KUALA LUMPUR: KAJ Development Sdn Bhd (KAJD) today signed a memorandum of agreement (MOA) worth RM30 billion with China-based conglomerate, Powerchina International Group Ltd (Powerchina International) for the development of Melaka Gateway.
Melaka Gateway is a premier mixed development project which comprises three reclaimed islands and one natural island across 1,366 acres of land at the Straits of Malacca.
The project, of which KAJD is the master developer, has been recognized as both a National Project and a part of the Economic Transformation Programme (ETP).
"This agreement is another reflection of the confidence by investors in the strong fundamentals of Malaysia's diversified economy," said International Trade and Industry Minister, Datuk Seri Mustapa Mohamed, who was present to witness the signing.
"It is my hope that this will further encourage more investors to look at Melaka as their investment destination."
Apart from Mustapa, Transport Minister Datuk Seri Liow Tiong Lai; Melaka Chief Minister Datuk Seri Idris Haron and Malaysian Investment Development Authority (MIDA)'s chief executive officer (CEO), Datuk Azman Mahmud were also on hand to witness the MOA signing.
"This collaboration between KAJD and Powerchina International marks another tangible collaboration between our two nations," said Liow.
"It is also important to note that the signing between these two entities also include plans to develop a port at the Melaka Gateway project, which is very well-aligned with China's One Belt One Road (OBOR) initiative, which I believe will be a game changer that will bring about inclusive growth, economic integration and regional trade."
Liow also pressed upon Melaka's potential to play a prominent role in the OBOR initiative given its strategic location at the Straits of Malacca which sees over 10,000 ship crossings each year.
KAJD's CEO Michelle Ong meanwhile said the agreement is proof of her firm's commitment to both bringing in foreign direct investments into the country as well as in drawing technical know-how and expertise from China.
"We are expecting to attract an estimated 2.5 million visitors per annum upon the completion of the Melaka Gateway in 2025," said Ong.
"We also expect to create up to 45,000 job opportunities and boost Melaka's trade volume with other ports and industrial developments."
The investment of RM30 billion will be released in phases within the 24 months from the signing of the MOA, today.
KAJD will remain as a the master developer while Powerchina International will play the role of project partner on all matters leading to the investment, development and construction of Melaka Gateway.