Statement of Need - Dr. Nik · district of Mersing in Johor. The main objectives of the ECER are to guide the regional imbalances: a. By accelerating the growth of the ECER in a viable,

Statement of Need

3-1 Dr. Nik & Associates Sdn. Bhd. 327055-V

3.1 Introduction The State Government of Pahang has awarded Newston International Group Sdn. Bhd. to undertake a land reclamation at the coast of Kampung Tanjung Lumpur, Kuantan as stated in its letter (Attachment 6). The land reclamation will cover an area of 273.57 ha (676 ac) and a built-up area of approximately 472.67 ha (1,168 ac). The artist’s impression of the KWRC development is shown in Figure 3.1.

Figure 3.1 ► Artist’s Impression of the KWRC Development

The proposed reclaimed land will be developed into six (6) major land use components e.g. tourist attraction and facilities, residential development, commercial development etc. (Figure 3.2) which comprise nine (9) precincts as listed in Table 3.1. Figure 3.3 shows the components of the topside development.

3 Statement of Need

EIA (Second Schedule) Land Reclamation & Dredging of Kuantan Waterfront Resort City (KWRC), Pahang


Table 3.1 ► Nine (9) Precincts of the KWRC

Precinct Descriptions

Precinct 1 KWRC Business Park

Precinct 2 Marina Walk

Precinct 3 Marina Green Basin

Precinct 4 City of Lights Flagship Entertainment Hub

Precinct 5 Kuantan International Cruise Terminal and Yacht Club

Precinct 6 M.I.C.E (Meetings, Incentives, Conferencing, Exhibitions)

Precinct 7 Waterfront Living

Precinct 8 Seafront Living

Precinct 9 Marina Healthcare Park

Water Bodies(199.11 ha)

Tourist Attraction & Facilities(134.19 ha)

Utilities & Infrastructures(71.25 ha)

Commercial Development(33.27 ha)

Residential Development(26.99 ha)

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Education & Health Facilities(7.89 ha)

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Figure 3.2 ► Six (6) Major Land Use Components

statement of need 03


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3.2 Promoting Tourism Sector Tourism sector is a key element that can enable communities to restructure, regain and enhance an economic foothold. The development of KWRC will act as a growth catalyst not only for Kuantan but also for the East Coast Malaysia under the East Coast Economic Region (ECER) plan. The KWRC strategic location in the South China Sea is suitable to be developed into tourism sector. It is aimed to position itself as a dynamic tourism gateway to Kuantan by capitalizing on its waterfront advantage. Water themed developments such as Indoor Aquaria, Water Theme Park, International Cruise Terminal, Marina and Yacht Facilities are proposed to be built (Figure 3.4).

Figure 3.4 ► Artist’s Impression for Marina and Yacht Facilities of the KWRC

To further diversify the tourism sector, the KWRC will be developed into a new commercial and business center that is supported with international class facilities. Figure 3.5 illustrates such facilities which comprise M.I.C.E. (Meetings, Incentives, Conferencing, Exhibitions), Duty Free Complex, Premium Outlets, Business Park etc.



3.3 Supports Government's Development Plans and Strategies The development of KWRC is congruent with and will support the development plans and policies set by the Government. These include:

i) Kuantan Local Plan (Amendment) 2013 - 2015 Based on the Kuantan Local Plan (Amendment) 2013 - 2015, the Project site is designated in the Planning Sub Block (BPK) 2.19 which has been gazetted for land reclamation. The future land use for BPK 2.19 are business and service activities which is in line with the KWRC development.

M.I.C.E. Duty Free Complex

Premium Outlet Business Park

Figure 3.5 ► Artist’s Impression for Commercial and Business Center of the KWRC



ii) Pahang Structure Plan 2002 - 2020 The State Government of Pahang aims to develop the Tourism and Service Sector into becoming the main contributor towards Pahang's Gross Domestic Product in the coming years (Figure 3.6). Tourism is also being promoted as the second engine of growth for the nation, particularly with the recent liberalization of the tourism sector to enhance the country’s global competitiveness. This is particularly critical in view of the economic and financial changes that are happening globally. During times when prices of commodities like palm oil, rubber and crude oil are in a slump, the Tourism and Service Sector can play a big role in maintaining the state’s and country’s economy. Pahang has the potential to benefit from tourism and service sector based on previous records. In year 2000, an estimated 3.3 million tourists had visited the state. This figure is projected to increase to 13 million in year 2020. Various facilities and infrastructures are required to cater to the current and future demand, and developments like KWRC will help to contribute towards these requirements.

iii) East Coast Economic Region (ECER) The KWRC development has the latent potential of being one of the high impact project in the East Coast Economic Region (ECER) and facilitate the ECER Council to meet objectives as set. It is also entrusted to promote and facilitate investments into the ECER which covers Kelantan, Terengganu, Pahang and the district of Mersing in Johor. The main objectives of the ECER are to guide the regional imbalances: a. By accelerating the growth of the ECER in a viable, equitable and sustainable

manner; and b. Via programmes and projects to raise incomes and reduce poverty by

expanding employment prospect and entrepreneurship through the introduction of high impact projects to spur development in the region.

Figure 3.6 ► Comparison of Sector Contribution of GDP in 2000 and 2020 for Pahang Source: Pahang Structure Plan 2002- 2020)



The development components of KWRC, with its main focus on Tourism Attractions and Facilities, will contribute towards the new growth as envisioned by the ECER Council. Various employment and business opportunities will be created from the very beginning of the KWRC project’s implementation, to the groundwork and construction, and when the project is fully completed as well as during operational stage. These opportunities will promote economic growth of Kuantan by offering attractive investment or business partnership opportunities as well as raising the living standards of the locals by creating new employment opportunities, and thereby contributing towards realising the visions as promulgated by the ECER project. iv) National Physical Plan 2 (NPP-2) The KWRC development is also congruent with many of the objectives and guidelines of the National Physical Plan 2 (NPP-2). The NPP-2 is a national long-term strategic and framework to guide the overall development of the country towards achieving developed and high-income nation status by 2020 in an efficient, equitable and sustainable manner. One of the key implementation measures and policies under NPP-2 which KWRC will contribute to is through Sustainable Tourism Development. Kuantan has been identified as one of the National Regional Growth Conurbation under NPP-2. At present, there is a dearth of quality units in Kuantan and this will affect the district’s progress in the coming years. This is where developments like KWRC will prove to be an asset by fulfilling the expected demands and requirements, and thereby contributing to support the tourism sector. As shown in Figure 3.7, the Kuantan Conurbation will be the next urban agglomeration in the country. With a projected population of 1.38 million in 2020, this conurbation will follow the footsteps of the other well-known urban agglomerations like Klang Valley, Penang and Johor Bahru. New and improve infrastructure and facilities will be needed to make this a reality. During its implementation and when fully completed, the KWRC development will be an important contributor towards the Kuantan Conurbation as well as becoming a highly integrated and economically dense conurbation, and providing a significant contribution towards the Gross National Income (GNI).



National Growth Conurbation

Regional Growth Conurbation

Sub-Regional Growth Conurbation

State Growth Conurbation

District Growth Conurbation

Urban Growth Centre

High Speed Rail

Major Port

ICT Hubs

Special Management Area (SMA)

Major Highway

Forest Spine

National Park

Special Tourism Zone

Figure 3.7 ► National Concentrated Development Strategy Source: National Physical Plan 2 (2010)



3.4 Contribute to State/Federal Income and Improving Living Standards and Sustainability

The KWRC will be the most significant development in Tanjung Lumpur that will bring about a lot of improvements. Tanjung Lumpur has long been a traditional fishing village located near the mouth of Sungai Kuantan. Many of the villagers there are fishermen and small traders who run family businesses such as selling seafood products and operating small scale restaurants. Due to its well-planned and far-sighted development components, the KWRC will complement and elevate these by bringing about various new facilities and infrastructure that will also benefit the existing residents and businesses. The KWRC is envisaged to promote the development of its surrounding area of Tanjung Lumpur by creating employment and new business opportunities in terms of training, education and employment. These will come about right from the early stage of the project’s implementation that include the groundwork and construction. These opportunities will continue when the project is completed and operational. The existing road leading to KWRC will be upgraded and this will be directly beneficial to the current and future locals and other residents in the area. The future residential will be a significant addition to the district’s housing stock, helping to meet current and future needs for this aspect of living. The presence of KWRC will also see an improvement of urban services, health care and transportation system in the area. The development includes provisions to ensure there is sufficiency and sustainability of energy supply, water and delivery system. The upgrading of these essential services will not only ensure the proposed project has full access to these but will also directly contribute towards improving the services now available to the local communities. The KWRC development, especially when fully completed and operational, will be an asset and direct contributor of income to the Local, State and Federal Governments. This will be in the form of tax payments, premiums, quit rents, assessment fees, submission fees, licensing fees etc. which will come from the Project Proponent itself, investors, property owners and businesses. This additional income will be a benefit to the government whereby a part of it could be utilised to bring about and maintain various amenities and services that will benefit the communities in and around Tanjung Lumpur as well as Kuantan.



3.5 Modernisation of Infrastructure Development and Logistics Besides the construction of new residential and business components at the proposed site, the implementation of KWRC will also see improvements in the basic infrastructure and logistics within the area. Among the development components is the construction of new access roads and the upgrading of existing local kampung roads e.g. Jalan Tanjung Lumpur and Lorong Anak Air. Public transport services to and from KWRC will also be upgraded, and this will be directly beneficial to the local communities living around the development area. The KWRC development will improve the existing transportation modes including over land and water. These improvements will make transportation more convenient and efficient, enabling KWRC residents, visitors and also the local communities’ easier access to the various attractions and facilities within the development: i) Vehicular - Factors of efficiency of land use and stability are considered. Measures

will be undertaken to reduce auto dependency and congestion by promoting car pooling and the use of non-motorised transport to lower the carbon footprint;

ii) Pedestrian - There will be a safe and comfortable walking environment to encourage the public to walk. Cycling will be encouraged where bicycle docks will be provided in specific areas for public use;

iii) Public Transport - The Project Proponent will liaise with the relevant authorities and companies to ensure efficient and convenient accessibility to KWRC; and

iv) Road Design - The existing road leading to KWRC will be upgraded to 66' dual carriageway and also 100' main arterial road. There will be sidewalks, cycling path and landscaping along these roads (Table 3.2).

These infrastructure developments are illustrated in the urban design circulation and planning as shown in Figure 3.8.



Table 3.2 ► Proposed Road Upgrading

Existing Road Proposed Road Upgrade

Single Carriageway Dual Carriageway

Single Carriageway Dual Carriageway



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3.6 Create New Jobs and Business Opportunities

The KWRC will result in new jobs and business opportunities right from the early phase of its implementation. When fully completed, the various residential and business components are projected to create around 5,000 new job opportunities to the local communities (Table 3.3).

Table 3.3 ► Estimated Job Creation

Sector Estimated Job Creation

Tourism attraction, hotels, theme parks and commercial development

4,050

Residential development 350

Medical, tourism and education centre 600

Total 5,000

Being a commercial mixed development, KWRC development would provide the components and platform for local entrepreneurs to utilise. These could be used to start new businesses or to expand existing ones, taking into account the unique features and the strategic location of the development. KWRC will be an important asset towards business development in Kuantan due to the fact that it was designed to meet international standards and expectations. With the facilities and amenities provided, the government and entrepreneurs will be in a better position to attract international investors and venturing into various economic activities with KWRC being an integral part of these.

3.7 Mitigate Erosion along Tanjung Lumpur Shoreline According to the National Coastal Erosion Study (JPS,1985), the Tanjung Lumpur shoreline has retreated significantly over the past decades. From this study, the shoreline was classified as Category III and later it was reclassified as Category I. Category I means areas where the rates of erosion considered in conjunction with economic, transportation, recreation, and demographic values and with structures intended to protect such values indicate that action to halt erosion may be justified. As such, the proposed land reclamation abutting the shoreline will indirectly mitigate the erosion issue along the Tanjung Lumpur shoreline. The reclamation configuration was designed by taking into account the hydraulic requirements i.e. change in wave, current, etc.



3.8 Improvement to Sungai Kuantan and River Mouth Sedimentation Problem

Implementation of the KWRC will also bring about improvements to the river mouth of Sungai Kuantan. The entrance to Sungai Kuantan has long been a big problem for fishermen and users of other vessels due to the sedimentation. Measures need to be undertaken to ensure these vessels could safely navigate in and out. The obvious solution to this problem is to dredge the river mouth in order to make it deeper and safer for vessels. The KWRC will help to resolve this with a unique and effective proposition that will result in a “win-win” solution for all the affected parties. Instead of the government having to allocate a sizeable budget to dredge and dispose of the sediment at the river mouth, the Project Proponent will undertake the works. Suitable dredged materials will then be transported and used as fill material at Phase 2 land reclamation area (Figure 3.9). This will effectively solve the problems for all the parties involved and will be an example to the country as to how a government-private company undertaking can be carried out for everyone’s benefit.



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Documents

Statement of Need - Dr. Nik · district of Mersing in Johor. The main objectives of the ECER are to guide the regional imbalances: a. By accelerating the growth of the ECER in a viable,