Economic Corridors - ECER - MIDA | Malaysian Investment Development Authority
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Economic Corridors – ECER

East Coast Economic Region (ECER)

The East Coast Economic Region (ECER), which encompasses the states of Kelantan, Terengganu and Pahang as well as the districts of Mersing and Segamat in Johor, is a rapidly transforming a distinctive, dynamic, and competitive destination for investments.

 

The East Coast Economic Region Development Council (ECERDC) is a statutory body established to spearhead the execution and implementation of the ECER Master Plan. ECERDC plays a leading role in setting the directions, policies and strategies for the socio-economic development of ECER by facilitating the realisation of investment projects into the Region.

 

For more information on the ECERDC, please visit www.ecerdc.com.my.

Focus Sectors

Geographically, ECER spans over 69,000 sq km, covering 52% of Peninsular Malaysia. It is home to approximately 5 million people, or about 15% of the total national population. Economic growth in the region is driven by six (6) key economic clusters, namely Manufacturing, Oil, Gas & Petrochemical (OGP), Tourism, Agribusiness, Human Capital Development, as well as Logistics, and Services. These clusters are supported by developments in transportation, infrastructure, property and the environment, making the region an ideal destination for business, investments, and quality living.

Manufacturing

Oil, Gas, and Petrochemicals

Tourism

Agribusiness

Human Capital
Development

Logistics
and Services

Industrial Parks

Discover unparalleled investment opportunities within ECER, where cutting-edge infrastructure and sustainable development converge. The ECERDC proudly presents seven (7) premier industrial parks—Kerteh Biopolymer Park (KBP), Malaysia-China Kuantan Industrial Park 3 (MCKIP3), Pahang Technology Park (PTP), Pekan Automotive Park (PAP), Gambang Halal Park (GHP), Pasir Mas Halal Park (PMHP) and Tok Bali Industrial Park (TBIP)—strategically located across Malaysia’s vibrant economic corridors. These industrial parks offer unmatched advantages, providing state-of-the-art infrastructure and comprehensive support services designed to attract global investments, foster industrial growth, create employment, and accelerate economic progress.

1
Pasir Mas Halal Park (PMHP)
2
Tok Bali Industrial Park (TBIP)
3
Kerteh Biopolymer Park (KBP)
4
Malaysia-China Kuantan Industrial Park 3 (MCKIP3)
5
Pahang Technology Park (PTP)
6
Gambang Halal Park (GHP)
7
Pekan Automotive Park (PAP)

Disclaimer: The East Coast Rail Link (ECRL) is targeted for completion in 2028.

Value Propositions

ECER offers compelling value propositions to investors, businesses, and stakeholders looking to capitalise on strategic opportunities and drive growth. Some key value propositions provided by these economic corridors include:

Strategic Location

Positioned with access to East Coast ports and well-established transportation networks, including the East Coast Rail Link (ECRL), the ECER ensures enhanced regional connectivity. The ECRL further boosts accessibility by linking the East Coast to major economic hubs in Malaysia, facilitating smoother logistics and trade operations.

Incentives and Support

The ECER provides attractive incentive packages, grants, and tailored support services for businesses. These incentives are designed to reduce operational costs and encourage investments in key sectors especially along the ECRL alignments.

Infrastructure Development

With a focus on comprehensive infrastructure, the ECER supports a range of sectors including oil and gas, manufacturing, tourism, education, and infrastructure projects. The ECRL plays a pivotal role in this development by offering a modern, efficient transportation link that enhances the region’s attractiveness to investors.

Sectoral Focus

The ECER places a strong emphasis on developing key sectors such as oil and gas, petrochemicals, manufacturing, and tourism. These sectors are identified as a key drivers for economic growth and are supported by a network of specialised industrial zones and facilities.

Human Capital Development

The region is committed to nurturing a skilled workforce through a strong focus on education and talent development initiatives. These efforts ensure that businesses in the ECER have access to a pool of well-trained professionals who can meet the demands of the industry.

Prominent Companies in the Region

Investment Incentives

The East Coast Economic Region Development Council (ECERDC) offers a range of compelling incentives to attract investors to the East Coast Economic Region of Malaysia.

 

Key incentives:

 

  • 100% Income Tax Exemption for 10 Years: Companies can enjoy a full exemption from income tax for a period of 10 years, starting from the first year they generate statutory income, OR
  • 100% Investment Tax Allowance (ITA): Companies can also opt for a 100% Investment Tax Allowance based on the qualifying capital expenditure incurred over a period of 5 years.
  • Exemptions on property acquisition and importation of essential equipment

 

ECERDC provides flexibility in incentive packages tailored to the specific needs of each investment, ensuring optimal support for diverse projects.

 

  • Special incentives are available for specific zones like the Malaysia-China Kuantan Industrial Park (MCKIP), which includes a 100% corporate tax exemption for 15 years and a 15% personal income tax scheme for qualified knowledge workers.

 

Additionally, the Kelantan Special Incentives Package offers:

 

  • 100% Income Tax Exemption for 15 Years: Companies can benefit from a full exemption from income tax for a period of 15 years.
  • Special Income Tax Rate of 17% for an Additional 5 Years: Following the initial exemption period, companies can enjoy a reduced income tax rate of 17% for an additional five years.
  • Flat Personal Income Tax Rate of 15% for Non-Citizens: Non-citizens holding key positions in companies under this initiative are eligible for a flat personal income tax rate of 15%.

Disclaimer: The incentives provided by ECERDC are subject to expiration or revision. It is advisable to verify the current status and terms of the incentives as they approach their expiry date.

Facilitations

MIDA and ECERDC offer a range of investment facilitations, including investment advisory services, industry-specific incentives, centralised service centres, networking platforms, infrastructure enhancements, and human capital development programmes. ECERDC guides investors through investment processes and assists in establishing businesses, while MIDA collaborates to provide support in these areas.

 

Explore your investment opportunity in Malaysia. Contact us at MIDA and we would be happy to assist.

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