KAJ Development resumes Melaka Gateway project

MELAKA, March 8 -- KAJ Development Sdn Bhd (KAJD) has resumed the Melaka Gateway project on Pulau Satu (PME1) after the state government has given approval for works to continue through the signing of an agreement on Feb 23.

State Senior Exco for Investment, Industry and Entrepreneur Development Datuk Seri Ab Rauf Yusoh said the project on PME1 was expected to be completed within six years with a total investment estimated at RM15.25 billion.

He said the development began with the construction of the RM1.5 billion International Cruise Ship Terminal (MICT) which is expected to be completed within 15 months.

“The state government has given approval to KAJ Development to develop and continue the operation of the 'cruise terminal' within the Melaka Waterfront Economic Zone (M-WEZ) which covers part of the development project.

"Besides, PME1 will also see the construction of a world-class modern theme park costing RM1.5 billion which is expected to be completed in early 2026 and is seen to be able to attract about five million visitors every year," he told reporters after visiting the PME1 project site on Pulau Melaka here today.

KAJD chief executive officer Datuk Michelle Ong was present.

Ab Rauf said Melaka Gateway is set to become an Asian Investment Gateway which would transform the economic scenario of Melaka from a predominantly 'weekend' economy to a '365-day' economy, with the entire project expected to attract investments of more than RM46 billion.

“The mega-scale project will also offer more than 45,000 jobs, of which 11,470 vacancies being created in the development of PME1.

“It is also expected to contribute more than RM125 billion to gross domestic product (GDP) with a projected double impact of RM1.2 trillion while PME1 alone will contribute more than RM32.5 billion to Melaka's GDP with a projected double impact of RM306.73 billion,” he said.

He said Melaka Gateway also has the potential to become a commercial hub due to its strategic location in the Straits of Melaka besides being situated in the middle between Kuala Lumpur and Singapore.

"The Melaka government is confident that the Melaka Gateway project will have a big impact on the economic landscape of the state and Malaysia in general," he said.

The agreement for the Melaka Gateway project was signed on Oct 4, 2017 but due to technical problems and the spread of COVID-19, the project was halted.

Both parties reached an amicable settlement with an agreement signed on Feb 23 last year based on a court order that the project issues be resolved within three months and the state government took steps to resolve the matter.

-- BERNAMA