KUALA LUMPUR: The East Coast Economic Region (ECER) is starting its 10th year of establishment on a solid foundation that will ensure the rakyat will continue to benefit from the region’s continuous socio-economic transformation.
This will also in leveraging on the implementation of high-impact projects and programmes within the last decade.
As of end-2017, ECER has successfully attracted RM111.6 billion in private investments, surpassing its investment target for 2020 three years ahead of schedule.
This in return has contributed significantly to ECER’s overall gross domestic product (GDP), which has increased by RM9.7 billion equivalent to 1.8 per cent from the 3.9 per cent GDP growth between 2007 and 2016.
To date, ECER’s transformation has brought about positive impact to more than 950,000 rakyat or 11 per cent of the region’s total population, directly and indirectly.
This include thousands of people across the urban and rural areas who are enjoying better quality of life through more than 154,500 jobs and 27,000 entrepreneurial opportunities created by the private investors and human capital development programmes in ECER.
“ECER’s strong performance in its socio-economic transformation serves as a testament to the Federal Government’s delivery of high-impact InfraRakyat and private investment projects as well as inclusive human capital development programmes implemented in collaboration with the respective State Governments.
“These efforts have narrowed the socio-economic gap between the East and West Coast of Peninsular Malaysia, and improved the livelihood of the Rakyat through greater wealth creation by increasing jobs and entrepreneurial opportunities,” said ECER chief executive officer Datuk Seri Jebasingam Issace John in a statement.
Of the total private investment in ECER, domestic direct investment has emerged as a key contributor to economic growth and an important source of job creation for the rakyat.
Local investments, mainly driven by the local micro, small and medium enterprises, contributed 46 per cent of the total investment committed in ECER, reinforcing the pivotal role they have as the backbone of the socio-economic growth of the region.
Bumiputera investments under the TERAJU@ECER programme has also made a significant contribution, by contributing 14 per cent of the total private investment in ECER.
These investments have seen a total of 177 projects worth RM16.2 billion in ECER benefitting from ECERDC’s tax incentives or TERAJU@ECER’s facilitation funds, or both.
From these investments, more than 19,100 job opportunities will be generated for the rakyat.
“The growth of domestic direct investment reflects ECER’s conducive and inclusive business environment which has further catalysed the empowerment of local entrepreneurs.
“Today, the local entrepreneurs are leading the socio-economic transformation in their respective communities by creating the ecosystem for jobs and businesses, which in turn will help improve the livelihood of the rakyat,” said Issace.
One of the significant milestones in 2018 will be the operationalisation of Kuantan Port as a deep-water port to fulfil the demand for bigger vessels and higher traffic, reinforcing ECER as the Gateway to the Asia Pacific region.
The completion of Kuantan Port’s expansion under Phase 1A, which will see the port doubling its capacity to 52 million freight weight tonnes (FWT), will coincide with the full operational commencement of the modern integrated steel mill by Alliance Steel (M) Sdn. Bhd., which is one of the largest investments in the Malaysia-China Kuantan Industrial Park (MCKIP).
Meanwhile, growth momentum across ECER will be further fuelled with the construction of the East Coast Rail Line (ECRL).
As construction works have commenced in multiple areas along the ECRL alignment, this has indirectly created more jobs and entrepreneurial opportunities for the locals.
This game-changer will connect two major ports in Peninsular Malaysia; Port Klang and Kuantan Port with key industrial as well as tourism hubs whilst encouraging greater transit-oriented developments in ECER.
As an important backbone of transportation infrastructure, the enhanced connectivity and economic activities resulting from this project is expected to boost ECER’s GDP by up to 1.5 per cent.