KOTA BHARU, KELANTAN, 7 JANUARY 2022: The Ministry of Finance has approved the East Coast Economic Region Development Council’s (ECERDC) application for the Special Tax Incentive Package for investments in Kelantan. With this incentive package, investors will receive 100% income tax exemption for 15 years and a tax rate of 17% for the following five years. For knowledge workers, non-citizens holding major positions in companies that are included under this initiative will only be subject to a flat tax rate of 15%.

For the year 2021, despite the pandemic, the Federal Government through ECERDC had successfully realised private investments worth RM690 million in Kelantan. These investments have created over 500 job opportunities and 300 entrepreneurial opportunities for the locals.

“This is a very encouraging achievement by ECERDC and I believe that it is the result of the efforts and close cooperation from various parties, which include the State Government, ECERDC, the Malaysia Investment Development Authority (MIDA), and other relevant agencies to attract investments to this state,” said YAB Dato’ Bentara Kanan Ustaz Dato’ Haji Ahmad Bin Yakob, the Menteri Besar of Kelantan while chairing the ECER Implementation and Coordination Committee (ICC) meeting for Kelantan.

“The Special Tax Incentives for Kelantan that was recently approved by the Ministry of Finance is expected to become the main attraction for investors. ECERDC expects to attract many more new investments with the introduction of this special incentive,” said YH Dato’ Baidzawi Che Mat, Chief Executive Officer of ECERDC.

Based on a presentation by ECERDC, the Menteri Besar also recommended that a detailed study be carried out to find out the impact of the Chumphon-Ranong Land Bridge project which is being implemented by the Thailand government to Kelantan. He also called for the construction of LPT 3 and the development of other supporting infrastructures to be expedited and prioritised to maintain Kelantan’s competitive advantage.


ECERDC is currently implementing Projek Perintis – Transformasi Perikanan in Tok Bali which involves the entire fisheries value chain including developing human capital, especially concerning the involvement of locals in deep sea fishing activities. The development of basic infrastructure for upstream activities in Phase 1A has been completed and this has started to attract investors to the area. ECERDC is now actively developing basic infrastructure in Phase 1B, which is expected to be completed by November 2022.

Aside from the fishing industry, plans to develop the Tok Bali area will also give focus to the oil and gas sector, manufacturing, as well as logistics and services to enhance Tok Bali’s competitiveness as an investment destination.

To ensure development in Tok Bali is implemented according to plan, the Tok Bali Area Development Committee, which is co-chaired by Minister in the Prime Minister’s Department (Economy) YB Dato’ Sri Mustapa Mohamed and YAB Menteri Besar of Kelantan will coordinate and regulate development, facilitate implementation, and play a role in attracting as well as realising more investments in Kelantan.

On 31 October 2021, Laman Warisan Serunding Kampung Laut, which is part of the Kampung Laut Redevelopment as a Heritage Village project was officially handed over to the Ministry of Tourism, Arts and Culture (MOTAC). Meanwhile, Laman Warisan Seni Kampung Laut which is in Phase 2 of the development, is expected to be completed early this year. The complex will help preserve and promote Kelantan’s local arts and culture. Laman Seni will be handed over to MOTAC and is expected to be operational by June 2022.

At the same time, the relocation and restoration works for Masjid Kampung Laut, which is more than 300 years old, will also be completed by June 2022. The Kelantan State Government and ECERDC had taken the initiative to return the mosque to its original site in an effort to preserve the architectural characteristics, history, culture and heritage of the mosque.


Under the PENJANA-ECERDC initiative, 150 university and SPM graduates in Kelantan will be trained under the Upskilling & Reskilling Programme, and at least 80% of them will be offered a job with an income of up to RM4,000 per month.

Meanwhile, under the ACES-ECER Jobs Train & Place programme, 387 participants from Kelantan out of a total of 706 participants have secured jobs in the ICT sector after undergoing training. Through this programme, participants can work from the comfort of their homes and do not have to migrate out of Kelantan.

ECERDC’s Human Capital Development programmes were implemented by ensuring all participants adhere to the national vaccination plan. All 700 participants of the empower ECER Skills and Training programme in four districts, namely Bachok, Jeli, Pasir Puteh and Tanah Merah have been vaccinated prior to attending the training course.