East Coast Economic Region


Kelantan’s location bordering Southern Thailand and its proximity to Indochina makes it highly strategic as the east coast Cross Border Gateway and the logistic centre for the northeast of Peninsular Malaysia. Kelantan’s main economic activities are centred on manufacturing, urban tourism, ecotourism as well as arts, culture and heritage tourism.

A total of eight growth areas in Kelantan have been identified as important cross-border tourism and trade centres, including Kota Bahru Conurbation, Pasir Mas Halal Hub, development in Jeli-Bukit Bunga-Rantau Panjang and Tok Bali Conurbation. Kelantan also specializes in agro-based activities such as fisheries, aquaculture, herbal cultivation and poultry production.


Terengganu is an established player in the oil and gas industry and has progressed significantly to become a key investment destination in the ECER. Its economic activities have fast expanded into other segments such as the tourism sector which comprises coastal, island, ecotourism, urban, cultural, and agrotourism, as well as manufacturing, bio-economy and agribusiness.

There are also growing opportunities with the emergence in bio-economy activities in Terengganu that will complement the growth in established industries such as the agribusiness as well as oil, gas and petrochemical sectors. These are on the back of high-impact projects and programmes which include the development of Kertih Biopolymer Park, Kuala Terengganu City Centre and Kemaman Heavy Industrial Park.

Terengganu is also an attractive destination with its diverse attractions such as Terengganu Island Tourism activities, urban and coastal tourism, as well as environment, heritage and culture tourism.


Pahang, the largest state in Peninsular Malaysia, is at the forefront of ECER’s economic growth with the establishment of key industrial parks such as the Malaysia-China Kuantan Industrial Park (MCKIP), Pekan Automotive Park (PAP), Pahang Technology Park, and Gambang Halal Park.

The State is also the ECER’s main industrial and logistics hub focuses on resource-based downstream manufacturing activities. It is also set to play a major role in accelerating the adoption of Industry 4.0 in ECER through the Asia Centre of Excellence for Smart Technologies (ACES) in Pahang Technology Park, on top of the growing support of education institutions in the state.

The expansion of Kuantan Port in Pahang as a deepwater port, as well as its strategic location facing the South China Sea and along the world’s major shipping lanes, will reinforce Pahang as an important investment Gateway to the ASEAN, Asia Pacific markets and beyond.

District of Mersing, Johor

Mersing is an attractive tourism destination that serves as a main gateway particularly in ecotourism, coastal and island tourism to both local and international tourists. Given the district’s pristine natural treasures, projects and programmes which are implemented based on the “Rainforest to Reef” strategy have enabled the tourism sector to become a vital engine of growth.

In addition, the district’s inclusive and progressive growth also focuses on the agribusiness and marine-based industries, particularly in the fisheries and dairy industries to boost its economic growth.