KUALA LUMPUR: Jiankun International Bhd (Jiankun) is pushing ahead with a commercial development that includes hotels and resorts, business premises, and residential development under a reclamation and development agreement (RDA) with the Malacca state government.
The company said the RDA inked by the company's indirect subsidiary Embon Global Venture Sdn Bhd (EGV) with the Malacca state government entails the reclamation and development of a 12.14 hectare land in Bandar XLIV, which is located in the central Melaka district.
Jiankun executive director and chief executive officer Edwin Silvester Das said the RDA enables the company to venture into the tourism segment with the commercial development comprising the hotel and resorts.
As Malacca is one of the most popular tourist destinations in Malaysia, the company believes that the state will regain its glory days as one of Malaysia's most sought-after destinations with its rich cultural heritage in the post-Covid.
"While the recovery pace of the tourism industry relies heavily on the management of the pandemic globally and that many believe global travel may not recover to pre-pandemic level before 2023, opening in 2023-plus for most markets is likely to be good timing," he said.
EGV is expected to complete the development project within 12 months from the commencement of work, which will put the resort's opening sometime in 2023.
The development plan draft, which is still subject to the necessary regulatory approvals, consists of hotels and resorts, business premises, and residential development with condominiums and serviced apartments.
Das said the timing of the development puts the company in a good position to ride on the recovery of the tourism industry and augurs well with Jiankun's long-term growth strategy.
Aside from that, he is also confident that the initial investment of around RM5.7 million into the reclamation concession right will increase the landbank for the company.
"This will put Jiankun in a strong position to ride on the recovery as the economy gradually reopens and adjust to the new normal.
"The reclamation and development work also helps to drive the recovery of Malacca's economy in the near term and bodes well for the state's ambition in the long term," he added.