KUALA LUMPUR (Sept 2): KAJ Development Sdn Bhd, the master developer of Melaka Gateway, a 1,366-acre (552.8ha) mixed development project scattered on four islands in the Strait of Malacca, has tied up with China’s state-owned PowerChina International Group Ltd to develop the project.
The Malaysian Investment Development Authority (Mida) said KAJ signed a memorandum of agreement (MoA) with PowerChina yesterday and investments in the project are expected to reach RM30 billion in two years. The project comprises three reclaimed islands and one natural island.
Under the MoA, KAJ 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.
The fourth island, which has been designated as a container and bulk terminal, with shipbuilding and ship-repairing services, and a maritime industrial park, will be developed by KAJ together with Guangdong, China and Chief Minister Incorporated, said Mida.
Trade and Industry Minister Datuk Seri Mustapa Mohamed, who attended the signing ceremony, said this agreement is another reflection of the confidence of 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.
Mida said PowerChina had already deployed its technical teams to review the current technical data, and carry out initial feasibility studies, consulting and design works in Melaka Gateway.
Launched in February 2014 by Prime Minister Datuk Seri Najib Razak, Melaka Gateway is expected to open in 2018 and be finished completely by 2025.
This article first appeared in The Edge Financial Daily, on Sept 2, 2016. Subscribe to The Edge Financial Daily here.