The SEZ is an integrated development zone stretching from Kertih, Chukai, Kuantan Port City, Kuantan, Gambang to Pekan, with special incentives to draw in investments and give more traction to economic activities within that specific area.

In line with the government’s New Economic Model to generate higher income for the people and help them face the current and future economic challenges, the SEZ’s emphasis will be placed on high technology, knowledge-based activities and the service sector.

The SEZ will be backed by top-notch infrastructure and specialized institutions to enhance skills and competencies.

While fostering a positive environment for business, the SEZ will accelerate growth and economic development within the ECER. The SEZ is expected to contribute to the national GDP and accelerate the East Coast’s social and economic development by creating 220,000 new jobs out of the 560,000 jobs under the ECER Master Plan.

Processing of business and investment applications will also be fast tracked through One Stop Centers established at all ECERDC offices. Infrastructure projects are designed to cut down access time to port, airport or highway to 45 minutes. Utilities will be upgraded without interruption while the port throughput will grow to 70 million metric tons by 2020.

“Although the ECER SEZ forms only six per cent of the ECER land mass, the area has a significant impact as it creates 50 per cent of all jobs and 80 per cent of economic output of the ECER,” said Dato’ Jebasingam Issace John, CEO of the ECER Development Council (ECERDC).

“The instability of the global economy over the last year is expected to have some effect on the ECER’s year 2020 targets as stipulated in the master plan.

New urban concentration could mirror Kuala Lumpur’s economic power house

“The SEZ is the vehicle that will attract and concentrate foreign and local investments through a concerted effort in marketing and promotions for the region,” he said.

The Zone will be a truly integrated SEZ “with new townships, international tourism sites, served by four ports, two airports and knowledge innovation zones”.

“It will also position Kuantan to be the world’s 15th busiest SEZ port to focus on the East Asia market of 2.2 billion people.”

Supported by four major ports and modern urban townships, the SEZ allows the ECER to tap into its strategic location and access to local, regional and international markets.

The Zone will accelerate the transfer of knowledge and technology while increasing domestic consumption.

There is also a stronger focus on state of the art infrastructure to support the movement of people, goods and services. Strategic projects include a deep water harbor at Kuantan Port, airport and rail connectivity.

Meanwhile, provision of utilities in broadband internet connectivity, water supply and electricity will be enhanced to serve integrated townships with tourism components.

“The SEZ has the potential to be the East Coast’s mirror of the Klang Valley (the Malaysian capital Kuala Lumpur greater metropolitan area),” said Issace John.

“It is the convergence of two main growth areas in the Central and East Coast Corridors and is well connected to the Kuala Lumpur conurbation via the East Coast Expressway to complement the other urban growth centers in Penang and Johor Bahru.

Development is based on a decentralization concept featuring eight Manufacturing Zones, four Free Zones and four Tourism Zones, collectively known as the SEZ Focus Nodes.

“Because of the SEZ’s concentrated approach; the oil, gas and petrochemical, manufacturing and agro-based industries, tourism and education clusters will be strengthened.”

“The SEZ is poised to attract RM90 billion of investments by year 2020. The SEZ will also act as the ECER’s processing and marketing centre for regional produce, manufactured products and mineral resources,” he added.

Dato Issace meanwhile reiterated that all other ECER projects and programs outside of SEZ will continue to be implemented as planned.

While the SEZ’s focus is on manufacturing and industrial activities, projects for the tourism, agriculture and education clusters will continue uninterrupted outside the SEZ.

“In fact, the rest will act as hinterland catchment areas supplying feedstock to support the development of the Collection, Processing and Promotion Centers (CPPC) for the agro based industries and manufacturing products meant for the domestic and export markets,” he added.

This rationale is supported by a research showing that higher urbanization correlates to higher economic output and has a positive impact in generating employment and business opportunities in the adjacent areas.

“Operating based on highly specialized and customized incentives, any investments derived for the SEZ will benefit the rest of the region, especially from growth of various economic and commercial activities within ECER,” added Issace John.

Studies are also underway to explore the possibility of a second SEZ within ECER for an integrated development throughout the region. One of the areas being studied is the area near Tok Bali – Besut and its immediate environs along the border of Kelantan and Terengganu.

SEZ Focus Nodes

Based on the concentrated decentralisation concept, the ECER SEZ Focused Nodes include:

• Kuantan Port City

• Kertih Integrated Petrochemical Complex

• Kertih Polymer Industrial Park

• Kemaman Heavy Industries Park

• Kemaman Boat Repair and Building Park

• Gambang Science and Halal Park

• Pekan Automotive Industrial Park

• Tg Agas Maritime Industrial Hub, and

• Free Zones in Kemaman Port, Kuantan Port, Kuantan Airport, and Tg Agas, as well as

• Tourism Zones in Kemasik-Kijal, Cherating, Pantai Sepat and Kuala Pahang.