Kerteh Industrial Estate, Terengganu 1) Location and Land Value Previously a silent fishing community or village, Kerteh has now changed into a petrochemical center. It houses the PETRONAS Petrochemical Integrated Complex (PPIC) that connects the whole variety of the oil and gas value chain commencement from upstream survey or exploration and manufacture to the final phase of petrochemical manufacturing. Kerteh Industrial area is situated 35 kilometers from Kemaman town. The selling price is RM 5.57 per square feet. The kind of industry progress in this area is chemical and petrochemical industry. 2) Raw Material Kerteh, Terengganu is nearby to Gebeng, Pahang which can supply raw material to the company. Therefore, the cost of transportation can be reduced. 3) The Accessibility of Utilities Meanwhile, in terms of utilities such as water supply and electricity, this area is provided with water from Terengganu Waterworks Department capacity of some 75.3 million gallons per day. The suppliers for electricity are the Paka Power Plant which was around 900 megawatts, IPP YTL Power Generation Sdn. Bhd. about 600 megawatts and Tasik Kenyir Hydroelectric Power around 400 megawatts. 4) The Availability of Facilities and Infrastructures In addition, the facilities and infrastructure available at this area are gas processing plants, Peninsular Gas Utilization (PGU) project, and centralized utility facilities which supplies the utilities such as power, industrial gases, water and steam. Other than that, the Petronas Training Institute, TATI or Terengganu Advanced Technical Institute, TSTC or Terengganu Safety Training Centre and TPTTC or Terengganu Plastic Technology Training Centre are
such institutes that provides the training center in order to give training for labors about the plant. This area also comprises of two well-known port called the Kerteh Port which centralizes tankage facilities and mainly for bulk liquid port. The other port is the Kuantan Port which centralizes tankage facilities, for container and bulk liquid port, the railway linkage between Kerteh, Gebeng and Kuantan port. 5) The Convenience of Transportation The final conveniences available is the east coast highway near to this area. Terengganu State Government has also boarded on the developments including enlargement of Kuala Terengganu airport and express highway linking Kuala Lumpur, Kuantan, Kuala Terengganu and Gua Musang. Encouragements offered by Terengganu State Government to both foreign and local stakeholders are special land premium, lessening of land premiums, man power training grant, tardy payment, concession on assessment rate, and inducement for water supply. 6) Labor supply The center of Malaysia's petrochemical expansion is on the east coast of the Malaysian peninsular in Terengganu and Pahang. Terengganu claims an extremely competitive and reasonable gross structure that compares constructively to higher-cost locations within Malaysia and Asia. Malaysia is also famous for its obligation to labor welfare and communal social responsibility. Consequently, the young citizens in Pahang, Kelantan and Terengganu will emphasis to fill the posts in our plant. 7) Government Incentives The major deliberation of this site location is port conveniences. This is because water transportation is significant to export the products and importing the raw materials. Kerteh Port is near Kemaman port in which it has the vision as Malaysia’s upcoming deep-water port and gateway to Asia Pacific. It is an all-weather port facing South China Sea. For
approval part, the Terengganu state government provides inducements to inspire and attract investors. 8) Political and strategic consideration Terengganu as a superlative base for investors wanting to retain a ceiling on their expenses while functioning in the Asia’s dynamic regional economy.
Figure 1: The location of Kerteh Industrial Estate of Terengganu [2]
References 1) Unit Perancang Ekonomi Negeri, Negeri Terengganu Darul Iman. Retrieved from http://upen.terengganu.gov.my. Accessed on 7th November 2010. 2)
Map of Kerteh, Terengganu. Retrieved from http://www.wikimapia.com.
