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KUALA LUMPUR: The developer of the massive Melaka Gateway project is lamenting the project’s “sudden termination” and hinting that legal action will only be taken if talks between them and the state government fail.
KAJ Development Sdn Bhd CEO and founder Michelle Ong said they were slapped with a termination notice on November 16 without “giving any reason” for termination.
“We want to know why,” he said during a press conference here.
She said they had spent RM700 million on the project so far, having carried out 40% of the project work, including soil investigations.
Ong said they had managed to attract billions of ringgit worth of foreign direct investment for the project work, which will take place over the next 10 years.
“We cannot allow these investments to fail. We have already spent so much money. “
When asked about possible legal redress, he said that they wanted to resolve the matter amicably and move on.
“The first priority is to resolve it between both parties.
“If there is no other option, then we have to move on. If there is any legal implication, we are prepared for that, ”he added.
Ong further said that the state government had given them 14 days from November 16 to vacate the facilities.
“I am having sleepless nights because I have been receiving phone calls from everywhere about what will happen with the investments.”
KAJ Development is the lead developer of the Melaka Gateway megaproject and holds the concession to reclaim and develop three islands covering 246ha.
The three islands had been ranked by their tourist lifestyle (including medical treatment), business outsourcing, and as Asia’s gateway for investment.
On November 16, it was reported that the Melaka government had terminated the land reclamation agreement to reclaim the three islands under the RM43 billion Melaka Gateway project.
The prime minister’s office said the agreement with real estate developer KAJ Development Sdn Bhd, signed in October 2017, expired on October 3.
Bernama reported that a termination notice was sent to the company after it was unable to complete the project.
However, Ong said that the state government’s decision to end the land reclamation project was “illegal, invalid, unfair, unreasonable and unconstitutional.”
“We would like to further reiterate that it was the reclamation concession that was canceled, but Melaka Gateway is not a reclamation project, but a complete private development that KAJ Development had conceived and developed.”
Ong added that Prime Minister Muhyiddin Yassin had boldly stated that he did not want anyone to be left behind, in other words, “to support business and strengthen the economy.”
But he said the Melaka state government was doing the opposite for a commercial enterprise that would benefit the country.
He added that the project, over the next 10 years, could have provided between 40,000 and 45,000 jobs and a gross development product of RM 125 billion, with a multiplier effect of RM 1.88 billion.
It was previously reported that the Melaka Gateway project would include an international cruise terminal large enough to host four cruise ships at the same time. Other facilities would have included a yacht marina, luxury condominiums, bungalows with a private marina, tourist ecoparks and theme parks.
A new deepwater port was also to be built with the help of three Chinese companies, according to press reports.
