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The allocation of BP is based on physical factors such as the identity of the area comprising the sub-district borders, village areas, the road connections, rivers and other physical barriers such as forests, wetlands and coastlines. This will facilitate the study and planning as a number of basic data can be used directly such as population data by sub-districts produced by the Population Census Report, 2000. It will increase the accuracy of information as the data used is not manipulated but instead used directly. In addition, land use information is also easily adapted into this study as the information obtained from the technical department is based on districts and regions. Through the division of the block the analysis conducted at the technical level will be more accurate and practical. The distribution of planning block carried out has divided Setiu District into nine (9) Planning Blocks (BP) and Thirty-one (31) Sub-Planning Blocks (BPK). The Planning Blocks and Sub-Planning Blocks for Setiu District Local Plan are set out in Table 1.3, Table 1.4 and shown in Figure 1.3:

1.6 Issues, Problems and Prospects of Study Areas

i. Low number of population density and economic activity based on traditional pattern agricultural generally generate less employment opportunities and offer low returns.

ii. Municipal development is quite slow and is only directed at Bandar Permaisuri, Sungai Tong and Putera Jaya. The services in Municipal areas are not diversified resulting in a very slow rate of urban growth, especially in terms of business growth, public facilities and infrastructure, as well as a less effective public transportation services.

iii. Setiu district has a wide environmentally sensitive area of 74,034.45 hectares or 54.5%. This area comprises flooded areas, forests, swamps and coastal, and Setiu lagoon areas.

iv. The forest covers an area of ??58,631.67 hectares which is approximately 44.95 percent. It has a potential to be a tourism, conservation and reservoir area.

v. Inefficient maintenance of plant and agricultural areas, weaknesses in agricultural programmes implemented and inappropriate public, basic and infrastructure facilities in the agricultural areas resulted in low returns to farmers.

vi. Agricultural activity which is the main driving force in Setiu economy can be enhanced by modern agricultural methods.

vii. Lack of tourism facilities in tourism attraction areas

viii. High ecotourism and agro-tourism development potential in Setiu District.

ix. Competition in bordering districts such as Besut  and Hulu Terengganu in the sector of tourism and modern agriculture