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ECER should tap ECRL's development, say experts [BTTV]

KUALA LUMPUR: There is a need for an extensive plan to spur development at the East Coast Economic Region (ECER) by utilising the East Coast Rail Link (ECRL), industry experts said. 

The development of ECRL would be able to inject some life into the corridor, they said, when commenting on the Auditor General's Report 2/2024. 

According to the report, 37 of the 43 industrial plots under the ECER remain unoccupied by investors.

These unoccupied plots are in the Tok Bali Integrated Fisheries Park Project, Malaysia-China Kuantan Industrial Park Project, and the Kertih Biopolymer Park Project Phase 1 to 3.

The report also noted that infrastructure worth RM4.03 million at the Ulu Tersat goat farm development project in Terengganu, including the animal production unit, storage areas and worker housing had been unused since 2011.

The ECER Development Council did not respond to request for comments from Business Times.

Singapore Institute of International Affairs senior fellow Dr Oh Ei Sun said the concept of development corridor was one favoured by the Tun Abdullah Ahmad Badawi administration nearly two decades ago. 

"As his administration came to an end, all these corridors at best were paid polite lip service to, and at worst fell on the wayside, with none achieving any appreciable degree of socioeconomic success. 

"ECER is no exception to this, with many having to think hard that it still exists or ever existed," he told Business Times. 

Oh said the region needs a bold strategy that could ride on the development of ECRL and benefit from it. 

"Perhaps at least the central and northern stretches of ECER should strategise more boldly as to how to take advantage of the ECRL passing through them to bring about some inklings of development," he added. 

National Council of Professors fellow Professor Dr Azmi Hassan opined that the unoccupied plots in the region which was highlighted in the AG report was mainly due to the lack of basic infrastructure. 

"Investors are more willing to invest in the west coast due to its mature infrastructure and local demand.

"The ECER needs to focus on logistics issues and develop basic infrastructure to attract investors to set up their businesses in the region. 

"Hopefully the ECRL will attract investors and boost the ECER corridor," he said. 

Meanwhile, Universiti Putra Malaysia head of social and development sciences department Associate Prof Nik Ahmad Sufian Burhan said the ECER sites are positioned distant from the west coast region, which may deter investment.

Poor connection, a lack of infrastructure, and a distance from important markets and suppliers, most of which are on the west coast, can make these plots less appealing to investors. 

"Investors will always interpret this poor public infrastructure as a weak local economy or insufficient demand for industrial outputs, thus they may be unwilling to invest," he said. 

He added ECER should carefully assess its investment promotion strategies to effectively attract a larger pool of potential investors. This could include making adjustments to incentives, enhancing marketing strategies, and reaching out specifically to potential investors. 

"Another strategy is to encourage the development of sector-specific clusters within the ECER industrial parks, in line with market demands and global trends. 

"This specialisation has the potential to attract investors who are seeking specific environments or synergies.

"In addition, it is crucial to carry out market research and outreach for the ECER. This will involve conducting thorough market research to identify the specific industries and regions that are most suitable for investment," he said.

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