investors` paradise - East Coast Economic Region

TOURISM
INVESTORS’ PARADISE
Contents
Your Unique Investment Destination
Your Unique Investment Destination
1
ECER: A Tourism Haven
2
Boosting Tourism
3
Sustainable Tourism Development
4
Key Tourism Projects in the ECER
6
Prospects Abound for Investment
Teluk Bidara
Cherating
Pantai Penarik
Pulau Besar
Pekan Royal Heritage Town
8
12
14
16
18
Investment Opportunities
20
ECERDC
The One-Stop Centre for Investors
21
The ECER Incentives Package - Tourism
22
Contact Us
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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.
MALAYSIA
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.
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ECER: A Tourism Haven
Boosting Tourism
Malaysia is the second most popular tourism destination in Asia and the industry is a major
source of foreign exchange earnings. Many tourists head for the East Coast states, making
tourism a key industry and an important economic cluster for the ECER states. There are six
distinct segments of tourism, namely mainland coastal tourism, sustainable island tourism, urban
tourism, culture and heritage tourism, cross-border tourism and ecotourism.
Over
30 tourism projects have been planned for the Region, providing vast opportunities for
O
investors
to reap rewarding returns from their investments. Investors can profit from myriad
inv
business
opportunities, either participating as co-organisers and co-sponsors or hosting
bus
side-events
to complement the existing annual high points in the calendar.
side
Of special interest to investors is the fact that numerous tourism projects fall within the ECER
Special Economic Zone (ECER SEZ). This is a zone set up by the Malaysian Government for
accelerated development, supported by a unique package of incentives over and above those
offered to investors in any other part of Malaysia. Investors will find great depth in investment
options in prime real estate developments related to tourism, such as shopping malls, hotels and
conference centres, local handicraft markets, commercial and residential developments, and
large-scale integrated resorts. The tourism initiative in the ECER SEZ aims to transform the area
into a vibrant urban centre within the East Coast, equipped with modern comforts while
maintaining its age-old charm and cultural identity. The tourist haven of the ECER is thus a
paradise for investors too.
Infrastructure
The Malaysian Government has also
embarked on several projects throughout the
ECER to enhance its infrastructure. Airports,
rail and road links, electricity, water supply,
telecommunications including ICT, and
sewerage works will be undertaken.
Environment
In carrying out projects within the ECER,
special emphasis will be placed in conserving
the environment to ensure sustainability for
years to come. This is to maintain the
integrity of the natural environment alongside
development for the benefit of future
generations.
Human Capital
The ECER Master Plan places special
emphasis in nurturing a talented and highly
skilled workforce in the Region, to provide an
ample source of quality human resources for
tourism related businesses to tap into for
long-term growth and profitable operations.
Investors are discovering the business
appeal of tourism in the East Coast,
where tremendous opportunities await.
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Sustainable Tourism Development
Mainland Coastal Tourism
Coastal areas will soon be transformed into integrated tourism destinations. The projects will involve
the development of coastal resorts and hotels, a new commercial business area and various other
related components. Activities to revitalise the ECER’s coastal strips to take advantage of the pristine
sea frontage and exclusivity of many ECER beaches have also been undertaken.
Sustainable Island Tourism
The ECER’s island destinations are home to some of the most beautiful islands and coral reefs in
Malaysia. Future development strategies will focus on the preservation and protection of islands.
Action plans include maintaining the island’s carrying capacity; ensuring sustainable
developments; improving and upgrading facilities; as well as developing sustainability indicators
for monitoring and accreditation purposes.
Tourism in Malaysia continues to record higher arrivals
amongst foreign tourists, pointing to a growth market
that investors can further develop.
The ECER is a region with distinctive culture and is considered as the 'cradle of Malay culture'
where ancient dramatic arts continue to be performed and perpetuated. The Region is also one of
the main sources of Malay handicraft, where traditional artisans continue to produce handwoven
textiles, intricate silver and brass vessels and woodcarvings using fine-grained local timber.
Tourism Industry Facts & Figures
It is expected that the number of tourist arrivals to the ECER states will continue to increase in the
future. The ECER welcomed over 1.9 million foreign tourists and 8.3 million domestic tourists in
2005. In 2008, amidst a year of global economic challenges, the number of tourists increased
even more, to 3.6 million foreign tourists and 12.6 million domestic tourists. These numbers are
forecast to grow to 7.4 million foreign tourists and 21.4 million domestic tourists by 2020.
This growth naturally increases demand for room accommodation, better transport, and other
tour-related services. In the year 2020, established hotels and accommodation in the ECER are
projected to contribute 15% or 24.5 million of total hotel guests in Malaysia.
Various cottage industries manufacturing exclusive products at fair prices make the ECER states
one of the main attractions for local tourists. Domestic tourism is seen to remain the highest
contributor to the sector in the ECER.
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Urban Tourism
Urban centres of the east coast are being re-energised into vibrant tourism magnets – equipped
with modern comforts while maintaining their age-old charm and cultural identity. Investors may
explore opportunities in developing high-end and budget accommodation, food and beverage
outlets with a local or foreign theme, and retail outlets for marketing local handicrafts and
delicacies, among others.
Cultural and Heritage Tourism
Cultural and Heritage Tourism programmes are being developed to enhance the participation
of the local population as well as supplement their income. This is a unique and alluring attraction
for foreign tourists who want to experience the true heart of a country through the daily lives of
its people.
Cross-border Tourism
The ECER’s proximity to Thailand makes it a strategic gateway for tourism and commerce,
improving the economic activities that have existed at several towns on the Malaysia-Thailand
border in Kelantan and the Indochina region. Border towns will be transformed into bustling hubs
for shopping, dining and recreational activities.
Ecotourism
An unrivalled wealth of biodiversity and natural attractions gives the ECER great potential for
development in ecotourism, especially for adventure-based attractions such as rock climbing,
white-water rafting and boat rides deep into the heart of the rainforests. The ECER is also home
to numerous protected animals and plant species, as well as home to Taman Negara, the nation’s
primary national park which straddles the borders of Kelantan, Terengganu and Pahang, and the
Endau-Rompin Park, another world-famous national park.
Hallmark Events
These are events that will create a strong multiplier effect and attract an international audience to
the ECER, an example being the Monsoon Cup in Terengganu, the Malaysian leg of the prestigious
World Match Racing Tour. Other such events are the Taman Negara Eco Challenge in Pahang, the
Royal Pahang Billfish International Challenge in Pahang, and the Sultan’s Cup Endurance
Challenge in Terengganu.
5
Key Tourism Projects in the ECER
THAILAND
Kota
Bharu
PANTAI PENARIK
PE
ENARIK
B
PULAU BESAR
KELANTAN
Kuala
Terengganu
Pantai Penarik
Penarrik
Pulau
P
u Besar
TERENGGANU
TELUK
T
ELUK BI
BIDARA
Kertih
Kijal
PAHANG
CHERATING
Kuantan
Pekan Royal Heritage Town
PEKAN
P
EKAN RO
E
ROYAL HERITAGE TOWN
KUALA
LUMPUR
Tanjung
Agas
Teluk Bidara
LEGEND :
Mersing
Primary Routes
Routes
(Existing & Proposed)
d)
Expressways
MERSING,
JOHOR
(Existing & Proposed)
Airport
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SINGAPORE
Cherating
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Teluk Bidara
Teluk Bidara is located in Dungun, Terengganu. It can be reached by highway from Kuala Lumpur
and the west coast, while air travellers can fly in from the Kuala Lumpur International Airport,
Subang Airport and the Sepang Low Cost Carrier Terminal. Teluk Bidara is also 20 minutes’ drive
from Kertih Airport and 50 minutes’ drive from Kuala Terengganu International Airport.
Meetings, Incentives, Conventions, Exhibitions
(MICE) Hotel
Meetings, Incentives, Conventions, Exhibitions
(MICE) Hotel
Activity Hotel
Hotel
Apartment
Resort
Teluk Bidara will be transformed through a mixed development, integrated boutique resort. Its
facilities will comprise accommodation, leisure and sports as well as commercial units. The key
emphasis is on incorporating the distinctive Terengganu Malay ambience into development at
Teluk Bidara – creating a unique selling proposition built around tradition, culture, arts and crafts,
local cuisine and historical heritage sites.
Eco
co Luxury
u u y Hotel
oe
Hotel Apartment
Eco L
E
Luxury Hotel
H l
The development at Teluk Bidara is targeted along a 2.8 km stretch of golden beach, on
beachfront site of 115 hectares. Here, investors will be able to develop an authentic and
traditional Malay Terengganu kampong (village) environment featuring a blend of Terengganu’s
architecture, culture and customs.
The Teluk Bidara Master Plan takes into account the natural environment and will preserve and
enhance the heritage of Terengganu. The architecture will incorporate traditional concepts and
structures to re-create the Terengganu Malay kampong experience – while modern facilities and
amenities will satisfy the needs of even the most cosmopolitan travellers.
Resort Master Plan
Condotel
Retail Village
Boutique Hotel
Town
o
Villa
a
Heritage Vilage
Boutique Hotel
Town Villa
T
Vill
Heritage Vilage
Town Villa
lla
Heritage Vilage
Spa Resort Hotel
Town Villa
Luxury Villa
Town Villa
Heritage Vilage
Spa Resort Hotel
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B da
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Bidara Wharf
9
The Transformation Begins...
The Teluk Bidara existing site.
Artist’s impression of the proposed development –
120 hectares of prime resort development featuring
the distinctive Terengganu Malay ambience.
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Cherating
Chendor
The Cherating Master Plan has detailed an integrated development of resorts and world-class
facilities for tourists in upgrading the image of this popular coastal getaway. Once known as the
location of Club Med, Cherating will now be regarded as a more comprehensive tourism
destination with multiple options.
As an enclave surrounded by the urbanised areas of Kemaman in the north and Kuantan in the
south, Cherating enjoys a location that is in the path of holidaymakers as well as a fabulous
seafront facing the South China Sea.
Cherating
Cherating is envisioned as a Village Resort – a green tourist enclave in a rapidly developing region,
a beachhead for beaches and the sea, wetlands and mangroves, and forests and the hinterland.
All the village charms of Cherating will be preserved, giving tourists the unique experience of
participating in a lifestyle that few can call their own.
Sg. Ular
Cherating is not just about
magnificent beaches and the
aquamarine South China Sea.
Investors can participate in
a host of projects aimed at
integrated development.
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Complementing this village ambiance will be a resort enclave of international standard, complete
with facilities and amenities that the well-travelled tourist will appreciate.
Cherating will thus be a tourism enclave combining both rustic elements and an international
resort with a clearly defined urban edge. It will be modern and complete, yet laidback and local –
a destination that will both intrigue and reward tourists.
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Pantai Penarik
This is a stretch of the coastal belt that is
particularly picturesque with fishing villages, an
idyllic way of life and panoramic views of the
Terengganu islands. It offers investors and
operators an outstanding opportunity to
develop the area into a coastal resort
development incorporating nature-based
tourism and sun, sea and sand activities.
Pantai Penarik and the vicinity are noted for
distinctive tourist attractions including local
weekly bazaars selling local food, arts and craft.
Handicraft is an important livelihood, offering
tourists a glimpse into the cultural richness of
Terengganu, through the making of kites, tops,
silverware, songket weaving, woodcarving and
boat building.
As the area includes stretches of turtle landing
sites and the Setiu Wetlands (designated as a
State Park), the development emphasis is
environmentally attuned to minimise impact on
its ecology.
Investors will see numerous opportunities to
provide for the needs of tourists - both domestic
and foreign – in accommodation, food and
beverage, wellness, eco activities and marine
leisure and sports activities.
Idyllic Pantai Penarik exemplifies the rich potential for mainland coastal
tourism development – its range of attractions has something for everyone.
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Pulau Besar
Pulau Besar in Terengganu enjoys the distinct advantage of both river and sea frontage in
transforming itself into a tourism magnet for local and foreign tourists. It is close to key roads and
airports, which open the way to its golden sandy beaches.
Investors are encouraged to take advantage of the river and sea frontage to create a holiday
experience unlike any other, by developing facilities and services that are equally different from
other tourist destinations on the east coast. Key developments, spread out over a 150-hectare
zone, will focus on high-end integrated resorts and spas offering five-star amenities, a medical
spa, a boutique resort, private villas, floating riverside villa, and a marina and water sports centre.
The medical spa will introduce medical tourism to Terengganu, offering a range of medical and
lifestyle services by both medical and spa professionals who will provide comprehensive
preventive and wellness care of the highest quality.
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17
Pekan Royal
HeritageTown
Evolving
E
l i from
f
its
i humble
h bl beginnings
b i i
in
i the
h 13th
13 h century, Pekan
P k grew to become an important
commercial hub, feeding trade along Peninsular Malaysia’s longest river, the Pahang River, right
up till the 1960’s.
Pekan is a fascinating heritage town primarily known for its status as the seat of the royal house
of Pahang. The influence of the royal family can be seen and felt through the magnificent palaces
throughout Pekan, which includes the Istana Sultan Abu Bakar, Istana Mangga Tunggal and
Istana Kota Beram as well as various royal mausoleums.
Other must-see sites that embody
the legacy of Pahang include the
recently renovated Sultan Abu Bakar
Museum and the Watercraft Gallery.
The town is also home to Tenun
Pahang Diraja, a unique hand-woven
silk cloth cottage industry which is
one of the key heritage elements to
be promoted further.
An
established
Homestay
programme also exists where you
can stay with a local family to
experience and discover the
Malaysian way of life in heritage-rich
Pekan. Additional accommodation
through the form of boutique hotels
is also being considered to meet
future tourist demand.
Further development in Pekan will
focus on improving tourist-friendly
facilities,
amenities
and
accommodation
as
well
as
developing and encouraging
sustainable
heritage
practices
through a cultural arts college to
ensure that Pekan’s unique cultural
heritage will live on.
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Heritage stamps its mark on Pekan, offering investors a unique look at the heritage
and culture of the largest state in Peninsular Malaysia.
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Investment Opportunities
ECERDC
The One-Stop Centre for Investors
Tourism is a key revenue generator for the country and has been one of the key thrusts of
development in the ECER. Investors will find that the natural resources and landscape of the
Region offers them numerous opportunities to invest and enjoy attractive returns on their
investment.
Within the hospitality industry, investors will be able to participate in integrated resort
developments that offer a holistic experience to tourists and business visitors. Due to the varied
nature of the landscape and resources of the ECER in tourism, investors will find ample
opportunities in the six sub-clusters - mainland coastal tourism, sustainable island tourism,
urban tourism, culture and heritage tourism, cross-border tourism and ecotourism, as well as
hallmark events.
Each of these areas has unique characteristics, adding to a diversity of choices for visitors who
are likely to keep exploring the Region over successive vacations.
Investors can also explore vast opportunities in tour package development and retail and
marketing, as well as the manufacture of handicraft and ethnic inspired gifts as some possible
ventures.
To accelerate the growth and development of the ECER, a special vehicle has been established
through the East Coast Economic Region Development Council (ECERDC).
The ECERDC plays a leading role in promoting and stimulating economic and social development
as well as private sector investment in the Region.
The Chairman of the Council is the Prime Minister of Malaysia with Council members consisting
of the highest level of Federal and State leaders. The ECERDC is also made up of a management
team of professionals, who provide a range of services that seamlessly facilitate your investments.
The ECERDC acts as the one-stop centre to fast track investment applications and approvals as
well as provide counseling, advisory services, process fiscal and non-fiscal incentives and various
solutions to help make the process of investment easy for investors.
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The ECER Incentives Package - Tourism
The ECER Incentives Package - Tourism
ECER Incentives
Other Incentives
Activity/Cluster
ECER Incentives Package
(To qualify for these incentives, companies must commence
operations before 31 December 2015)
Activity/Cluster
To qualify as a tourism project, a company must have a minimum
investment of RM5 million.
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
Tourism activities in designated locations in the ECER Master Plan
• Customised incentives based on merit of each case, or
i) 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, Johor
• 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
Cross Border Tourism
• Pengkalan Kubor, Kelantan
• Rantau Panjang, Kelantan
• Bukit Bunga, Kelantan
• Income tax exemption equivalent to 100% of qualifying capital
expenditure (Investment tax allowance) for 5 years
• Stamp duty exemption on land acquired for development
• 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
Application to be submitted to ECERDC
• Participation in Trade Fairs approved by MITI in Malaysia
• Double deduction on revenue expenditure incurred, excluding exhibits
• Import duty and sales tax exemption on machinery, equipment, and
consumables that are not produced locally and used directly in
the activity.
• 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.
The above claims to be submitted to the Inland Revenue Board
• Car Rental Operators – purchase of National Cars
• Full exemption on excise duty
• Tour Operators – purchase of locally assembled 4WD vehicles
• 50% exemption on excise duty
Applications to be submitted to Ministry of Finance
Training
• Investment in buildings used for industrial, technical or vocational
training approved by the Minister
• Cash contribution to non-statutory income oriented vocational
training institutions and those established and maintained by a
statutory body
• Royalty payments to non-residents (franchisors) for franchised
education programmes approved by the Ministry of Education
iii) Island tourism
• Group of islands in Mersing
• Group of islands in Terengganu
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The incentive is available until year of assessment 2011.
• Double deduction on qualifying expenditure incurred.
ii) Eco-tourism
• State Parks
- Kelantan: Nenggiri & Stong Hills
- Terengganu: Tasik Kenyir, Terengganu Hills, Setiu Wetlands
- Pahang: Chini Lake
• Gua Musang Integrated Transport, Rest &
Recreational Centre, Kelantan
• Terengganu Global Marine Turtle Observatory
• Kuala Gandah Elephant Sanctuary, Pahang
Hallmark Events such as:
Taman Negara Eco Challenge, Pahang
Royal Pahang International Billfish Challenge, Pahang
Monsoon Cup, Terengganu
Sultan’s Cup Endurance Challenge, Terengganu
• Tax exemption on statutory income derived from:
- bringing in more than 500 foreign tourists by group-inclusive tour per year
of assessment
- domestic tourism packages for more than 1,200 local tourists per year of
assessment
• Promotional activities overseas by Hotel and Tour Operators
• Withholding tax exemption on royalty and technical fees for 10 years
Urban & 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, Pahang
iv)
•
•
•
•
• Licensed Tour operators
Incentives
These incentives are mutually exclusive/to be utilised upon
expiry of ECER Incentives Package
Research and Development (R&D)
• Single deduction up to a maximum of RM1 million per assessment year
for sponsors of event approved by ECERDC
Claims to be submitted to Inland Revenue Board
• Industrial Building Allowance: Initial allowance of 10%, and an annual
allowance of 3%.
• Single deduction
• Withholding Tax exemption
• Double deduction on cash contribution
• Cash contribution to approved research institutes,
• Double deduction on payments for services rendered
• Payments made for the use of the services of approved research
institutes and companies
• 50% tax exemption on income (honorarium/royalty) received
The above claims to be submitted to the Inland Revenue Board
• Research on commercialization of research findings
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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 the ECER can obtain information and
assistance from the East Coast Economic Region Development Council. We will help you
harness the ECER’s 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 : [email protected]
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
100 B, Jalan Sultan Zainal Abidin
20000 Kuala Terengganu, Terengganu
MALAYSIA
Tel : +609 620 0021
Fax : +609 620 0020
B8002, Sri Kuantan Square
Jalan Teluk Sisek
25000 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 artist’s impressions only and cannot be regarded as representations of fact.
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