AN INTEGRATED KNOWLEDGE HUBwww.ecerdc.com.my

Knowledge Park

The East Coast Economic Region: Poised For Transformation 3

The ECER At A Glance 4

The Education Cluster 6

Knowledge Park 8

Knowledge Park: Integrated Knowledge Hub 10

Investment Opportunities 12

The ECER Incentives Package - Knowledge Park 13

Contact Us 17

Contents

The East Coast Economic Region (ECER), covering the states of Kelantan, Terengganu, Pahang and the district of Mersing in Johor, is now poised to become a dynamic region in South East Asia by offering various opportunities to manufacturers and investors.

Strategically located in the east coast of Peninsular Malaysia, the ECER has the potential to become the main gateway for trade and industry within the Asia Pacific region, which commands a total population of about 2 billion people.

The vision and mission that will guide the transformation of the ECER into a developed Region by 2020 is defined by three main characteristics – distinctive, dynamic and competitive.

The distinctiveness of the ECER is portrayed through its natural beauty, abundant resources, unique culture and heritage known throughout the world. To maintain this characteristic, a balanced and sustainable development is emphasised.

The dynamism of the ECER reflects the potential for the Region to grow and develop at a faster pace through innovation and a shift in economic orientation, structure, technology and mindset. The competitiveness of the ECER lies in its ability to attract local and foreign direct investments.

The East Coast Economic Region: Poised For Transformation

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The ECER At A Glance

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

The ECERDC plays a leading role in promoting and stimulating economic and social development as well as private sector investment in the Region. The Council acts as the one-stop centre to fast track investment applications and approvals.

It provides counselling, advisory services and processes tax incentives and non-tax incentives for projects. To meet the varying needs of investors, the ECERDC also customises incentives on merit basis to be recommended for approval by the National Committee on Investment (NCI).

East Coast Economic Region Development Council

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Scope of ECERLand Area : 66,736 sq km (51% of Peninsular Malaysia)Total Population : 3.9 million (2005), or 14.5% of Malaysia’s total populationTotal Initiatives : 189 projectsTotal Investment : RM 112 billion (2008 – 2020)

Key Enablers• Social & Human Capital Development

• Transportation

• Infrastructure

• Property

• Environment

Key Clusters• Tourism• Oil, Gas & Petrochemical• Manufacturing• Agriculture• Education

Mission• To move the economy up the value chain• To raise the capacity for knowledge and innovation• To address persistent socio-economic inequalities,

constructively and productively• To improve the standard and sustainability of the quality of life• To strengthen the institutional and implementation capacity

The ECER’s vision is defined by three main characteristics:

• Distinctive • Dynamic • Competitive

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

Key Clusters

Key Enablers

Source: Strategic Framework for the ECER SEZ

ECER Projected Growth by 2020:-

2020

GDP Growth Rate 8.5%

GDP RM 65,930 million

GDP Per Capita RM 13,510

Population 4.88 million

The Education Cluster

Education is one of the five clusters through which development will be channeled in the ECER. The others are Tourism, Oil, Gas & Petrochemical, Manufacturing and Agriculture.

The Education cluster supports all of the Region’s main developmental thrusts. By improving the quality of education as well as expanding learning opportunities and facilities, the ECER is able to generate a pool of skilled and capable workers, which is able to serve the various existing and new industries established in the Region. Additionally, the educational institutions play a vital role in supporting the industries through their research and development inputs and specialised collaborations, aimed at improving products and services delivery, thus spurring economic activity further in the Region.

In the ECER, the education cluster plays a dual role. On one hand, the sector is an economic driver and a catalyst for growth in the ECER. On the other hand, education is a key enabler that supports other sectors such as agriculture, manufacturing and tourism in terms of human resources development.

Education has taken on increased significance in meeting the needs of industry in the ECER. The knowledge, education and ICT sector is a key component that supports development in all five clusters. As the ECER economy prepares to move up the value-chain, so will the role of the knowledge and education institutions via their research and development inputs and specialised collaborations with other industries. At the same time, the quality of educational services will be enhanced to turn it into a marketable global export.

While the Knowledge Park aims to fulfil the requirements of students, Centres of Excellence (CoE) have been established to acclerate the human capital development to suit the needs of the industry, particularly in tourism, oil and gas, manufacturing, agriculture, halal products, wood-based products and bio-technology.

There will be CoEs in each of the five universities in the ECER, offering a wide variety of programmes to the community and industry, preparing them as valuable human capital for investors. Their key majors will be in entrepreneurship, SME development, biotechnology, hospitality, management in tourism, automotive and new innovation, among others.

An additional development is the creation of a Global Animation Centre, envisioned to promote and grow the animation industry in the Region. The Centre will provide training as well as full facilities to develop web site designs, animated 2D and 3D graphics and the like.

The establishment of an International Digital Business Exchange (IDBX) will pave the way for investors to enjoy affordable ICT facilities comparable to those in developed countries.

To support the manpower issue, ECERDC has introduced 2 placement programs i.e. Graduate Placement Opportunity Programme (GPO) and Employee Placement Programme (EPP).

The Graduate Placement Opportunity Programme aims to place new graduates into companies relevant to their course of study at university. As a result, the graduate will gain valuable working experience which he can leverage on to find jobs. Once placed, the graduate will sign an employment contract with the company. There shall be a combination of employment and “on-the-job training” within a period of 9-12 months.

The Employee Placement Programme focuses on the placement of unemployed and retrenched workers into companies that require workers on part-time or contract basis. This programme provides flexibility to hire experienced and skilled workers on part-time basis instead of full time to meet immediate manpower requirements of the company. Each worker registered on the programme will sign a contract with the manpower agency.

Considering the needs of having skilled and trained workers, the Skill Training Programmes are conducted by selected training providers in the ECER to enhance the skills and expertise among the people to further support the needs of the industry in ECER.

Human Capital Development

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Central Library

• Located in the west on a 13.12-acre land area or 1.70% of the Park’s total area

• Major access from east and west and from various directions using the walkways

Central Mosque

• Located in the west and easily accessible

• Situated strategically in the centre of the Park

• Building area of 12.47 acres or 1.61% of the Park’s total area

• Able to accommodate both locals and the Park’s residents

Sports Centre

• Located in the north and integrates the frontage of the sea coast

• 15.30-acre land area or 2% of the Park’s total area

• Easily accessible through the middle ring road

• Surrounded by a 27.69-acre land area of fields and courts or 3.58% of the Park’s total area

Student Centre

• Located in the south east on a 21.18-acre land area, or 2.74% of the Park’s total area

Convocation Hall

• Located at the southern region, and built on a 16.29-acre land area or 2.10% of the Park’s total land area

Administration Hall

• Located in the east on a 16.17-acre land area or 2.09% of the Park’s total area

Student Hostel

• Comprises six student settlement facilities on a total of 148.13-acre land area

• Each settlement area consists of 1,300 units on an average of 22 - 25-acre land area

N

Knowledge Park

PAHANG

PENANG

KELANTAN

PERAK

KEDAH

PERLIS

SELANGOR

NEGERISEMBILAN

MELAKA

JOHOR

BESUT

TERENGGANU

The Knowledge Park is an initiative of the state government of Terengganu, which also provides the 700 acres of land needed for the project. Located close to the proposed Universiti Sultan Zainal Abidin (UniSZA) in Besut, Terengganu, the Knowledge Park will be established as a new university township, focusing on educational excellence and inspiring the appreciation of creativity, heritage and culture.

The Knowledge Park will also be equipped with the latest technological innovations making it a safe and intelligent city. It will have state-of-the-art information and communications systems with advanced multimedia capabilities.

• An Administration Hall• A Student Centre• A Convocation Hall• A Central Library• A Central Mosque• A Sports Centre• A Student Hostel• Recreational areas for commercial and

student activities• Infrastructure and utilities like roads,

electricity supply, water supply, sewerage, telecommunications and other amenities to accommodate the needs of a population of 100,000 people

Map of Peninsular Malaysia

The Malaysian Government will give the Knowledge Park a head start by implementing the following:

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While it fulfils its role as an international Knowledge Park that caters to the needs of both foreign and local students, it is also ideally placed in the vicinity of beautiful beaches and captivating islands and is developed to resemble a resort-like environment.

Edu-Tourism

In the ECER, the Knowledge Park is an excellent example of Edu-Tourism at work. Synergistically, Edu-Tourism is also being promoted by the Malaysian Ministry of Tourism and Tourism Malaysia, to bring a new dimension to the local tourism industry.

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Knowledge Park: Integrated Knowledge Hub

Activity Incentives (To qualify for these incentives, companies must commence operations

before 31 December 2015)

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

• PetronasPolymerTechnologyCentre - Kertih, Terengganu

•GambangTechnologyCluster,Pahang - Gambang Cyber Park - Gambang Science Centre

• TerengganuAdvancedTechnical Institute (TATI) University College - Cukai, Terengganu

•KnowledgeInnovationZone - Kuantan Port City, Pahang

•CyberCentres - Kuantan, Pahang

•UniversityMalaysiaPahang(UMP) - Pekan, Pahang

•UniversityMalaysiaPahang (UMP-BranchCampus) - Gambang, Pahang

•UniversityTechnologyMara(UiTM) - Kuantan Port City, Pahang

•NewPrivateSectorSchools, Universities and Colleges - ECER

• EducationalInstitutions -KnowledgePark

ECER Incentives

Investors and operators in education and ICT development projects: •Customised incentives based on merit of each case, or

• Income tax exemption of 100% for 10 years, commencing from the year company derives statutory income,

•Withholding tax exemption on royalty and technical fees for 10 years

Application to be submitted to ECERDC

• Import duty and sales tax exemption on machinery and equipment that are not produced locally and used directly in the activity.

Investors, including premier universities from around the world, are invited to look at available opportunities to establish their regional branch campuses and twinning programmes within the specially envisioned development of the Knowledge Park.

Investment opportunities also exist in several other areas. These include skills training in Information Communications Technology (ICT), E-Learning services and upgrading of educational and ICT infrastructure.

Investors are invited to participate in the development of the education facilities by designing their universities according to their needs to commensurate with the sizes of the sites - which are from 25 to 40 acres. Investors may leverage from the centralised common facilities at the Knowledge Park i.e. library, hostels, sport centres, mosque, lecture halls, laboratories and other technical facilities. Depending on their needs, investors may also construct their own specialised facilities in the area they have selected.

Investors at the Knowledge Park will thus be presented with a high competitive edge to establish or extend their educational legacy in the ECER. The added advantages include the common centralised facilities; Malaysia’s reputation as a centre of educational excellence; and the support, at the highest levels, of the Malaysian Government.

The Edu-Tourism aspect of the Knowledge Park will offer investors the additional opportunity of investing in a variety of facilities and amenities that cater to the needs of tourists drawn to the ECER’s famed attractions. These include the establishment of resorts and hotels, as well as entertainment and F&B outlets.

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Investment Opportunities The ECER Incentives Package - Knowledge Park

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Activity

Training

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

• Cash contribution to non-statutory income oriented vocational training institutions and those established and maintained by a statutory body

• Royalty payments to non-residents (franchisors) fo franchised education programmes approved by the Ministry of Education

ResearchandDevelopment(R&D)

• Cash contribution to approved research institutes

• Payments made for the use of the services of approved research institutes and companies

• Research on commercialization of research findings

IncentivesThese incentives are mutually exclusive/to be utilised upon expiry of ECER Incentives Package

• Industrial Building Allowance: Initial allowance of 10%, and an annual allowance of 3%.

• Single deduction

• Withholding tax exemption

• Double deduction on cash contribution

• Double deduction on payments for services rendered

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

The above claims to be submitted to the Inland Revenue Board

OtherIncentives

The ECER Incentives Package - Knowledge Park The ECER Incentives Package - Knowledge Park

Activity IncentivesThese incentives are mutually exclusive/to be utilised upon expiry of ECER Incentives Package

Investors and operators in education and ICT developmentprojects:

•Customised incentives based on merit of each case, or

• Income tax exemption of 100% for 10 years, commencing

from the year company derives statutory income,

•Withholding tax exemption on royalty and technical fees for 10 years

Application to be submitted to ECERDC

• Import duty and sales tax exemption on machinery and equipment that are not produced locally and used directly in the activity.

ECER Incentives

Centres of Excellence

• Industry-Academia Collaboration

• HalalProductRegionalCentre - Universiti Sultan Zainal Abidin (UniSZA)/Universiti Darul Iman Malaysia (UDM) Besut, Kelantan

• InnovativenessandProductCreativityCentre - UiTM Machang, Kelantan - Universiti Malaysia Kelantan (UMK)

• Heritage&CulturalCentre - UMK Bachok, Kelantan

• InstituteofBiodiversityandOceanography - Universiti Malaysia Terengganu (UMT)

• Bio-technology&HerbalResearchCentre - UDM Besut, Kelantan

• Bio-degradableProducts&BiofuelResearchCentre - UMP Pekan/Gambang

• BusinessEntrepreneurship&Management Programmes - UMK

• TrainingProgrammesonFacilitiesManagement - UMP

• TouristGuide&HospitalityIndustryTraining Programme - UiTM, Dungun, Terengganu

• Wood-basedSkillsTraining&ResearchCentre - UiTM Jengka, Pahang

• SocialDevelopmentProgrammes - UMT

ICT Development

• SkillstraininginICTinECER -E-Learning&ICTServicesinECER -InternationalDigitalBusinessExchange - Batu Rakit, Terengganu -GlobalAnimationCentre - Kuala Terengganu -Edu-ICTDevelopmentProgrammeinECER -Suri@Homeopportunityforenterprisingwomen

ECER

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© East Coast Economic Region Development Council (ECERDC) 2010All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner (ECERDC).

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

Contact Us

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KualaLumpurOffice

Level 69, Tower 2PETRONAS Twin Towers50088 Kuala LumpurMALAYSIATel : +603 2035 0000Fax : +603 2035 0020

TerengganuStateOffice

Ground Floor & 1st Floor100B Jalan Sultan Zainal Abidin20000 Kuala TerengganuTerengganu, MALAYSIATel : +609 620 0021Fax : +609 620 0020

If you are an investor planning to establish or expand your business opportunities in the East Coast Economic Region (ECER) we will provide you with professional assistance. We will be the first point-of-contact for all your investment inquiries.

Companies planning to start or expand operations in the ECER can obtain information and assistance from the East Coast Economic Region Development Council. We will help you harness the ECER’s competitive edge and capabilities to achieve your business objectives.

East Coast Economic Region Development Council (ECERDC)Tel : +603 2035 0021/22Fax : +603 2035 0020E-mail : secretariat@ecerdc.com.myWebsite : www.ecerdc.com.my

KelantanStateOffice

Ground Floor & MezzanineLot 137 & 138 Bangunan Sutera Inn PrimaJalan Dusun Muda off Jalan Bayam15200 Kota Bharu, Kelantan, MALAYSIATel : +609 746 0021Fax : +609 746 0020

PahangStateOffice

B8002 Sri Kuantan SquareJalan Teluk Sisek25050 Kuantan, PahangMALAYSIATel : +609 565 0021Fax : +609 565 0020