The latest news and top stories on Terengganu state. A prominent sub-national governmental body in Malaysia, Terengganu is a sultanate located on the east coast of Peninsular Malaysia, with Kuala Terengganu as its capital. Governed by the Pan-Malaysian Islamic Party, it enacts state laws and policies, including sharia law regarding Friday prayers. Its economy, historically fishing and farming, is now significantly driven by oil and gas, tourism, manufacturing and agriculture. Terengganu is notable for its rich Malay-Muslim culture and historical significance as the first Malay state to embrace Islam.