Terengganu is a sultanate and constitutive state of federal Malaysia. The coastal city of Kuala Terengganu which stands at the mouth of the broad Terengganu River is both the state and royal capital as well as the largest city in Terengganu.
Terengganu is situated in north-eastern Peninsular Malaysia, and is bordered in the northwest by Kelantan, the southwest by Pahang, and the east by the South China Sea. Several outlying islands, including Pulau Perhentian, Pulau Kapas and Pulau Redang, are also a part of the state. The state has a total area of 13,035 km2 (5,033 sq mi).
Terengganu has a population of 1,015,776 as of 2010.
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.
Terengganu did not receive many Indian or Chinese migrants, and therefore Malay cultural influences predominate. Traditional pursuits such as kite-flying contests, top-spinning contests, and traditional arts & crafts, such as batik and songket are still very much alive. The people of Terengganu have always had a reputation for being socially conservative and devout Muslims.