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This article first appeared in the Industrial Special Report in November 2025.
Renewables, EV components, specialty chemicals and medical manufacturing are driving ECER’s next phase of growth, supported by the East Coast Rail Link (ECRL), new green-energy projects and expanded industrial parks across Pahang, Terengganu, and Kelantan.
Which new sectors are gaining the strongest investor interest across the East Coast?
The East Coast’s traditional base in petrochemicals and heavy industries remains critical, but investor demand has shifted towards sustainability-linked and advanced manufacturing sectors.
We are seeing strong momentum in specialty chemicals and biopolymers, particularly in Kerteh Biopolymer Park (KBP), which continues to attract downstream players involved in specialty chemicals, and sustainable materials production.
Advanced manufacturing is expanding through the Pekan Automotive Park (PAP) and Malaysia–China Kuantan Industrial Park (MCKIP), with growing interest from domestic and international trades.
The renewable energy sector encompasses solar, hybrid hydro-solar, and emerging green hydrogen initiatives, which is another major growth area.
Health-tech is also gaining ground, with Pahang Technology Park now hosting Malaysia’s first 3D-printing medical implant manufacturer. This is a sign of rising appetite for high-value, knowledge-intensive industries.
Finally, the rare earth downstream industry is emerging as a key focus, with ECER positioned to support responsible, value-added processing, and advanced material applications to strengthen Malaysia’s industrial base.
What major infrastructure upgrades are underway to support emerging industries, including green power and utilities?
Infrastructure remains central to ECERDC’s strategy, with the ECRL as the backbone of regional transformation.
The Kota Bharu–Gombak section is expected to complete testing and certification by the end 2026, with initial operations targeted around 2027. The Gombak–Port Klang stretch will follow by end-2027, strengthening national logistics integration.
Complementing this, the Kuantan Port Link Road will begin operations in 2026, connecting Kuantan Port directly with the ECRL station and MCKIP to improve freight efficiency and reduce transport time.
On energy, ECERDC is prioritising green power availability. The hybrid hydro-floating solar project at Tasik Kenyir will add renewable capacity and strengthen grid stability. Green hydrogen pilots and carbon capture, utilisation, and storage (CCUS) infrastructure in Kuantan and Kerteh will support hard-to-abate industries in transitioning to net-zero pathways.
These connectivity and energy enablers form the backbone for the region’s next phase of sustainable industrialisation.
What catalytic industrial projects are planned for 2025–2030?
The ECER Development Plan (EDP) 2026–2030 is built around four thrusts: Food Basket, Creating Destinations, Manufacturing, and Marine Industry.
Industrial expansion will centre on MCKIP, KBP, Pahang Technology Park and PAP. Projects in Pasir Mas, and Tok Bali will scale up agro-based and marine-related activities to support national food security, and export growth.
These projects are designed not only to attract high-quality investments, but also to create inclusive growth across the East Coast by linking local SMEs into regional and global value chains.
What is the total land size allocated for future industrial development?
ECERDC has planned 5,796 acres across seven industrial parks, each with sector focus:
*Pekan Automotive Park–237 acres
*Pahang Technology Park–149 acres
*Gambang Halal Park–169 acres
*Pasir Mas Halal Park–108 acres
*Tok Bali Integrated Fisheries Park–200 acres
*MCKIP 1 & 2–3,000 acres
*MCKIP 3–630 acres
*MCKLIP–620 acres
*Kerteh Biopolymer Park–683 acres
These parks are supported by complementary infrastructure, utilities and renewable-energy facilities to ensure long-term sustainability.
What incentive or facilitation mechanisms are being used to attract higher-value investors?
ECERDC offers a holistic facilitation ecosystem combining incentives, investor-ready infrastructure, and coordinated approvals.
Within the ECER Special Economic Zone (SEZ), investors gain access to ready-to-build industrial lots with utilities and logistics connectivity, reducing both capital expenditure and time-to-operation.
We also serve as a single-window facilitator, which helps to streamline approvals and incentive applications.
Local value creation is a priority.
These measures ensure that every investment translates into local jobs, supplier participation, and technology transfer.
Green transition incentives are increasingly important. The agency facilitates access to renewable energy, CCUS infrastructure, and energy-efficient utilities to attract investors seeking ESG-aligned, low-carbon growth opportunities.
(This interview response has been edited for brevity and clarity.)
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