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 Malaysias 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 Asias 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.