TOK BALI, 15 JANUARY 2022: Tok Bali’s potential as a new growth centre for Kelantan will be enhanced by the recently approved special tax incentives by the Ministry of Finance for the state of Kelantan. With the special tax incentives, investors will enjoy 100% income tax exemption for 15 years starting from the first year the company earns its first statutory income and an extension of another five years for special income tax at a special rate of 17%. Furthermore, non-citizens holding senior management positions in companies that are included under this initiative will only be subject to a flat tax rate of 15% as an added incentive to increase Kelantan’s competitiveness as an investment destination.
“The Federal Government, cognisant of the challenges faced by the state of Kelantan, is confident that the special tax incentives being implemented by the Federal Government via the East Coast Economic Region Development Council (ECERDC) will spur the economic transformation of Kelantan. In addition, ongoing infrastructure and connectivity development in the surrounding areas which includes the Central Spine Road and East Coast Rail Link (ECRL) will also enhance the attractiveness of investing especially into the Tok Bali area,” said Finance Minister YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz in a press conference after visiting Tok Bali, as part of Jelajah Bajet 2022 tour to Kelantan.
“Tok Bali is envisioned to be the new growth centre for Kelantan and with the special tax incentives as well as the high-impact projects in the Tok Bali area, consisting of Tok Bali Industrial Park (TBIP), Tok Bali Integrated Fisheries Park (TBIFP) and external infrastructure for the Tok Bali Port that are being implemented by ECERDC, we are confident this will contribute towards achieving our investment target of RM2.3 billion. This investment is expected to generate 4,200 new jobs and 270 entrepreneurial opportunities for the local community,” said YH Dato’ Baidzawi Che Mat, the Chief Executive Officer of ECERDC.
The development of the Tok Bali area will focus on five key sectors, namely manufacturing, fisheries, oil and gas, logistics and services as well as ecotourism to diversify the economy in the area and enhance Tok Bali’s competitiveness as an investment destination which in turn, will create high-income jobs and open up entrepreneurial opportunities.
TBIP is a mixed industrial park which focuses on value-added (downstream) activities involving the manufacturing of edible oil-based products, wood-based building materials, metal fabrication and general manufacturing. Whereas, the implementation of Projek Perintis – Transformasi Perikanan at TBIFP will involve the entire fisheries value chain including developing human capital requirements, 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.
Other projects that are being pursued are the expansion of the Tok Bali Supply Base as a commercial Port and the development of external infrastructure of surrounding areas, as well as upgrading of the Tok Bali-Pasir Puteh road.
“We are also thankful that both the Federal and State Government are working together to realise Tok Bali’s fullest potential. The Tok Bali Development Committee which facilitates project implementation and investment is co-chaired by Menteri Besar of Kelantan YAB Dato’ Bentara Kanan Ustaz Dato’ Hj Ahmad Bin Yakob, Menteri Besar of Kelantan, and Minister in the Prime Minister’s Department (Economy) YB Dato’ Sri Mustapa Mohamed. We are confident that this committee will help ensure development in Tok Bali is accelerated, in line with Government planning and policies,” said YH Dato’ Baidzawi Che Mat.
During the visit to Tok Bali, the Finance Minister also visited the Tok Bali Supply Base (TBSB) which is developed by the private sector. TBSB has created a new economic sector not only for Tok Bali area, but for Kelantan and is fast becoming one of the preferred supply base in Malaysia. Among the global O&G players currently operating at Tok Bali Supply Base are HESS Corporation, REPSOL, CARIGALI-HESS Operating Company Sdn. Bhd. (CHOC) and CARIGALI-PTTEPI Operating Company Sdn. Bhd. (CPOC).