activity/ClusterIncentivesThese incentives are mutually exclusive /to be utilised upon expiry ofECER Incentives Package.Petrochemicals, Manufacturing, Agriculture, and related services (including SEZ)Reinvestment & promotion• Reinvestment in petrochemical andmanufacturing activities• Reinvestment in qualifyingagriculture project - cropcultivation, animal farming,aquaculture, inland fishing or deepsea fishing, and other agriculturalor pastoral pursuits• Promotion of industrial parkoverseasExport promotion• Expenditure incurred for the promotion ofexport by resident companies• Reinvestment allowance (RA) of 60% of qualifying capital expenditureincurred to be offset against 100% of statutory income in promotedareas for 15 years from the year of assessment of first claim• Double deductions for expenditure incurred• Double deduction for expenses incurred on:– registration of patents, trademarks– product licensing overseasTraining• Training of employees for the purposeof upgrading and developing theemployees’ craft, supervisory andtechnical skills or increasing theproductivity or quality of its products,in approved training institutions• Pre-operational training by companies(which do not contribute to HRDF) forthe acquisition of craft, supervisory ortechnical skills related to theproduction of their products• Pre-operational training of potentialemployees within one year beforecommencement of business• Double deduction on training expenses incurred• Double deduction on training expenses incurred in the year ofassessment in which the gross income first arises• Single deduction on training expenses incurredThe above claims to be submitted to the Inland Revenue Board• Export Credit Insurance Premiums paid toapproved local insurance companies• Double deduction on payment of premiums• Premiums paid to local insurancecompanies for cargo exported or cargoimported• Double deduction on payment of premiums• Promotion of Malaysian Brand names byMalaysian companies (at least 70%Malaysian-owned) which are registeredproprietor of the brand• Double deduction on expenses incurred in advertising the brand• Investment in buildings used as bondedwarehouses for storage of goods forexports and re-export• Industrial building allowance of 10% on qualifying expenditure for eachyear of assessmentInvestors' Guide 118• Certification for recognized quality systemsand standards, and halal certification• Double deduction on expenditure incurredThe above claims to be submitted to the Inland Revenue BoardInvestors' Guide 119

MALAYSIA: LIVING IT UPMalaysia offers some of the most complete lifestylesanywhere in the world and the ECER is no exception.In addition, there are certain advantages that you enjoyin the East Coast that you might not in other places inthe country.A Better Quality of LifeThe quality of life in the ECER is one that many wish for. It is characterised bywarm, friendly people who cherish values. There is the sense that people holdonto traditional values such as neighbourliness, trust and honesty. Of course, thenatural beauty of the land and the rich tapestry of local culture and tradition arealso reasons to stay within and explore the region.Affordable LivingThe ECER enjoys some of the most competitive cost of living in Malaysia. Everydayexpenses such as food, entertainment and public transport are truly affordable.The local currency unit Ringgit Malaysia (RM) offers competitive exchange rateswhen compared to major world currencies.Property at Competitive PricesIn comparison to many developing countries, property prices in Malaysia aregenerally affordable. In the ECER, property and land prices are generally lowerthan that of the urban centres in the West Coast and South, making it an idealbase for a second home for many. The Malaysian Government has also initiatedthe Malaysia My Second Home programme, which provides incentives for foreignnationals to own property in the country.Efficient Transportation NetworkMalaysia is well connected with a network of roads and rail linking states on theEast and the West coast, while the two halves of the country, East Malaysia andWest Malaysia, are linked by an efficient air travel network plied by the NationalCarrier, Malaysia Airlines and the local low-cost carriers, Air Asia and Firefly.Investor's Guide 120Investor's Guide 121

TheCompetitive EdgeTheCompetitive EdgeInfrastructure, Utility and ServicesAccess to piped water, electricity and fixed line is nearly universal, while broadband Internetand cellular network penetration cover much of the accessible and populated areas of thecountry. Compared to other developing countries utility costs are very competitive for office,industry and home users.Similar to the rest of the peninsula, the ECER is served by an efficient postal network and mostinternational courier/logistics companies.Outstanding EducationThe education standard in Malaysia is consistently set among the most developed in theworld. Schooling systems are divided into broad categories: public, private and internationalschools that strictly follow UK or US education syllabus. Public schools are state-subsidisedleading to the SPM (Sijil Pelajaran Malaysia) which is equivalent to the GCE O-Level. Thequality of teachers in institutions is comparable to regional standards, explaining whyMalaysians qualify for entry into prestigious boarding schools, colleges and universitiesabroad.Comprehensive HealthcarePublic health services are efficient andprivate medical care in Malaysia isrecognised for its world-class quality intreatment and care. Medical facilitiesare available in all the major cities withwell equipped hospitals and clinics runby highly qualified staff. Medical costs,including that for major surgicalprocedures are much lower than inmany other countries.Investor's Guide 122Investor's Guide 123

TheCompetitive EdgeThe education cluster is a key component that supports all of the region’s maindevelopmental thrusts. By improving the quality of education as well as expandinglearning opportunities and facilities, the ECER is able to generate a pool of skilled andcapable workforce, which is able to serve the various existing and new industriesestablished in the region. Additionally, the educational institutions play a vital role insupporting the industries through their research and development inputs and specialisedcollaborations, aimed at improving products and services delivery, thus spurringeconomic activity further in the region.In the ECER, the education cluster plays a dual role. On one hand, the sector is aneconomic driver and a catalyst for growth in the ECER. On the other hand, education isa key enabler that supports other sectors such as agriculture, manufacturing and tourismin terms of human resources development.INDUSTRY-ACADEMIA COLLABORATIONAs the march towards economic progress continues, there will be close collaborationbetween the Region's industries and academic centres. In each of the five universities inthe ECER, a Research and Development Centres of Excellence will be established toidentify the needs of the industry, particularly in tourism, oil and gas, manufacturing,agriculture, halal products, wood-based products, and bio-technology.In return, the industry works closely with the R&D centres to help the universities updatetheir course curriculum in tandem with new workplace requirements. These strategiccollaborations are essential towards lifting up the universities' international image andrecognition, enabling them to form more collaboration with foreign universities.TheCompetitive EdgeContact UsIf you are an investor planning to establish or expand your business opportunities in the East Coast EconomicRegion (ECER) we The will education provide you cluster with professional is a key component assistance. that We supports will be the all first of point-of-contact the region’s main for all yourinvestment inquiries.developmental thrusts. By improving the quality of education as well as expandinglearning opportunities and facilities, the ECER is able to generate a pool of skilled andCompanies planning capable to start workforce, expand which operations is able in to the serve ECER the can various obtain existing information and and new assistance industries from theEast Coast Economic establishedRegion inDevelopment the region.Council. Additionally,We will thehelp educationalyou harness institutionsthe ECER’s play acompetitive vital role inedge andsupporting the industries through their research and development inputs and specialisedcapabilities to achieve your business objectives.collaborations, aimed at improving products and services delivery, thus spurringeconomic activity further in the region.In the ECER, the education cluster plays a dual role. On one hand, the sector is aneconomic driver and a catalyst for growth in the ECER. On the other hand, education isa key enabler that supports other sectors such as agriculture, manufacturing and tourismin terms of human resources development.INDUSTRY-ACADEMIA COLLABORATIONAs the march towards economic progress continues, there will be close collaborationbetween the Region's industries and academic centres. In each of the five universities inthe ECER, a Research and Development Centres of Excellence will be established toidentify the needs of the industry, particularly in tourism, oil and gas, manufacturing,agriculture, halal products, wood-based products, and bio-technology.In return, the industry works closely with the R&D centres to help the universities updatetheir course curriculum in tandem with new workplace requirements. These strategiccollaborations are essential towards lifting up the universities' international image andInvestor's Guide 124Investor's Guide 125

ECER Strategic InitiativesInvestor's Guide 126TheCompetitive EdgeThe education cluster is a key component that supports all of the region’s maindevelopmental thrusts. By improving the quality of education as well as expandinglearning opportunities and facilities, the ECER is able to generate a pool of skilled andcapable workforce, which is able to serve the various existing and new industriesestablished in the region. Additionally, the educational institutions play a vital role insupporting the industries through their research and development inputs and specialisedcollaborations, aimed at improving products and services delivery, thus spurringeconomic activity further in the region.In the ECER, the education cluster plays a dual role. On one hand, the sector is aneconomic driver and a catalyst for growth in the ECER. On the other hand, education isa key enabler that supports other sectors such as agriculture, manufacturing and tourismin terms of human resources development.PantaiSri T ujuhKota BharuCity CentreINDUSTRY-ACADEMIA COLLABORATIONAs the march towards economic progress continues, there will be close collaborationbetween the Region's industries and academic centres. In each of the five universities inthe ECER, a Research and Development Centres of Excellence will be established toidentify the needs of the industry, particularly in tourism, oil and gas, manufacturing,agriculture, halal products, wood-based products, and bio-technology.In return, the industry works closely with the R&D centres to help the universities updatetheir course curriculum in tandem with new workplace requirements. These strategiccollaborations are essential towards lifting up the universities' international image andrecognition, enabling them to form more collaboration with foreign universities.THAILANDBachokTok BaliFzPengkalanKuborKuala BesutKota BharuPasirMasUluSetiuARantau PanjangMachangKg. Penarik-MerangBukit BungaJeliKuala TerengganuCity CentreFzEmpanganPergauKualaTerengganuChenderingKualaKraiTersat-Hulu T erengganuBandarTeluk BidaraDungunAGuaMusangTasikKenyirBandar Al-MuktafiBillah ShahDurianMentangauLojingTaman NegaraKertihIpohCukaiFzCameronHighlandsUlu TembelingKemaman PortAKualaLipisGebeng=FzKuantan PortJerantutKuantanPort CityRaubPantaiSepatKuantanPort CityKualaPahangBentongTg. AgasLanchangPekan/PeramuAGambangKUALALUMPURKualaRompinTemerloh-MentakabTheCompetitive EdgeThe education cluster is a key component that supports all of the region’s maindevelopmental thrusts. By improving the quality of education as well as expandinglearning opportunities and facilities, the ECER is able to generate a pool of skilled andcapable workforce, which is able to serve the various existing and new industriesestablished in the region. Additionally, the educational institutions play a vital role insupporting the industries through their research and development inputs and specialisedcollaborations, aimed at improving products and services delivery, thus spurringeconomic activity further in the region.Endau-RompinIn the ECER, the education cluster plays a dual role. On one hand, the sector is aneconomic driver and a catalyst for growth in the ECER. On the other hand, education isa key enabler that supports other sectors such as agriculture, manufacturing and tourismin terms of human resources development.INDUSTRY-ACADEMIA COLLABORATIONAs the march towards economic progress continues, there will be close collaborationbetween the Region's industries and academic centres. In each of the five universities inthe ECER, a Research and Development Centres of Excellence will be established toidentify the needs of the industry, particularly in tourism, oil and gas, manufacturing,agriculture, halal products, wood-based products, and bio-technology.MaranMuadzamShahMersingIn return, the industry works closely with the R&D centres to help the universities updatetheir course curriculum in tandem with new workplace requirements. These strategiccollaborations are essential towards lifting up the universities' international image andNJohor BahruSINGAPORE50 050 100K I L O M E T R ETourismLegendIntegrated Fishery ParkPoultry Production ParkHerbal & Biotech ParkKenaf Industry DevelopmentHeavy Industrial ParkSecondary Manufacturing ZonesSpecial Management AreaCruise TerminalTownFish CPPCsBeef ValleyLatex-based Industrial ParkElephant SantuaryUrban & CultureHeritage TourismBrackishwater Fish SeedProduction & Marketing CentreKey Initiaves SitesAgropolitan ProjectsCattle Breeding Research CentreAMixed Industrial ParkAutomotive Trading Hub/Regional Distribution CentreRubber Wood FurnitureIndustrial ParkTurtle SantuaryMainland Coastal TourismVertically Intergrated TilapiaProduction ComplexFresh Water Fish Seed Production& Marketing CentrePrimary Routes(Existing & Proposed)Production of Day-Old-ChicksEstablishment of IncubatorCentre for Small & MicroFood EnterprisesProcessed Food SMEProgramme-Fisheries ProductsBoat Building & Repair ParkPetochemicalRecreational FishingExpressways(Existing & Proposed)Agriculture CropsPetrochemical CorridorEducationKey Initiatives-New UniversityBranch CampusNucleus Goat Breeding & ResearchCentre & Training Outpost in GoatHusbandryGrain Based Animal FeedIndustryCocoa Collection CentreAutomotive Industrial ParkPrimary Eco-TourismZonesAirportLivestockAgro ValleyPalm Oil Industrial Cluster,KuantanKertih Plastic ParkCross Border Tourism=Intensive Goat ReadingFisheriesHighland Agriculture &FloriculturePortHalal ParkManufacturingMainland Coastal TourismIndustry-Academia CollaborationCentreFish Processing ParkPoultry Processing PlantsFruit BeltFree ZoneF zPrimary Manufacturing ZonesSustainable Island TourismInvestor's Guide 127

TheCompetitive EdgeThe education cluster is a key component that supports all of the region’s maindevelopmental thrusts. By improving the quality of education as well as expandinglearning opportunities and facilities, the ECER is able to generate a pool of skilled andcapable workforce, which is able to serve the various existing and new industriesestablished in the region. Additionally, the educational institutions play a vital role insupporting the industries through their research and development inputs and specialisedcollaborations, aimed at improving products and services delivery, thus spurringeconomic activity further in the region.In the ECER, the education cluster plays a dual role. On one hand, the sector is aneconomic driver and a catalyst for growth in the ECER. On the other hand, education isa key enabler that supports other sectors such as agriculture, manufacturing and tourismin terms of human resources development.INDUSTRY-ACADEMIA COLLABORATIONAs the march towards economic progress continues, there will be close collaborationbetween the Region's industries and academic centres. In each of the five universities inthe ECER, a Research and Development Centres of Excellence will be established toidentify the needs of the industry, particularly in tourism, oil and gas, manufacturing,agriculture, halal products, wood-based products, and bio-technology.In return, the industry works closely with the R&D centres to help the universities updatetheir course curriculum in tandem with new workplace requirements. These strategiccollaborations are essential towards lifting up the universities' international image andDisclaimer: While every reasonable care has been taken in preparing this document, ECERDC cannot be heldresponsible for any inaccuracies. All information and specifications are current at the time of preparation and aresubject to change as may be required. Renderings and illustrations are artist’s impressions onlyand cannot be regarded as representations of fact.Investor's Guide 129