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MELAKA: The developer of the Melaka Gateway project wants to be allowed to complete it saying that any decision by the state government to revoke its concession agreement will have massive economic consequences for the country.
The state government said on November 16 that the contract with KAJ Development Sdn Bhd had been terminated after the company failed to complete its work on the indicated date.
However, on Saturday, Utusan Malaysia reported Chief Minister Sulaiman Md Ali as saying that the project would continue, pending some technical problems being resolved.
Michelle Ong, executive director of KAJ Development, said they were waiting for more details from the state government after receiving the termination notice.
She said stopping this project would result in “tens of billions at the very least” in lost foreign investment, as several large foreign companies have already committed to funding in the future to ensure project completion.
He added that the collapse of the project would also result in a decline in investor confidence in the country, which could result in even greater losses in the future.
According to Ong, the state and federal governments could also be open to lawsuits.
Responding to news reports that the project could continue, Ong said that while the prime minister did not explicitly state that any continuation would exclude KAJ, the project could not move forward without his company.
“I don’t think they can go on without us because the intellectual property right is ours.”
It also cast doubt on whether funding from abroad will continue if a different developer is hired.
“We developed the project, we made the master plan and we have spent all the money so far.
“Our investors have come in because they believe in us. They have confidence in me and have said they are with me ”.
Ong said that if the state government allows the project to continue under his direction, the entire recovery project could be completed in three years, “as long as there are no obstacles.”
This would create more than 4,000 jobs stimulating various industries.
The company was the lead developer and was awarded the concession to reclaim and develop three islands spanning 246 hectares. The project also included an offshore port and the largest cruise terminal in Asia.
