Knowledge Park - East Coast Economic Region

Knowledge Park
www.ecerdc.com.my
AN INTEGRATED KNOWLEDGE HUB
Contents
The East Coast Economic Region: Poised For Transformation 3
The ECER At A Glance 4
The Education Cluster 6
Knowledge Park 8
Knowledge Park: Integrated Knowledge Hub
10
Investment Opportunities
12
The ECER Incentives Package - Knowledge Park
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Contact Us
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The East Coast Economic Region: Poised For Transformation
The East Coast Economic Region (ECER), covering the states of Kelantan, Terengganu, Pahang
and the district of Mersing in Johor, is now poised to become a dynamic region in South East
Asia by offering various opportunities to manufacturers and investors.
Strategically located in the east coast of Peninsular Malaysia, the ECER has the potential
to become the main gateway for trade and industry within the Asia Pacific region, which
commands a total population of about 2 billion people.
The vision and mission that will guide the transformation of the ECER into a developed Region
by 2020 is defined by three main characteristics – distinctive, dynamic and competitive.
The distinctiveness of the ECER is portrayed through its natural beauty, abundant resources,
unique culture and heritage known throughout the world. To maintain this characteristic, a
balanced and sustainable development is emphasised.
The dynamism of the ECER reflects the potential for the Region to grow and develop at
a faster pace through innovation and a shift in economic orientation, structure, technology
and mindset. The competitiveness of the ECER lies in its ability to attract local and foreign
direct investments.
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The ECER At A Glance
The vision is for ECER to be a developed Region by 2020.
The ECER’s vision is defined by three main characteristics:
Scope of ECER
• Distinctive • Dynamic • Competitive
Land Area
Total Population
Total Initiatives
Total Investment
: 66,736 sq km (51% of Peninsular Malaysia)
: 3.9 million (2005), or 14.5% of Malaysia’s total population
: 189 projects
: RM 112 billion (2008 – 2020)
Key Clusters
Mission
Key Clusters
Key Enablers
• To move the economy up the value chain
• To raise the capacity for knowledge and innovation
• To address persistent socio-economic inequalities,
constructively and productively
• To improve the standard and sustainability of the quality of life
• To strengthen the institutional and implementation capacity
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Tourism
Oil, Gas & Petrochemical
Manufacturing
Agriculture
Education
Social & Human Capital Development
Transportation
Infrastructure
Property
Environment
Key Enablers
East Coast Economic Region Development Council
To accelerate the growth and development of the ECER, a special vehicle has been established
through the East Coast Economic Region Development Council (ECERDC).
The ECERDC plays a leading role in promoting and stimulating economic and social development
as well as private sector investment in the Region. The Council acts as the one-stop centre to fast
track investment applications and approvals.
It provides counselling, advisory services and processes tax incentives and non-tax incentives for
projects. To meet the varying needs of investors, the ECERDC also customises incentives on merit
basis to be recommended for approval by the National Committee on Investment (NCI).
ECER Projected Growth by 2020:
2020
GDP Growth Rate
8.5%
GDP
RM 65,930 million
GDP Per Capita
RM 13,510
Population
4.88 million
Source: Strategic Framework for the ECER SEZ
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The Education Cluster
Education is one of the five clusters through which development
will be channeled in the ECER. The others are Tourism, Oil, Gas
& Petrochemical, Manufacturing and Agriculture.
The Education cluster supports all of the Region’s main
developmental thrusts. By improving the quality of education
as well as expanding learning opportunities and facilities, the
ECER is able to generate a pool of skilled and capable workers,
which is able to serve the various existing and new industries
established in the Region. Additionally, the educational
institutions play a vital role in supporting the industries
through their research and development inputs and specialised
collaborations, aimed at improving products and services
delivery, thus spurring economic activity further in the Region.
In the ECER, the education cluster plays a dual role. On one
hand, the sector is an economic driver and a catalyst for growth
in the ECER. On the other hand, education is a key enabler that
supports other sectors such as agriculture, manufacturing and
tourism in terms of human resources development.
Education has taken on increased significance in meeting the
needs of industry in the ECER. The knowledge, education and
ICT sector is a key component that supports development in all
five clusters. As the ECER economy prepares to move up the
value-chain, so will the role of the knowledge and education
institutions via their research and development inputs and
specialised collaborations with other industries. At the same
time, the quality of educational services will be enhanced to
turn it into a marketable global export.
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Human Capital Development
While the Knowledge Park aims to fulfil the requirements of students, Centres of Excellence (CoE) have been established to acclerate the
human capital development to suit the needs of the industry, particularly in tourism, oil and gas, manufacturing, agriculture, halal products,
wood-based products and bio-technology.
There will be CoEs in each of the five universities in the ECER, offering a wide variety of programmes to the community and industry,
preparing them as valuable human capital for investors. Their key majors will be in entrepreneurship, SME development, biotechnology,
hospitality, management in tourism, automotive and new innovation, among others.
An additional development is the creation of a Global Animation Centre, envisioned to promote and grow the animation industry in the
Region. The Centre will provide training as well as full facilities to develop web site designs, animated 2D and 3D graphics and the like.
The establishment of an International Digital Business Exchange (IDBX) will pave the way for investors to enjoy affordable ICT facilities
comparable to those in developed countries.
To support the manpower issue, ECERDC has introduced 2 placement programs i.e. Graduate Placement Opportunity Programme (GPO)
and Employee Placement Programme (EPP).
The Graduate Placement Opportunity Programme aims to place new graduates into companies relevant to their course of study at university.
As a result, the graduate will gain valuable working experience which he can leverage on to find jobs. Once placed, the graduate will sign an
employment contract with the company. There shall be a combination of employment and “on-the-job training” within a period of 9-12 months.
The Employee Placement Programme focuses on the placement of unemployed and retrenched workers into companies that require
workers on part-time or contract basis. This programme provides flexibility to hire experienced and skilled workers on part-time basis
instead of full time to meet immediate manpower requirements of the company. Each worker registered on the programme will sign a
contract with the manpower agency.
Considering the needs of having skilled and trained workers, the Skill Training Programmes are conducted by selected training providers
in the ECER to enhance the skills and expertise among the people to further support the needs of the industry in ECER.
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Knowledge Park
PERLIS
KEDAH
BESUT
KELANTAN
PENANG
TERENGGANU
PERAK
PAHANG
The Knowledge Park is an initiative
of the state government of
Terengganu, which also provides
the 700 acres of land needed
for the project. Located close to
the proposed Universiti Sultan
Zainal Abidin (UniSZA) in Besut,
Terengganu, the Knowledge Park
will be established as a new
university township, focusing
on educational excellence and
inspiring the appreciation of
creativity, heritage and culture.
SELANGOR
NEGERI
SEMBILAN
MELAKA
JOHOR
Map of Peninsular Malaysia
The Knowledge Park will also
be equipped with the latest
technological innovations making
it a safe and intelligent city. It will
have state-of-the-art information
and communications systems with
advanced multimedia capabilities.
Convocation Hall
Central Library
• Located at the southern region,
and built on a 16.29-acre land
area or 2.10% of the Park’s total
land area
• Located in the west on a 13.12-acre
land area or 1.70% of the Park’s
total area
• Major access from east and west
and from various directions using
the walkways
Student Centre
• Located in the south east on
a 21.18-acre land area, or
2.74% of the Park’s total area
Central Mosque
The Malaysian Government will give the Knowledge Park a head start by
implementing the following:
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An Administration Hall
A Student Centre
A Convocation Hall
A Central Library
A Central Mosque
A Sports Centre
A Student Hostel
Recreational areas for commercial and
student activities
• Infrastructure and utilities like roads,
electricity supply, water supply, sewerage, telecommunications and other amenities
to accommodate the needs of a
population of 100,000 people
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• Located in the west and easily
accessible
Administration Hall
• Situated strategically in the centre of
the Park
• Located in the east on a 16.17acre land area or 2.09% of the
Park’s total area
N
• Building area of 12.47 acres or 1.61% of
the Park’s total area
• Able to accommodate both locals and
the Park’s residents
Student Hostel
• Comprises six student settlement
facilities on a total of 148.13-acre
land area
• Each settlement area consists of
1,300 units on an average of
22 - 25-acre land area
Sports Centre
• Located in the north and integrates the
frontage of the sea coast
• 15.30-acre land area or 2% of the
Park’s total area
• Easily accessible through the middle
ring road
• Surrounded by a 27.69-acre land area
of fields and courts or 3.58% of the
Park’s total area
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Knowledge Park: Integrated Knowledge Hub
While it fulfils its role as an international Knowledge
Park that caters to the needs of both foreign and
local students, it is also ideally placed in the vicinity
of beautiful beaches and captivating islands and is
developed to resemble a resort-like environment.
Edu-Tourism
In the ECER, the Knowledge Park is an excellent
example of Edu-Tourism at work. Synergistically,
Edu-Tourism is also being promoted by the
Malaysian Ministry of Tourism and Tourism
Malaysia, to bring a new dimension to the local
tourism industry.
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Investment Opportunities
The ECER Incentives Package - Knowledge Park
ECER Incentives
Activity
Incentives
(To qualify for these incentives, companies must commence operations
before 31 December 2015)
Universities, colleges, skill training
institutions, R&D institutions, regional training
centres in places designated in the ECER
Master Plan:
• Income tax exemption of 100% for 10 years, commencing from
the year company derives statutory income,
• Petronas Polymer Technology Centre
- Kertih, Terengganu
• Withholding tax exemption on royalty and technical fees for 10 years
• Gambang Technology Cluster, Pahang
- Gambang Cyber Park
- Gambang Science Centre
Application to be submitted to ECERDC
• Import duty and sales tax exemption on machinery and equipment
that are not produced locally and used directly in the activity.
• Terengganu Advanced Technical
Institute (TATI) University College
- Cukai, Terengganu
Investors, including premier universities from around the world, are invited to look at available
opportunities to establish their regional branch campuses and twinning programmes within
the specially envisioned development of the Knowledge Park.
Investment opportunities also exist in several other areas. These include skills training
in Information Communications Technology (ICT), E-Learning services and upgrading of
educational and ICT infrastructure.
Investors are invited to participate in the development of the education facilities by designing
their universities according to their needs to commensurate with the sizes of the sites - which
are from 25 to 40 acres. Investors may leverage from the centralised common facilities at the
Knowledge Park i.e. library, hostels, sport centres, mosque, lecture halls, laboratories and
other technical facilities. Depending on their needs, investors may also construct their own
specialised facilities in the area they have selected.
Investors at the Knowledge Park will thus be presented with a high competitive edge to
establish or extend their educational legacy in the ECER. The added advantages include the
common centralised facilities; Malaysia’s reputation as a centre of educational excellence;
and the support, at the highest levels, of the Malaysian Government.
The Edu-Tourism aspect of the Knowledge Park will offer investors the additional opportunity
of investing in a variety of facilities and amenities that cater to the needs of tourists drawn to
the ECER’s famed attractions. These include the establishment of resorts and hotels, as well
as entertainment and F&B outlets.
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Investors and operators in education and ICT development projects:
• Customised incentives based on merit of each case, or
• Knowledge Innovation Zone
- Kuantan Port City, Pahang
• Cyber Centres
- Kuantan, Pahang
• University Malaysia Pahang (UMP)
- Pekan, Pahang
• University Malaysia Pahang
(UMP - Branch Campus)
- Gambang, Pahang
• University Technology Mara (UiTM)
- Kuantan Port City, Pahang
• New Private Sector Schools, Universities
and Colleges
- ECER
• Educational Institutions
- Knowledge Park
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The ECER Incentives Package - Knowledge Park
ECER Incentives
Activity
Centres of Excellence
• Industry-Academia Collaboration
Other Incentives
Incentives
These incentives are mutually exclusive/to be utilised upon
expiry of ECER Incentives Package
Investors and operators in education and ICT development
projects:
• Halal Product Regional Centre
- Universiti Sultan Zainal Abidin (UniSZA)/Universiti
Darul Iman Malaysia (UDM) Besut, Kelantan
• Customised incentives based on merit of each case, or
• Innovativeness and Product Creativity Centre
- UiTM Machang, Kelantan
- Universiti Malaysia Kelantan (UMK)
from the year company derives statutory income,
• Income tax exemption of 100% for 10 years, commencing
• Withholding tax exemption on royalty and technical fees for 10 years
• Heritage & Cultural Centre
- UMK Bachok, Kelantan
Application to be submitted to ECERDC
• Institute of Biodiversity and Oceanography
- Universiti Malaysia Terengganu (UMT)
• Import duty and sales tax exemption on machinery and equipment that are not produced locally and used directly
in the activity.
• Bio-technology & Herbal Research Centre
- UDM Besut, Kelantan
• Bio-degradable Products & Biofuel Research Centre
- UMP Pekan/Gambang
• Business Entrepreneurship & Management
Programmes
- UMK
• Training Programmes on Facilities Management
- UMP
• Tourist Guide & Hospitality Industry Training
Programme
- UiTM, Dungun, Terengganu
The ECER Incentives Package - Knowledge Park
Activity
Incentives
These incentives are mutually exclusive/to be utilised upon
expiry of ECER Incentives Package
Training
• Investment in buildings used for industrial, technical or vocational training approved by the Minister
• Industrial Building Allowance: Initial allowance of 10%, and an annual allowance of 3%.
• Cash contribution to non-statutory income oriented vocational training institutions and those established and maintained by a statutory body
• Single deduction
• Royalty payments to non-residents (franchisors) fo franchised education programmes approved by the Ministry
of Education
• Withholding tax exemption
Research and Development (R&D)
• Cash contribution to approved research institutes
• Double deduction on cash contribution
• Payments made for the use of the services of approved research institutes and companies
• Double deduction on payments for services rendered
• Research on commercialization of research findings
• 50% tax exemption on income (honorarium/royalty) received
The above claims to be submitted to the Inland Revenue
Board
• Wood-based Skills Training & Research Centre
- UiTM Jengka, Pahang
• Social Development Programmes
- UMT
ICT Development
• Skills training in ICT in ECER
- E-Learning & ICT Services in ECER
- International Digital Business Exchange
- Batu Rakit, Terengganu
- Global Animation Centre - Kuala Terengganu
- Edu-ICT Development Programme in ECER
- Suri@Home opportunity for enterprising women
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Contact Us
If you are an investor planning to establish or expand your business opportunities in the
East Coast Economic Region (ECER) we will provide you with professional assistance. We will
be the first point-of-contact for all your investment inquiries.
Companies planning to start or expand operations in the ECER can obtain information and
assistance from the East Coast Economic Region Development Council. We will help you
harness the ECER’s competitive edge and capabilities to achieve your business objectives.
East Coast Economic Region Development Council (ECERDC)
Tel
: +603 2035 0021/22
Fax : +603 2035 0020
E-mail : secretariat@ecerdc.com.my
Website : www.ecerdc.com.my
Kelantan State Office
Level 69, Tower 2
PETRONAS Twin Towers
50088 Kuala Lumpur
MALAYSIA
Tel : +603 2035 0000
Fax : +603 2035 0020
Ground Floor & Mezzanine
Lot 137 & 138 Bangunan Sutera Inn Prima
Jalan Dusun Muda off Jalan Bayam
15200 Kota Bharu, Kelantan, MALAYSIA
Tel : +609 746 0021
Fax : +609 746 0020
Terengganu State Office
Pahang State Office
Ground Floor & 1st Floor
100B Jalan Sultan Zainal Abidin
20000 Kuala Terengganu
Terengganu, MALAYSIA
Tel : +609 620 0021
Fax : +609 620 0020
B8002 Sri Kuantan Square
Jalan Teluk Sisek
25050 Kuantan, Pahang
MALAYSIA
Tel : +609 565 0021
Fax : +609 565 0020
ECER/V1
Kuala Lumpur Office
© East Coast Economic Region Development Council (ECERDC) 2010
All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any means (electronic, mechanical, photocopying, recording or otherwise) without the permission
of the copyright owner (ECERDC).
Disclaimer: While every reasonable care has been taken in preparing this document, ECERDC cannot be held responsible for any inaccuracies. All information and specifications are current at the time of
preparation and are subject to change as may be required. Renderings and illustrations are artist’s impressions only and cannot be regarded as representations of fact.
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