Main economic activities include retail and wholesale trade in food items, fabric and apparels, fisheries, agriculture, service industries, and tourism, particularly as a jumping-off point for the nearby Perhentian Islands.
Terengganu used to be Malaysia's poorest state until oil and gas were discovered off its coastline not too long ago. Terengganu's main industry now is petroleum and gas. There are huge petrochemical complexes near Paka and Kerteh, involving many joint ventures between the Malaysian national oil company, Petronas, and foreign multinationals. Tourism and fishing are also major industries in Terengganu, a state with a long coastline. Agriculture also remains important, with banana, rambutan, durian, watermelon, and various other fruits and vegetables available in season. Terengganu was traditionally famous for boat-building, with highly decorated carved wooden boats called bangau to be found in the harbor of every village and town in days not so long gone by, before electric motorboats became standard equipment for the state's fishermen