Malacca’s newly elected officials are currently reviewing large-scale projects in the state due to fears that the deals signed by the previous government allow foreign governments like China and overseas contractors to take-over these developments, reported The Star.
The state’s Industry, Trade and Investment Committee Chairman Mohd Rafiq Naizamohideen said they are closely reviewing the terms of mega projects to determine the consequence if these developments face issues, like local contractors facing trouble in finishing project.
“Projects not completed according to schedule, as stated in the agreements, could face the possibility of being acquired by the foreign funders.”
The authorities are also re-examining the terms of developments involving foreign funding to find solutions and prevent them from being taken over by foreigners in the event that the loan is not repaid, as the prior government failed to ensure that the agreements are fair to both parties.
“So we are now finding ways to salvage these projects and maintain them as local endeavours,” he explained, adding that they are worried that residents won’t benefit if foreign companies took control of these projects.
Nevertheless, he revealed that non-risky developments will be permitted to proceed.
“There are certain projects that could benefit the state in terms of generating revenue, such as the Impression Melaka project. Projects that are considered non-risky will be allowed to continue without any involvement from the government,” he said.
Among the mega projects being reviewed is the RM40 billion Melaka Gateway.
The 1,504.9ha mixed-use development consisting of four artificial islands is envisioned as Southeast Asia’s biggest private marina with 12 precincts of commercial, residential, entertainment amenities.
Launched in 2014 as a national project under the National Key Economic Areas, the port project was initially proposed by Malaysian firm KAJ Holdings, but has now received investments from PowerChina, with Chinese firms like Rizhao Port Group and Shenzhen Yantian Port Group involved in the construction works.
Image sourced from The Star Online
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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