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HERE'S THE GOOD NEWS: Prime Minister Abdullah at the launch of the East Coast Economic Region yesterday. -- PHOTO: REUTERS
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PRIME Minister Abdullah Badawi yesterday launched a US$33.2 billion (S$48 billion) economic plan aimed at boosting growth and reducing poverty in Malaysia's rural east, an area which is vulnerable to falling to the Islamic opposition.
The East Coast Economic Region (ECER), drawn up by national oil company Petronas, is the third in a series of big-spending development masterplans rolled out ahead of expected snap polls.
'Now is the turn of East Coast states to experience the wave of development,' Datuk Seri Abdullah told a crowd of thousands at Kuala Terengganu, the capital of oil-rich Terengganu state.
An artist's impression of what this sleepy seaside town will look like in 12 years revealed a gleaming metropolis with skyscrapers akin to Singapore's or Hong Kong's.
Observers say the Premier is hoping to capitalise on the trickle-down effect of three development pro-
jects which target underdeveloped regions in the country. Besides kicking off the Iskandar Development Region in Johor this year, he has launched the US$51 billion Northern Corridor Economic Region in Perlis, Kedah, Penang and Perak.
The government must call polls by March 2009, but opposition parties expect elections to be held much earlier, saying the Premier is keen to head off growing disenchantment with his administration.
The ECER covers the Malay heartland states of Kelantan, Terengganu and Pahang, as well as Mersing district in Johor state.
Yesterday's launch events took place in Terengganu as well as neighbouring Kelantan, both of which are expected to form the front line of the general election tipped to be held by early next year.
There was a distinct feel of electioneering at the launch, when Terengganu's Chief Minister Idris Jusoh led cheers of 'gelombang biru' or 'blue wind' - referring to the ruling coalition's signature colour.
Kelantan is the only state in Malaysia not held by the ruling Barisan Nasional (BN). It is governed by the fundamentalist Parti Islam SeMalaysia (PAS), which lost Terengganu to BN but held onto Kelantan with a slim majority in the 2004 polls.
Notably, the launch in Terengganu took place in a park where two PAS supporters were wounded last month after police opened fire to disperse rioters at a political rally. The incident was described as Malaysia's worst political violence in years.
But critics are doubtful whether the ECER will be able to attract the foreign investors it needs.
Political analyst Khoo Kay Peng said that the vision behind the project, 'to redistribute growth and wealth', was good. However, he cautioned that Malaysia's affirmative action policy to help ethnic Malays may hinder the flow of foreign funds into the region, as foreign investors may not wish to be bound by racial quotas.
'Also, commitment on infrastructure development is not enough. You will have limited success as, at the end of the day, it is just physical structure. You must also have an adequate supply of human resources,' he told The Straits Times.
hazlinh@sph.com.sg
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