Terengganu Regent Urges Economic Transformation To Reduce Dependence On Petroleum Royalties

KUALA TERENGGANU, April 20 (Bernama) -- The Regent of Terengganu, Tengku Muhammad Ismail Sultan Mizan Zainal Abidin, today called on the state government to formulate strategies to shift from exporting raw materials to developing downstream products, in line with the Bumiputera Economic Transformation Plan 2035 launched by the federal government.

His Royal Highness said such structural economic transformation is crucial to reduce the state’s dependence on volatile petroleum royalty income and to narrow development gaps between districts.

“By establishing a downstream industrial ecosystem, Terengganu will be able to strengthen its economic value chain through product development, job creation and more stable revenue generation.

“The development of downstream industrial clusters will also attract high-value investments and accelerate innovation-driven economic growth, positioning Terengganu as a sustainable and competitive state by 2030, in line with the Terengganu New Economy Transformation (TNEXT) goals,” he said when opening the fourth session of the 15th Terengganu State Legislative Assembly at Wisma Darul Iman here.

Also present was Tengku Sri Setia Mahkota Raja Tengku Dato Seri Muhammad Mua’az.

The Regent said imbalanced development between districts, such as Kemaman, which benefits from a more advanced industrial sector, compared with other districts, must be properly addressed to avoid serious socio-economic consequences.

Tengku Muhammad Ismail said agricultural production activities and infrastructure under the Terengganu Food Production Hub should continue to be strengthened to enable industry players to expand and increase output.

“The transformation of the agricultural sector must be implemented through the use of technology such as smart farming and precision agriculture, so that the sector evolves into a more modern and commercially viable industry. This effort will increase incomes and support the national food security agenda,” he said.

In preparation for Visit Terengganu 2027, His Royal Highness said various tourism attractions such as cultural tourism, ecotourism and quality accommodation must be enhanced, while cleanliness should also be prioritised through efficient waste management.

“Therefore, I propose that the state government take the necessary steps to instil a culture of environmental cleanliness among the people,” he said.

Tengku Muhammad Ismail also said non-radioactive rare earth elements (NR-REE) have been identified as a new source of revenue with strong potential to be explored.

The Regent called on the government to establish proper planning and guidelines to ensure the resource is managed effectively and generates returns for the state.

“It is time for the state government to review its policy of exporting these minerals as raw materials and instead focus on downstream product development,” he said.

His Royal Highness added that the East Coast Rail Link (ECRL) project in Terengganu has reached 97 per cent completion and is expected to transform the state’s logistics landscape into an East Coast logistics hub.

In this regard, Tengku Muhammad Ismail urged the state government to leverage the infrastructure to enhance competitiveness within the domestic economy.

The Regent said housing indicators under the Malaysian Well-being Index showed a decline of 1.9 per cent in 2024 compared with 2023.

His Royal Highness said among the factors contributing to the decline were reduced home ownership affordability and the supply of housing units relative to B40 households.

“I hope efforts to provide good and comfortable housing facilities will be intensified to improve the quality of life of the people in the long term, especially for low-income groups,” he said.

Meanwhile, Tengku Muhammad Ismail stressed that integrity must remain a key pillar in governance to maintain public trust.

“The application of ethical values must go beyond documentation and be embedded in transparent work practices at all levels of the organisation.

“I call for more initiatives to strengthen integrity in order to cultivate a high-integrity culture,” he said.

-- BERNAMA