Melaka Gateway may be shelved

New state govt not keen on RM40bil project

MELAKA: A mega development project – The Melaka Gateway – is facing the possibility of being axed.

This is because the new state government is not keen on going ahead with the RM40bil joint development with a company from China.

Launched in 2014, the project was to become the largest private marina in South-East Asia by 2025 with 12 precincts of residential, commercial, cultural, entertainment and lifestyle elements.

It is a venture between KAJ Development Sdn Bhd and energy company PowerChina International.

The Melaka Gateway, spanning 1,504.9ha, is a private initiative encompassing mixed development on four artificial islands and is classified as a national project under the National Key Economic Areas.

Besides the international cruise passenger terminal on Pulau Melaka East 1, a commercial city was proposed on Pulau Melaka East 2, a liquid bulk terminal on Pulau Melaka East 3, and a multipurpose terminal, including container, and a maritime industrial park on Pulau Melaka East 4.

A source revealed that the current state government felt that the project did not benefit the local folk directly.

“Furthermore, the progress at the site is behind schedule – and not as reported in the news. We view Melaka Gateway as an ailing development project and would recommend for it to be shelved,” he said.

Chief Minister Adly Zahari is expected to make a decision on the status of the project soon.

Earlier, Adly announced that Youth Friendship Unit (BSB), BumiputeraEconomicDevelopment Unit (UPEB), state Economic Development Unit (MAPEN), state Road Safety Council, Landscape Department and Welfare Services Unit are among six agencies to be abolished.

It takes effect today.

He said the functions of Secretariat of Dunia Melayu Dunia Islam (DMDI) and DMDI International Education Sdn Bhd would also be reviewed.

“Units like BSB have the same role as federal departments while the functions of UPEB and MAPEN can be absorbed by the state Economic Planning Unit,” he said.

Adly said the directors of these agencies would be absorbed into other departments.

He said 16 agencies under the purview of the state government and local council would undergo a restructuring exercise at the top management level.

For a start, he said former Kuala Lumpur mayor Datuk Seri Ruslin Hassan had been appointed as CEO of Melaka Development Board.

The construction of the new Melaka Historic City Council building has also been cancelled with immediate effect.