Malaysia launches 33.2 billion dollar development plan

Kuala Trengganu (ANTARA News) - Prime Minister Abdullah Ahmad Badawi Monday launched a 33.2 billion dollar economic plan aimed at boosting growth and reducing poverty in Malaysia's rural east.

The East Coast Economic Corridor (ECER) project, drawn up by national oil company Petronas, is the third and final of a series of big-spending development master plans which have been rolled out ahead of expected snap polls.

The government said the 12-year plan was designed to create 560,000 new jobs and raise income levels for nearly 4 million people -- some 15 percent of the population.

It will involve more than 200 projects in transportation, infrastructure, tourism, education, manufacturing, the oil and gas industries and agriculture.

"The launch of the ECER and its master plan signals a push to accelerate the growth of the eastern region in a viable, equitable and sustainable manner aimed at raising incomes and reducing poverty," the government was quoted by Thomson Financial as saying in a statement.

The ECER covers about 51 percent of peninsular Malaysia's land mass, taking in the rural Malay heartland states of Kelantan, Terengganu, Pahang and the district of Mersing in Johor state.

Abdullah launched the ECER in Terengganu state, which along with neighboring Kelantan is expected to form the frontline of national elections tipped to be held by early 2008.

Kelantan, the only state not held by the coalition, is governed by the fundamentalist Pan-Malaysian Islamic Party (PAS) which also commands strong support in Terengganu.

In the last elections in 2004, PAS lost control of Terengganu but managed to hold on to Kelantan with a slim majority.

Political observers say Abdullah is hoping to capitalise on the trickle-down effect of the three development projects, which target the underdeveloped east, north and south of the country -- far from the bustling capital Kuala Lumpur.

In July, he launched the 51 billion dollar Northern Corridor Economic Region master plan to spur economic growth in the northern states of Perlis, Kedah, Penang and Perak over the next 18 years.

Earlier this year he also kicked off the Iskandar Development Region in southern Johor state which aims to capitalise on its proximity with neighboring Singapore and turn the region into a new Asian metropolis.