M'SIAN GOVT TO INVEST US$36.66 MLN TO SUPPORT ECER'S HERBAL HUB

KUALA LUMPUR, April 14 (Bernama) -- The government will invest RM110 million
(US$36.66 million) for physical infrastructure to support the East Coast Economic
Region's (ECER) herbal park project in an effort to position it as Malaysia's
herbal industry hub.

Minister in the Prime Minister's Department Nor Mohamed Yakcop said the
ECER, which has been identified as the key implementer in developing the
herbal industry under the New Economic Model's (NEM) Entry Point Projects (EPP),
is expected to generate a gross national income (GNI) of over RM3 billion (US$1
billion) by 2020.

It is also expected to create over 2,500 jobs and 530 entrepreneurial
opportunities.

"It is anticipated that the growth in the sector will be supported by
leveraging not only on the strength of the country's diversity in natural
resources, but also the strong manufacturing sector by increasing the processing
and manufacturing of health-related natural products," he said.

He said this at the "Investment and Business Opportunities in the Herbal
Industry" symposium organised by the East Coast Economic Region Development
Council (ECERDC), here Thursday.

An anchor company will be appointed at each park location that has been
selected, with two in Dungun, Terengganu state and the rest in Kuala Lipis,
Pahang state and Gua Musang, Kelantan stae.

ECERDC's Chief Executive Officer Jebasingam Issace John said about 10
companies had shown an interest in being an anchor company at the park.

The first phase, which covers 406 hectares in Dungun and 327 hectares in
Kuala Lipis is expected to be completed by the first quarter 2012.

Meanwhile, the second phase covering the development of Herbal Farms in
Dungun and Gua Musang, will take off in the second phase of the 10th Malaysia
Plan (2012-2013).

On the development of ECER, Issace said the government had allocated RM575
million under the first phase of the 10MP (2010-2011) which will be used for
various projects.

"About 20 projects are still in various stage of development and we expect
30 more to come online," he added.