As Chairman of the East Coast Economic Region Development Council (ECERDC), and on behalf of ECERDC Council Members, I am pleased to present our second Annual Report for the year ended December 31, 2009.

With its vision to become a developed region by 2020, the East Coast Economic Region (ECER) has made remarkable progress during the year under review, as more projects began to be implemented for the benefi t of the local populace.

In keeping with the national mission towards becoming a high income and advanced nation, the efforts to accelerate the socioeconomic growth of ECER are based on fi ve identifi ed key economic drivers namely Tourism, Oil, Gas & Petrochemical, Manufacturing, Agriculture and Education. These fi ve clusters, which are part of the recently announced 12 national key economic areas (NKEAs), will be supported by strategic developments in the key enabling sectors of Transportation, Infrastructure, Real Estate and Environment.

Renowned for its unique heritage, natural beauty and distinctive identity, ECER’s comparative advantages lie in its strategic location, continued enhancement in infrastructure, competitive cost of doing business and vast natural resources. All these are complemented by a comprehensive human capital development programme, in line with Malaysia’s New Economic Model (NEM) that encourages value creation, innovation and creativity. With its investor-friendly business policies, solid Government support and favourable socioeconomic scenario, ECER is positioning itself as a distinctive, dynamic and competitive investment destination.

I am pleased to note that of the 84 projects that have already been approved for ECER under the Ninth Malaysia Plan (9MP), 64 projects had already commenced as at end-December 2009 and are currently in various stages of implementation.

In adherence to the principles of sustainable development, all the projects will have to undergo a very thorough due diligence and feasibility study, as well as related environmental assessments to ascertain their viability and feasibility, and to ensure heightened contributions to the society and creation of economic value. The initiation of these projects will set the tone for more vibrant and dynamic economic activities that are expected to take place in ECER in the years to come.

Realising the unique synergy and linkages of the areas within the Region and in providing a more focused and strategic development approach, ECER development concept framework will also involve the creation of urban centres and focus nodes in the Region. In this regard, six Key Development Areas (KDAs), each of which has a main focus and integrating factors, have already been identifi ed in the Region. The KDAs are located within six (6) focus nodes comprising the ECER Special Economic Zone (ECER SEZ), the Tumpat-Kota Bharu-Tok Bali-Besut Cross Border Development area, Kuala Terengganu City Centre (KTCC)-Kenyir-Dungun Triangle, Mersing-Rompin KDA, Gua Musang-Kuala Lipis KDA and Bentong-Raub KDA. This KDA approach will be the basis of ECERDC’s focus with regards to project implementation in ECER under the 10th Malaysia Plan.

The launch of ECER SEZ, a concentration of high-impact projects within an integrated development zone which stretches from Kertih in Terengganu to Pekan in Pahang, in August 2009 marked a significant milestone for the Region as it will act as the catalyst of focused economic growth in ECER, while playing the role as a key investment gateway.

This growth will be achieved through accelerated development in the main economic pillars namely, High Value Manufacturing; Agro-based Industry; Oil, Gas & Petrochemical; Tourism & Real Estate; Knowledge, Education & ICT; and Logistics. Realising that the success of ECER SEZ is still dependent upon the development in the other identifi ed KDAs in the hinterland, emphasis will also be given to the other focus nodes of ECER.

A holistic transformation of the Region also needs to address the criticality of human capital development. Everything starts with the people, and for this reason, various people-centric projects have been introduced in ECER, not only to improve the quality of life of the local population, but most importantly, to include the entire society in the nation’s progress where the interests and well-being of all Malaysians will be taken care of in line with the spirit of 1Malaysia.

In this regard, another important milestone that has been recorded in 2009 is the commencement of the Agropolitan project in South Kelantan and Pekan. The Agropolitan project was initiated by ECERDC with the ultimate aim of eradicating poverty among the hardcore poor communities within the region.

As part of the RM7 billion economic stimulus package announced by the Government in November 2008, the KerJaya ECER Programme has been introduced in 2009 to mitigate the unemployment problem caused by the global economic crisis. KerJaya ECER is part of ECERDC’s human capital development initiative which also aims to prepare the local workforce to meet the requirements of the industry through provision of skills training.

Although ECER is an effort spearheaded by the Government, the private sector and the local community should take advantage of the opportunities available in the Region. The Government is committed to provide the required basic infrastructure and support in the Region, whereas the private sector will act as a catalyst to steer the investment efforts in all the identified clusters. Qualified companies will be appointed as “Anchor Companies” to provide research and development (R&D) support, product quality control, guaranteed product offtake at an agreed price, and market disposal to outgrowers and farmers.

I can assure the investors and the people of ECER that the Government is fully committed to ensure the successful implementation of ECER projects. I am also pleased to acknowledge that beginning from 2009 onwards, ECERDC has begun to undertake marketing efforts to promote ECER as the choice investment destination among both local and international investors.

To all the investors, it is also my pleasure to invite you to come to our Region to explore the investment opportunities that are available in ECER on a first-hand basis and take advantage of the various fiscal and non-fiscal incentives offered in the Region. I truly look forward to welcoming you to participate in the development of ECER.

I would like to take this opportunity to record my sincere appreciation to all those who have, and continue to support the implementation of ECER projects and for their ongoing efforts in ensuring the success of this crucial economic development programme, particularly the Federal and State governments and agencies, as well as the private sector. I am truly encouraged by the commitment and support shown by the four State governments in facilitating the project implementation within ECER.

I also wish to express my special thanks to the Council, the Management team and the staff of ECERDC for their hard work, passion and commitment in ensuring the smooth implementation of ECER projects and programmes.

The success achieved by ECER to date would not be possible without the collaborative efforts by all parties involved. Now that the basic foundation has been laid, we are ready to move forward to bring the transformation of ECER to become a developed Region by 2020.