The state's transportation terminal, Melaka Sentral, which is located in Bandar Peringgit, will be redeveloped and transformed into a new landmark that is expected to become the most modern transportation hub in the country.
The RM3.5 billion redevelopment project is also expected to act as a catalyst for the state's economic sector.
Melaka Chief Minister Datuk Seri Sulaiman Md Ali said the redevelopment of the integrated terminal and commercial centre would be the heart of the state's main transportation hub and become the most modern transportation hub in the country.
The RM3.5-billion project development agreement was signed yesterday between Melaka Sentral Sdn Bhd (MSSB), together with investor and developer company, Goodyield Development Sdn Bhd (GDSB).
"The development on the seven-hectare site owned by MSSB involves a gross terminal area of 743,775 square feet with a gross development value of RM372 million, which will be handed over in kind to MSSB and can accommodate 340 retail spaces for rent."
He told reporters this after the signing ceremony of the Joint Venture Agreement for the Proposed Melaka Sentral Redevelopment Project between MSSB and GDSB at Kompleks Seri Negeri last week.
Present were State Secretary Datuk Kamel Mohamed, MSSB board chairman Datuk Hasnoor Sidang Husin, MSSB general manager Abu Bakar Jani, GDSB board member Datuk Muhammad Hafidz Nuruddin, GDSB managing director Zahrin Haris and GDSB chief executive officer Wellen Remy Rizal.
Sulaiman said the agreement to build the iconic terminal between a wholly owned subsidiary of the Melaka State Development Corporation and GDSB would also be facilitated through the Private Finance Initiative.
"GDSB is ready to offer MSSB a bank loan debt settlement from the fixed profit share to MSSB for each construction sector.
"In total, the total financial benefit received by MSSB upon the completion of the Melaka Sentral redevelopment project is estimated at RM466 million," he said.
The amount, he said, did not include annual income in the form of recurring income from rental revenue sharing and parking lot management, which is estimated between RM1.5 million and RM2 million a year.
Sulaiman said the development of the integrated commercial and transportation hub would be implemented through five sectors to be completed in stages, which are expected to begin in June next year and fully completed in 2029.
"For the first sector, the project includes the development of a main terminal building for arrivals and departures, a condominium block, a hotel, a 18-hall cinema and a commercial lot that are expected to be completed by 2024.
"The second sector involves the southern region express terminal, a block of condominiums, an entertainment zone and commercial space that will be completed by June 2025.
"The third sector comprises the central region express terminal, two blocks of condominiums and a commercial lot that will be ready by December 2026.
"The fourth sector will consist of the northern region express terminal, one block of condominiums and commercial space to be ready in 2028. The last stage will involve the construction of an express terminal for the eastern region, a mosque, one block of condominiums, monorail hub, banquet hall and commercial space, which are expected to be ready in 2029," Sulaiman said.
He hopes that the development and transformation of the terminal will act as a catalyst for Melaka's economic growth, as well as provide better facilities and infrastructure to the people.
It is also expected to become another tourism product for the state in line with its slogan, "Melakaku Maju Jaya, Rakyat Bahagia, Menggamit Dunia".
Meanwhile, Hasnoor said the redevelopment of the terminal marked a big shift in the state's development agenda.
He said the new economic zone, which is being developed at a cost of RM3.5 billion, would improve the economic status and benefit all people in the state.
Apart from providing more employment and business opportunities, he said the transport and commercial hub would give priority and benefits to local contractors in its construction contracts.
"Of course, this project will improve the economic status of the people of Melaka. Among them is the provision of more than 300 business lots that will provide business opportunities to the people of this state.
"I have also instructed the developer, GDSB, to give priority to local contractors.
"What is the point of a big development if local companies can't benefit from it. The developer has also agreed to allocate a few percentage of the construction work for that purpose."