Malaysia Industrial Park Offers Opportunities to Heavy Industry Enterprises Sponsored feature

In early 2022, a RM 680 million ($154 million) industrial park was established in Malaysia’s East Coast Economic Region offering heavy industries investors an opportunity to grow their businesses in an economic hub which offers streamlined procedures and incentives for setting up new enterprises as well as a ready skilled workforce.

Launched in March by the KLSE-listed developer MGB Berhad, the Kertih Terengganu Industrial Park (KTIP), spanning across 1,007 acres (407 hectares) of land, this industrial park will benefit from East Coast Rail Link (ECRL) rail connectivity as well as key access to some of Southeast Asia’s largest ports.

Situated in Kertih township, KTIP is welcoming investors from all areas of heavy industries, including machinery and equipment manufacturing, petrochemicals, steel and non-ferrous metal production, research and development, electrical and electronic energy as well as clean technology and renewable energy.

Location Advantages

Located in the state of Terengganu, one of Malaysia’s richest oil producing region, KTIP will benefit by being part of the East Coast Economic Region (ECER) of Peninsular Malaysia, which has been identified by the central government as a key economic corridor and it is also supported by tax incentives, human capital development programmes to provide a ready labour force and improvement to ports as well as other infrastructure in this special economic region.

Apart from the ECER’s natural resources such as crude oil, natural gas, minerals, palm oil, and rubber, KTIP also benefits from excellent connectivity and infrastructure including being within 30 kilometres (18.6 miles) from two stations in the Malaysia’s high speed East Coast Rail Link project, which sets to connect Port Klang on the West Coast to Kota Bahru in Northeastern Malaysia upon completion in December, 2026.

By road, KTIP is within 22 kilometres of Malaysia’s East Coast Expressway, the second-longest superhighway in the country and is less than 18 kilometres from Kertih Airport as well as within 143 kilometres from Kuala Terengganu Airport.

Meanwhile, Kertih Port is located 6 kilometres from KTIP and can accommodate ships of up to 250 metres (820 feet) in length with a maximum draught of 12 metres.

Investor Incentives

Fully supported by the Terengganu State Government, KTIP offers investors 99-year land tenures to develop their facilities within the site that has already been approved for heavy industrial usage.

As part of the special economic zone in the ECER, investors are eligible for special tax incentives including exemptions on stamp duty and income tax.

The state government is also creating a “fast track” committee to assist investors with applications to set up their new facilities in KTIP.  The committee’s responsibilities include monitoring all applications as well as providing assistance to ensure projects are executed on time.

Investors in KTIP will also be able to leverage on Malaysia’s existing and new free trade agreements, such as the ASEAN Free Trade Area, ASEAN-China FTA, ASEAN-Korea FTA, ASEAN-Australia-New Zealand FTA and more.

Multilateral initiatives from Malaysia, such as the Joint Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) and China’s Belt and Road Initiative, are additional frameworks that benefit enterprises established in the industrial park.

Productive Partnership

As they establish their new enterprises in KTIP, investors will also enjoy the support of the project’s master developer, MGB Berhad.  MGB is an innovative technology construction firm and one of Malaysia’s leading industrial builders. A subsidiary of LBS Bina Group Berhad, a leading property development company in Malaysia, MGB can assist investors in creating facilities that suit their requirements, and also assure efficient approvals for these projects.

The company’s design and administrative resources are ready to help investors in KTIP to submit development plans that fit their needs and to ensure a quick start in construction once approval has been received.

KTIP’s excellent connectivity, investor-friendly incentives and an established industrial cluster present industrial enterprises with an opportunity to build their businesses in one of Asia’s most welcoming environments.

With Southeast Asia increasing its focus on being an economic powerhouse, investors are invited to visit KTIP to find out first-hand information, or to get in touch with the MGB team to learn more.

This sponsored feature has been provided by KTIP. Please visit the KTIP website at www.ktipmalaysia.com.my for more information.