Malaysia’s East Coast is being positioned for a fresh investment push as the East Coast Rail Link (ECRL) nears operations, building on RM61.4 billion in approved investments across Pahang, Kelantan and Terengganu since 2021.
The Malaysian Investment Development Authority (MIDA) said the three states recorded RM61.4 billion in approved investments involving 1,746 projects between 2021 and June 2026, with more than 30,000 jobs expected to be created.
Attention is now shifting to the ECRL, which is expected to begin operations in January 2027 and could reshape the investment landscape by improving connectivity, logistics efficiency and access to markets and supply chains.
MIDA Chief Executive Officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the rail link could spur new economic activity along the corridor, including logistics hubs, cargo-related developments, transit-oriented projects and new industrial investments.
“The East Coast continues to offer significant opportunities to both domestic and foreign investors.
“From 2021 to June 2026, Pahang, Kelantan and Terengganu recorded RM61.4 billion in approved investments involving 1,746 projects, which are expected to create more than 30,000 employment opportunities,” he said, adding that this demonstrates the vast investment potential and opportunities available to both foreign and domestic investors in the East Coast.
He said MIDA would continue working with the state governments and relevant agencies to convert investment interest into actual projects while ensuring that growth contributes to a more balanced national economy.
The three states are also sharpening their individual investment propositions.
Terengganu is targeting higher-value industries and sees strategic infrastructure, including the ECRL, as a key catalyst for strengthening the East Coast’s competitiveness.
Terengganu Menteri Besar Datuk Seri Ir Dr Ahmad Samsuri Mokhtar said the region had the potential to emerge as a more competitive economic and investment corridor.
He said the state would continue working with MIDA to attract quality investments while ensuring that the economic spillover reaches local businesses and communities.
Pahang, meanwhile, is leveraging its established industrial base, Kuantan Port and existing industrial areas to attract higher-value projects.
State Investment, Industry, Science, Technology and Innovation Committee chairman Datuk Mohamad Nizar Datuk Seri Mohamad Najib said InvestPahang was also working to improve the ease of doing business by streamlining processes and accelerating approvals.
Kelantan is positioning itself as a gateway for regional trade, capitalising on its proximity to Thailand as well as its strengths in halal industries, resource-based sectors and logistics.
State Investment, Industry, Human Resources, Trade and Entrepreneurship Committee chairman Datuk Mejar (B) Md Anizam Ab Rahman said these strengths could create new opportunities for investors while increasing participation by local companies.
MIDA is also placing greater emphasis on ensuring that foreign and domestic investments generate wider spillover effects for local businesses.
The agency said opportunities could emerge in areas such as supply, logistics, maintenance, technical services, processing and components, particularly as new projects and infrastructure developments take shape.
Its #investlokal initiative is aimed at further strengthening domestic investment and retaining talent within the East Coast states.
MIDA is also encouraging local small and medium enterprises and mid-tier companies to consider the capital market as a source of growth.
At the East Coast Investment Seminar 2026 in Kuantan, FDI Group from Pahang and Upstream Downstream Process & Services Sdn Bhd from Terengganu were recognised under a pre-listing showcase aimed at encouraging companies to explore initial public offerings.
More than 70 companies also received direct assistance through a business clinic involving over 10 government agencies, covering areas such as project approvals, utilities, workforce matters, taxation and business operations.
With RM61.4 billion in approved investments already secured and the ECRL approaching operations, the next test will be whether improved connectivity can translate into new industrial clusters, stronger supply chains and a larger role for local companies in the East Coast economy.
