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Contents

The East Coast Economic Region: Poised For Transformation

The ECER At A Glance

Kuala Terengganu City Centre (KTCC)


A Vibrant Heritage Waterfront City

Muara North and Muara South: Embracing Growth as the New Urban Centre
of Kuala Terengganu
Three Major Catalysts to Drive KTCC

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Integrated Lifestyle Enclave


An Iconic Lifestyle Concept Enclave

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The Learning Quarter


An Inspiring Hub for Nurturing Top Talents

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Health and Wellness Village


An Uplifting Enclave for Medical and Wellness

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Towards Sustainable Development

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Getting There
Well-Connected, Global Access

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Investment Opportunities

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The ECER Incentives Package Kuala Terengganu City Centre

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Other Incentives

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Contact Us

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The East Coast Economic Region: Poised For Transformation

The East Coast Economic Region (ECER), covering the states of Kelantan, Terengganu,
Pahang and the district of Mersing in Johor, is now poised to become a dynamic region in
South East Asia by offering various opportunities to manufacturers and investors.
Strategically located in the east coast of Peninsular Malaysia, the ECER has the potential
to become the main gateway for trade and industry within the Asia Pacific region, which
commands a total population of about 2 billion people.
The vision and mission that will guide the transformation of the ECER into a developed Region
by 2020 is defined by three main characteristics distinctive, dynamic and competitive.
The distinctiveness of the ECER is portrayed through its natural beauty, abundant resources,
unique culture and heritage known throughout the world. To maintain this characteristic, a
balanced and sustainable development is emphasised.
The dynamism of the ECER reflects the potential for the Region to grow and develop at
a faster pace through innovation and a shift in economic orientation, structure, technology
and mindset. The competitiveness of the ECER lies in its ability to attract local and foreign
direct investments.

The ECER At A Glance


The vision is for ECER to be a developed Region by 2020.

The ECERs vision is defined by three main characteristics:

Scope of ECER

Distinctive Dynamic Competitive

Land Area
Total Population
Total Initiatives
Total Investment

: 66,736 sq km (51% of Peninsular Malaysia)


: 3.9 million (2005), or 14.5% of Malaysias total population
: 189 projects
: RM 112 billion (2008 2020)

Key Clusters

Mission

Key Clusters

Key Enablers

To move the economy up the value chain


To raise the capacity for knowledge and innovation
To address persistent socio-economic inequalities,
constructively and productively
To improve the standard and sustainability of the quality of life
To strengthen the institutional and implementation capacity

Tourism
Oil, Gas & Petrochemical
Manufacturing
Agriculture
Education

Social & Human Capital Development


Transportation
Infrastructure
Property
Environment

To accelerate the growth and development of the ECER, a special vehicle has been established
through the East Coast Economic Region Development Council (ECERDC).

Key Enablers

The ECERDC plays a leading role in promoting and stimulating economic and social development
as well as private sector investment in the Region. The Council acts as the one-stop centre to fast
track investment applications and approvals.
It provides counselling, advisory services and processes tax incentives and non-tax incentives for
projects. To meet the varying needs of investors, the ECERDC also customises incentives on merit
basis to be recommended for approval by the National Committee on Investment (NCI).

ECER Projected Growth by 2020:

2020
GDP Growth Rate

8.5%

GDP

RM 65,930 million

GDP Per Capita

RM 13,510

Population

4.88 million
Source: Strategic Framework for the ECER SEZ

Setiu

Kuala Terengganu
KELANTAN

Hulu Terengganu

Marang

TERENGGANU

Kuala Terengganu City Centre (KTCC)

Dungun

Kemaman

PAHANG

A Vibrant Heritage Waterfront City


Kuala Terengganu is situated about 500 kilometres north-east of Kuala
Lumpur at the estuary of
Batu Rakit
Sungai Terengganu, facing the South China Sea. Kuala Terengganu City
Centre
(KTCC) covers an
Kuala
Terengganu
area of 7 km radiating from the centre of Sungai Terengganu estuary extending
north, east and
City Centre
Kuala Nerus
south of Kuala Terengganu city area. South China Sea
Besut

KTCC is envisioned to become aSetiu


city centre that will excite theBelara
senses, energising and connecting
Manir
Kuala Terengganu
the broader city to the waterfront. KTCC will also provide a special sense of place, where
the local
Gelugur
Kedai
Cenering
cultural heritage
and
character
is
respected
and
celebrated.
Leveraging
on
its
public
spaces,
it will
KELANTAN
Pengadang
Serada
Marang
Buluh
Hulu Terengganu
offer a variety of exciting experiences with an international-standard setting to live, work and play.

TERENGGANU
Dungun

South China Sea

The development of KTCC will strengthen the image of Kuala Terengganu as a lively Heritage
Waterfront City (Bandaraya Warisan Pesisir Air) consistent with the vision set forth by the
State Government.

Kemaman

Besut
PAHANG

Setiu

Kuala Terengganu
KELANTAN

Hulu Terengganu

KTCC will be promoted as a Tourism Gateway featuring:





Marang

TERENGGANU
Dungun

Batu Rakit

Kuala Terengganu
City Centre

A Royal Township
A Waterfront Destination
A Hub for Meetings, Incentives,
Conventions, Exhibitions (MICE)

A Cultural & Heritage City Destination


An Island Gateway Destination

In terms of land development, KTCC covers an estimated area of 8,000 hectares within the
Kuala Terengganu district.

Kuala Nerus

Kemaman

PAHANG

Kuala Terengganu will remain as the main administrative, commercial, trade, tourism and
education centre. Additionally, it will have a free zone at the airport which will also serve as the
main tourism gateway for ECER.

Five Key Development Areas (KDAs) have been identified in KTCC as catalyst developments that
will spark the growth of the whole development area:

Belara
Manir
Gelugur
Kedai
Serada

Cenering

Pengadang
Buluh

Muara North Reclaimed Area


Muara South Reclaimed Area
Kampung Ladang/Tanjung

Heritage Island
Corniche Waterfront Corridor

Ready for immediate development are Muara North and Muara South. They have been fully
reclaimed by the state and are free of encumbrances. The land areas of Muara North and Muara
South is approximately 140 acres and 40 acres respectively.
Batu Rakit

Kuala Terengganu
City Centre

Muara North and Muara South:


Embracing Growth
as the New Urban Centre
of Kuala Terengganu

Muara North and Muara South represent two arms that embrace and nurture the growth that
distinguishes a new era of prosperity for Kuala Terengganu.

Muara North

The area where Sungai Terengganu meets the sea has now been fully reclaimed and offers
investors vast opportunities to shape the extended city of Kuala Terengganu.
The development in Muara South will flow naturally as an extension to Kuala Terengganu itself and
will flourish as the citys immediate active commercial waterfront address.
Muara North is positioned as the new gateway to the city, opening up new avenues to establish
a variety of development components covering tourism, commerce, business, education
and entertainment.

Muara South

To connect Muara North across Sungai Terengganu to Muara South, an iconic drawbridge will be
constructed, creating a distinctive landmark that will establish a seamless connection between the
northern and southern parts of Kuala Terengganu.
There is ample room for future development as investors see the potential to introduce supporting
services to cater to the needs of residents and visitors who will be drawn by the vibrant growth of
Kuala Terengganu.

Artists impression of Muara North and Muara South.

Three Major Catalysts to Drive


KTCC
Growth fuels more growth. That in essence is the strategy behind the drivers that will help evolve
KTCC. At the core are these catalyst components:

1. Integrated Lifestyle Enclave


KTCC will be promoted as an attractive family leisure waterfront destination,


drawing more and more family units that will aggregate into a population with strong
purchasing power.
In serving these growing numbers of residents, a host of services and products will be
generated for investors in the residential, commercial, hotel and retail sectors.
Components include zones for Lifestyle Shopping Mall, F&B Dining and Marina
& Cruise.

2. The Learning Quarter


Malaysias reputation as a regional hub in education and learning will be


reproduced at KTCC through the introduction of its infrastructure and facilities at
the Learning Quarter.
It will in turn attract a critical mass of scholars, researchers and students
who will collectively stimulate demand for and strengthen the viability of other
KTCC components.
Components include City University Campus, Corporate Training Centre, Specialised
Studies and Research Centre.

3. Health and Wellness Village


A well-balanced range of specialist healthcare services will be available to local


communities within and in the vicinity of KTCC making this a holistic destination for the
growing wellness sector.
The quality and professionalism that will benchmark these services and facilities will
clearly establish Kuala Terengganu as a regional city capable of catering to the needs
of discerning residents and visitors, both local as well as from abroad.
Components include Medical Centre, Wellness Centre, Alternative Medical Treatment
and Spa Resort.

In summary, the three catalysts will stimulate development in the Recreation & Entertainment;
Retail; Residential and Commercial & Business sectors.

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Integrated Lifestyle Enclave

An Iconic Lifestyle Concept


Enclave

12

KTCCs first integrated family leisure destination within the waterfront living enclave will
feature wholesome family entertainment for residents and visitors. There will be a wide
range of fashion retail outlets, F&B chains, recreational activities and lifestyle attractions for
investors and operators to develop to their fullest potential.

Anchoring this growth for the mid- and long-term, will be the unique waterfront character of
KTCC, a premium attraction for the city dwellers of Kuala Terengganu and the larger market
of Peninsular Malaysia, which will include a huge volume of tourists who arrive throughout
the year.

The growth of the enclave will leverage on a number of advantages the growing incomes of
residents attracted to KTCC, their aspirations to rise to a higher quality of life, the increasing
numbers of tourists, Terengganus track record for holding successful annual events, and the
countrys reputation as a shopping haven, among others.

Overall, KTCC will come to define a new concept of living in the East Coast vibrant and
modern, yet holistic and in touch with nature.

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The Learning Quarter

An Inspiring Hub for Nurturing


Top Talents
KTCCs profile as a heritage waterfront city is also its strength in attracting a youthful and
energetic population of students and academia. The Learning Quarter in KTCC will be
established on a long-term path of growth and constant rejuvenation. That in turn spells
good news for businesses and ancillary development in the residential, retail and shopping,
and lifestyle and recreation sectors.

Muara North and Muara South are extensions that echo the natural coastal attraction of Kuala
Terengganu itself. The captivating estuary of Sungai Terengganu, beautiful at any time of day
and night, provide further inspiration to the population of students and academia, ranging
from undergraduates to those pursuing postgraduate degrees like Masters and Doctorates.
KTCCs Learning Quarter will be one of the new and most modern faces of Malaysias profile
as an education hub.
As a result of the Learning Quarters appeal and its depth of infrastructure and natural assets,
it is perfectly poised to attract investors experienced in developing these components:
Tertiary Education
Corporate Training Centres
Specialised Studies
Research Park

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Health and Wellness Village

An Uplifting Enclave for


Medical and Wellness

Being the first medical tourism establishment in ECER, KTCC is poised to gain early-mover
advantage in addition to proximity and cultural similarity to regional markets such as Indonesia
and Singapore.
In order to be competitive with these regional centres, it is vital that the quality of services is
benchmarked at international standards at the Medical Centre, Wellness Centre, Alternative
Medicine, Spa Resort and Retirement Village.

Private healthcare for basic wellness and recuperative treatments are on the rise and a
combination of medical tourism and spa treatment is potentially a viable attraction for
investors and operators.
There is scope for the development of a wellness and recuperative centre by leveraging
on the availability of tourism destinations nearby. Potential services can combine
medical, spa treatment and holiday elements. Significant synergies from hotels and
resorts, tourism destinations and the airport, will make this a viable and exciting venture.

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Towards Sustainable Development

Getting There

Well-Connected, Global Access


Guided by the ECER Master Plan, the development of KTCC will place utmost importance
to safeguard the quality of the environment. Green technologies will be utilised to optimise
the use of natural resources and necessary actions for waste management and pollution
prevention will be adopted to manage any adverse environmental impacts.
ECERDC resolutely subscribe to the principles of sustainable development and stewardship
of the environment within the framework of socio-economic viability so as to meet the needs
of the present society while respecting the ability of the future generations to thrive.

KTCC can be reached by modern road, rail and air transportation systems. In addition:
Kuala Terengganu Airport has been upgraded up to the level of an International Airport and
envisioned to be a Low-Cost Carrier Hub.
The East Coast Expressway provides better connections from Kuala Lumpur to Kuantan,
and will be further extended northwards to Kuala Terengganu and Kota Bharu as well as
southwards to Johor Bahru and Singapore.
The second East-West Link has been extended from Simpang Pulai in the west coast to
Kuala Berang in Terengganu.
To enhance accessibility, other modes of transport will be further developed.
A study is being carried out to connect the entire East Coast by rail to the growth areas on
the west of the Peninsula.

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Investment Opportunities
Investors have responded positively to the governments pragmatic policies, political and
economic stability, sound economic fundamentals, well-developed infrastructural facilities
and an educated skilled labour force.

Key benefits to Investors in the ECER


The ECER is a pro-business and an investment-friendly environment that gives the opportunity
to grow and reap maximum benefits from their projects and initiatives. The Region is:

Opportunites abound for investors in the following industries:


Tourism-related Industry
Food & Entertainment Industry
MICE Industry
Hotel Industry
Commercial & Residential Development Industry
Service Industry

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Well-connected with modern road, rail, air and sea transportation systems.
Supported by quality ICT services, easily accessible amenities and reliable public utilities.

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The ECER Incentives Package - Kuala Terengganu City Centre


Activity/Cluster

Other Incentives

Incentives

Activity/Cluster

(To qualify for these incentives, companies must commence operations


before 31 December 2015)







Tourism
Incentives given to owner or owner operator of hotels and resorts, Integrated resorts,
Themeparks, Amusement and family entertainment centres, Cultural centres, Conference
centres, Exhibition centres, Regional operation of hotel and leisure services
Tourism activities in designated locations in
the ECER Master Plan
Customised incentives based on merit of each case, or
Income tax exemption of 100% for 10 years commencing from the year company
derives statutory income, or
Income tax exemption of 100% for 5 years for eco-tourism commencing from the
year company derives statutory income, or
Income tax exemption equivalent to 100% of qualifying capital expenditure
(Investment tax allowance) for 5 years
Stamp duty exemption on land acquired for development
Withholding tax exemption on royalty and technical fees for 10 years
Application to be submitted to ECERDC
Import duty and sales tax exemption on machinery, equipment, and consumables
that are not produced locally and used directly in the activity
Hallmark Events such as:
Monsoon Cup, Terengganu

Batik
Songket
Brassware
Silverware
Royal tenun
Wood carving
Kite making

All Clusters
To qualify as a tourism project, a company must have a minimum investment of
RM5 million.

Terengganu City Centre, Terengganu

These incentives are mutually exclusive/to be utilised upon expiry


of ECER Incentives Package






Batik
Songket
Brassware
Silverware
Royal tenun
Wood carving
Kite making

Urban & Cultural Heritage Tourism

Single deduction up to a maximum of RM1 million per assessment year to sponsors


of event approved by ECERDC

Training
Investment in buildings used for industrial, technical or
vocational training approved by the Minister

Industrial Building Allowance: Initial allowance of 10%, and an annual allowance


of 3%.

Cash contribution to non-statutory income oriented


vocational training institutions and those established
and maintained by a statutory body

Single deduction

Royalty payments to non-residents (franchisors) for


franchised education programmes approved by the
Ministry of Education

Withholding Tax exemption

Research and Development (R&D)


Cash contribution to approved research institutes,

Double deduction on cash contribution

Payments made for the use of the services of approved


research institutes and companies

Double deduction on payments for services rendered

Research on commercialization of research findings

50% tax exemption on income (honorarium/royalty) received


The above claims to be submitted to the Inland Revenue Board

Tourism
Licensed Tour operators

Claims to be submitted to Inland Revenue Board

i. New Private Sector Schools, Universities


and Colleges
ii. Centres of Excellence
Industry-Academia Collaboration
iii. ICT Development
Skills training in ICT
E-Learning & ICT Services
Edu-ICT Development Programme

Investors 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 commencing from the year company
derives statutory income,
Withholding tax exemption on royalty and technical fees for 10 years
Application to be submitted to ECERDC
Import duty and sales tax exemption on machinery and equipment that are not
produced locally and used directly in the activity.

Culture & Heritage








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Batik
Songket
Brassware
Silverware
Royal tenun
Wood carving
Kite making

Investors and operators in culture & heritage projects:


Income tax exemption of 100% for 10 years commencing from the year company
derives statutory income, or
Income tax exemption equivalent to 100% of qualifying capital expenditure
(Investment tax allowance) for 5 years

Tax exemption on statutory income derived from:


- bringing in more than 500 foreign tourists by group-inclusive tour per year
of assessment

Knowledge, Education And ICT Development


Universities, collages, skill training institutions,
R&D institutions, regional training centres in
places designated in the ECER Master Plan:

Incentives

- domestic tourism packages for more than 1,200 local tourists per year
of assessment
The incentive is available until year of assessment 2011.
Promotion of

Tax exemption on income derived from:

- International Conference

- bringing in at least 500 foreign participants into the country

- Trade Exhibitions (approved by Matrade) in Malaysia

- bringing in at least 500 foreign visitors per year

Promotional activities overseas by Hotel and Tour


Operators

Double deduction on qualifying expenditure incurred.

Participation in Trade Fairs approved by MITI in Malaysia

Double deduction on revenue expenditure incurred, excluding exhibits

Cultural performance - sponsoring of any arts, cultural


or heritage activities approved by the Ministry of
Information, Communications and Culture

Single deduction on expenditure incurred for


- Sponsoring up to RM500,000 per year for local performances, of which
sponsorship of foreign performances shall not exceed RM200,000.

Car Rental Operators - purchase of National Cars

The above claims to be submitted to the Inland Revenue Board

Tour Operators - purchase of locally assembled 4WD


vehicles

Full exemption on excise duty


50% exemption on excise duty
Applications to be submitted to Ministry of Finance

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Contact Us
If you are an investor planning to establish or expand your business opportunities in the
East Coast Economic Region (ECER) we will provide you with professional assistance. We will
be the first point-of-contact for all your investment inquiries.
Companies planning to start or expand operations in ECER can obtain information and
assistance from the East Coast Economic Region Development Council. We will help you
harness ECERs competitive edge and capabilities to achieve your business objectives.

East Coast Economic Region Development Council (ECERDC)


Tel
: +603 2035 0021/22
Fax
: +603 2035 0020
E-mail : secretariat@ecerdc.com.my
Website : www.ecerdc.com.my

Kelantan State Office

Level 69, Tower 2


PETRONAS Twin Towers
50088 Kuala Lumpur
MALAYSIA
Tel : +603 2035 0000
Fax : +603 2035 0020

Ground Floor & Mezzanine


Lot 137 & 138 Bangunan Sutera Inn Prima
Jalan Dusun Muda off Jalan Bayam
15200 Kota Bharu, Kelantan, MALAYSIA
Tel : +609 746 0021
Fax : +609 746 0020

Terengganu State Office

Pahang State Office

Ground Floor & 1st Floor


100B Jalan Sultan Zainal Abidin
20000 Kuala Terengganu, Terengganu
MALAYSIA
Tel : +609 620 0021
Fax : +609 620 0020

B8002 Sri Kuantan Square


Jalan Teluk Sisek
25050 Kuantan, Pahang
MALAYSIA
Tel : +609 565 0021
Fax : +609 565 0020
ECER/V1

Kuala Lumpur Office

East Coast Economic Region Development Council (ECERDC) 2010


All 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).
Disclaimer: While every reasonable care has been taken in preparing this document, ECERDC cannot be held responsible for any inaccuracies. All information and specifications are current at the time
of preparation and are subject to change as may be required. Renderings and illustrations are artists impressions only and cannot be regarded as representations of fact.

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