31/10/2007 (NST Online), Kuantan - Investors from the Middle East are expected to be among the first foreigners to take part in large-scale projects in the East Coast Economic Region (ECER).

Prime Minister Datuk Seri Abdullah Ahmad Badawi said representatives from several “major” Arab companies had expressed keen interest in the investment potential offered under the ECER master plan.

“The potential investors were present at the ECER launch in Terengganu yesterday (Monday) and they are again here today,” he said after launching the ECER’s segment for Pahang and Johor’s district of Mersing here yesterday.

Abdullah, however, said it was too early to divulge details of other possible foreign investments as the ECER had just been launched.

He said the ECER, as with the other economic development corridors, had provided a boost to investors’ confidence in the future of the country’s economy.

“As you may have read in the newspapers, the stock market has responded positively to the launching of the ECER.”

The Kuala Lumpur Composite Index hit a new high of 1,411.62 points on Monday, the same day the ECER segments for Terengganu and Kelantan were launched.

The ECER master plan, crafted by Petronas, will see the implementation of 227 projects in areas such as transportation, infrastructure development, tourism, education, manufacturing, the oil, gas and petrochemical industry and agriculture.

These projects were expected to attract RM112 billion in investments and create 560,000 new jobs from now till 2020.

The master plan aims to raise the present gross domestic product (GDP) and GDP per capita rates of 7.2 per cent and RM13,510 respectively by 2020.

This was expected to address the current economic imbalance between states on the east and west coasts of the peninsula.

Earlier, in his speech, Abdullah introduced several key initiatives planned for the ECER Pahang-Mersing segment such as the Kuantan Port City project, the Palm Oil Industrial Cluster development programme and the Gambang Halal Park.

The Kuantan Port City will encompass massive upgrading and extension of the existing Kuantan Port and its facilities to position it as the anchor port to serve industries at the ECER.

The Palm Oil Industrial Cluster is a major component of the Kuantan Port City project where palm oil sourced from plantations in ECER will be processed into further downstream products.

The Gambang Halal Park will be constructed on a 112ha site to house a major halal food and non-food manufacturing, processing, certification, accreditation and distribution hub.

Cattle-rearing is also geared for the big time as this economic activity would be integrated in the oil palm plantations in Jengka, Bera and Muadzam Shah.

Through the integrated approach, no new areas are required as the land in the plantations can be used for cattle rearing.

Abdullah said the success of the project would depend on the ability to produce good breeds and that had prompted the government to set up the Nucleus Cattle Breeding and Research Centre in Muadzam Shah.

He later witnessed the signing of a memorandum of understanding between Felda, the Department of Veterinary Services (DVS) and Malaysian Agricultural Research and Development Institute (Mardi) for the setting up of the centre.

Felda, Mardi and the DVS were represented by their director-generals, Datuk Ahmad Tarmizi Alias, Datuk Dr Abd Shukor Abd Rahman and Datuk Dr Abd Aziz Jamaluddin respectively.

The centre will fast track the research and breeding programme and help increase the number of cattle and beef production in the ECER.

The centre will be built on a 200ha site in Muadzam Shah and will house 3,000 breeder cattle of better quality.

Abdullah also opened a special exhibition segment on Mersing at the site of the event.