Socio-economic growth in Kelantan

THE Federal Government, through the East Coast Economic Region Development Council (ECERDC) and the Kelantan government, has successfully attracted RM12.7bil in private investments between 2007 and May 2017 as part of the transformation under the umbrella of the East Coast Economic Region (ECER).

These projects, supported by investment promotions as well as human capital development programmes, have generated over 13,880 new job opportunities and elevated the livelihoods of more than 25,000 people, especially those under the B40 category in both urban and rural areas. B40 households refer to groups of people in the bottom 40% when household income is measured.

ECERDC is a statutory body established to lead the execution and implementation of the ECER Master Plan. The council plays a lead role in setting the directions, policies and strategies for socio-economic development of ECER by promoting and facilitating investments.

ECER, consisting of Kelantan, Terengganu, Pahang and Johor’s Mersing district, is a rapidly developing region that is determined to position itself as a competitive investment destination.

The economic growth here is driven by five key economic clusters – tourism, oil, gas & petrochemicals, manufacturing, agribusiness, as well as human capital and entrepreneurship development.

These clusters are supported by improvements in transportation, infrastructure, property, and the environment in order to boost the attractiveness of the region.

ECER covers over 66,000sq km, or 51% of Peninsular Malaysia, but contains a relatively small population: 4.3 million, or about 15% of the national population, giving it a population density of 65 persons per square km (country average is 91 in 2014).

Helping bumiputra entrepreneurs

Bumiputra entrepreneurs are recognised as the key drivers in Kelantan’s socio-economic growth. To date, ECERDC had helped 48 projects by bumiputra companies International Trade and Industry Minister Datuk Seri Mustapa Mohamed (third from right) and Kelantan Mentri Besar Datuk Ahmad Yakob (fourth from right) with ROHM-Wako officials cutting ribbon to mark the opening of the ROHM-Wako building in Pengkalan Chepa in March this year. ‘The Federal Government’s transformation agenda in Kelantan is essentially focused on driving high-impact projects and investments to spur the socio-economic growth in the state through the creation of jobs and entrepreneurial opportunities,’ said Datuk Seri Jebasingam Issace John, chief executive officer of ECERDC. through incentives from either the ECER Incentive Package or Facilitation Fund under TERAJU@ ECER, or both.

In turn, these companies had garnered investments worth RM4.59bil, and created 5,980 jobs.

Between 2012 to May 2017, TERAJU@ECER approved facilitation funds amounting to RM85.6mil to 37 recipients in Kelantan, involving investments of up to RM711.7mil.

“The Federal Government’s transformation agenda in Kelantan is essentially focused on driving high-impact projects and investments to spur the socio-economic growth in the state through the creation of jobs and entrepreneurial opportunities. ECERDC will continue to ensure that effective mechanisms are put in place to empower local entrepreneurs to be core enablers of the socio-economic transformation in Kelantan,” said Datuk Seri Jebasingam Issace John, chief executive officer of ECERDC after the ECER Implementation and Coordination Committee Kelantan meeting chaired by Kelantan Mentri Besar Datuk Ahmad Yakob on June 19.

Among the completed projects that will be catalysts for Kelantan are the Pasir Mas Halal Park (PMHP), which will strengthen the state’s position as a halal industry hub, and the Tok Bali Integrated Fisheries Park (TBIFP), as well as the Collection, Processing and

Packaging Centre in Pengkalan Kubor – both of which are key in developing Kelantan as a hub for fish and marine-based activities.

Capitalising on the growing global demand for halal products and services, PMHP – jointly developed by ECERDC and the Kelantan State Economic Development Corporation (PKINK) – across 44ha (108 acres) of land, has to date received RM22mil in committed investments, and created 100 new jobs.

Currently, 84% of Phase 1 of the PMHP has been taken up, and it is expected to be fully occupied by the end of this year. The 91ha (225 acres) TBIFP in Pasir Puteh is meant to generate economic activities and increase fish landings in Kelantan by focusing on processed fish-based products, otoshimi (crushed fish meat), fishmeal, and supporting industries such as ice-making. When integrated with the marine eco-tourism and hospitality sectors, TBIFP is expected to attract more investments in the near future.

Preserving tradition

ECERDC also plans to preserve and promote local village traditions by developing Kampung Laut as Kampung Warisan (heritage village). This development is expected to boost socio-economic activities in the village by offering income generating opportunities through the promotion of local delicacies and handicraft.

Another key project is Plaza IMTGT (Indonesia-Malaysia-Thailand Growth Triangle) in Bukit Bunga, Jeli, which is located along the Kelantan-Thai border area. Specifically, the area is near the Rantau Panjang-Sungai Golok and Pengkalan Kubor-Tak Bai (in Thailand’s Narathiwat Province) zones.

The Plaza is expected to boost economic activities by providing a more conducive environment for local entrepreneurs to promote and market their products.

Human capital development

On the human capital development front, ECERDC’s “Empower ECER” and “ECER Entrepreneur” programmes have created over 4,100 micro-, small- and medium-sized entrepreneurs. When the Agropolitan project is added, all these have provided close to 8,250 job opportunities.

To date, the Empower ECER skills and training programmes in Kelantan have benefited 3,020 participants, 80% of whom have managed to increase their monthly incomes by between RM1,000 and RM3,000 upon completion of training.

The ECER Entrepreneur programmes have also been successful for its 1,780 participants, many of whom have managed to increase their sales by at least 30%, and have in turn created more than 5,830 new jobs for their respective communities.

“We remain committed in improving the economic status and raising the living standards of the people in Kelantan; not only through the numerous high-impact projects or by developing public infrastructure, but more importantly, by empowering the rakyat through our human capital efforts.

“We want to ensure that no one gets left behind in the country’s journey to becoming a high-income nation,” said Issace in a recent statement. More can be found at ecerdc.com.my.