FACTBOX: Malaysia unveils third economic corridor

(Reuters) - Malaysia unveiled an ambitious plan to transform its northeastern ethnic Malay heartland into an economic powerhouse on Monday, earmarking $34 billion to build the country's third development corridor by 2020.

Here are some facts about the planned corridors.

THE EAST COAST ECONOMIC CORRIDOR (ECER)

* Sprawling over 51 percent of the Malaysian peninsula, the area is the biggest of three economic corridors launched by the government since 2006. It includes northeast states Kelantan, Terengganu, Pahang and northern Johor.

* Some $34 billion has been put aside for developing the corridor's agriculture, energy, education, tourism, infrastructure and manufacturing sectors. Private investors are expected to fund a fifth of the spending.

* The master plan, prepared by state oil firm Petronas, has lined up 227 projects to be implemented over the next 12 years. They are expected to create some 560,000 jobs and substantially raise the incomes of nearly four million people, or 15 percent of the country's population.

* The total gross domestic product growth in the ECER will be raised to 7.2 percent by 2020 from 5.7 per cent in 2005.

NORTHERN REGION DEVELOPMENT PLAN:

* Covering the four states of Penang, Perak, Kedah and Perlis, the northern corridor, launched in July, will build up modern food-processing zones by focusing on adding value in manufacturing, and also strengthening tourism.

* Investment of 177 billion ringgit ($51.2 billion) will come from both public and private sectors in the period to 2025. The government will finance one-third of the investment.

* It aims to create 500,000 jobs by 2012, rising to one million by 2018, besides increasing the region's GDP from 52.7 billion ringgit in 2005 to a targeted 214 billion by 2025.

* Penang port will be deepened and expanded to service Thailand, and Sumatra in Indonesia, its air cargo centre will be expanded, and a double-track rail link will connect the northern town of Ipoh to Padang Besar on the border with Thailand.

SOUTHERN REGION DEVELOPMENT PLAN:

* The two-decade blueprint was announced in November 2006 to harness mostly private capital to turn 2,200 square km (850 square miles) of the southern state of Johor into an industrial and tourist zone. The region has road links to Singapore and air and sea links to Indonesia.

* Some 4.3 billion ringgit ($1.16 billion) is allocated for the region under the Ninth Malaysia Plan (2006-2010) and state-owned entities are expected to make investments worth 3.4 billion ringgit ($919 million) in various projects.

* Known as the Iskandar Development Region (IDR) project, the plan envisages raising capital globally and hiring foreign workers, hoping to draw investment of $105 billion over 20 years.

PLANNED BORNEO ISLAND CORRIDORS:

* Two more corridors are on the cards, one each in the Malaysian states of Sabah and Sarawak on Borneo island.

Source: Reuters