Documente Academic
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Delivering Transformation
The cover of ECERDCs Annual Report 2010 incorporates a blue
background that resembles the bold swirls of the Wau, the traditional Malay kite
which represents the unique identity of the East Coast Economic Region (ECER),
reflecting growth. The sense of energy in this design symbolises the transformation that
is currently being delivered in ECER. This transformation has already shown its positive
impact among the various stakeholders of ECER, who include our children, the future
generation, the local populace and the investors.
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Council Members
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Audit Committee
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Management Committee
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Calendar of Events
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Our Team
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Financial Statement
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To spur the development within the Region, the Government in 2009 has launched the
ECER Special Economic Zone (ECER SEZ), a concentration of high-impact projects within
an integrated development zone that will act as the catalyst of economic growth within
ECER. Stretching from Kertih in Terengganu to Pekan in Pahang, the ECER SEZ is set to
create 50% of all jobs and account for 80% of all economic output in the Region.
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I am pleased to note that several high-impact projects in the ECER SEZ, such as the Kertih
Polymer Park (KPP), Pekan Automotive Park (PAP), Palm Oil Industrial Cluster (POIC),
Gambang Halal Park and Agropolitan Pekan are already on the ground and progressing
well. ECER SEZ is also home to the Kertih and Gebeng Integrated Petrochemical
Complexes, whose existence can be leveraged by the Oil, Gas & Petrochemical investors
in the KPP. Other projects that will be implemented in the ECER SEZ include the Fish
Processing Park in Kuantan, Cherating Mainland Coastal Tourism and Sungai Lembing
Ecotourism, all of which will further drive the economic growth of the Region.
A project of great importance in the ECER SEZ is the development of Kuantan Port City
(KPC). One of its key components is the expansion of Kuantan Port into a deepwater port.
Once completed, Kuantan Port will be able to serve bigger and more modern vessels.
The Government foresees that Kuantan Port will be a major port in the eastern region,
a key gateway for Asia Pacific trade and a major logistics hub, serving the clusters of
petrochemical, palm oil and automotive, as well as becoming a major industrial and
manufacturing zone.
On the efforts towards eradicating poverty, ECERDC-led projects such as Pekan
Agropolitan, South Kelantan Agropolitan and Besut-Setiu Agropolitan have also shown
good progress in terms of improving the lives of the rural poor.
The Pekan Agropolitan project participants in Runchang and Batu 8, Lepar for instance,
are currently earning an average income of RM1,000 per month through the primary
economic activity of sheep rearing. They include 30 Orang Asli participants in Runchang
and another 100 participants in Batu 8, Lepar who have already moved into their new,
fully-furnished houses built by the Government in September 2010.
opportunities for its residents through skills training programmes funded by ECERDC.
The 10-month project has already shown positive results, as reflected in the participants
academic achievement and higher income as the participants embark on their own
entrepreneurship ventures.
ECERs vision to become a developed region by 2020 can only be achieved through the
strong support of the people of the Region, Federal and State agencies, the private sector,
as well as local and foreign investors.
I can assure the investors and the people of ECER that the Government is fully committed
to ensure the successful implementation of ECER projects.
50
RM
billion
I am pleased to announce that the Region is ready to welcome the arrival of more investors,
both from Malaysia and abroad. The basic infrastructure in ECER is already in place and
the Region also offers them a very competitive package of both fiscal and non-fiscal
incentives.
I would like to take this opportunity to record my sincere appreciation to all those who have,
and continue to support the implementation of ECER projects and for their ongoing efforts
in ensuring the success of this crucial economic development programme. In particular,
I would like to thank the Federal Government and the respective State Governments of
Kelantan, Terengganu, Pahang and Johor, as well as the relevant agencies and the private
sector for playing a key role in the development of ECER.
My utmost appreciation also goes to the Council, the Management team and the staff
of ECERDC for their hard work, passion and commitment in ensuring the smooth
implementation of ECER projects and programmes.
The success shown by ECER to date would not be possible without the collaborative
efforts by all parties involved. With their continuous support, I am confident that ECERs
vision, aspirations and delivery of transformation will be achieved.
In terms of investment, the Region has attracted RM36.5 billion from domestic and foreign
investors. Of the total amount, RM15.3 billion has already been received, consisting
of 158 investments which led to the creation of 17,500 new jobs for ECER residents as at
31 December 2010.
Through these projects and their investment value, the aim of eradicating poverty,
generating higher household income and developing new entrepreneurs is progressing
well in the ECER.
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All
projects
TOURISM
Tourism is a major income earner for Malaysia, with ECER being a significant contributor
with its cultural heritage and natural beauty.
In the period up to December 2010, several projects in this cluster had progressed from
the Business Strategy & Implementation Plan (BSIP) stage to detailed design works and
implementation.
The projects include the Mainland Coastal Tourism projects for Pantai Sepat, Cherating,
Pulau Besar / Kampung Penarik and Teluk Bidara, as well as Dungun Town Coastal
Tourism and Pekan Heritage Tourism.
In Ecotourism, BSIP studies were conducted for Setiu Wetlands State Park and the
ecotourism belt covering Lanchang, Lipis, Gua Musang and Kuala Krai.
A Strategic Implementation Plan (SIP) study was carried out for Tasik Chini State Park,
which is to undergo integrated rehabilitation and conservation works due to its profile as
the first UNESCO biosphere reserve in Malaysia.
ECERDC has also undertaken the Integrated Management Plan study for Lojing Highlands
in Kelantan, which had been identified as a Special Management Area under the National
Physical Plan and the ECER Master Plan.
During the year under review, a BSIP study was also undertaken on the Kuala Terengganu
City Centre (KTCC) project. Under the KTCC Master Plan, Kuala Terengganu will
be developed into a vibrant Heritage Waterfront City, incorporating a modern urban
development which is integrated with its age-old traditions, culture and heritage.
MANUFACTURING
ECERs manufacturing cluster serves as a major source of growth in terms of Gross Domestic Product (GDP) and employment.
A total of seven BSIP studies were ongoing in 2010, of which five have already been completed by the year end. The completed
BSIP studies were for the Kemaman Heavy Industrial Park, Kemaman Boat Building and Repair Industrial Park, Kenaf Integrated
Park, Handicraft Industry Programme and Bentong Mixed Industrial Park.
In the fourth quarter of 2010, several projects have moved into their implementation phase:
Pekan Automotive Park (PAP)
The Pekan Automotive Park is envisioned to become a national and regional hub for car assembly, manufacturing of automotive
parts and components, as well as automotive R&D activities.
During the year under review, PAPs Central Marketing Complex (CMC) was being constructed while infrastructure and landscape
upgrading works were in progress. Infrastructure works for PAP (Phase 2) also began in October 2010. Several investors have
already expressed their interest to establish operations in PAP.
The establishment of PAP is in line with the National Automotive Policy (NAP) which will foster a more competitive market for
local and international companies. In view of the increasing competition within the regional automotive market, ECERDC intends
to position the Pekan Automotive Park as the eco-friendly, first mover in the production of environmentally-friendly vehicles,
8 ECERDC 2010 ANNUAL REPORT
which include electric vehicles and related technologies, such as battery suppliers,
transportation infrastructure and renewable energy providers.
Palm Oil Industrial Cluster (POIC)
The Palm Oil Industrial Cluster is an initiative by ECERDC that is aimed at accelerating
the development of the palm oil industry in the Region. Located in Kuantan in the state
of Pahang, POIC takes advantage of its proximity to Malaysias major palm oil producing
areas, petrochemical feedstock and easy accessibility to palm oil mills that produce
sufficient feedstock for the downstream activities.
Among the promoted sectors of the POIC are surfactant, biodiesel, food, biofertiliser,
animal feedmeal, biomass, phytonutrient and polyutherane. The Business Strategy,
Marketing and Implementation Plan for the development of the Palm Oil Industrial Cluster
(POIC) was completed in August 2010 and earthworks and infrastructure works for
the project began in October 2010. Once completed, the Park will offer an integrated
manufacturing location for investors venturing into the manufacture of downstream palm
oil products.
1.4
RM
billion
AGRICULTURE
As a key cluster that will strengthen the nations food security requirements as well as provide
income generation and entrepreneurship opportunities to ECER residents, agriculture has
recorded highly encouraging progress during the year under review.
A total of 15 projects commenced comprising six livestock-related projects, five fish-based
projects and four in crops that involved herbal, cassava, citrus and pineapple based industries.
To ensure project sustainability, all agriculture related projects have been developed based on
the need to complete the products whole value chain, promoting private sector participation,
encouraging large-scale farming and leveraging on modern technology.
Livestock
The development plan for ECERs livestock industry has been successfully implemented during the review period. The first-tier
projects, out of a three-tier development strategy, have commenced construction in 2010.
Upon completion, both breeder farms at the Muadzam Shah Cattle Research & Innovation Centre in Pahang and the Kuala Berang
Goat Breeding & Innovation Centre in Terengganu will produce 1,200 breeder dairy cattle and 5,625 breeder goats respectively by
year 2015, which will benefit local farmers, agro-entrepreneurs and participants of Agropolitan projects.
In 2010, earthworks began for the Kuala Berang Goat Breeding & Innovation Centre in Terengganu. Two main components
will complement each other in the implementation of the first-tier and second-tier of the goat production programme, namely
Nucleus Farms and Multiplier Farms.
The construction work for the Ulu Tersat Multiplier Farm and Telaga Papan Commercial Farm for Boer goats has been completed
in 2010. The farms are commercially operated and managed by Terengganu Agrotech Development Corporation (TADC) a stateowned company to initiate the breeding programme and spearhead the goat production cluster in Terengganu.
Crops
Pineapple as an industrial crop in the region has also been promoted extensively. The first phase from the total land development
of 5,000 acres of the Rompin Integrated Pineapple Plantation project (RIPP) in Pahang has commenced construction in 2010.
The project is expected to offer 3,000 new employment opportunities to the local residents as well as 50 entrepreneurship
programmes through contract farming and satellite farming schemes.
Fisheries
The fisheries industry has traditionally been a significant source of livelihood in the ECER visibly influencing its socio-economic
landscape. Hence, efforts to uplift the socio-economic well-being of the region will have to inevitably focus on this sector.
The focal point of this development plan is the establishment of the Marine Fish & Shrimp Hatchery and Fish Seed Marketing Centre
in Merchong, Pahang and the establishment of the Freshwater Fish Hatchery & Fish Seed Marketing Centre in Raub, Pahang. Design
works for both projects have commenced in 2010. The Centre will function as a brood stock development centre, complemented
with a selective breeding R&D facility which aims to be a leading player in the production of improved stocks of fish seed in the
Region. Both high technology hatcheries will produce 10 million grouper and seabass fry and 20 million tilapia fry respectively.
To accommodate the intended linkages between the various fisheries value chains with the value added downstream activities,
three fish processing centres have been planned for development, to be located in the major fish and shrimp production
concentration areas along the coast. Design works have commenced for the Fish Processing Park in Tanah Putih, Kuantan and
Pengkalan Kubor Collection, Processing & Packaging Centre (CPPC), while the BSIP has commenced in 2010 for the Tok Bali
Integrated Fisheries Processing Park.
The development of a Herbal and Biotechnology Cluster in ECER has been recognised
as a key Entry Point Project (EPP) under the New Economic Model. Two sites have been
identified for the first phase of the project and detailed survey works were completed in
2010 for the development of two Integrated Herbal Plantations at Pasir Raja in the district
of Dungun, Terengganu and Chegar Perah in the district of Lipis, Pahang. Phase 2 of
the project will see the development of similar farms in Durian Mentangau, Dungun and
Rantau Manis, Gua Musang.
36.5
RM
billion
in investments from
domestic and foreign
investors.
AGROPOLITAN
The Agropolitan project is aimed at eradicating poverty in ECER and enhancing the income
of its participants. This integrated socio-economic project brings about positive change
in participants lives by developing land for agriculture-related activities, supported by
processing and marketing activities and resettlement of poor families.
There are three locations under the Pekan Agropolitan project in Pahang. At Batu 8, Lepar,
100 participants relocated to their new houses built by ECERDC in September 2010.
Among the facilities here are a kindergarten, multi-purpose hall and surau. Sheep rearing
is the primary activity in this location, with 60 Animal Production Units (APUs) for Dorper
sheep being built.
At the second location in Runchang which involves 30 Orang Asli participants, another 24
APUs for Dorper sheep are being constructed in addition to the existing 11 APUs.
Since August 2010, the Orang Asli participants have been earning a steady income of
RM600 monthly by working a minimum of four hours a day. The allowance is paid through
their personal bank account, which has encouraged a savings habit among them.
Tanjung Batu is a new site under the Pekan Agropolitan project. Site clearing works began
in 2010 to eventually build 213 houses for participants. Development works have also
begun on a 1,200-hectare oil palm estate, thus providing another source of income for the
participants in this area.
In 2010, ECERDC also began building 350 new houses in Gua Musang for relocation of
participants under the South Kelantan Agropolitan (SKA) project. The project will eventually
see the building of 3,000 new homes and oil palm plantations over 9,900 hectares of land.
Throughout 2010, the 10 pilot participants of SKA who have moved into their homes in
2009 have been earning a steady income of more than RM1,000 monthly by working in the
oil palm plantation and through cocoa planting as a subsidiary income.
At the Besut-Setiu Agropolitan project, site clearing began in September 2010 for the construction of 100 homes and 50 APUs
for participants, as well as related infrastructure.
ECERDC Agropolitan Projects have received tremendous support from all parties involved, including approval of land by the
State Governments. FELDA is the Implementing Agency for both Pekan Agropolitan Project and Besut Setiu Apropolitan Project,
while KESEDAR was appointed as the Implementing Agency for South Kelantan Agropolitan Project. The role of the Implementing
Agencies is to manage participants and economic activities.
empower Bentong
empower is another human capital initiative by ECERDC which was launched in Bentong
Pahang in July 2010, as part of the Councils effort to boost the academic achievement
and employability of the locals, as well as create entrepreneurial opportunities for them
through the skills training provided.
As of 31 December 2010, a total of 1,035 participants from Bentong, Pahang had undergone
academic and skills training courses under the empower Bentong programme. Even
though the Skills Training courses were still ongoing as of end-2010, more than 120
participants have already obtained placements and were earning additional incomes of
between RM800 and RM1,000 per month.
For the Academic Training programme, 163 UPSR students and 119 PMR students
amongst its participants managed to score 100% passes in all subjects taken, surpassing
ECERDCs set targets.
Sinar ECER
For the children of Agropolitan project participants in South Kelantan Agropolitan, Gua
Musang and Pekan Agropolitan in Runchang, ECERDC has introduced the Sinar ECER
programme which encompasses academic activities, as well as public speaking skills and
the nurturing of self-confidence and self-management skills.
The potential for positive change in lives can be seen in the transformation of the mindset
of these children. An inspiring story comes from the Agropolitan settlement at Runchang in
Pahang, where Juyana Teor Bak Song of Sekolah Kebangsaan Runchang scored 5As in the
UPSR examination, the first ever child to do so from the Orang Asli community in Runchang.
ECER Entrepreneurship Development Programme (EEDP)
ECERDC has also introduced the ECER Entrepreneurship Development Programme
(EEDP) to increase the involvement of the Bumiputera Commercial and Industrial
Community (BCIC) and Small- and Medium-sized Industries (SMIs) in ECER. This will be
done through ECERDCs collaboration with the private sector.
Two pilot projects have been implemented in Mersing, Johor under EEDP, namely the
Vendor Development Programme-Sewing Project and Boat Building and Repair Centre
(BBRC). The projects involve the partnership between ECERDC and GIATMARA Sdn.
Bhd. with the support of the Mersing District Office.
Suri@Home
The Suri@Home women empowerment programme saw the addition of the Songket weaving project in Terengganu, which is
participated by three female participants. They are now generating a monthly income of around RM1,000.
As for the Mersing-Kg Sedili Coastal Road, the design works have been completed with
the Land Acquisition Plan for the Mersing-Kg Sedili road submitted to the Mersing Land
and District Office. The land acquisition exercise is targeted to be completed in 2011.
The construction of a new coastal road is anticipated to generate tourism activities as
the coastal area from Mersing town to Kg Sedili has great potential as a major tourism
destination.
The design for road improvement works from Sg Emas to Kg Peta in Taman Negara EndauRompin was completed with construction works to commence in 2011. The improvement
is expected to provide uninterrupted access into the national park as the road would be
raised above the flood level.
The Central Spine Road (CSR) will see the existing federal route from Kuala Krai to Simpang
Pelangai upgraded into a 2-lane dual carriageway. Upon completion, the CSR would have
a positive effect on the socio-economic growth of all small towns along its route.
Another road project is the construction of the new Bukit Kuang Bridge to replace the
existing bridge with a 2-lane dual carriageway. Construction for this project started in July
2010, and expected is to be completed in three years. Upon completion, it will ease traffic
congestion in the Kemaman area as well as provide faster connectivity between the east
coast and the west coast region.
The ongoing feasibility study for the East Coast Rail Route that will link ECER from Tumpat
to Kuala Lumpur in the Klang Valley will be completed by 2011. The objective of the
rail study is to ascertain the engineering viability as well as the economic and financial
feasibility for the proposed rail route. Discussions were held with various stakeholders to
confirm the alignment of the rail route linking the two places.
In addition, an Interim Report was also produced in 2010 for the coastal protection works
at Teluk Lipat, Dungun, Terengganu. The objective of the coastal protection works is to
protect Dungun coastal area which is severely affected by erosion.
Acknowledgements
In 2010, ECERDC was tasked by the Government to revive the areas formerly under the Development Authority of Pahang
Tenggara (DARA) and Jengka Regional Development Authority (LKWJ). ECERDC began the disbursement of RM49.5 million
from the Federal Government to the district and town councils of Maran, Rompin, Pekan, Bera, Jerantut and Temerloh for
maintenance and development projects.
As ECER progresses into a region that is delivering transformation to its residents, it is all
the more vital that the momentum gained since its inception in 2008 be maintained, and
indeed, accelerated.
The fund was used for socio-economic community development, infrastructure and maintenance projects, which include
construction and upgrading of roads and the drainage system.
ENVIRONMENT
ECERDC places utmost importance in safeguarding the Regions environment quality and resolutely subscribes to the principles
of sustainable development of stewardship to the environment. It hopes to improve the standard and sustainability in the quality
of life, as well as ensure the development activities in the Region are undertaken in a sustainable manner whereby its natural
resources are appropriately utilised. During the year, a SIP was carried out for Tasik Chini State Park for it to undergo integrated
rehabilitation and conservation works. An ecotourism attraction in ECER, Tasik Chini has been designated by UNESCO as the
first biosphere reserve in Malaysia.
The Integrated Management Plan study for Lojing Highlands in Kelantan has also been undertaken in 2010. In addition, tourism
activities planned under Kampung Penarik Mainland Coastal Tourism Development will be packaged and promoted with an
enforceable Management Plan in managing the Setiu Wetlands State Park. The park has been identified as a potential sustainable
economic catalyst through the creation of innovative tourism activities in the area.
INVESTMENTS
ECER continues to intensify its investment promotion efforts during the year under review by organising and participating in
various investment missions and promotion exhibitions in key focus markets such as China, the Middle East, India and Singapore.
This was done in collaboration with the Malaysian Industrial Development Authority (MIDA) and the Ministry of International Trade
and Industry (MITI).
Between the period of 2007 and December 2010, ECER managed to attract RM36.5 billion worth of investments, of which
RM15.3 billion had been received. Our participation in investment missions and promotions in 2010 alone generated more than
RM7 billion potential investment interest, with a sizable portion already approved and in various stages of implementation.
ECER will continue to be marketed as an attractive investment destination in Asia Pacific with a strong resource-based economy,
with emphasis on value-adding activities that capitalise on the existing resources. ECERDC will continue to promote key ECER
projects to both domestic and international investors, especially in the areas of Automotive Manufacturing, Halal Manufacturing,
Herbal & Biotechnology Industry, Kuantan Port City, Tourism and Education. With an attractive fiscal and non-fiscal incentive
package, as well as continuous infrastructure improvement setting the ground for investment to take off in the fast track, ECERDC
is looking forward to welcome more investment interest into ECER in the coming years.
With the progress achieved to date, the Region is ready to welcome more investments
from both domestic and abroad. This in turn, will help propel ECER in achieving its
vision of becoming a developed region by 2020 and at the same time, creating a highincome population.
I am therefore once again indebted to the leadership of our Prime Minister and Chairman of
ECERDC, Y.A.B. Dato Sri Mohd Najib bin Tun Haji Abdul Razak, for his vision, leadership and
guidance. My thanks are also due to our fifth Prime Minister, Y.A. Bhg. Tun Abdullah bin Haji
Ahmad Badawi, the National Corridor Development Adviser, for his advice and guidance.
I would also like to express my utmost appreciation to the respective Menteri Besar of
Kelantan, Terengganu, Pahang and Johor for their invaluable support and guidance in
facilitating all ECER projects in their states.
I also appreciate the guidance and directions given by the Council Members who
have brought their collective experience and personal insights in focussing efforts in
implementing ECER projects.
I am thankful to the Prime Ministers Department, the Economic Planning Unit, the PublicPrivate Partnership Unit and the Ministry of Finance, as well as the respective Federal and
State Government departments and agencies, for their continued support in the smooth
implementation of projects within ECER.
My thanks are also due to the tireless and dedicated team in ECERDC who carry the
responsibilities of strategic planning, execution and implementation of all the projects and
programmes in ECER. They have all shown a high degree of enthusiasm and passion for
the progress that has been targeted for ECER. Their energy continues to drive forward the
ECER, its economy and the wellbeing of its people.
I must also express our special thanks to all returning PETRONAS staff who have been
seconded to ECERDC for their outstanding service and invaluable contribution to the Council.
To everyone of you, I extend my warmest appreciation.
Council Members
SEATED:
1. Y.A.B Dato Sri Mohd Najib bin Tun Haji Abdul Razak
Prime Minister of Malaysia, Chairman of ECERDC
2. Y.A.B. Tan Sri Dato Haji Muhyiddin bin Mohd Yassin
Deputy Prime Minister
10
11
Audit Committee
SEATED:
1. Y. Bhg. Tan Sri Dato Lee Shin Cheng
Group Executive Chairman, IOI Group of Companies
2. Y. Bhg. Dato Shamsul Azhar bin Abbas
President & Chief Executive Officer
Petroliam Nasional Berhad (PETRONAS)
STANDING FROM LEFT:
3. Aisha binti Abdul Manaf
(Secretary to the Audit Committee)
Senior Manager Internal Audit ECERDC
4. Y. Bhg. Datuk Shukry bin Haji Mohd Salleh
Director General
Coordination & Implementation Unit
Prime Ministers Department
5. Y. Bhg. Datuk Dr. Rahamat Bivi binti Yusoff
Deputy Secretary General of the Treasury
(Systems & Control), Ministry of Finance
Y. Bhg. Datuk Dr Rahamat Bivi binti Yusoff was appointed as the Audit Committee member
effective 21st March 2011, having succeeded Y. Bhg. Dato Puteh Rukiah Bt Abdul Majid who
retired on 20th March 2011.
Tganu
ICC
Pahang
ICC
Johor
ICC
Audit Committee
Chief
Executive
Officer
Industry Expert
Panel
CEOs Office
State Office
Legal
Audit
Council
Secretariat
Risk
Kelantan
Terengganu
Pahang
Management
Committee
General
Manager
General
Manager
General
Manager
General
Manager
General
Manager
General
Manager
General
Manager
General
Manager
General
Manager
Business
Development
Infrastructure
Agriculture
Social
Development
Property,
Tourism & Mfg
IM & SEZ
Corporate
Communications
Finance
HR &
Administration
Management Committee
SEATED:
ECERDC 2010 ANNUAL REPORT 23
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Nik Mohd Nasir bin Nik Salleh was appointed as the Management Committee
Member effective 16 December 2010, having succeeded Dzalina binti Abd Manan
who resigned on 31 December 2010. Ravindran Raman Kutty was appointed as
the Management Committee Member effective 6 January 2011, having succeeded
Ruziah Azdi binti Abd Rahman who resigned on 31 December 2010. Arizan bin
Ariffin was appointed as the Management Committee Member effective 9 March
2011, having succeeded Sallehuddin bin Hamzah who resigned on 31 January
2011. Hayazim bin Daud was appointed as the Management Committee Member
effective 13 January 2011, having succeeded Raja Zera binti Raja Zaib Shah
who resigned on 31 December 2010. Ragu Sampasivam was appointed as the
Management Committee Member effective 4 November 2010, having succeeded
Akmal Arief bin Mohamed Fauzi who resigned in October 2010. Husnin bin Othman
was appointed as the Management Committee Member effective 1 November
2010, having succeeded Sakim bin Rosdi who resigned in September 2010. Farid
Zaineddin bin Abdul Hamid was appointed as the Management Committee Member
effective 16 February 2011, having succeeded Zulfiqar bin Zainuddin who resigned
in November 2010.
MISSION
The drive to draw investments into ECER is more than just an economic strategy. Underlying
it is a vital and transforming objective: that of eradicating poverty among the people of the
Region, generating higher household incomes through sustainable livelihoods, as well as
increasing job and entrepreneurial opportunities.
Economic growth in the Region will be mainly spurred by five key economic clusters:
Tourism, Oil, Gas & Petrochemical, Manufacturing, Agriculture and Education. These
clusters will be supported by developments in Social and Human Capital, Transportation,
Infrastructure, Property and Environment.
Kelantan
Kelantans border with Thailand makes it the ideal cross-border trading and tourism centre
for the East Coast, along with the trading heritage of the people of Kelantan.
Cross-border initiatives through the Indonesia-Malaysia-Thailand Growth Triangle
(IMT-GT) and the Joint Development Strategy (JDS) will further enhance development in
the State. The IMT-GT and JDS initiatives will help increase the flow of raw materials from
Thailand, thus supporting downstream industries in ECER especially in the ECER Special
Economic Zone (SEZ) and the Cross-Border KDA. They will also enhance the Kota Bharu
City Centre development and strengthen the citys role in cross-border trade.
The Kelantanese people are also a key resource for the State, an asset that is given added
value with the establishment of a major education hub in Kota Bharu-Bachok, comprising
Universiti Malaysia Kelantan (UMK), Universiti Teknologi MARA (UiTM) in Machang and
Universiti Sains Malaysias medical campus. Kelantan is also home to various training
institutes and colleges such as Institut Teknologi Tun Abdul Razak Kota Bharu, Kolej PolyTech MARA, Kolej Teknologi Cosmopoint and Kolej Teknologi Darulnaim.
The states long history of agriculture is the foundation for a variety of agro-based activities,
which will incorporate large-scale farming and modern technologies. A key agriculture
project in the State would be the second phase of ECERs Herbal and Biotechnology
Cluster development that will be undertaken in Rantau Manis, Gua Musang.
Large-scale pineapple plantations will also be carried out in Rompin, incorporating the
entire value chain of pineapple production. In terms of poverty eradication, Pahang
currently boasts three sites for ECERDCs Pekan Agropolitan projects, namely Batu 8 in
Mukim Lepar, Runchang and Tanjung Batu.
Education is a high priority in the State and Pahang is home to established tertiary
institutions such as Universiti Malaysia Pahang (UMP), the International Islamic Universiti
Malaysia (UIAM), Universiti Teknologi MARA (UiTM) Jengka campus and Universiti Tenaga
Nasional (UNITEN Pahang) in Muadzam Shah.
In tandem with education, skills training is equally important in meeting the needs of
businesses that are being established in ECER. A number of training establishments help
to fulfil the need for trained staff and they include the Pahang Skills Development Centre
Kuantan (PSDC Kuantan), Cosmopoint College, MARA Professional College, MARA PolyTech College and Kolej Shahputra.
Mersing, Johor
As part of its poverty eradication programme, ECERDC is also implementing the South Kelantan Agropolitan (SKA) project in
Gua Musang. The project will eventually see the building of 3,000 new homes for poor families and the development of oil palm
plantations over 9,900 hectares of land that will be their primary source of income.
Manufacturing is another cluster represented in Kelantan and a key project in this area is the Pasir Mas Halal Park, which will be
focusing on the manufacturing of Halal food products.
Kelantan is also renowned for its skilled master craftsmen and the production of quality handicraft such as silverware and wood
carving, which will add to the variety of tourism attractions in the state.
Terengganu
Terengganu is blessed with beautiful islands and stunning beaches that have naturally made tourism a key cluster in the Region.
Islands such as Pulau Perhentian, Pulau Redang and Pulau Tenggol have already been well-known among both local and
international tourists and the State also boasts breathtaking mainland coastal beaches like the ones found in Tanjung Jara, Teluk
Bidara, Kampung Penarik and Kijal-Kemasik.
The State capital will play a leading role as an international tourism gateway through the development of the Kuala Terengganu
City Centre (KTCC) as a Heritage Waterfront City.
Terengganu is also the leading oil, gas and petrochemical hub in Peninsular Malaysia. In order to promote the development
of midstream and downstream oil and gas activities, ECERDC has established the Kertih Polymer Park (KPP) which would
leverage on the readily available feedstock from the nearby Gebeng Integrated Petrochemical Complex and Kertih Integrated
Petrochemical Complex.
Livestock production is also being developed in Terengganu through the Kuala Berang Goat Breeding & Innovation Centre and
the Goat Multiplier Farm in Kuala Berang, as well as the Goat Commercial Farm in Telaga Papan.
Human capital development is a priority in the state through tertiary institutions including Universiti Sultan Zainal Abidin, Universiti
Malaysia Terengganu (UMT), Kuala Terengganu Polytechnic and Dungun Polytechnic, as well as the establishment of the Taman
Ilmu (Knowledge Park) in Besut. Terengganu is also home to various private colleges such as Pusat Teknologi dan Pengajian
Lanjutan (PTPL) Kuala Terengganu, Kolej Teknologi Bestari and Institut Teknologi PETRONAS.
Pahang
Pahang is shaping up as a major industrial and logistics hub in the Region, serving the petrochemical, palm oil, automotive and
container markets. The States location also allows it to play the role of an industrial and manufacturing zone, serving the entire
Far East and Asia Pacific region.
The State is also the location of ECER SEZ, the catalyst of economic growth within the Region. Within ECER SEZ, a Palm Oil Industrial
Cluster (POIC) is being developed near Kuantan Port City (KPC), specialising in downstream palm oil activities. The Pekan Automotive
Park (PAP), also located in ECER SEZ, is fulfilling its potential as the manufacturing and assembly hub for motor vehicles in the Region.
An Integrated Halal Park will also be developed in Gambang, focusing on Halal food and non-food products.
A key project in Pahang is the development of KPC, which involves the expansion of Kuantan Port and the development of new
areas for industries, residences, commercial, tourism, institutional and open spaces.
Kuantan Port is being upgraded to a deepwater harbour and is poised to become a centre for manufacturing and commercial
services, while also serving as a regional distribution and international procurement centre.
In the agriculture cluster, cattle production will be implemented starting with the first-tier of Nucleus Farm in Muadzam Shah,
followed by the second-tier of Multiplier Farm in Ulu Lepar and finally, the third-tier of Commercial Farm that will be integrated
in oil palm and pineapple plantations.
26 ECERDC 2010 ANNUAL REPORT
The Mersing district has traditionally been a transit point for tourists visiting the nearby
Pulau Tioman and the Mersing group of islands such as Pulau Besar, Pulau Rawa, Pulau
Aur, Pulau Sibu and Pulau Pemanggil, as well as the Endau-Rompin National Park.
It will now be developed as an important mainland coastal tourism destination in its own
right with highly developed tourist facilities.
ECERDC has initiated two pilot projects in Mersing under its ECER Entrepreneurship
Development Programme (EEDP) to increase the involvement of the Bumiputera
Commercial and Industrial Community (BCIC) and Small- and Medium Industries (SMIs)
in the Region. The pilot projects consist of the Vendor Development Programme-Sewing
Project and Boat Building and Repair Centre (BBRC).
As of December 2010,
a total of
67
ECERDC-led projects
approved by the
Government have been
carried out in ECER at
various stages.
ECER will be developed via a cluster development approach, whereby six Key
Development Areas (KDAs) have already been identified for this purpose. The KDAs are
the ECER SEZ, Tumpat-Kota Bharu-Bachok-Tok Bali-Besut Cross Border Development,
Kuala Terengganu City Centre (KTCC)-Kenyir-Dungun Triangle, Mersing-Rompin KDA,
Gua Musang-Kuala Lipis KDA and Bentong-Raub KDA.
The transformation that is sweeping across the Region comes from the various projects
that have been identified under the 9th Malaysia Plan (9MP) and will be continued in the
10th Malaysia Plan. As of December 2010, a total of 67 ECERDC-led projects approved by
the Government have been implemented in ECER at various stages and they include the
Kertih Polymer Park (KPP), Pekan Automotive Park (PAP) and Palm Oil Industrial Cluster
(POIC), among others.
These projects are planned and coordinated in a focused way to develop the Region
within the larger objectives of the ECER Master Plan as well as the Governments ETP.
Cluster projects will enjoy the synergies of the major logistics infrastructure that has been
planned, including the development of Kuantan Port City (KPC) that will turn ECER SEZ
into a manufacturing and commercial and services hub, as well as a regional distribution
and international procurement centre.
To ensure that ECERs vision will be realised as planned, ECERDC will continue to
intensify its effort in attracting more inbound investments into the Region. In line with
the Governments aspirations, all ECER projects will be private-sector driven. Besides
private investments, enterprises also have the opportunity to become Anchor Companies
for ECERDC-led projects, providing a win-win opportunity for all parties involved.
Backed by the strong progress achieved by the Region to date, the delivery of
transformation will continue to take place in ECER, benefiting not only the local populace,
but also the nation as a whole.
TOURISM
28 ECERDC 2010 ANNUAL REPORT
Tourism
The Kuala Terengganu City
Centre development is
expected to create up to
82,591 jobs by 2020, with
an estimated investment
value of
Blessed with unspoilt beaches, coral-ringed islands and lush rainforests, the East Coast is internationally
acknowledged as one of the most unique tourism destinations in the world.
The richness of ECERs natural assets has made tourism one of the key drivers of growth in the Region,
offering vast potential for investors and employment opportunities to the locals.
Mainland Coastal Tourism
RM
billion
4.1
The Business Strategy and Implementation Plan (BSIP) study for Cherating Mainland Coastal Tourism Development is still
ongoing and has been targeted to be completed by the end of June 2011. Concurrently, ECERDC is also undertaking the detailed
design for infrastructure works at Chendor area in Cherating.
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. When it is completed by 2020, the project will generate 3,000 jobs with RM900 million worth of investments.
Pantai Sepat Mainland Coastal Tourism
The BSIP for Pantai Sepat Mainland Coastal Tourism project in Pahang was completed in November 2010. This will be followed
by infrastructure works, including rehabilitation to contain erosion of the beach. The project stands to benefit from the rustic
lifestyle and wetlands in the vicinity, which are priceless assets in shaping a unique tourism destination.
The developments in Pantai Sepat will include the construction of hotels, convention centres, a golf course, amenities and
facilities of a new township, as well as an eco-centre and nature reserve for wildlife education and ecotourism activities.
Once the project is fully completed by 2020, it would have an investment value of RM700 million and create 2,677 jobs and
support entrepreneurship opportunities.
Teluk Bidara Mainland Costal Tourism
The BSIP study for Teluk Bidara Mainland Coastal Tourism in Dungun, Terengganu was completed in November 2010 and
infrastructure works will follow suit, beginning with beach rehabilitation in order to preserve one of its strongest attractions.
The project is an integrated one, with mixed development that combines boutique beach resorts with the charms of nearby
villages to draw both domestic as well as foreign tourists. By 2020, it would achieve an investment value of RM320 million and
create up to 5,448 jobs.
Bandar Dungun Mainland Coastal Tourism
Another tourism development in Terengganu is the Bandar Dungun Mainland Coastal Tourism project. The BSIP study for the
project was completed in December 2010, paving the way for the development of the area as a centre for commercial and tourism
activities, with a niche as a seafood town. When the project is fully completed by 2020, it will have created up to 2,000 jobs.
Pulau Besar/Pantai Kampung Penarik Mainland Coastal Tourism
The Mainland Coastal Tourism development in Pulau Besar/Pantai Kampung Penarik will be integrated with the Setiu Wetlands
State Park. The BSIP study is in the final stages and will be completed by June 2011.
These projects will have a combined investment value of RM2 billion and will create up to 8,575 jobs by 2020.
30 ECERDC 2010 ANNUAL REPORT
URBAN TOURISM
Kuala Terengganu City Centre (KTCC)
The Kuala Terengganu City Centre (KTCC) development will be the catalyst project that will
boost the tourism sector in Terengganu in particular and ECER in general. Hailed as the key
tourism gateway to the East Coast, the KTCC development is expected to create jobs for
up to 82,591 people by 2020.
During the year under review, the Master Plan study was ongoing on the KTCC project. The
study area for KTCC Integrated Master Plan covers an area of a 7 km radius from the Sungai
Terengganu estuary, whereby five (5) Key Development Areas for the project have already
been identified, namely, Muara Utara, Muara Selatan, Pulau Warisan, Kg. Ladang/Tanjung
and the Corniche Waterfront.
Muara Utara and Muara Selatan are reclaimed lands located near the estuary of Sungai
Terengganu and these areas have been identified as the expansion of the current citys
Central Business District due to their strategic location which is facing the South China Sea.
The development of Muara Utara and Muara Selatan is expected to have an investment
value of RM4.1 billion.
ECERDC 2010 ANNUAL REPORT 31
ECOTOURISM
This segment of tourism is increasingly sought after as more and
more developed countries turn into urban environments. By contrast,
ecotourism is a diminishing asset globally and thus makes ECER one of
the few areas in the world to offer this unique experience.
Tasik Chini Biosphere Reserve
Recognised by UNESCO as the first biosphere reserve in Malaysia,
Tasik Chini has been identified as one of the ecotourism attractions in
ECER which will incorporate awareness programmes on environment
conservation for the benefit of the local residents and future generations.
In 2010, a Strategic Implementation Plan (SIP) study was carried out
for the Tasik Chini State Park. Land surveying works and earth studies
for Tasik Chini were completed in the same year, while rehabilitation
and conservation studies of the lake are currently being undertaken by
UKM-Pusat Penyelidikan Tasik Chini.
alike, who also took advantage of the various interesting programmes held in conjunction
with the competition, including displays of Terengganus splendid arts and heritage.
Royal Pahang Billfish International Challenge
The Royal Pahang Billfish International Challenge is an annual off-shore fishing competition
initiated in 2004 by the Joran Unit of Berita Harian, a popular Malay language newspaper.
In 2010, the competition was held from 6 August to 8 August off the town and serene
beaches of Kuala Rompin in Pahang, about 125 km south of Kuantan.
One of the objectives of the Royal Pahang Billfish International Challenge is to attract tourists
to the state of Pahang, especially those who seek adventure and eco-friendly sports.
The Royal Pahang Billfish International Challenge takes advantage of the active migration
season of the billfish, such as marlin and sailfish, which pass through the Rompin area from
the northern hemisphere to their destination in Australia, between March and September.
2.
The study area identified and recommended for this project is 1,025 square km (102,500 ha) in size. Three categories of internal
management zones were created for Setiu State Park, namely, Strict Protection Zone which covers sites of highest biodiversity
value in the park, River Restoration Zone which focuses on rehabilitation of the largest rivers in the park, and Sustainable Use
Zone which identifies areas for sustainable economic development and community use.
The Malayan Tiger theme makes a connection with natural landscape and wildlife and suggests a journey that entails the many
different eco-adventure experiences that can be found along the trail.
HOMESTAY PROGRAMME
The Homestay Programme is another tourism initiative in ECER which capitalises on the Regions rich and unique culture. The
main objective of the Homestay Programme in ECER is to enhance the economic, social and cultural potential of the homestay/
kampung-stay concept within the Region.
Hallmark events play an important role in ECERs tourism cluster as they involve the hosting of specific, focused events to attract
an international audience to ECER.
Dubbed the Formula One of Sailing, the Monsoon Cup Terengganu is one of the most prestigious sailing events in the world. In 2010,
it was held from November 30 to December 5 at Pulau Duyung, Terengganu. The event attracted both local and foreign tourists
32 ECERDC 2010 ANNUAL REPORT
BSIP Study
Started on 25 May 2009 and completed on 6 Oct 2010.
SIP Study
Started on 28 Jan 2010 with expected completion on
30 June 2011.
3.
BSIP Study
Started on 26 Feb 2009 and completed on 3 Nov 2009
4.
BSIP Study
Started on 11 Sept 2009 with expected completion on
30 June 2011.
5.
BSIP Study
Started on 10 March 2009 and completed on 28 April 2010.
6.
BSIP Study
Started on 07 Sept 2009 with expected completion on
31 March 2011.
7.
BSIP Study
Started on 25 Aug 2009 with expected completion on
31 July 2011.
8.
BSIP Study
Started on 12 March 2010 with expected completion on
30 June 2011.
9.
Integrated
Environment
Management Plan for Lojing,
Highland, Kelantan.
IEMP Study
Started on 7 April 2010 with expected completion on
31 July 2011.
The Region has played host to exciting hallmark events, which include the Monsoon Cup at Pulau Duyung Terengganu and the
Royal Pahang Billfish International Challenge in Rompin.
Monsoon Cup
During the year, the report for ECERs homestay programme has been formally handed over to the Ministry of Tourism in
June 2010 for further implementation. Thirteen existing homestays have been earmarked for upgrading and five new potential
homestays have been identified in the study.
HALLMARK EVENTS
STATUS
PROJECT
10,500
new job opportunities by 2020.
MANUFACTURING
38 ECERDC 2010 ANNUAL REPORT
Manufacturing
More industry players are expected to establish their presence
in ECERs manufacturing cluster as they take advantage of the
resources and raw materials that are readily available in the Region.
The development of the Central Marketing Complex (CMC) for PAP commenced in July
2010. Upon completion, the CMC will act as the marketing and one-stop centre for PAP,
meeting the needs and requirements of existing and future investors.
The infrastructure design for Gambang Halal Park in Pahang was completed in July 2010,
followed by infrastructure and earthworks which commenced in November 2010. The Park
is expected to create new jobs for up to 12,455 people and draw potential investments
worth more than RM1 billion once fully occupied.
The Kertih Polymer Park (KPP) aims to promote the development of plastics
and plastics-related industries in ECER by deepening the linkages between the
various facilities within the Region and moving up the product value chain.
KPPs development will also be supported by world-class research and
development input from the PETRONAS Polymer Technology Centre (PPTC), a
market-driven technology research and development centre for polymer products
and applications.
by 2015.
4.45
The Pekan Automotive Park (PAP) is envisioned to become a national and regional
hub for car assembly, manufacturing of automotive parts and components, as
well as automotive R&D activities.
billion
The infrastructure design plan for Phase 1 (Package 1) for PAP, Pekan-Peramu,
Pahang was completed in July 2010, followed by infrastructure and earthworks
which commenced in October 2010. It is expected to create new job opportunities
for 10,580 people by 2020 and draw potential investors with a total investment
value amounting to RM4.45 billion by 2015.
RM
All infrastructure and earthworks carried out for Phases 1A and 1B of KPP were
completed in April 2010. A contractor was appointed in August 2010 to undertake
all infrastructure and earthworks for Phase 1C.
ECERDC aims to position PAP as the eco-friendly, first mover in the production
of environmentally-friendly vehicles, which includes electric vehicles, and
related technologies, such as battery suppliers, transportation infrastructure and
renewable energy providers.
The support services provided at POIC will include bulking facilities, SME Park, and a research and development centre.
The Business Strategy, Marketing and Implementation Plan for the development of POIC was completed in August 2010,
followed by the commencement of infrastructure and earthworks in October the same year. The POIC development is expected
to create up to 8,236 jobs and draw RM1.2 billion worth of potential investments once it runs at full capacity.
BSIP Study
Completed in 2009
Earthworks & Infrastructure Works
Phase 1A & 1B
Completion in April 2010
Phase 1C
Infrastructure and earthworks started in
August 2010.
BSIP Study
Completed in 2009
Earthworks & Infrastructure Works
Central Marketing Complex
Design for CMC completed in January 2010
Contractor was appointed in July and
construction works are on-going (65%
completed)
Construction scheduled to be completed in
April 2011
Phase 2
Design Infrastructure completed in July 2010
Contractor was appointed in September 2010
Earthworks and infrastructure works started
in October 2010 and are on-going. Scheduled
to be completed in April 2012
BSIP Study
Completed in June 2010
Earthworks & Infrastructure Works
Design Infrastructure completed in July 2010
Contractor was appointed in September 2010
Earthworks and Infrastructure started in
October 2010 and are on-going. Scheduled
to be completed in April 2012
BSIP Study
On-going; Draft Final Stage
Earthworks & Infrastructure Works
Pasir Mas
Design Infrastructure completed in July 2010
Contractor was appointed in October 2010
Earthworks and Infra started in November
2010 and are on-going. Scheduled to be
completed in January 2012
Gambang
Design (Infra) completed in July 2010
Contractor was appointed in October 2010
Earthworks and Infra started in November
2010 and are on-going. Schedulde to be
completed in January 2012
BSIP Study
On-going; Draft Final Report
Scheduled to be completed in January 2011
Report will be handed over to LKTN upon
completion
6. Handicraft Cluster
BSIP Study
Completed in November 2010
BSIP Study
On-going (96% completed)
Scheduled to be completed in January 2010
BSIP Study
Completed in June 2010
BSIP Study
On-going; Interim Report 2
AGRICULTURE
44 ECERDC 2010 ANNUAL REPORT
Agriculture
Agriculture continues to move ahead as one of the
key clusters that will drive economic growth in ECER.
This involves the strategies of large-scale commercial
farming, the use of modern technologies, wider
participation by the private sector and a holistic
approach in drawing upon the full value chain within
the industry.
LIVESTOCK
Dairy Cattle
The development plan for the dairy cattle project in ECER has been
well-implemented and executed in the year 2010. The first-tier of
Nucleus Farm planned at the Muadzam Shah Cattle Research &
Innovation Centre commenced construction in 2010. The centre
will carry out structured breeding programmes to produce high
performance dairy cattle breeds, catering to the local farmers
and agro-entrepreneurs. The local farmers will also be educated
on best industry practices and how to commercialise the findings
of applied research in their farming activities.
Dairy cattle to be bred at the Muadzam Shah Cattle Research & Innovation Centre.
136
million
The primary objective of ECERDCs Herbal & Biotechnology Cluster Development is to promote the commercial production
of local herbs in a sustainable, competitive and reliable manner to be able to better position itself in both the local and export
markets. It is envisaged that the project will create an attractive value proposition to investors, both local and international, due
to its economies of scale, uninterrupted supply of quality raw material and involvement in the entire value chain.
Two areas have been identified for Phase 1 comprising of 461.7 ha of agricultural land in Pasir Raja in the district of Dungun,
Terengganu and another 334.8 ha of land in Chegar Perah in the district of Lipis, Pahang. Survey works were completed in 2010
for both sites and construction is expected to commence in 2011.
The second phase of Commercial Integrated Herbal Plantations (CIHP) development will be carried out at Durian Mentangau in
the districts of Dungun, Terengganu and Rantau Manis in the district of Gua Musang, Kelantan.
The Herbal Parks will specialise in large-scale production of herbal raw materials for the herbal and biotechnology industries and
promote synergy and integration with other industries, such as pharmaceutical and nutraceutical-related products produced in
ECER Halal Parks. When completed in 2020, the herbal plantations will create more than 1,244 new employment opportunities
and offer 50 entrepreneurship opportunities in the Region.
The project will be implemented with the support of the Performance Management & Delivery Unit (PEMANDU) under the Prime
Ministers Department.
PINEAPPLE PLANTATION
The Rompin Integrated Pineapple Plantation (RIPP) in Pahang entered its first phase of construction in 2010. Located in Kg.
Jemari, Rompin, this large-scale commercial pineapple plantation has been chosen as the site for fully integrated pineapple
value chain activities such as plantations, central processing and packaging centre, livestock production utilising farm waste as
a source of animal feed, as well as downstream activities.
MD2 pineapple.
A contiguous land area of 5,000 acres has been granted by the State Government of Pahang
for the project, which is critical in ensuring full value chain involvement in the development
of pineapple production. When fully operationalised by 2020, it will produce 55,000 metric
tonnes of fresh pineapple annually and offer employment opportunities to 3,000 workers as
well as 50 entrepreneurship schemes under the local contract farmers arrangement. The
project will also attract private investment of RM120 million.
To ensure the projects sustainability and viability, ECERDC is collaborating with the Malaysia
Pineapple Industry Board (MPIB), the lead agency in promoting the pineapple industry in
Malaysia, while an appointed Anchor Company will take a lead in spearheading the commercial
operations of the plantations for the export market as well as to undertake its social obligation
in developing local agro-entrepreneurs and providing employment for local residents.
CASSAVA PLANTATION
A BSIP was initiated in 2010 for the development of a Commercial Food Industry Plantation
(CFIP) in ECER. As an important crop that is significantly being used as a raw material in the
manufacturing, food-based and biotechnology-related industrial clusters, cassava has been
identified and promoted in the development of CFIP.
It is envisaged that 10,000 hectares of land will be developed and planted with cassava in
the Region and this could be achieved through strategic collaborations with commercial
plantations operated by the Anchor Company, and satellite farmers as contract out-growers
through the contract farming arrangement. The project is expected to create 3,000 job
opportunities by 2020.
Demand for cassava starch in the Region is expected to increase with potential foreign
investment in the further downstream manufacturing of cassava starch-based products that
are used to produce amino acids for animal feed and polyols for food ingredients, which
will be located within ECERs Industrial Zones. The entire value chain of the cassava starchbased industry development could attract a substantial private investment of RM3.2 billion.
FISHERIES
Fish Hatchery & Fish Seed Marketing Centre
A Detailed Design was initiated in 2010 for a Freshwater Fish Hatchery & Fish Seed Marketing
Centre in Raub, Pahang. It will be a vertically integrated freshwater fish hatchery primarily
designed to produce high-quality tilapia fry and fingerlings, and act as a breeding centre to
undertake structured breeding and traceability programmes for freshwater fish broodstock.
The Centre will produce 20 million tilapia fish fry mainly to support the highly concentrated land-based aquaculture activities in
the Region, as well as large scale cage-based aquaculture activities in Tasik Kenyir, Terengganu. By 2020, the Centre is expected
to employ up to 85 staff and involve up to 15 contract out-growers to operate the commercial scale nursery as contract growers.
Similarly, a Detailed Design was initiated in 2010 for the Merchong Marine Fish & Shrimp Hatchery and Marketing Centre in
Pekan, Pahang. Upon completion, the high-tech hatchery, using the state-of-the-art Recirculation Aquaculture System (RAS),
will produce 10 million high-quality tiger grouper and seabass fry, as well as 50 million post-larvae shrimp for the domestic
markets. It will employ up to 85 workers and work with up to 15 out-growers by 2020.
Progress of Projects
NO.
PROJECTS
PROJECT STATUS
1.
2.
3.
4.
5.
6.
Taman
Pengeluaran
Bersepadu
&
Pemprosesan Sarang Burung Walit, Pekan,
Pahang.
7.
8.
9.
Taman Pemprosesan
Pahang.
Kuantan,
10.
11.
12.
13.
14.
15.
Collection, Processing and Packaging Centre (CPPC) & Integrated Fish Processing Parks
During the year under review, a Detailed Design was initiated for the Pengkalan Kubor Fish Collection, Processing and
Packaging Centre (CPPC) in the district of Tumpat, Kelantan. The project represents the third-tier strategy in the fisheries industry
value chain, encompassing downstream processing, packaging, marketing and distribution activities mainly to accommodate
the fish-based cottage industry.
The fish-based products from this venture will comply with HAACP, GMP and related hygiene requirements, thus upgrading the
Centres market capabilities in penetrating the global halal export market. It is expected to employ up to 40 people by 2020.
An Interim Report for the Business Study & Implementation Plan (BSIP) for the development of the Tok Bali Integrated Fisheries
Park (TBIFP) in Pasir Puteh was completed in November 2010. The plan is to develop Tok Bali into an integrated fisheries hub
and processing centre as well as one of the premier marine eco-tourism attractions in the East Coast. Ten flagship activities have
been identified and focus will be given to leverage on the Joint Development Strategy (JDS) for Indonesia-Malaysia-Thailand
Growth Triangle (IMT-GT). This project will employ up to 155 people by 2012.
Overall planning of TBIFP will take into consideration the Tok Bali Supply Base Terminal project initiated by the States Government
which is located within the vicinity of the development. This coordination and venture could bring private investment of RM2.9
billion to the projects.
The Detailed Design for the Kuantan Fish Processing Park (KFPP) was completed in 2010. The first phase of construction will be
carried out by June 2011. Located in Tanah Putih, Pahang and within the vicinity of the LKIM Fish Landing Jetty, it will support
the downstream activities of the fish-based processing industry leveraging on the high availability of raw material such as highquality marine fish capture and aquaculture fish produce, targeting the domestic and international cold-storage networks and
domestic distributions channels. The Park will employ up to 150 people and work with up to 15 contract manufacturers and
vendors by 2020.
Many of the projects in the Agriculture cluster draw in the people in the vicinity, or through settlers in relocation programmes, to
participate in the new ventures. This is part of the social development objective of ECER, providing employment and entrepreneur
opportunities that help raise income levels and eradicate poverty.
Ikan,
Agropolitan
The Agropolitan project aims to eradicate poverty in ECER and improve the standard of living for its
participants, which is in line with the Governments New Economic Model (NEM).
Runchang is the site for the Pekan Agropolitan pilot project, which was launched by the
Prime Minister of Malaysia, YAB Dato Sri Mohd Najib Tun Razak in 2009. The pilot project
involves 30 Orang Asli participants and has been in operation since August 2009.
This integrated socio-economic project brings about positive changes in their lives through allocation of
land for agriculture-related activities, supported by processing and marketing activities and resettlement
of poor families.
Twenty-four new APUs are being built in Runchang since August 2010, in addition to the
existing 11 APUs. The new APUs are expected to be ready by December 2011.
Pekan Agropolitan
The Pekan Agropolitan project in Pahang is currently being implemented in three locations, namely Batu 8 in Lepar, Runchang
and Tanjung Batu respectively.
At Batu 8 in Mukim Lepar, 100 participants moved into their new houses built by ECERDC in September 2010. Prior to moving
into their current homes, all participants went through induction training to help them adjust to the new surroundings, occupation
and lifestyle.
The Pekan Agropolitan project in Runchang has already proven its success by providing
a steady monthly income of RM600 to the participants, who are working a minimum of
four hours a day. Their allowance is paid through the participants personal bank account,
which has helped encourage a healthy savings habit among them.
Within a year of the projects launch, the first Pekan Dorper Auction was held in Runchang
on 8 August, 2010 and received positive response from the public. The auction successfully
generated sales worth RM265,550 and part of the profit from the sale was shared among
the participants.
100
participants
of Pekan Agropolitan in
Lepar were relocated
to their new houses in
September 2010.
Sheep rearing is the primary income generating activity in this location, through which the participants are expected to enjoy a
steady income of RM1,000 monthly. For this purpose, 60 Animal Production Units (APU) for Dorper sheep are being built in Batu
8, of which 30 APUs were already completed as at the end of 2010, while the rest will be ready by June 2011.
New homes for the 100 participants of the Pekan Agropolitan project in Batu 8, Mukim Lepar.
ECERDCs CEO Y. Bhg Dato Jebasingam Issace John during a South Kelantan Agropolitan (SKA) project
site visit in Gua Musang.
Tanjung Batu, Mukim Bebar is the latest site under the Pekan Agropolitan project. Construction of 213 houses by ECERDC for
the project participants commenced in September 2010 and is expected to be completed by December 2011. Development
works have also begun on a 1,200-hectare oil palm estate in Tanjung Batu, as cultivating the crop will be the primary activity for
Agropolitan participants in this location.
South Kelantan Agropolitan
Under the South Kelantan Agropolitan (SKA) project in Rantau Manis, Gua Musang, 10 pilot participants had already moved into
their homes in May 2009. They are now earning a steady income of up to RM1,000 a month by working at the oil palm plantation
and undertaking cocoa planting activities. The participants and their families have also benefited from the special training and
programmes provided by ECERDC, such as the SINAR ECER programme and cocoa planting courses.
In March 2010, ECERDC began building 350 new houses in Gua Musang for the relocation of participants under the SKA
project. The houses are expected to be ready by June 2011. The development in SKA also includes the construction of other
facilities such as surau, multipurpose hall, shophouses, office building and kindergarten for the benefit and convenience of the
participants.
Oil palm plantation is the primary income generating activity for SKA. In 2010, a total of 1,500 hectares of land had been
cultivated with oil palm under this project, which includes the rehabilitation and re-planting of oil palm plantations in Rantau
Manis, Jeram Tekoh, Sungai Asap and Renok Baru.
The SKA will not only benefit the project participants but also the surrounding communities through the upgrading of the Water
Treatment Plant in Limau Kasturi, which will cater to the water needs of SKA and its nearby areas. The water treatment plant
capacity will be increased to 5.9 million litres a day from 1.9 million litres per day. The construction work was 70% completed as
of end-December 2010 and is expected to be ready by June 2011.
Besut-Setiu Agropolitan
LIST OF PROJECTS
1.
1.1
Completed
1.2
1.3
1.4
1.5
1.6
Replanting Progress: 2%
2.
2.1
3.
PEKAN AGROPOLITAN
3.1
Completed
3.2
Completed
3.3
Completed
3.4
3.5
3.6
Construction Progress: 2%
Construction Progress: 1%
At Besut-Setiu Agropolitan, site clearing began in September 2010 for the construction of 100 homes and 50 APUs for project
participants, as well as public infrastructure and amenities such as surau, community hall and kindergarten. The primary income
generating activity for Besut-Setiu Agropolitan (BSA) will be Boer goat rearing, through which the participants are expected to
receive a monthly income of RM1,000.
ECERDCs Agropolitan initiative has received strong support from all the parties involved, including the respective State
Governments which have granted land approvals for the projects. ECERDC has appointed FELDA as the Implementing Agency
for Pekan Agropolitan project, while the South Kelantan Development Authority (KESEDAR) is the Implementing Agency for SKA.
The role of the Implementing Agencies is to manage the Agropolitan participants and the economic activities carried out under
the project. ECERDC also collaborates with various Management Agents such as the Malaysian Cocoa Board and Universiti
Malaysia Kelantan in implementing secondary economic activities for the Agropolitan projects.
Attended by 250 entrepreneurs and 50 agencies, the convention has created the following impacts:
Programmes such as empower and Suri@Home are also implemented to elevate the income of local
residents, while the ECER Entrepreneurship Development Programme (EEDP) is aimed at promoting the
growth of ECERs Bumiputra commercial community and Small- and Medium-Enterprises (SMEs).
EDUCATION
ECERs education initiatives include the ECER Centres of Excellence (COE), KerJaya ECER and empower.
ECER Centres of Excellence (COE)
The training was conducted from 18 October until 22 October 2010 for 200 Pekan
Agropolitan participants and their families in Batu 8, Mukim Lepar to enable them to adjust to
their new surroundings, occupation and lifestyle upon their relocation to the Agropolitan site.
There were two types of training provided for Agropolitan families: the first was technical
training on sheep rearing, which is the primary activity of the project; while the second was
aimed at motivating and changing the mindset of the Agropolitan families.
ECERDC introduced the Sinar ECER programme to support its Agropolitan projects
in Pekan and Gua Musang (South Kelantan Agropolitan). Sinar ECER is a dedicated
programme that was designed to stimulate the minds and attitudes of nearly 100
Agropolitan children, who are between the ages of 6 and 12 years.
As of December 2010,
a total of
2,645
locals
The programme also aims to motivate and inculcate strong values and character among
the younger generation who will determine the future of our nation.
The following programmes were carried out by the COEs during the year under review:
Universiti Malaysia Kelantan (UMK)
In 2010, UMK undertook a total of four programmes under the COE initiative, namely:
Konvensyen Keusahawanan ECER-Kementerian Pengajian Tinggi (KPT) 2010
This convention was held in March 2010 to promote the objectives and functions
of the Centre for Industry-Academia Collaboration (CIAC) and to gather ECER
entrepreneurs for networking and knowledge sharing purposes.
It was also aimed at creating awareness of existing financial and non-financial
assistance offered to the entrepreneurs by the relevant government agencies
and financial institutions. At the same event, the CIAC and its website were
officially launched by the Minister of International Trade and Industry, Dato Sri
Mustapa Mohamed.
MODULE 1
Exposure
MODULE 2
Education
MODULE 3
Expansion
SINAR ECER
In 2010, Sinar ECER was implemented in Pekan
Agropolitan and South Kelantan Agropolitan (SKA)
from the months of July to December. Ninety-five
children took part in the programme, of which 69
were from Pekan Agropolitan (Runchang) while
another 26 were from South Kelantan Agropolitan
(Gua Musang).
Develop
Greater
Focus &
SelfConfidence
Become
Motivated
and
Outcome
Oriented
Building
Foundation
Learning
Skills
Achieve
Excellent
Grades
Become
Mature
&
Responsible
Strive for
Excellence
in
their Lives
While in Chengdu, the industrial trainees were exposed to design and printing techniques,
colour coordination and the formulation of five prototypes comprising kimono, sari, scarf,
shawl and cloth yard.
This programme also involved exposure to selected mentors and their products at the
Shanghai Fair in China, which promotes textiles from all around the world.
UiTM Machang
UiTM Machang embarked on a different mode for its batik development programme
in 2010 by engaging a foreign partner, namely Shuxing Silk Sichuan, a textile producer
from Chengdu, China. Under the collaboration, Shuxing Silk Sichuan trained six
industrial trainees from ECER in Chengdu for a period of six months. Upon completion,
the industrial trainees will be appointed as mentors to further train six mentees in the
incubator established in UiTM Machang. The mentees are chosen among local youth and
single parents.
KerJaya ECER
As part of its Education initiatives, ECERDC has developed the KerJaya ECER programme
that was originally formulated to mitigate unemployment problems caused by the previous
global economic crisis. The programme consists of the Skills Training Programme
(STP), Graduate Placement Opportunity (GPO) Programme and Employee Placement
Programme (EPP). ECERDC launched KerJaya ECER in Terengganu in January 2010 and
in Kelantan in March the same year, following the successful launch of KerJaya ECER in
Pahang in December 2009.
KerJaya ECER is part of the RM7 billion economic stimulus package announced by
the Government in November 2008, of which RM40 million has been allocated for skills
training within ECER under the Ninth Malaysia Plan.
The STP saw 13 Training Providers providing training to 1,771 trainees throughout the year,
of whom 1,268 have successfully secured job placements. This represents 72% of the total
trainees who graduated, thus exceeding the 70% target rate. The training conducted by
the Training Providers include Product Development & Engineering, Automotive Medium &
Large Die Design Engineering, Plant Design Automation Programme for Oil & Gas Industry,
Process Plants Safety & Health, Fibre Optic & Mobile Communication Network, Wireless &
Data Communication, and Welding Skills Enhancement Programme, among others.
The trainees were hired by companies such as Mydin, Genting Highlands Resort, Perwaja
Steel Sdn Bhd, Hyatt Resort Kuantan, Primula Beach Resort Terengganu, Vistana Kuantan
and Sanctuary Beach Resort Kuantan.
As for GPO and EPP programmes, ECERDC has successfully placed 1,379 graduates and non-graduates within various
companies in ECER, exceeding the target number of 1,350 placements. These companies include HICOM Automotive Sdn Bhd,
Hi Essence Cable Sdn Bhd, Atostech Fibreglass Sdn Bhd, Koperasi Setia Maju Kuala Terengganu, Sri Baru Fast Automobile Sdn
Bhd, Smart Tech Innovative Sdn Bhd and Watsons Personal Care Store Sdn Bhd.
Empower
ECER Human Capital
Development Programme
empower Bentong
empower is another education initiative by ECERDC which was launched in Bentong Pahang in July 2010, as part of the Councils
efforts to boost the academic achievement and employability of the locals, as well as creating entrepreneurship opportunities for
them through the skills training provided.
The idea for empower was originally mooted by YAB Dato Sri Diraja Haji Adnan Bin Haji Yaakob, the Menteri Besar of Pahang
who had requested ECERDC to look into the development of the Indian community in Pahang and identify relevant programmes
that can help enhance the socio-economic status of the community. This original idea was then expanded to include all races in
line with the 1Malaysia spirit.
empower uses a community development approach in realising its objectives. This approach has several distinguished features
in terms of:
Giving guidance and motivation in changing the participants mindset and improving their income
Training modules are preceded by a survey to determine the needs and interests of the community and participants
Flexible teaching method and timetable
Syllabus is modified to cater to participants comprehension level and according to the scenario within the community
Bringing the training facilities to the participants/community.
There were two types of programmes introduced for the people of Bentong, Pahang, comprising Academic Training for 400
students and Skills Training for 600 adults.
empower has already shown positive impact in terms of improvement in the academic area, whereby 163 UPSR students
and 119 PMR students among its participants managed to score 100% passes in all subjects taken. They have also exceeded
ECERDCs set targets, as reflected below:
Examination &
Minimum Grade
67 students (41%)
17 students (10%)
16 students (13%)
12 students (10%)
As of 31 December 2010, while the Skills Training courses were still ongoing, a total of 180 adult participants have managed
to be placed within companies in ECER or embarked on their own entrepreneurship ventures. They are now earning additional
incomes of between RM800 and RM1,000 per month, with some getting even more.
SURI@HOME
The Suri@Home Programme is part of ECERDCs social development programme which is
specially tailored for the women of ECER. This programme focuses on home-based activities
or businesses, such as handicraft-making as well as agriculture-related and product
processing as the primary activity for the target group, to help them earn a regular income.
Among the projects that have already started are Mushroom Farming and Vermicompost
in Kelantan; Tenun Weaving in Pahang; and most recently, Songket Weaving in Terengganu
with a total of 60 participants.
Fifteen participants are currently taking part in mushroom farming in Kota Bahru, Kelantan.
The Vermicompost project is currently being implemented in Bachok, with the participation
of six women from several different villages surrounding the area. Tenun weaving projects in
Pahang are currently being implemented in Kuantan and Pekan with 14 participants taking
part in this highly artistic activity. For Songket weaving, three participants in Kuala Terengganu
area have been chosen from the e-Kasih database to participate in the programme.
The Suri@Home Programme has helped reduce the level of unemployment among the
local women and it has also provided employment opportunities for those with mobility
constraints, while increasing their families household income as a whole. These women are
now earning additional incomes of about RM700 a month.
ECER ENTREPRENEURSHIP DEVELOPMENT PROGRAMME (EEDP)
ECER Entrepreneurship Development Programme (EEDP) was created to develop and
promote a competitive Bumiputera Commercial and Industrial Community (BCIC) and
Small- and Medium-Enterprises (SME) via collaboration with related Government agencies
as well as the private sector.
Two pilot projects have been implemented in Mersing, Johor under EEDP, namely the Vendor
Development Programme-Sewing Project and Boat Building and Repair Centre (BBRC). The
projects involved the partnership between ECERDC and GIATMARA Sdn. Bhd, with the
support of the Mersing District Office.
Vendor Development Programme-Sewing Project
Under ECERDCs Vendor Development Programme, the pilot Sewing Project was launched
with the involvement of 20 participants who were chosen from among Mersing residents and
subsequently trained to meet tailoring orders.
The Vendor Development Programme Sewing Project sees the participation of Koperasi
Usahawan Giatmara Johor (Ko-GIAT Johor) as the pilot vendor that undertakes the production
and marketing of products from Terminal Jahitan, the sewing centre which is the fruit of ECERDCs
involvement. ECERDC provided the initial capital for the set-up of the sewing centre.
Through this project, the Vendor Company with the guidance of GIATMARA, will be able to ensure sustainable production, while the
participants will receive an additional monthly income of RM700. Through their involvement in this project, the participants are also
exposed to the latest designs, marketing and branding techniques in clothing products, with the aim of creating more entrepreneurs
among them.
Boat Building and Repair Centre (BBRC)
EEDPs Boat Building and Repair Centre (BBRC) project in Mersing is currently being undertaken by ECERDC in partnership
with GIATMARA Sdn. Bhd, which has been appointed as the Implementation Agent for the project. GIATMARA is responsible
for running the centre which will see participation from local entrepreneurs, while providing the expertise and services for the
building and repair of boats.
Two local entrepreneurs with the required expertise in this field will be running their business at BBRC under the supervision of
GIATMARA.
No.
Projects/Programmes
Status
1.
2.
3.
4.
5.
Suri@Home
6.
7.
8.
9.
10.
11.
12.
13.
ECER Entrepreneurship
Programme (EEDP)
BBRC is expected to serve the boat owners and fishermen in Mersing, as well as its surrounding areas. At the same time,
GIATMARA will be managing the training centre for GIATMARA trainees, to help create job opportunities in this sector.
Development
Menteri Besar Johor Dato Haji Abdul Ghani bin Othman being briefed on the Boat Building and Repair Centre project.
ENABLING SUSTAINABLE
DEVELOPMENT: ENVIRONMENT
66 ECERDC 2010 ANNUAL REPORT
Environmental Management Guidelines for major sectoral activities in the area, particularly
forestry, agriculture, tourism, urban development and infrastructure.
Four principles will guide the study team throughout the plan preparation. They will
also guide the process under all circumstances in making evaluations and planning
recommendations and actions, including the planning strategy, development proposals
and mitigating measures. The guiding principles are:
Delivering sustainable land use planning and development
Protecting heritage areas and avoid disrupting ecological stability
Striving towards compact, energy-efficient urban forms with clear local identity; and
Promoting active local participation and social inclusiveness.
The study has adopted an issue-solving approach based on river catchment basins.
Effective planning in the environmentally sensitive Lojing Highlands area involves both
top-down and bottom-up approaches, as well as cross-sectoral integration.
In preparing the IEMP, a central feature is the application of a discursive and consultative
approach with all relevant public agencies and interested stakeholders, especially the
local Orang Asli communities, at significant stages throughout the plan-making process
to enhance urban governance and participatory planning.
Kampung Penarik/Setiu Wetlands
The Kampung Penarik Mainland Coastal Tourism Development and the Setiu Wetlands
State Park have been identified as a potential sustainable economic catalyst through the
creation of innovative tourism activities within the area.
These tourism activities will be packaged and promoted with an enforceable Management
Plan in managing the Setiu Wetlands State Park, which is regarded as an environmental
and economic asset for the state of Terengganu.
Setiu Wetlands is envisioned to become the premier wetlands in the East Coast, which
will be supporting sustainable economic development for Terengganu. This development
concept is based on conservation which would attract tourism into the area, with culture
and nature-based tourism being the main thrusts of the development proposal. Hence,
it would balance between the needs of the environment, and the economic and social
needs of the people living in the area.
The study area identified and recommended for this project covers 1,025 square km. Three
categories of internal management zones were created for Setiu Wetlands State Park,
namely Strict Protection Zone which encompasses sites of highest biodiversity value
in the park, River Restoration Zone which focuses on rehabilitation of the largest rivers
in the park, and Sustainable Use Zone which identifies areas for sustainable economic
development and community use.
To improve the water supply to Gambang and Kuantan areas, the construction of Panching
Water Treatment Plant (Package 1) commenced in August 2010 and is anticipated to
be completed in August 2013. The design works for the R2 and R8 new water storage
tanks to supply uninterrupted water to the Gebeng Industrial Area was initiated in the first
quarter of 2010 and are expected to be completed by the second quarter of 2011.
The design consultant for Ganchong Water Works was appointed in May, with design
works expected to be completed in mid 2012 and construction scheduled for early 2013.
Road Works
ECERDC has also given the task of providing the external infrastructure works for Tanjung
Agas Oil, Gas & Logistics Industrial Park, such as Ganchong Water Works and Pekan
Coastal Road & Bridge. The design consultant for Pekan Coastal Road/Bridge was
appointed in March and design works are expected to be completed by the end of 2011.
The design for road improvement works from Sg. Emas to Kampung Peta in Taman Negara
Endau-Rompin has been completed and the construction works will commence in 2011.
The Detailed Design for the Southern Package from Kahang to Sg. Emas will also be
completed in 2011. The improvement works when completed will provide uninterrupted
access into the national park as the road will be raised above the flood level.
From the Integrated Master Plan of KTCC, Muara Utara and Muara Selatan, the reclaimed pieces of land strategically located at
the estuary of Sungai Terengganu, have been identified for immediate development. The Muara Utara and Muara Selatan Layout
Plan was approved by the Terengganu State EXCO in November. Subsequently, a detailed design study of the infrastructure
works for the area will commence in April 2011 for implementation.
Water Works
The immediate projects identified in the KPC Integrated Master Plan include the upgrading of the water supply. The construction
of a 2-km water pipeline to improve the water quality in Gebeng Industrial area was completed in the first quarter of 2010.
44,000
new jobs by 2020.
To improve the traffic flow to Kuantan Port, the existing FR3 road from Jabor-Jerangau
Interchange to Sungai Ular Interchange will be upgraded to two lanes. The design for the
road was completed and handed over to the Public Works Department (JKR) in May for
implementation.
The construction of KPC Port Link Road, complete with a new interchange at the East
Coast Expressway Phase 2 will provide a high speed and reliable link from the industrial
areas in Terengganu and Kelantan to Kuantan Port. The design works are currently being
carried out and are expected to be ready by the end of 2011.
During the year under review, the Integrated Master Plan study for Kuala Terengganu City Centre (KTCC) was in its final stage.
KTCC development will be the catalyst project that will spur the development of tourism in the state of Terengganu. The project
is expected to create up to 82,591 jobs by 2020 and 105,128 new employment opportunities by 2030.
Following the completion of the design for the Mersing to Kg. Sedili Besar New Coastal
Road, the land acquisition exercise was initiated and is targeted to be completed in 2011.
The upgrading of the Central Spine Road (CSR) from Kuala Krai to Simpang Pelangai
into a two-lane dual carriageway was also in progress, with the implementation of two
construction packages. Once completed, the CSR would spur the growth of the small
towns along the road, thus improving the socio-economic conditions of the local residents.
To ease the daily traffic congestion, the existing Bukit Kuang Bridge would be replaced with a four-lane bridge. Construction
works for the new bridge started in July 2010 and are expected to be completed by 2013.
Other Infrastructure Works
The feasibility study for the East Coast Rail Route was also ongoing and is expected to be completed by 2011. Discussions with
various stakeholders were held to confirm the alignment of the rail route from Kuala Lumpur to Tumpat.
Due to the serious erosion along the Teluk Lipat coastal area in Dungun, a design for coastal protection works was initiated. The
design will be completed in 2011 for construction.
REAL ESTATE
Property and construction-related activities are vital in the Region to ensure sufficient
supply of residential, leisure, commercial and industrial properties to meet the Regions
economic demands and growth.
A key element in real estate development projects in ECER is that they must take into
account the surrounding natural environment as well as the local culture and heritage, to
ensure that these elements are not endangered.
ECERDCs Real Estate Corporation (REC) & Real Estate Trust Fund (RETF)
To unlock the value of Malay Reserve Land into commercially viable real estate ventures
that will benefit the local populace, ECERDC has established the Real Estate Trust Fund
with an initial fund of RM100 million. The fund was set up in October 2009 in accordance
with Schedule 3 of ECERDC Act (Act 688).
No.
Projects
1.
2.
80% completed
3.
4.
5.
6.
7.
8.
9.
10.
11.
To promote and increase Bumiputera ownership in the local real estate market
2.
1
3.
1
4.
1
15.
16.
17.
KPP Phase 1
During the year under review, ECERDC had appointed PriceWaterhouseCoopers Capital
Sdn Bhd, in collaboration with ZulRafique & Partners, to undertake a detailed study on
the formation and operationalization of ECERDCs Real Estate Corporation (REC) and the
utilisation of Real Estate Trust Fund using the REC framework. The study is ongoing and
scheduled to be completed by the middle of 2011.
Among the identified projects for RETF are the Mainland Tourism Coastal Development of
Pantai Sepat and Cherating in Pahang, as well as Teluk Bidara in Terengganu.
To boost the value of Malay Reserve Land through the lands development
To give a steady and sustainable return to the owners of Malay Reserve Land, who will
act as shareholders in REC through profits derived from the development of the land
To fully realise the optimal development potential for Malay Reserve Land
Following the dissolution of the Development Authority of Pahang Tenggara (DARA) and Jengka Regional Development Authority
(LKWJ), no focused effort has been made in the development and maintenance activities of the areas formerly under DARA and
LKWJ administration due to the lack of specific funding.
The Pahang State Economic Planning Unit and the local authorities of the former DARA and
LKWJ areas have identified 107 projects to be implemented in 2010 under the Special Fund.
Based on the findings of the Strategic Review of the Dissolution of DARA and LKWJ undertaken by ECERDC and
PricewaterhouseCoopers Advisory Sdn Bhd in December 2009, it was recommended that a Special Fund be allocated to the
former DARA and LKWJ areas to implement development and maintenance activities. Subsequently, the Federal Government
has agreed to channel the Special Fund through ECERDC.
On 31 March 2010, ECERDCs Council Members gave the approval for ECERDC to utilise part of the funds allocated to the
statutory body under the 9th Malaysian Plan to undertake general maintenance works, micro development projects and socioeconomic programmes in the former DARA and LKWJ areas. The projects include the upgrading of hawker stalls, surau and
sport facilities for the benefit of the local residents.
Given the specific allocation, it is expected that the pace of development and frequency of maintenance at the former DARA and
LKWJ areas will be enhanced and improved.
The Special Fund was channelled by ECERDC directly to the six respective local authorities in the former DARA and LKWJ areas
comprising the districts of Temerloh, Jerantut, Maran, Pekan, Rompin and Bera.
The Pahang State Economic Planning Unit plays a role as the body which coordinates all the general maintenance works, micro
development initiatives and socio-economic programmes at the state level, particularly in terms of interacting with all the relevant
local authorities. It will ensure the prioritisation of projects in order to accelerate the maintenance works, development and socioeconomic programmes in the former DARA and LKWJ areas.
The Federal Government has agreed to continue allocating the Special Fund to the former DARA and LKWJ areas via ECERDC
under the 10th Malaysian Plan (2011 and 2012). In 2011 and 2012, strategic projects will be added as part of the projects to
be implemented, in addition to the general maintenance works, socio-economic programmes and micro development projects.
IMPACT:
Added comfort for road users
Reduced the number of road accidents caused by pot holes as well as water retention on roads that pose a danger to the
public during the night
About 1,000 families have been enjoying the improved facilities.
Upgrade the lighting for the public in the area of Bandar 32, Bera, Pahang
IMPACT:
Provide comfort to visitors when engaging in recreational facilities with their families
Ensure the safety of users especially children when playing
This project has benefited 500 families.
76 ECERDC 2010 ANNUAL REPORT
Upgrade the facilities of the surau in the area of Chini, Pekan, Pahang
IMPACT:
Upgrading the suraus facilities would make it more comfortable for visitors when
performing their prayers
Surau is equipped with facilities for ablution and toilet visits
This project is expected to benefit more than 800 visitors each month. It will also be
beneficial to the 100 worshippers in the vicinity
Will be operational on 31 May 2011.
Upgrade community hall in Paloh Hinai, Pekan
IMPACT:
Has benefited with the increase in capacity from 300 people to 500 people
Enables local residents to organize family activities such as weddings, talks and
community gatherings.
ECERDC 2010 ANNUAL REPORT 77
- Dato Sri Mohd Najib Tun Abdul Razak, Prime Minister of Malaysia, at the launch of ECER Special Economic Zone on 4 August, 2009
The ECER Special Economic Zone (ECER SEZ) is a concentration of high-impact projects located within an integrated zone at the
nucleus of ECER. ECER SEZ was launched by the Prime Minister of Malaysia, Dato Sri Mohd Najib Tun Abdul Razak in August
2009 and it is set to be a powerhouse of growth, generating approximately 220,000 new jobs and investments of RM90 billion
(USD26.4 billion) by year 2020.
The ECER SEZs significance to investors lies in its mix of unique attributes which include strategic position, availability and close
proximity to raw materials, established infrastructure, competitive human capital, investment-friendly business policies, strong
Government support and favourable socio-economic conditions.
RM
Pengkalan Kubor
Kota Bharu
billion
Rantau Panjang
Bukit Bunga
90
by year 2020.
Kuala Besut
Kuala Terengganu
KELANTAN
The 25-km by 140-km strip that extends from Kertih in Terengganu to Pekan in Pahang includes four ports, two airports and
innovation zones to support development in manufacturing, oil, gas and petrochemical, agriculture, tourism and education.
TERENGGANU
Gua Musang
Dungun
The Focus Nodes and Free Zones in ECER SEZ, together with the projects, are as listed below:
Kuantan Port City (KPC)
Kuantan Port City (KPC) has been identified as a Major Focus Node for ECER SEZ and will establish itself as the eastern gateway
of Malaysia.
The KPC development involves the expansion of Kuantan Port and the development of new areas for industries, residences,
commercial, tourism, institutional and open spaces.
Kuantan Port Expansion
Kuantan Port is being upgraded to a deepwater harbour and is poised to become a centre for manufacturing and commercial
services while also serving as a regional distribution and international procurement centre.
Kertih
Kuala Lipis
PAHANG
Bentong
Temerloh
Mentakab
It is envisaged that Kuantan Port will become a major eastern port and a gateway for Asia Pacific trade due to its strategic location,
which allows easy access to the Asia Pacific markets with a total population of 2 billion.
Cukai
Kuantan
Gambang
Pekan
Tanjung Agas
Kuala Rompin
Mersing, Johor
The ECER
Special Economic Zone (ECER SEZ)
Dungun
Focus Nodes and
Free Zones
Bandar
Seri Bandi
Kemasik
Free Zones
(FZs)
Kijal
Kg. Air Putih
Tourism
Zones
Cukai
Kemaman Port - FZ
Kuantan Port - FZ
Kuantan Airport - FZ
Tg. Agas - FZ
Industry Nodes
Tourism Nodes
an
-Mar
ntan
Kua o Valley
Agr
ST
EA
To
Kuala
Lumpur
R
TEME
GAMBANG
Agropolitan Project
Cherating
Bandar
Cheneh Baru
K
TRAL LIN
SEZ CEN
S W AY (LPT 1 & 2)
Kertih
Kertih Integrated
Petrochemical Complex
Kertih Polymer Park
Kemaman Heavy Industrial Park
Kemaman Boat Building &
Repair Park
Palm Oil Industrial Cluster,
Kuantan
Gambang Science & Halal Park
Pekan Automotive Park
Tg. Agas Maritime Industrial Hub
Kuantan
Port City
CUKAI
CHERATING
KUANTAN
PORT CITY
CO
AS
AK
NT
-ME
H
O
L
KUANTAN
AB
T
/K
IL
RA
To Johor / Singapore
Sg. Lembing
KIJAL
TELUK KALONG /
KEMAMAN
PORT
K
ES
Industrial Parks
Cattle Integration in
Oil Palm Plantations
(Kemaman)
EX
PR
Ketengah
Jaya
Port City
Project
LPT 4)
ESSWAY (
T EXPR
COAS
T
S
EA
Paka
Bandar Al-Muktafi
Billah Shah
PAKA
KERTIH
PANTAI SEPAT
UMP
KUALA PAHANG
PERAMU
PEKAN
TG. AGAS
Kuantan
Gambang
It is also part of the larger Kuantan Port City development that allows POIC to benefit
from the available support services in logistics and transportation, as well as bulking and
distribution facilities.
SEZ
Pantai Sepat
Link
The POIC includes facilities for both upstream and downstream industries. The upstream
industries include the plantation industry, milling and bulk transport of milled products, while
the downstream involves the development of the oleochemical industry to cater for food and
non-food based manufacturing activities.
Kuala
Pahang
Pekan
Tanjung
Agas
Among the promoted sectors of the POIC are surfactant, biodiesel, food, biofertiliser, animal
feedmeal, biomass, phytonutrient and polyutherane.
To encourage investments in the ECERs palm oil cluster, special incentives and tax breaks
will be offered. These companies also have an opportunity to tap into the Regions halal trade.
To Rompin
Non-fiscal Incentives
The respective State Governments of Kelantan, Terengganu, Pahang and Johor also
grant non-fiscal incentives to approved companies. These include discount rate for land
premium, quit rent and land assessment, guaranteed land lease periods for a specific time
period and flexibility in the employment of expatriates.
RM
billion
15.3
Investors can also benefit from the special flexibility in foreign exchange administration
under Bank Negara Malaysia, exclusively granted to companies accorded ECER status
with fiscal incentives.
Among the promoted key projects in ECER are the Pekan Automotive Park, Kertih Polymer Park, Kemaman Heavy Industrial
Park, Gambang Halal Park, Palm Oil Industrial Cluster, Pantai Sepat
Mainland Coastal Tourism, ECER Herbal Cluster Development and
Cherating Mainland Coastal Tourism.
INVESTMENT PROMOTION
Through our participation in the Kelantan Cheng Ho Expo in November 2010, ECERDC
managed to reach out to the Chinese community who were made aware of the investment
opportunities in the Region.
ECERDCs participation in the World Chinese Economic Forum held in Kuala Lumpur in
December 2010 has resulted in a reciprocal visit by 50 high net worth individuals from
the global Chinese diaspora to the State of Pahang in 2011, with potential investments
exceeding RM2 billion.
ECERDC also participated in various investment missions organised by the Malaysian
Industrial Development Authority (MIDA) to other key markets such as Korea and
Singapore, in its effort to create ECER brand awareness and ensure continuous promotion
of the investment opportunities in the Region, especially in ECER SEZ.
ECERs investment promotion drive was intensified during 2010 with activities undertaken to draw investors from key focus
markets such as China, the Middle East, India, Singapore and Korea, as well as Malaysia.
In May 2010, ECERDC organised an investment mission to the United Arab Emirates and the Kingdom of Saudi Arabia, led by the
National Corridor Development Adviser, Y.A. Bhg Tun Abdullah Haji Ahmad Badawi. During the mission, the ECERDC delegation
met with potential investors in both countries to promote the available investment opportunities in ECER, especially in the ECER
Special Economic Zone (ECER SEZ).
The mission resulted in the signing of an MOU in July 2010 to set up a joint venture for the development of a Common User
Supply Base within the Tanjong Agas Oil & Gas and Logistics Industrial Park.
ECERDC reached out to Chinese investors through three events in 2010, namely, the China International Fair for Investment &
Trade 2010 (CIFIT) in Xiamen, China, the Kelantan Cheng Ho Expo in Kota Bharu and the World Chinese Economic Forum in
Kuala Lumpur.
At CIFIT, ECERDC secured a RM116 million investment from an investor in Chongqing for the manufacture of Ferro Manganese.
An MOU was also signed with investors in Xiamen to set up a refinery in the Palm Oil Industrial Cluster, with an estimated
investment amount of RM100 million.
90
92
94
96
CALENDAR OF EVENTS
98
Calendar
CalendarOfofEvents
Events
February 2010
January 2010
30 Jan-4 Feb
ECER Familiarisation Visit to Manama, Bahrain
12 January
1st Terengganu Implementation
and Coordination Committee (ICC)
meeting in Kuala Terengganu
March 2010
20-22 March
ECER-KPT Entrepreneurial Convention, Kota Bahru
12 January
Launch of KerJaya Terengganu
19-24 January
Prime Minister of Malaysias
Investment Mission to India,
including the Malaysian Property
Expo, Chennai
20 March
ECER KerJaya Launch, Kelantan
100
Calendar of Events
June 2010
31 March
1st Council Meeting in Parliament, Kuala Lumpur
1 June
1st Kelantan ICC meeting
in Kota Bharu, Kelantan
May 2010
7 June
1st Pahang ICC meeting in Kuantan, Pahang
7-17 May
ECERDC Investment Mission to the Middle East
14 June
2nd Terengganu ICC meeting in Kuala Terengganu, Terengganu
102
Calendar of Events
July 2010
14 June
MOU Signing Ceremony on Telaga Papan & Ulu Tersat Multiplier Farms
19 July
2nd Council Meeting in Prime Ministers Office, Putrajaya
26 July
MOU Signing Ceremony for the
Development of Supply Based
Facilities between Tanjung Agas,
OSC & ECER
12-21 July
Visit by His Highness Prince Faisal Al Saud to Malaysia
12 July
1st Johor ICC meeting in Kota Iskandar Nusajaya, Johor
104
31 July
Launch of empower Programme, Bentong, Pahang
Calendar of Events
August 2010
September 2010
4-12 September
ECERDCs Participation at CIFIT 2010 China: Investment Mission
& MOU Signing
5-6 August
ECERDCs participation in MIDA Trade Investment Mission
to Singapore
8 August
ECERDCs Inaugural Dorper Sheep
Auction, Agropolitan Pekan, Pahang
25 September
Re-location of 100 Participants to Agropolitan
Batu 8, Mukim Lepar
October 2010
9 August
Launch of Pahang Biodiversity Strategic
Action Plan, Pahang
106
1 October
ECERDCs KL Office Aidil Fitri Celebration,
Maya Hotel, Kuala Lumpur
ECERDC 2010 ANNUAL REPORT 107
Calendar of Events
7 October
ECERDCs Kuala Terengganu Office Aidil Fitri
Open House
18 October
2nd Kelantan ICC meeting in Kota Bharu,
Kelantan
7 October
3rd Terengganu ICC meeting in Kuala
Terengganu, Terengganu
26 October
2nd Pahang ICC meeting in Kuantan, Pahang
November 2010
12 October
JV Agreement Signing Ceremony between
Tanjung Agas & OSC in Kuantan Pahang
108
21-26 November
ECERDCs participation in Cheng Ho
Expo 2010, Kelantan
ECERDC 2010 ANNUAL REPORT 109
Calendar of Events
December 2010
30 Nov-5 December
ECERDCs Participation in the Monsoon Cup
2010, Pulau Duyung, Terengganu
2 December
Menteri Besar Johors working visit to ECER
pilot projects under the Vendor Development
Programme-Sewing Project and Boat
Building and Repair Centre (BBRC),
Mersing, Johor
11 December
Tanjung Agas Ground Breaking Ceremony
1-3 December
ECERDCs Participation in the 2nd
World Chinese Economic Forum,
KL Convention Centre
110
16 December
3rd Council Meeting in Parliament,
Kuala Lumpur.
Our Team
The passion and commitment of ECERDC employees in carrying out their duties plays a key role in
ensuring that all ECER projects and programmes are carried out as planned.
To us, our post is not just a regular job. Instead, it is a duty driven from the heart to make a difference
to better the lives of more than 4 million people in ECER. As much as it is a responsibility, the task is
also a privilege as we are able to participate in this noble nation-building exercise.
Date
ECERDCs management and employees are entrusted to carry out the strategic planning, execution and implementation of all
projects and programmes identified in the ECER Master Plan.
Commitment, dedication and passion are key qualities that distinguish our team, as we work to ensure timely delivery of project
implementation and aggressively attract investors into the Region.
28 Sept 2010
skills
and competency.
ECERDC staff are thus carefully chosen based on their skills and competency from a wide variety of disciplines and backgrounds.
While making a difference to the lives of the people of ECER, it is also important for ECERDC to ensure that our staff remain
motivated and loyal to the organisation in the pursuit of a fulfilling career.
Our team undergoes relevant training programmes designed to help them gain hands-on experience, participating in a series of
classroom trainings and leadership engagement sessions.
Date
Finance
Procurement
Human Resource
Project System
I. Sap Training:
Objective: To familiarise the relevant ECERDC staff with the basic functions and features of the SAP system for daily operational usage.
112
Date
STAYING FOCUSED
LIST OF TRAINING
Title
Date
26 January 2010
1 March 2010
30 March 2010
National Procurement Guidelines Forum Understanding the Integrity Pact & the Dos
and Donts of Govt Procurement
22 July 2010
2 August 2010
2 August 2010
28 October 2010
25 October 2010
4 November 2010
Performance Auditing
As part of management efforts to engage with the employees and bring all of them together, the
Human Resource & Administration division organised a special Hari Raya Aidil Fitri gathering
for all ECERDC staff at Hotel Maya, Kuala Lumpur on 1 October, 2010.
114
The management and staff of ECERDC have been steered towards the right direction by
the Council, which is chaired by the Prime Minister of Malaysia himself. Their passion and
dedication will translate into the timely delivery of ECER projects and programmes that will
have a positive impact on the Region and contribute towards the development of the nation.
The division also held an Employee Engagement Session on 15 November, 2010 at PETRONAS
Training Centre (PERMATA) in Bangi. The objectives of the programme were to share the
current activities and projects undertaken by ECERDC and the roles and functions of each
division among all its personnel, as well as to promote teamwork among all employees.
On 17 December 2010, a farewell gathering was held for all PETRONAS secondees who were
returning to the national oil and gas company after serving ECERDC. The special event was
held as an expression of gratitude for their valuable contributions to the Council, as most of
them have been with ECERDC since the inception of ECER in 2008.
FINANCIAL STATEMENT
116
SAMPLE
We, DATO SRI MOHD NAJIB BIN TUN HAJI ABD RAZAK and DATO SHAMSUL AZHAR
BIN ABBAS, being the Chairman and one of the Members of EAST COAST ECONOMIC
REGION DEVELOPMENT COUNCIL state that, in the opinion of the Members of the
Council, the accompanying Balance Sheet, Income Statement, Statement of Changes in
Equity, Cash Flow Statement and Notes to the Financial Statements are properly drawn
up so as to give a true and fair view of the state of affairs of EAST COAST ECONOMIC
REGION DEVELOPMENT COUNCIL at 31 December 2010 and of its operating results
and cash flows for the financial year ended on that date.
On behalf of the Members of the Council,
118
Balance Sheet
as at 31 December 2010
Note
2010
RM
2009
RM
Non-Current Assets
Property, Plant and Equipment
Work-In-Progress
We, DATO JEBASINGAM ISSACE JOHN and MOHD ZAMZURI BIN MOHD YUSOFF,
the officers primarily responsible for the financial management of EAST COAST
ECONOMIC REGION DEVELOPMENT COUNCIL, do solemnly and sincerely declare
that the accompanying Balance Sheet, Income Statement, Statement of Changes in
Equity, Cash Flow Statement and Notes to the Financial Statements are, to the best of
our knowledge and belief, correct and we make this solemn declaration conscientiously
believing the same to be true, and by virtue of the provisions of the Statutory Declaration
Act, 1960.
5,072,388
28,450,642
70,096,452
33,523,030
5
6
88,555,782
680,848,652
2,659,326
441,191,207
769,404,434
443,850,533
Current Liabilities
Other Payables and Accruals
Net Current Assets
36,510,743 18,393,291
36,510,743
18,393,291
732,893,691 425,457,242
802,990,143 458,980,272
Represented by:
Federal Government Grants :
Operating Fund
Development Fund
Real Estate Trust Fund
...... ......
MOHD ZAMZURI BIN MOHD YUSOFF
DATO JEBASINGAM ISSACE JOHN
(531110-05-5241) (690531-02-5559)
13,084,453
57,011,999
Current Assets
Net Assets
Subscribed and solemnly declared by the above named at Kuala Lumpur on this
___________________.
3
4
8
9
10
11,007,545
690,083,803
101,898,795
20,986,805
338,406,706
99,586,761
802,990,143
458,980,272
Before me,
......
COMMISSIONER FOR OATHS
The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.
120
Income
Statement
Income
Statement
for the
financial
yearyear
ended
31 December
2010
for the
financial
ended
31 December
2010
Note
2010
RM
2009
RM
INCOME
Federal Government Grants:
Operating Fund
8
32,000,000
55,000,000
Amortised Development Fund
9
210,086,175
40,118,818
Amortised Real Estate Trust Fund
10
449,042
88,274
Other Income
11
270,515
472,791
TOTAL INCOME
242,805,732
8
9
10
(42,249,775)
(210,086,175)
(449,042)
(49,591,565)
(40,118,818)
(88,274)
TOTAL EXPENDITURE
(252,784,992)
(89,798,657)
(9,979,260)
5,881,226
The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.
122
NOTE
TOTAL
RM
8,9,10
8,9,10
9,10
8,9,10
8,9,10
15,105,579
55,000,000
(49,591,565)
472,791
24,284,815
450,000,000
(99,300,844)
(40,118,818)
3,541,553
99,300,844
(88,274)
374,191
39,390,394
505,000,000
(89,798,657)
4,388,535
8,9,10
8,9,10
8,9,10
8,9,10
20,986,805
32,000,000
(42,249,775)
270,515
338,406,706
549,000,000
(210,086,175)
12,763,272
99,586,761
(449,042)
2,761,076
458,980,272
581,000,000
(252,784,992)
15,794,863
11,007,545
690,083,803
101,898,795
802,990,143
95,679,883
EXPENDITURE
Operating Expenditure
Development Expenditure
Real Estate Trust Fund Expenditure
DESCRIPTIONS
The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.
31 December 2010
2010 2009
RM RM
1. PRINCIPAL ACTIVITIES
581,000,000
455,278
(356,780,105)
505,000,000
35,290
(112,787,477)
224,675,173
392,247,813
14,982,272
2,880,530
14,982,272
2,880,530
239,657,445 395,128,343
441,191,207 46,062,864
680,848,652
441,191,207
3,200,434
677,648,218
1,641,207
439,550,000
680,848,652 441,191,207
East Coast Economic Region Development Council (ECERDC) was established on 13 June 2008. The
main objectives of ECERDC are to:
(a) stimulate, promote and accelerate the growth of the East Coast Economic Region in an equitable and
sustainable manner;
(b) stimulate, promote and accelerate the development of the East Coast Economic Region into a world
class economic region and a choice destination for investment, work and living; and
(c) ensure that social development and sustainable development are kept as priorities whilst driving
economic growth in the East Coast Economic Region.
East Coast Economic Region comprises the states of Kelantan, Terengganu, Pahang, as well as the district
of Mersing in Johor. It covers an area of 66,736 km square, which is approximately 51% of the Peninsular
Malaysia.
The total number of employees of ECERDC at year end was 135 (2009: 119).
The registered office and principal place of operation of ECERDC is located at Level 69, Tower 2,
PETRONAS Twin Towers, 50088, Kuala Lumpur, Malaysia.
The following accounting policies are adopted by ECERDC and consistent with applicable approved
standards for private entities issued by the Malaysia Accounting Standards Board (MASB).
Development grants are recognized in the income statement over the financial period necessary to
match them with the expenditure incurred. Unutilised grants are presented in the balance sheet as
deferred grants.
Deferred grants relating to purchase of assets are amortised in the income statement over the life of
the assets by an amount equal to the depreciation charge.
The notes set out on pages 123 to 129 form an integral part of, and should be read in conjunction with, these financial statements.
20%
33.33%
20%
(d) Work-in-Progress
All works-in-progress are stated at cost and are not depreciated. The costs of completed projects
which are not to be owned by ECERDC, will be charged to the income statement whereas those to be
owned by ECERDC, will be capitalized as Property Plant and Equipment and depreciated accordingly.
(e) Other Receivables
Other receivables are carried at anticipated realizable values. Bad debts are written off in the financial
period in which they are identified. An estimate is made for doubtful debts based on a review of all
outstanding amounts at the financial period end.
124
No deferred taxation is recognised for the financial period due to the tax exemption.
An impairment loss is charged to the income statement immediately, unless the asset is carried
at revalued amount. Any impairment loss of a revalued asset is treated as a revaluation decrease
to the extent of previously recognized revaluation surplus for the same asset. Should the impairment
loss of an asset exceed its revaluation surplus, the surplus impairment loss is charged to the
income statement.
Subsequent increase in the recoverable amount of an asset if carried at cost, is treated as a reversal
of the accumulated impairment loss previously recognized in the income statement but the reversal is
limited to the accumulated impairment loss previously recognized, and if carried at revalued amount,
is credited directly to revaluation surplus.
At 1 January 2010
3,151,543
Additions
Reclassification
At 31 December 2010
Accumulated Depreciation
At 1 January 2010
Reclassification
At 31 December 2010
Carrying Amount
At 31 December 2010
3,266,823
6,418,366
10,884,365
530,069
(31,580)
31,580
(77,874)
(30,470)
(108,344)
13,926,454
3,798,002
17,724,456
824,832
521,146
1,345,978
2,626,354
724,025
3,350,379
(8,400)
8,400
(45,484)
(10,870)
(56,354)
3,397,302
1,242,701
4,640,003
10,529,152
11,414,434
2,555,301 13,084,453
Cost
At 1 January 2009
709,294
784,663
1,493,957
Additions
2,442,249
2,482,160
4,924,409
At 31 December 2009
3,151,543
3,266,823
6,418,366
129,805
16,022
145,827
Accumulated Depreciation
At 1 January 2009
Additions
695,027
505,124
1,200,151
At 31 December 2009
824,832
521,146
1,345,978
Carrying Amount
At 31 December 2009
126
4. WORK-IN-PROGRESS
8. OPERATING FUND
Cost
Balance as at 1 January
Costs incurred during the year
Transfer of completed projects to Income Statement
Balance as at 31 December
2010
RM
28,450,642
56,565,426
(28,004,069)
2009
RM
Balance as at 1 January
Federal Government Grant
Other Income
11
20,986,805
32,000,000
270,515
15,105,579
55,000,000
472,791
57,011,999 28,450,642
Total Income
53,257,320
70,578,370
Staff Costs
Council Members Allowances
Tender Board Members Allowances
Other Committees Members Allowances
Travelling Expenses
Communication and Utility Expenses
Rental Expenses
Supplies and Other Materials
Repair and Maintenance
Legal Services
Business and Consultancy Management Services
Marketing and Promotions
Computer and Data Processing Services
Human Capital Training Services (Economic Stimulus Package)
Printing Services
Security Services
Storage Services
Recruitment Services
Staff Training Expenses
Depreciation of Property, Plant and Equipment
Fixed Asset Written-Off
Audit Fee
Bank Charges
Meeting Expenses
Insurance
Other Expenses
11,952,606
311,500
21,200
101,800
2,789,534
558,910
3,341,500
792,200
263,615
893,948
2,251,989
4,805,974
1,445,001
9,564,961
524,437
68,389
32,936
195,106
133,531
1,839,580
44,608
13,000
5,591
145,370
24,059
128,430
6,430,935
291,000
16,450
79,350
2,085,597
851,928
3,967,735
537,269
863,603
834,118
12,925,907
8,206,657
231,192
9,467,186
593,793
82,840
16,009
431,936
103,084
1,200,151
13,000
4,979
311,000
16,408
29,438
Total Expenditure
42,249,775
49,591,565
Balance as at 31 December
11,007,545
20,986,805
2009
RM
PROJECT
Property, Tourism & Manufacturing
Infrastructure
Agriculture
2,707,963
3,050,848
51,253,188
3,800,000
24,650,642
Total
57,011,999
28,450,642
2010
RM
2009
RM
1,860,248
85,184,413
1,483,832
27,289
1,502,935
1,156,391
-
88,555,782
2,659,326
2010
RM
2009
RM
2009
RM
2010
RM
Bank Balances
Fixed Deposits with Licensed Banks
2010
RM
28,450,642
-
Breakdown of Work-in-Progress
Note
3,200,434
677,648,218
1,641,207
439,550,000
680,848,652 441,191,207
2010
RM
2009
RM
Other Payables
Accruals
10,018,687
26,492,056
7,291,770
11,101,521
36,510,743 18,393,291
128
9. DEVELOPMENT FUND
Balance as at 1 January
Federal Government Grant
Tender Fees
Investment Income
2010
RM
338,406,706
549,000,000
402,920
12,360,352
24,284,815
450,000,000
17,410
3,524,143
40,118,670
148
210,086,175 139,419,662
690,083,803 338,406,706
Balance as at 1 January
Transfer from Development Fund
Investment Income
Total Income
2010
RM
99,586,761
-
2,761,076
2009
RM
99,300,844
374,191
88,274
88,274
Balance as at 31 December
Tender Fees
Investment Income
Other Income
11,952,606
2009
RM
6,430,935
Excluded in staff costs was the cost of PETRONAS secondees of RM5,981,309. This cost was fullyborne by PETRONAS (2009: RM7,406,783).
13. INCOME TAX
ECERDC has obtained tax exemption under Section 127(3A) of the Income Tax Act, 1967 (MOF letter
dated 20 February 2009, reference no (8.09)248/39/7-871(3)). All income except for dividend income
is exempted from tax beginning from year assessment 2008 until 2017.
14. COMMITMENTS
2010
RM
2009
RM
Operating Expenditure
8,775,363
14,452,993
Development Expenditure
901,063,763
182,068,906
909,839,126 196,521,899
102,347,837 99,675,035
Staff Costs
2010
RM
Included in staff costs was ECERDCs contribution to the Employees Provident Fund of RM1,303,000
(2009: RM653,802).
99,300,844
Balance as at 31 December
900,169,978 477,826,368
130
2009
RM
449,042
101,898,795 99,586,761
2010
RM
-
218,157
52,358
2009
RM
17,800
454,911
80
270,515 472,791
Income Statement
AUDIT COMMITTEE REPORT 2010
AUDIT COMMITTEE REPORT 2010
roles and responsibilities.
In line with the ECERDC Internal Audit Charter, and integral in ensuring effective internal control systems
exist within the organization, approved audit programmes on selected areas were undertaken.
2010 recorded two (2) Audit Committee (2) sittings as follows:
i. Second (2nd) Audit Committee Meeting that was held on 7 January 2010, presenting two audit
reports namely Audit on Human Resource Activities, and Audit on Procurement, Purchasing and
Contract Management Activities; and
ii. Third (3rd) Audit Committee Meeting that was held on 21 May 2010. The reports presented in
this meeting were (i) Audit Report on Pekan Agropolitan Project (ii) the ECERDC Audited Financial
Accounts for the Year Ending 31 December 2009, and (iii) Internal Audit Performance Review for
Financial Year 2009/10 including Annual Audit Plans Proposed for the remaining of FY2010 and for
FY2011.
The internal audit programmes that were approved for the remaining of 2010 and to be presented to the
Audit Committee Meeting by 2011 are:
i. Audit on The Management of Project Management Consultant Services, and
ii. Audit on Project Development of the Goat Production Cluster in Terengganu.
www.ecerdc.com.my
Kuala Lumpur Office
Level 69, Tower 2
PETRONAS Twin Towers
50088 Kuala Lumpur
MALAYSIA
Tel: +603 2035 0000
Fax: +603 2035 0020