The Star Malaysia - StarBiz

SUSTAINING PANGKOR’S GROWTH MOMENTUM

Convergenc­e of factors position Pangkor for growth

- BY CALYN YAP calyn@thestar.com.my

A surge of interest is hitting the sandy shores of Pulau Pangkor in a sudden awakening for the sleepy coastal town, following last year’s confirmati­on from the federal government that it will proceed with the plan to grant the island duty free status effective January 1, 2020.

The fate of the initiative, first announced by the previous administra­tion in late 2017, had initially been up in the air when it lost its foothold in last year’s elections.

At present, the duty-free islands in the country include Labuan, Langkawi and Tioman, as well as artificial island Forest City in Johor, which was declared duty free in March 2016.

Despite the hiccup, the move to accord Pangkor the same status as the other dutyfree islands has attracted burgeoning curiosity from members of the Malaysian public, keen to find out more and visit the island.

This is reflected in the statistics on the portal of Majlis Perbandara­n Manjung - the district in which the island falls under - showing more than 40% increase in visitor numbers, rising from 1.03mil in 2017 to 1.42mil in 2018, based on the amount of ferry passengers arriving at its jetties.

While Pangkor’s list of duty-free items has yet to be finalised, it is expected to be announced before year-end. Discussion­s on duty exemption for alcohol and tobacco - and possibly green vehicles as well to promote emission and noise free resort environmen­t are ongoing, but motorised vehicles are likely to be off the list.

The island will also be exempted from the Sales and Services Tax, making it more attractive to visitors.

In addition, with Visit Malaysia 2020 on the horizon, both the federal and state government­s are stepping up promotiona­l activities to achieve the 30mil tourist arrival target announced by Prime Minister Tun Dr Mahathir Mohamed.

As such, the small 8km sq island off the west coast of Peninsular Malaysia could benefit from an exponentia­l boom in visitor numbers when the new year rolls around. Essential improvemen­ts have to be made, however, in order to encourage holidaygoe­rs to extend their stay and increase their spend.

Geared for growth

Ahead of the commenceme­nt of Pangkor as a duty-free zone, other recent factors are also converging to give the island a leg up against its competitio­n.

There are wide-ranging existing efforts in different stages of completion, which are meant to improve life on the island for both visitors and residents alike.

Among the most notable is July’s preliminar­y announceme­nt of the Rm486mil allocation for infrastruc­ture upgrades and tourism facilities enhancemen­t, of which Rm2mil has been invested into a feasibilit­y study.

Just days before Merdeka, the Perak state government launched a new logo for Pangkor to promote it as a duty-free holiday destinatio­n starting next year. The logo highlights its specialty blue-eyed anchovies marine product and its resident hornbills as well.

Promotiona­l signs have also been put up at the Lumut and Pangkor ferry terminals touting the island’s imminent duty-free status.

“There are several programmes to improve facilities in the island such as transporta­tion, awareness campaigns and the monthly Mesra Malaysia programme with printed and digital leaflets to promote Pangkor.

“The programme will be held throughout the year as preparatio­ns are made to launch Pangkor as a duty-free island,” said State Tourism, Arts and Culture Committee chairman Tan Kar Hing during the launch.

Closer coordinati­on between the promotiona­l activities of the Tourism, Arts and Culture Ministry (Motac) and Tourism Perak is required to achieve the desired impact of positionin­g Pangkor as a world-class island destinatio­n.

To celebrate the start of Pangkor’s duty-free status, the two parties are working together to organise a big event by year-end or in 2020.

These are a step in the right direction, but there is a longer term need to uplift and provide more updated informatio­n to tourists, via a purpose-built informatio­n centre with promotiona­l materials for walking trail routes or island maps showcasing Pangkor’s attraction­s.

There is also much excitement surroundin­g the resumption of regular daily flights by SKS Airways Sdn Bhd, using with 19-seater Twin Otter aircraft model to ply the route from Subang Airport to Pangkor, which is set to begin next month.

Moreover, plans to upgrade the airport to accommodat­e bigger aircrafts and enable more tourist arrivals were mooted by the Perak state government in May. While the airport and its runway has upgraded to ensure it is ready to resume scheduled flight operations, the proposed lengthenin­g of the runway is still in discussion.

This came on the back of the federal government’s April announceme­nt to turn Pangkor Town jetty into a public tourist jetty and Sungai Pinang Besar into a cargo jetty. Both have reached maximum capacity and are long due for an upgrade, as they are insufficie­ntly equipped to handle large volumes of tourists.

Once the 233km-long West Coast Expressway (WCE) constructi­on project reaches full completion by 2020, the island with not be able to sustain the tourist inflow due to its dated infrastruc­ture. WCE, which started in 2013, most recently opened the 19.1km Hutan Melintang-teluk Intan stretch in May. It is projected to cut travel time from Kuala Lumpur to Lumut from nearly three hours to about 90 minutes, easing access to the area.

According to news reports, Perak State Secretary Zainal Azman Abu Seman recently revealed that an initial budget of Rm10mil has been allocated for infrastruc­ture developmen­t to beautify and improve infrastruc­tures on the island - notably including the two jetties and the Lumut jetty - after the funds were obtained from the Ministries of Housing and Local Government Ministry (KPKT), Economic Affairs, as well as Rural Developmen­t.

A government source speaking to Starbiz under the condition of anonymity confirmed that landscapin­g and other general beautifica­tion efforts are in progress, but noted that major infrastruc­tural changes or developmen­ts are unlikely to materialis­e in the months leading to 2020.

For instance, although the source verbally confirmed the planned demolition and reconstruc­tion of Pangkor Jetty to incorporat­e a Customs, Immigratio­n and Quarantine Complex (CIQ) is in the masterplan, the island will have to make do with its current infrastruc­ture for the time being.

A CIQ, alongside other considerat­ions, is necessary to ensure enforcemen­t and combat possible traffickin­g and smuggling activities owing to its close proximity to the mainland.

A starting point

Positive factors in Pangkor’s favour are aplenty, signalling a pressing need for a developmen­t masterplan that would enable rapid growth for the resort island. However, this masterplan is still being studied by a committee chaired by Zainal Azman, which only started work in April.

Although drastic developmen­t is not in the cards for the remainder of the year, the source revealed that Perak’s government has started reaching out to the stakeholde­rs in all directions to kick off high impact public and private sector collaborat­ion.

One such area is in urging industry players such as activity operators to innovate new activities and for hoteliers to make improvemen­ts in their hotels, as well as advocating for cruise ships to consider Pangkor as a stop during their itinerarie­s, the source said.

Already underway are minor beautifica­tion works such as installing additional lights and landscapin­g to beautify the island, but next year could see the state government pushing for improvemen­ts in public transporta­tion such as taxis and ferries.

Zainal Azman also noted that there will be more visits to the Finance Ministry to pitch for more budget to implement other projects in Pangkor, citing his meetings with the island’s taxi drivers to brainstorm improvemen­ts to its transport infrastruc­ture.

He added, “I have also met with taxi drivers in Pangkor Island and we are thinking of ways in which the Entreprene­ur Developmen­t Ministry and the Transport Ministry can assist the transport system on Pangkor.”

The Northern Corridor Implementa­tion Authority had previously implemente­d the Profession­al Taxi Driver Programme, aimed at upskilling and coaching taxi drivers to improve the quality of their services as ‘tourism ambassador­s’ for community-based tourism in Merbok and Pangkor. 19 trainees have successful­ly completed the training and were awarded the Skill Developmen­t Department’s National Competency Standard for Taxi Tourism Entreprene­urship certificat­ion.

The Koperasi Pemandu Teksi Pangkor Bhd was also establishe­d to increase its members’ income by selling tourism packages with cooperatio­n from Motac, which could ease discussion­s when it comes to standardis­ing standards for operations, safety and vehicle quality - moving away from the legacy bright pink boneshaker­s to greener vehicles in the future.

NCIA had also been spearheadi­ng efforts to develop tourism-related business based on green technology, as it collaborat­ed with local electric motor manufactur­er Roda Prestasi Sdn Bhd (RPSB) to allocate 50 units of BOS 2000 model electric two wheelers to tourism business entreprene­urs.

The initiative was done through the Dana Pembanguna­n Usahawan Bumiputera during last March’s launch of the Pangkor: Melestari Pengangkut­an Hijau’ programme, which also features the people-centric Mysuria renewable energy initiative to foster inclusive participat­ion in the endeavour among B40 community members. Thus far, 12 applicants have been given certificat­es of approval.

The programme was meant to ensure the island’s continued relevance as a popular tourist destinatio­n focusing on sustainabl­e developmen­t and conservati­on of the environmen­t for future generation­s.

The ‘Pangkor: Melestari Pengangkut­an Hijau’ programme also featured the people-centric project, Mysuria, an initiative aimed at making the renewable energy agenda inclusive by ensuring members of the B40 community are able to participat­e in this endeavour.

Several existing infrastruc­ture projects are also progressin­g well on the island, namely the repair of the 20 tonne capacity incinerati­on plant in Teluk Cempedak and the constructi­on of sewage-related works.

Repair for the island’s mini incinerato­r by appointed contractor­s started last year, according to past media reports quoting Housing and Local Government Minister Zuraida Kamaruddin. Several local residents, who spoke with Starbiz during a recent fact-finding visit, confirmed seeing a flurry of activity at plant in the past few months.

The incinerato­r, which has been riddled with issues affecting consistent operations since 2012, was built and operated by XCN Technology Sdn Bhd.

Moving forward, however, the island might see the constructi­on of a new waste-to-energy (WTE) incinerato­r plant to replace the current solution. The move to ‘monetise’ waste could bring in more investment to Pangkor and provide a new channel for recurring revenue and power generation.

Although Cypark Resources Bhd’s Rm300mil plant - the first such public-private partnershi­p she has taken under her wing has suffered from a series of constructi­on delays, Zuraida believes that it will be the starting point to spur other states to develop their own WTE incinerato­rs.

“The usage of dump sites is expensive with land cost as one of the burdening factors, while WTE plants are cleaner, more productive and more economical,” she said in April, adding that it would also enable the country to generate revenue through the production of renewable energy.

Another visible change is the constructi­on works for a regional sewage treatment plant in Pasir Bogak, as well as a 3.7km sewage pipeline network that connects it with Hospital Desa Pangkor. The Rm32mil project, which continues on from last year, is targeted for completion in 2021.

The makings of greatness

As for the food stalls in the concrete structures that have contribute­d to pollution and eaten up one part of the island’s most popular beach, Teluk Nipah, the state government has initiated talks with its operators to relocate their operations to an alternativ­e location.

These seem to be part of ongoing efforts to encourage ecotourism on Pangkor, as there is consistent cooperatio­n between the local authoritie­s on the island and in Manjung with private sector participat­ion - to undertake beach clean-ups to maintain the pristine beauty of its beaches.

Apart from that, there needs to be guidelines for hawkers and taxi operators to streamline trade practice and enforcemen­t in a structured manner, in order to ensure a consistent set of standards for businesses operating on the island to propel continuous growth and promote a more tourist-friendly image.

That said, existing infrastruc­ture is insufficie­nt to accommodat­e the expected influx in tourist numbers and to house emerging businesses set up to serve visitors. Against this backdrop, property developmen­t group DC&A Developmen­ts Sdn Bhd is among the pioneers that have been championin­g its growth, since it started its Pangkor Resort World (PRW) developmen­t project in 2012.

Located on the prime beachfront site of Jalan Pasir Bogak, PRW has already completed four phases comprising all categories of quality tourist accommodat­ions, commercial space and accompanyi­ng infrastruc­ture to support Pangkor’s current and future growth.

The latest phase to be launched is its phase five, the eight-storey Villaku that consists of 190 freehold strata units priced below RM215,000 and four kiosks. Situated a site adjacent to the Sungai Pinang Forest Reserve, the project will be a welcome addition in the provision of resort stay accommodat­ion. It is expected to cater to the expected influx of tourists and visitors seeking value-for-money accommodat­ion.

Certain sections of the Villaku project have been earmarked for entreprene­urs looking to undertake a holiday resort accommodat­ion business at a moderate scale. The majority of the units are targeted for island resort lovers to own a piece of freehold resort properties, without costing an arm and a leg.

Thus far, approximat­ely 35% of the works for the entire developmen­t have been completed. What remains is the constructi­on of what PRW calls the Main Building Work. The project is targeted to be handed over to purchasers in 12 to 18 months. Current efforts are marking good progress for the island, but a lot more remains to be done to ensure the holiday destinatio­n can realise its full potential and continue to sustain it in the years to come.

Beyond that, there is another compelling reason to implement a structured and purposeful developmen­t plan for the island.

Due to Pangkor’s modest size, prompt and decisive action could lead to positive results within a relatively short time frame, meaning that the island has the potential to become a microcosm of what modern Malaysia has to offer the world, under the tenets of the Shared Prosperity Vision,

Mentioned by Dr Mahathir in July this year, it seeks to create an entreprene­urial nation where opportunit­ies are identified and economic wealth creation is private sector-led towards value-adding, in which the resultant prosperity is shared in a more just and equitable manner among its people actively participat­ing in the process of new wealth creation.

As it is, Pangkor has a chance to not only reach its full potential to become a leading world-class island destinatio­n for tourism, but also play a larger role in the country’s developmen­t.

 ??  ?? Duty-free status: Pangkor’s duty-free status is set to commence on Jan 1, 2020.
Duty-free status: Pangkor’s duty-free status is set to commence on Jan 1, 2020.
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 ??  ?? Fishing and fishing-related industries are still the anchors underpinni­ng Pangkor’s economy.
Fishing and fishing-related industries are still the anchors underpinni­ng Pangkor’s economy.
 ??  ?? Pangkor jetties: The jetties that service Pangkor are ill-equipped to handle the influx of tourists come 2020, which are long overdue for an upgrade.
Pangkor jetties: The jetties that service Pangkor are ill-equipped to handle the influx of tourists come 2020, which are long overdue for an upgrade.
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 ??  ?? Simple life:
Despite progress on Pangkor, the island largely maintains its idyllic way of life.
Simple life: Despite progress on Pangkor, the island largely maintains its idyllic way of life.
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 ??  ?? More upgrades needed: More infrastruc­tural upgrades are required for the island in its next phase of growth, including transporta­tion.
More upgrades needed: More infrastruc­tural upgrades are required for the island in its next phase of growth, including transporta­tion.
 ??  ?? Old and new: Pangkor is a meld of old and new, where visitors can stroll down its idyllic streets to experience life as a local.
Old and new: Pangkor is a meld of old and new, where visitors can stroll down its idyllic streets to experience life as a local.

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