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Baidzawi: ECER Master Plan 3.0 to address issues raised in AG Report

KUALA LUMPUR: The East Coast Economic Region (ECER) Master Plan 3.0 (EMP 3.0) for the 2025-2030 period will address all issues raised by the latest Auditor-General's (AG's) Report, including the shortfall in job creation and the lack of key infrastructure projects. 

ECER Development Council (ECERDC) chief executive officer Datuk Baidzawi Che Mat said that the agency will tackle the AG report's findings, focussing on fostering economic growth and improving infrastructure.

In an interview with Bernama, he said that ECERDC has reviewed its targets under EMP 2.0 and is continuously assessing current employment trends among investors to ensure more realistic job targets. 

Under EMP 1.0, ECERDC exceeded its committed investment target of RM110 billion by 2018, reaching RM111.3 billion. However, there was a shortfall in job creation.

With RM66.6 billion in realised investments to date, representing 60 percent of the committed amount, and the implementation of its Human Capital Development (HCD) program, the agency created over 88,000 jobs and 27,000 business opportunities, falling short of the expected 200,000 jobs and 60,000 business opportunities.

Baidzawi explained that the adoption of automation and a shift towards high-value investments resulted in fewer jobs than anticipated. 

He said that ECERDC recognises the shortfall in job creation, initially estimated based on each RM1 billion of investment generating 1,000 jobs.

He also noted that the number of entrepreneurs created was closely tied to the development budget allocation for human capital programs. Regarding the lack of key infrastructure projects, Baidzawi said that "significant improvements are underway."

Baidzawi assured that with increasing interest from investors, ECERDC is confident in its strategies to drive further economic development and achieve its long-term goals. 

He added that the agency remains focused on realising investment opportunities that drive economic growth, create jobs, and generate business opportunities, aligned with the MADANI vision.

Baidzawi highlighted that ECERDC has made considerable progress in various projects across the region. 

Of the 109 projects and programs planned during the Ninth Malaysia Plan (9MP) to the Twelfth Malaysia Plan (12MP), a total of 99 projects (90.8 percent) have been successfully implemented, as reflected in the AG's report.

The realised investments amounting to RM66.6 billion until 2018 have contributed to a 1.8 per cent increase in the region's gross domestic product, he said.

He added that the completion of the Kuantan Port expansion in 2018 and the ongoing East Coast Rail Link (ECRL) project, set to start operations by 2027, are key developments that will enhance the region's appeal for future investments.

Meanwhile, the audit found that no database has been set up to measure the socio-economic achievements of target groups in the ECER region. As a result, the success of the projects and programs implemented cannot be assessed, and ECERDC lacks a method to accurately measure poverty rates and income levels in the East Coast states.

The audit called for a review of the objectives, functions, and roles of ECERDC to ensure that projects in the region and programmes align with current priorities and need to benefit target groups effectively without impacting government returns.

In response to this, Baidzawi said that ECERDC uses an internal dashboard to track key performance indicators such as committed investments, realised investments, job creation, and entrepreneurial development on a quarterly basis, with reports submitted to the council.

"We are enhancing our internal data measurement systems and will also use Central Database Hub (PADU) data in the future," he said.

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