Untitled - East Coast Economic Region

Contents
The East Coast Economic Region: Poised For Transformation
3
The ECER At A Glance
4
Kuala Terengganu City Centre (KTCC)
• A Vibrant Heritage Waterfront City
6
• 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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11
Integrated Lifestyle Enclave
• An Iconic Lifestyle Concept Enclave
12
The Learning Quarter
• An Inspiring Hub for Nurturing Top Talents
14
Health and Wellness Village
• An Uplifting Enclave for Medical and Wellness
16
Towards Sustainable Development
18
Getting There
• Well-Connected, Global Access
19
Investment Opportunities
20
The ECER Incentives Package – Kuala Terengganu City Centre
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Other Incentives
23
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.
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The ECER At A Glance
The vision is for ECER to be a developed Region by 2020.
The ECER’s 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 Malaysia’s 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
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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
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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
N
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
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Kuala Terengganu
City Centre
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Muara North and Muara South:
Embracing Growth
as the New Urban Centre
of Kuala Terengganu
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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 city’s 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.
Artist’s impression of Muara North and Muara South.
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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
• Malaysia’s 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
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KTCC’s 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, Terengganu’s track record for holding successful annual events, and the
country’s 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
KTCC’s 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.
KTCC’s Learning Quarter will be one of the new and most modern faces of Malaysia’s profile
as an education hub.
As a result of the Learning Quarter’s 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 government’s 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)
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•
•
•
•
•
•
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 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
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 artist’s impressions only and cannot be regarded as representations of fact.
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