A tourism-related racing circuit resort project with a gross development value of RM1.3 billion is being planned in the tax-free island of Langkawi.
The project called the Open Road International Circuit (ORIC) and Integrated Resorts will be developed by state-owned company Permodalan Kedah Bhd (PKB) and Open Road Asia Sdn Bhd.
It will comprise semi-detached homes, villas, condominiums, five-star hotels, premium merchandise outlets, and world-class restaurants.
The project will also include a racing circuit, a 4S car distribution centre, a vehicle garage warehousing facility, a racing academy, a sports hospital, and petrol stations.
Both PKB and Open Road Asia have signed a joint venture (JV) agreement for the development.
Kedah Menteri Besar Muhammad Sanusi Md Nor said the project is expected to take five years.
Muhammad Sanusi said it will be another iconic project in the state and it would be developed on land owned by PKB, covering over 74 hectares near the coast in Bukit Malut.
Bukit Malut is located in the southern tip of Langkawi, just 8km from the popular destination of Kuah town.
Muhammad Sanusi said the project will contribute to property development in Kedah.
The government will benefit because the resort project can change the current status from agriculture to industry and commercial, so taxes will be multiplied, he said.
The project will also be able to attract 'high end' tourists, as there will be more spending by those who will go to Langkawi to race cars that cost millions, he added.
Open Road Asia group founder and advisor Datuk David Goh said in a statement that the 5.8-kilometre racing circuit, costing RM180 million, was inspired by a circuit in the Nurburgring, Germany.
He said the circuit will be built on the actual topography of Bukit Malut featuring the longest straight stretch in the world.
"Upon ORIC's completion by the second quarter of 2023, this racing attraction will definitely put Langkawi at the forefront of motorsports in Asia," he said.