REHDA Youth visits Kuantan’s catalyst projects

When one thinks about Kuantan, one tends to think about seaside holiday destinations. More than that, however, the town is also a growing economy. One project that has the potential to be a catalyst for its growth is the East Coast Rail Link (ECRL), which is expected to be completed by the end of next year, with operations to commence in 2027.

To gain better insights, the youth division of the Real Estate and Housing Developers’ Association (Rehda) Malaysia conducted a study tour in Kuantan, Pahang, on Sept 25 and 26 with 32 participants, visiting key sites — the Malaysia-China Kuantan Industrial Park (MCKIP), the Kota Sultan Ahmad Shah (KotaSAS) township and the KotaSAS ECRL station.

The focus of the “Rehda Youth Kuantan Transit-Oriented Development (TOD) Study Tour” was the spillover effects of the ECRL project, highlighting developments that are leveraging this infrastructure. Organising chairman Matt Wong explained the tour’s objectives: “We focused the study tour on TODs because we see the ECRL as an opportunity for members to engage with government agencies, which are not always easily accessible. This is a chance for Rehda Youth members to learn and explore opportunities firsthand.”

Launched in 2013, the MCKIP spans 3,500 acres and comprises MCKIP 1 (1,200 acres), MCKIP 2 (1,000 acres) and MCKIP 3 (1,300 acres). The project is a joint venture between a Malaysian consortium  [IJM Land Bhd, Sime Darby Property Bhd (KL:SIMEPROP) and the Pahang state government] and a Chinese consortium, led by Guangxi Beibu Gulf Investment Group Co Ltd.

MCKIP 1 (90% completion) and MCKIP 2 (pending permit approval for construction from the local authority) cater for heavy and medium industries; and MCKIP 3 will have heavy to light industries, centralised labour quarters and commercial components. The industrial park is home to a diverse range of industries, including plastics, metal equipment, auto parts, fibre cement boards, stainless steel, food processing, carbon fibre, electrical appliances, ICT, consumer goods and renewable energy.

The MCKIP benefits from strong connectivity — by sea via Kuantan Port and by road through the Gebeng Bypass. Soon, it will also gain rail access via the nearby Kuantan Port City ECRL station. In terms of workers’ accommodation, Alliance Steel, which is one of the first movers of MCKIP 1, has provided an onsite housing for its workers. In compliance with government regulations, centralised labour quarters are to be located 400m to 600m from the factory sites.

With the local population now estimated at 22,000, housing demand is rising — driven by MCKIP’s ongoing development and the upcoming completion of the ECRL.

“The [railway line] spans 665km and will be fully operational in about two years. It will also be connected to Thailand, Laos and China. This is part of a larger network. Initially, we will serve mainly Malaysia, supporting local operators and factories. So, it will definitely bring change, not only for the local population but also for tourism,” said MCKIP sales and marketing manager Chan Te Loon.

Developed since 2010 by KotaSAS Sdn Bhd, a subsidiary of Tanah Makmur Bhd, the 2,165-acre KotaSAS township is positioned to become Kuantan’s new administrative centre, according to Tanah Makmur group CEO Datuk Shahrul Nizam Abdul Aziz.

“Kuantan is a mixed and balanced township with a strong population base — that is our aspiration for KotaSAS,” said Shahrul. “When we were given this land, under the mandate from our board of directors, we envisioned KotaSAS not only to be the new township of Kuantan but also to transform the entire landscape of Pahang.”

Accordingly, the developer has embedded leisure, quality of life and commercial vibrancy into the township’s core development concept. Safety has also been prioritised as a key feature of KotaSAS.

“One of our key value propositions is safety. We have auxiliary police, CCTV and panic buttons all over the township,” said Shahrul.

The developer is actively courting commercial players to invest in the township. Shahrul explained that it has been inviting investors to buy land in KotaSAS for distribution hubs, new business centres or regional offices on the East Coast.

Attracting them has proven challenging, though. Describing it as a chicken-and-egg situation, Shahrul said potential partners are impressed with KotaSAS and its vision as a well-planned township, but they prefer to wait. “They need a few more years to see population growth and the number of residential units that we will bring into KotaSAS over the next three to five years,” he said. “Only then will they make their investment decision.”

So far, the developer has managed to attract Beacon Hospital, which will build its first cancer and cardiovascular private hospital on the East Coast, and UniKL. For KotaSAS to function as Kuantan’s future administrative centre, the developer is currently building Masjid Bandaraya Kuantan and Pusat Pentadbiran Sultan Ahmad Shah. Meanwhile. It is also in discussion with a public listed company based in the Klang Valley to develop a shopping mall in KotaSAS.

Shahrul said the ECRL is another catalyst to attract investors to the township. “We see that as a major investment booster for other investors and commercial players to come.”

With the KotaSAS ECRL station positioned right beside the township, Shahrul stressed that finding the right formula is crucial to ensuring the success of its TOD.

“Once the ECRL starts operating, we expect 1,000 to 1,500 people to come to Kuantan daily. Even though that is a small number compared to what KL Sentral receives, it is a big number for the East Coast,” he explained.

“The TOD must have commercial, residential and administration aspects. We also need to find key investors that can contribute and support that idea.”

Construction of the KotaSAS ECRL station is 85.27% underway, with completion targeted for February 2026. As Kuantan’s main station and one of seven in Pahang, its design is inspired by elephant tusks, layered chess-pattern weaving and the Pahang state emblem, reflecting the region’s cultural heritage.

Other ECRL stations in Pahang are Cherating, Kuantan Port City, Paya Besar, Maran, Temerloh and Bentong.

The Rehda Youth tour included an engagement session with representatives from government agencies, who talked about how the ECRL infrastructure project presents opportunities for the development of the East Coast economy.

Covering 665km, it crosses into Selangor, Pahang, Terengganu and Kelantan, with 70% of its operations dedicated to cargo transport and the remaining portion to passenger services. East Coast Economic Region Development Council (ECERDC) senior manager Mohd Imran Abdul Latif described the ECRL as “a game changer”.

“With the ECRL coming into play in 2027, numerous projects are being planned, including TODs, CODs (cargo-oriented developments) and commercial developments,” he said, adding that ECERDC has strategically positioned industrial parks along the route.

He noted that the infrastructure projects will boost the industrial sector by reducing transport costs, improving access to economic centres, and connecting people to jobs.

Meanwhile, Malaysian Investment Development Authority (MIDA) Pahang director Mohammad Azhar Abdul Lasim highlighted development opportunities near the ECRL stations as outlined in the Integrated Land Use Master Plan. The plan identifies areas for growth linked to both the rail system and the Economic Accelerator Programme (EAP).

“The EAP aims to boost the economy of the area surrounding the stations, and the ECRL targets 70% cargo and only 30% passenger services,” he said. The programme focuses on three key components — industrial parks, TOD and COD.

Azhar added that development of the EAP is open to both local and foreign investors, including landowners. He said the EAP corridor is generally within a 15km radius of, or a 30-minute drive from, the ECRL stations; and TOD areas are concentrated within a 1.5km radius of, or a five- to 10-minute walk from the ECRL stations.

Azhar said there are proposed development plans around each station in Pahang. For example, Cherating is planned as an aerospace city, with the Kuantan International Airport to be built there. The Kuantan Port City station will serve the MCKIP and Kuantan Port; and Maran is slated to have an industrial park adjacent to a future solar farm for agriculture-based industries. Other stations — such as Gambang, KotaSAS, Temerloh and Bentong — are earmarked for projects ranging from halal parks to smart city initiatives.