PM Announces Incentives To Develop ECER

KUALA TERENGGANU, June 14 (Bernama) — Prime Minister Datuk Seri Abdullah Ahmad Badawi
today announced a package of incentives to promote development and attract more investments
in the East Coast Economic Region (ECER).
Abdullah said the incentives, which were effective immediately, covered major industry clusters
like the tourism, manufacturing, petrochemical, agriculture and education sectors.
The incentives included 10-year tax exemption for companies in the tourism sector as well as
stamp duty exemption on the development site, and 10-year tax exemption for companies
investing in petrochemical projects starting from the year revenue is earned, he said at the
launch of the ECER Development Council here.
Also present were Terengganu Menteri Besar Datuk Ahmad Said, Pahang Menteri Besar Datuk
Seri Adnan Yaakob and Johor Menteri Besar Datuk Abdul Ghani Othman.
Abdullah said for manufacturing projects, the companies investing in this sector will get five-year
tax exemption, from the year they start earning revenue.
For the agriculture sector, the government will provide the companies involved with 10-year tax
exemption starting from the year they earn revenue or 100 percent tax allowance on qualifying
capital expenditure for five years, he said.
In addition, exemptions from import duty and road tax on raw materials, components,
machinery, replacement parts, one-time-use goods, and equipment will also be given, Abdullah
More details on the incentives will be announced later by the ECER Development Council, he said.
“All the efforts and initiatives being implemented are to provide direction, support and a
conducive environment for investors as well as people in the area,” Abdullah said.
“I am optimistic that the ECER will soon become an economic zone which is competitive and
progressive,” he said.
“So I am calling on all parties to make use of the opportunities available to develop together the
potential of the ECER,” he added.