KUALA LUMPUR – The developer of Melaka Gateway, an off-shore development of artificial islands, today called out the state government over the recent termination of its land reclamation agreement.
In a statement, KAJ Development Sdn Bhd called the termination “unlawful, invalid, unfair, unreasonable and unconstitutional”.
It added that on November 16, officers from the Unit Perancang Ekonomi Negeri Melaka (Upen) served a notice of termination dated October 4.
Last Monday, Bernama reported that the Chief Minister’s Office had said the agreement, dated October 4, 2017, expired on October 3, and a termination notice was sent to the company after it failed to complete the 246.45ha project.
“The company is also required to return the project site, effective upon the termination notice issued by the state government. Therefore, all matters arising regarding the Melaka Gateway project site should be directly communicated with the Melaka government,” the office had said.
However, the developer today argued that, "what was terminated was the reclamation concession but Melaka Gateway is not just a reclamation project but a whole private development project that KAJ Development Sdn Bhd has conceived and developed".
“In the midst of economic uncertainty in the country in the face of the Covid-19 pandemic, the federal government and the state government have an obligation to protect and give opportunity to the people of this country and its companies to continue their economic activities so that our daily lives may continue.
“The actions of the state government towards KAJ Development is against such obligation of the government,” it said.
The company added that the terimination “will not only destroy the planning and development of the National Project Melaka Gateway, but also project a negative perception to international investors that would be interested in investing in Malaysia”.
“We implore that both the state and federal governments give appropriate consideration on all the factors highlighted... and to deliberate the best course of action for the country.”
Among the factors it cited was the development’s National Project status, which the company said would attract continuous inflow of foreign direct investments to the country.
Melaka Gateway is a mixed-development project costing RM43 billion and comprising three new islands. It had been expected to be completed in 2028. – The Vibes, November 21, 2020
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