KUALA LUMPUR (Sept 1): KAJ Development Sdn Bhd, the master developer of Melaka Gateway, a 1,366-acre mixed development project scattered on four islands in the Straits of Malacca, has tied-up with China state-owned Powerchina International Group Ltd to develop the project.
The project comprises three reclaimed islands, and one natural island.
In a statement from Malaysian Investment Development Authority (MIDA), KAJ signed a memorandum of agreement (MOA) with Powerchina today and the investments into the project is expected to reach RM30 billion in two years.
Under the MOA, KAJ — which was incorporated on Jan 5, 2007 — will partner with Powerchina for the development and construction of the three islands which have been earmarked for various tourism, commercial, property and maritime developments.
“KAJD will remain as the master developer and project partner with Powerchina International, on all matters leading to the investment, development and construction of Melaka Gateway,” the statement read.
The fourth island at Melaka Gateway — which has been designated as a container and bulk terminal, with shipbuilding and ship repair services, and a maritime industrial park — will be developed by KAJ, together with Guangdong, China and Chief Minister Incorporated (CMI), according to the statement.
Minister of International Trade and Industry Datuk Seri Mustapa Mohamed, who attended the signing ceremony, said this agreement is another reflection of the confidence by investors in the fundamentals of Malaysia’s diversified economy.
“It is my hope that it will further encourage more investors to look at Melaka as their profitable investment destination,” he said.
“Upon completion in 2025, we are expecting to draw in an estimated 2.5 million visitors per annum to Melaka Gateway, and the creation of 40,000 to 45,000 job opportunities. There will be immense trade volume with Melaka Gateway’s port and industrial developments, especially with the special economic zone,” said KAJ chief executive officer Datuk Michelle Ong.
MIDA said Powerchina International has already deployed their technical teams to review the current technical data, carry out initial feasibility studies, consulting and design works at Melaka Gateway.
Launched in February 2014 by Prime Minister Datuk Seri Najib Razak, the Melaka Gateway, comprising offshore development of artificial islands on the coast of Melaka city, is expected to open on 2018 and be completed by 2025.