ECER Master Plan For 2025-2030 To Address Issues Raised In AG’s Report

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Aug 8 (Bernama) -- The East Coast Economic Region (ECER) Master Plan 3.0 (EMP 3.0) for the 2025-2030 period, which is currently in the process of preparation, will address all matters raised by the latest Auditor-General’s (AG’s) Report, including the shortfall in job creation and lack of key infrastructure projects.

ECER Development Council (ECERDC) chief executive officer Datuk Baidzawi Che Mat said the agency is committed to addressing the areas highlighted by fostering economic growth, improving infrastructure and enhancing the quality of life for communities in the region.

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“This plan will address all matters related to the findings of the AG’s report and will be acted upon accordingly,” he told Bernama when asked to comment on the report that highlighted several issues, including its missed jobs target under the first ECER Master Plan (EMP 1.0).

Baidzawi said ECERDC has also reviewed its targets under EMP 2.0 and is constantly assessing current employment trends among investors to ensure a more realistic jobs target.

Under EMP 1.0, ECERDC surpassed its committed investment target of RM110 billion by 2018, hitting RM111.3 billion.

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However, there was a shortfall in job creation. With the RM66.6 billion realised investments to date -- or 60 per cent of the committed amount -- and its Human Capital Development (HCD) programme implementation, the agency has created over 88,000 jobs and 27,000 business opportunities versus the expected 200,000 jobs and 60,000 business opportunities.  

Baidzawi explained that the adoption of automation and a shift towards high-value investments resulted in fewer jobs than anticipated

“We recognise the shortfall in job creation, initially estimated based on each RM1 billion of investment generating 1,000 jobs,” he said.

The number of entrepreneurs created was also closely tied to the development budget allocation for human capital programmes, Baidzawi said.

While noting that a lack of key infrastructure projects has also been an issue, he said “significant improvements are underway.”

He gave assurance that with increasing interest from investors, ECERDC is confident in its strategies to drive further economic development and achieve its long-term goals.

It remains focused on realising investment opportunities that drive economic growth, create jobs, and generate business opportunities, aligned with the MADANI vision, he said.

Baidzawi said the council is dedicated to addressing the highlighted areas and working to develop the region to close the socioeconomic gap between the east and west coasts of Peninsular Malaysia.

He noted that ECERDC has made considerable progress in various projects across the region.

Of the 109 projects and programmes planned during the period between the Ninth Malaysia Plan (9MP) and 12MP, a total of 99 projects (90.8 per cent) have been successfully implemented, as reflected in the AG’s Report.

He also said the realised investments amounting to RM66.6 billion until 2018 have contributed to a 1.8 per cent increase in the region’s Gross Domestic Product.

Turning to key infrastructure projects, Baidzawi said the completion of the Kuantan Port expansion in 2018 and the ongoing East Coast Rail Link (ECRL) project, set to start operations by 2027, are key developments that will enhance the region's appeal for future investments.

Measuring socio-economic impact

The audit found that no database has been set up to measure the socio-economic achievements of target groups in the ECER region.

As a result, the success of the projects and programmes implemented cannot be assessed, and ECERDC lacks a method to accurately measure poverty rates and income levels in the East Coast states.

The audit recommended that the Ministry of Economy, ECERDC, and related parties review the objectives, functions, and roles of ECERDC.

This review should ensure that projects and programmes align with current priorities and needs to benefit target groups effectively without impacting government returns.

In response to the findings, Baidzawi said that ECERDC uses an internal dashboard to track key performance indicators such as committed investments, realised investments, job creation, and entrepreneurial development on a quarterly basis, with reports submitted to the council.

“This includes data on investment, human capital development, and agribusiness,” he said.

For socio-economic progress, Baidzawi noted that ECERDC relies on data from the Department of Statistics, e-Kasih, and i-Damak.

“We are enhancing our internal data measurement systems and will also use Central Database Hub (PADU) data in the future.

“ECERDC currently maintains data on all jobs created and information on entrepreneurs, including their impact on household incomes,” he added.

-- BERNAMA