Malaysia

Melaka Gateway developer files judicial review against state govt

Land reclamation concession termination in breach of Act 829, says CEO

Updated 5 years ago · Published on 14 Dec 2020 11:01PM

Melaka Gateway developer files judicial review against state govt
The concession termination does not bode well for the project, which is slated to be an economic catalyst for Malaysia. – Melaka Gateway pic, December 14, 2020

KUALA LUMPUR – The developer of the Melaka Gateway project, KAJ Development Sdn Bhd, has filed a judicial review challenging the termination notice issued by the state government in relation to land reclamation for its mega port project.

The suit states that the Melaka state government is in breach of the Covid-19 (Temporary Measures) Act 2020 (Act 829) which, among others, bars termination of any construction project suspended due to Malaysia’s Covid-19 prevention measures.

The Covid-19 Act states that any construction-related termination cannot be made until after December 31 or any later date as may be approved under the act passed by the Parliament.

The state government had issued the notice of termination of the land reclamation concession on October 16.

KAJ Development Sdn Bhd chief executive officer Datuk Michelle Ong said the three-year land concession began on October 4, 2017, and work has been suspended since March 18 due to the movement control order (MCO).

“We have submitted several written requests to the Melaka State Government to extend the land reclamation concession, but they were either ignored or rejected,” she said in a statement.

“Then, the October 16 notice of termination stated that KAJ Development did not complete the project as scheduled due to delays.”

Ong said that all land reclamation activities were suspended and could not resume as the equipment used and foreign experts could not return to Malaysia due to the MCO.

“As such, we can only resume land reclamation work when all relevant Covid-19 restrictions are fully lifted, and no one knows when that will be,” she added.

“With our lawsuit, we aim to get the necessary time to be granted by the Melaka government so KAJ Development can complete land reclamation works as stipulated in the three-year concession.”

She explained that there will be three islands created once the reclamation is completed, which will form the foundation of the Melaka Gateway mega port. 

Apart from housing Southeast Asia’s largest cruise terminal and a major oil and gas hub, there will also be an exclusive economic zone and expansive tourist facilities.

“All of these are set to transform Melaka into a bustling modern state steeped in historical influence, restoring it to the glory itenjoyed some 700 years ago as a trading hub connecting East Asia and the west, as well as the Middle East and Europe.”

“That is why Melaka Gateway can be seen as a place where ‘The Past Presents the Future’, a vision that two former prime ministers have already endorsed as a national project that will be an economic catalyst for Malaysia.” – The Vibes, December 14, 2020

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