Melaka Gateway Integrated World-Class Development - MSI ...

Development Sponsor:

Advisors:

The World’s 1st & ONLY combined Tourism, Lifestyle, Business and Integrated Port development.

Melaka GatewayIntegrated World-Class Development

Development Valuation Economic Master Planning StrategicStrategy Assessment Benefits Advisor

May 2017

ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD)

DEMAND DRIVEN AND SUSTAINABLEDEMAND DRIVEN AND SUSTAINABLE

The world’s first and only combined tourism, lifestyle, business development,integrated with port and maritime industries

Melaka Gateway is the most sustainable development to attract investment in Asia. A MalaysianGovernment National Project, and the Chinese Government have granted One Belt One Road(OBOR) and Silk Maritime Route status to the Melaka Gateway project.

The full range of prime, high revenue land use incorporated into a world class master plan bymulti national consultants Broadway Malyan, allows for the creation of an effective platform forinvestment, new business and large scale economic growth.

Globally renowned advisors PwC have commented on the positive investment and revenuegenerating capabilities of Melaka Gateway; providing our strategic development business plan.

Furthermore, international property consultants JLL have provided a very positive valuationassessment for the development, based on the connectivity, infrastructure, master plan, and landuse investment opportunities.

Melaka Gateway is not a ‘speculative’ real estate project, this is a unique ‘industry-led’ strategycombined with tourism, commercial, and industrial land use. Melaka Gateway will become thenew Central Business District (CBD) for the State of Melaka, being fully self sustaining due to itsstrategic location half-way between two great cities of Singapore and Kuala Lumpur. This locationbecomes even stronger in the near future as world class connectivity is further enhanced with theSG-KL High Speed Rail, new highway links, international cruise terminal, and shipping routes.

World Class Investment Opportunity A unique combination for sustainable investment returns

1. Embraces National and State interests, strong alignment with NKEAs: This approachprovides the significant ‘enablers’ for the Melaka State economy to reposition itself froma predominantly ‘weekend economy’ to a ‘365 day economy’

2. ‘Industry led’ strategy; this provides sustainable direction and stability for growth, new jobs,and investment, and does not rely on speculative real estate investments.

3. Demand-driven master planning, incorporating & understanding ‘end-user’ requirements.Provision of commercially viable business case that leads the development planning.

4. The comprehensive Port & Maritime industry opportunities provides a cornerstone forsustainable revenues, as the ‘engine room’ for sustainable economic growth.

5. The port and maritime land uses, provide the ‘feeder port’ to the new central beltdevelopment corridor along the HSR route, with critical connectivity to those ‘land locked’developments.

6. Melaka Gateway provides an effective platform for sustainable business generation, new jobs,and economic transformation for the State.

“Melaka Gateway is a unique regional catalyst project, and the revenue growth potential for the initial investors is substantial.”

Keith Martin, Managing Director, PwC Singapore


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Position Paper: the Melaka Gateway Investment OpportunityWorld class development strategy

This Paper provides an overview of the investment opportunities in respect of the MelakaGateway Development Project (“MG”) and related infrastructure projects. It has beenprepared for the main development Sponsor and Concession Holder, KAJ DevelopmentSdn Bhd (“KAJ”), and is based on information provided by KAJ, site visits & inspections,meetings with the Chief Minister, Malaysian Ministries and Related Agencies, and otherkey stakeholders. Complimentary to these information sources, KAJ have also engaged theexpert advise and opinions from the following Advisors:

World Class Advisors

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Development Strategy

PwC Capital Projects & Infrastructure

Singapore

Producing the development strategy, demand sources analysis, investment memorandums, and strategic business plan advisory

Economic Benefits

Deloitte

Kuala Lumpur

Evaluate & forecast socio–economic benefits at Federal & State levels, including job creation and sustainable development

Valuation Assessment

Jones LangLaSalle

Hong Kong

Assessment of commercial and port development valuation potential for the development

Master Planning

Broadway Malyan

London & Singapore

Creation of a commercially viablemaster plan, effective land use planning, urban design guidelines, phasing plans and investment memorandums


Development Strategy

Ernst & YoungKuala Lumpur

Planning and Advising on Company Potential and Initial Public Offering (IPO) in Stock Exchange of Hong Kong, Singapore and Malaysia

1 Executive Summary: Melaka Gateway is ‘Investor-friendly’…. strategically attractive as a compelling proposition for investment, partnerships, and commercial opportunities: the KAJ Development Plan is fully aligned with national development goals, OBOR & Silk Maritime strategies

2 Introducing the Project Sponsor:KAJ Development Sdn Bhd (“KAJ”)

3 Project Description & Development Phasing

4 Master Plan & Concept OverviewPME1, PME2, PME3 and PME4

5 Main Assets to be Developed

6 Economic Benefits

7 Development Incentives as the Catalyst for Development

8 Benefits of the ‘Portopolis’ Development Approach

9 Environmental Considerations

10 PwC’s “Cities of Opportunity” Report 2016:…. a comparison with Melaka New City in the future

Contents

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Position Paper: the Melaka Gateway Investment OpportunityOverview of the key investment & development opportunities


Executive Summary‘Investor-friendly’ 1

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Melaka Gateway project comprisesan ‘investor-friendly’,‘industry-led’ development strategy;

promoting Tourism, Lifestyle,SMART-City initiatives,Commercial & Business developments,Deep Sea Port,and a Maritime Industrial Park

…. all of which will generate significant economic impact for

Melaka & its people

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IntroductionPurpose & objectives of the report

Melaka Gateway: Special Economic ZoneIndustry-led Strategy for Development that benefits Federal & State Government as well as the local community; a significant catalyst for

new sustainable business in the region

…. Malaysia’s latest & most vibrant SEZ…. driving the emerging ‘central belt’ of Malaysia

…. the catalyst for new HSR urban developments

Purpose & Objectives

The key objective is to adopt apartnership environment between publicand private sectors. In this way we canstructure ourselves to achieve the highestpossible positive development outcomefor Melaka Gateway. We seek to forgelong-term sustainable and effectivepartnerships between public sector andprivate sector; to create a platform ofappropriate ‘risk allocation’ and ‘value formoney outcomes’. KAJ has created aviable regional business plan embracingeffective collaboration of common goalsbetween Federal Government, the Stateof Melaka, private sector business andinvestment, along with the people ofMelaka; fully aligned with NKEA’s, as wellas economic development targets of theState of Melaka, which can only producepositive outcomes for overall socio-economic benefits.

This report will demonstrate to allstakeholders the unique value propositionof Melaka Gateway. The development isa ‘National Project’ and alreadyappreciates and enjoys a range ofattractive Government granteddevelopment incentives for investment,development and new business.

These types of incentives provide animportant component to effectively attractinvestment to strategic developments ofnational importance in the Asian Region.

To enable Melaka Gateway to achievethe required competitive regionalpositioning, the project MasterConcessionaire, KAJ Development SdnBhd, it’s investors and developmentpartners have cultivated an efficient andeffective partnership with theGovernment of Malaysia.

Experience tells us that successful majordevelopments of national, regional andglobal impact require effectivepartnerships between public and privatesectors that can only be deliveredeffectively with a long term robustbusiness orientated plan.

A key element of the SEZ proposal is thatthe Melaka Gateway development hasbeen planned and executed as aRegional Development Project, asopposed to a ‘developer-driven real

estate project’, transforming theMelaka State economy from apredominantly ‘weekend’ economy,to a ‘365 day’ economy


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Executive SummaryMelaka Gateway is a compelling proposition for investment…. and now is the time

Creating the platform for sustainable business investment, as the catalyst for new business and regional economic growth

1. Macro Level

Melaka Gateway puts Melaka on the global stage: a national projectwith regional and global significance: fully aligned with national and statesocio-economic development targets. At the core of the strategicdelivery planning is adherence to an ‘industry-led’ policy, to securesustainable business investment and long term growth

…. a Policy & Strategy of Transformation:…. shifting Melaka’s economy from a largely‘weekend economy’ to a ‘365 day economy’

2. Development Level

Four ‘man-made’ islands, providing the right mix of development andgrowth opportunities: This is an Industry-led development strategy; itsall about attracting new business, creating new jobs and higher incomefor the people of Melaka. The initial development thrust builds onMelaka’s success as a World Heritage tourism destination, and bringsnew industry opportunities to propel commercial and real estateopportunities going forward, as a fully integrated development eco-system

3. The long term benefits for the people of Melaka

The development plan provides the platform for long-term growth, aswell as significant ‘knock on’ positive factors that will be the multiplier forsignificant income opportunities, social services provision, as well asimproved education options and infrastructure for everyone in Melaka.We will see Melaka Gateway as the thriving commercial hub half-waybetween two great cities of Singapore and Kuala Lumpur, connected bythe high speed rail project, new highways, and sea access for tourists,business people and industry.


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Master Plan OverviewIndustry-led strategy with a demand-driven integrated master plan

PME-1Tourism & Lifestyle Tourism Cruise Terminal & Ferry MICE & Hotels Residential Commercial Health Education, Vocational Training Innovation Business Park Maritime Business Park

PME-2SMART-Commercial Innovation, Knowledge, GreenTech, R&DInsurance, BankingOffshore FinancialCorporate Training CentresBusiness Support, BPOPort Industry OfficesSupport space for 2 Cities:

“…. half way between SG & KL”

Portopolis

PME-4Maritime Industrial Park Marine Repair & Maintenance Container Facilities Services & Logistics Shipyard & Offshore Fabrication Ship & Marine Equipment

Manufacturing

PME-3 (PP)Deep Sea Port Facilities Bulk Handling Bulk Storage Bunkering, Trading Oil & Gas

Fully integrated development eco-system


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Creating a Viable Business PlanFully integrated development ecosystem

Development Ecosystem

The clear benefit of Melaka Gateway as aregional development project is the ability tofacilitate so much of the national economicstrategy, alignment with National KeyEconomic Areas (NKEAs), and bringappropriate economic benefits to the peopleof Malacca.

To harness these opportunities KAJ havecreated a development ecosystem; thisillustrates the overall integrationefficiencies, as well as significant synergieswith national and regional developmentinitiatives.

Melaka Gateway has been planned and willbe delivered as a ‘national project’. Themaster concessionaire, KAJ, takes thisresponsibility very seriously, and thereforesignificant planning and strategic elementsof the development ecosystem are beingplanned & delivered in a manner that meetsthe ‘national interest’.

Consequently, the most effective andefficient way to deliver this opportunity isthrough partnerships between public andprivate sectors, under a robust long-termstructured business plan, as illustrated inthe diagram overleaf.

Therefore, private sector investor-operatorswill form a critical component of successfulinvestment in Melaka Gateway.


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Melaka Gateway’s Unique Value PropositionPublic Sector initiatives, delivered by Private Sector

Development Ecosystem

MelakaGateway

Ecosystem

Tourism &Lifestyle

Developments

Portopolis;Port Related

Activities

Smart City &

CommercialHub

Aligned with National Development Targets

PME-1

&

PME-2

PME-3

PME-4

Tourism: Cruise Terminal Marina, Ferry Waterfront Promenade Events & Concerts Healthcare & Education Hospitality & MICE

Initial Phases ofthe SMART City& CommercialHub

Tourism & Lifestyle

BPO Regional Offices GreenTech, R&D Offshore Financial Insurance, Banking Corporate Training Port Related Offices Support space for 2 Cities:

“…. half way between SG & KL”

SMART Commercial

Industry-led Strategy & Connectivity

Public Private Partnership under aSpecial Economic Zone framework (FCZ/FIZ)

Macro Economic Benefits:1. Aligned with NKEA’s2. This is a National Project3. Integrated Master Planning

Catalyst for new urban growth areas along North-

South Highway; MG Port as ‘Feeder’ to Malaysia’s

emerging ‘Central Belt’

MG Strategic Partnership withInternational sources

under the21st Maritime Silk Road

Drives Investment,Trade, Industry

Deep Sea PortServices & Logistics

Container/ Bulk handlingStorage, Bunkering, Trading

Marine Repair & MaintenanceShip Building & Offshore Fabrication

Portopolis, Trade Routes


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(1) Stakeholder Alignment

Melaka Gateway is a project aligned with the national interests; consequently the projectneeds to be delivered to meet the strategy of the NKEAs and relevant Statedevelopment initiatives. The project also needs to be commercially viable, to attractprivate investment, development, new business, tourists, visitors, residents etc.Therefore, the development strategy is fully aligned with the needs of the keystakeholders; to achieve this, private sector (KAJ) receives support from public sector(Federal & State levels); development status, fiscal incentives, human capital incentives,and such like.

(2) Industry Led Strategy

A key differentiator of Melaka Gateway is that the project is being led by industryinitiatives; this facilitates economic growth, population expansion, commerce, jobcreation, and income generation to support new commercial businesses across theState. In this way the development is able to attract talent and residents for newbusiness and to occupy the residential development components

(3) Development Ecosystem

There are a range of benefits, that will be achieved by Melaka Gateway executing thedevelopment under a regional framework. These benefits reach across Federal, State,Local Community, and further afield to boost regional and international trade, provide acentral location for new business expansion, as well as overall socio-economic benefits;this is what we mean by a ‘Development Ecosystem’, whereby the developmentcomponents and the delivery strategy give equal opportunities to a range of land use,industries and ‘end-user’ groups.

Fully Integrated Business PlanKey elements to achieve successful integrated development ecosystem

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(4) Deep Sea Port & Maritime Industries

This is the ‘ace card’, whereby the development can leverage from effective FDIpartnerships and contribute to, as well as benefit from, international tradefacilitation. Melaka Gateway has an extensive maritime heritage, and today theDeep Sea Port facilities, combined with a Maritime Industrial platform, providesexactly what our China partners require, aligned with OBOR and Silk Maritimeinitiatives. We refer to this as the World’s First Combined Tourism, Lifestyledestination, a ‘custom-designed’ SMART Commercial City, together with avibrant Portopolis.

(5) Emerging Central Belt; HSR ‘TOD’ Growth

The Malaysian Government along with the Singapore Government haveconfirmed the ‘green light’ for a high speed rail system between the two capitalcities. This will see an emerging central development belt along the HSR route;encouraging Transit Orientated Development (TOD). The new station locationswill be a catalyst for new urban developments and business, however, thoselocations are ‘land locked’. We see Melaka Gateway port facilities as the ‘feeder’port to the new urban growth areas, and a significant component to encourageand enable the economic growth around the new HSR stations: the ‘umbilicalcord’ for HSR related urbanization opportunities.

(6) Sustainable development

KAJ have adopted a long-term strategy and policy for the development; theplanning and land use promotes sustainable growth and will benefit from the‘multiplier effect’ of related land uses and development catalysts, such as: deepsea port, international cruise terminal, demand-driven master planning, economicinfrastructure (utilities, transport, connectivity), social infrastructure (health,education, housing), incentives (duty free, tax, pioneer status, human capitalsupport, knowledge worker schemes), regional development status

.

Fully Integrated Business PlanKey elements to achieve successful integrated development ecosystem


The right platform for development

There are a range of benefits, that will beachieved by Melaka Gateway. Thesebenefits reach across Federal, State, LocalCommunity, and further afield to boostregional and international trade, provide acentral location for new businessexpansion, as well as overall socio-economic benefits.

To effectively achieve stakeholderalignment on such a large scale, KAJDhave recognised the need to createpartnerships with the Melaka State, andoutwith the project: international trade andcommercial partnerships, alignment withNKEAs

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02Catalyst for Trade, Goods & Services

International trade partnerships: significant

component of the 21st

Century Maritime Silk Road initiatives

0403

01

Deep Sea Port Facilities

Maritime Industrial Park

Build on Existing Strengths of Melaka

Maritime heritage enhanced by International Cruise Terminal &

Deep Sea Port; recognised Tourism location & energised

waterfront

The ‘Feeder’ Port to new urban areas on emerging

Central Belt

Melaka Gateway facilitates new urban growth areas along the

North-South Highway; the ‘feeder’ port for trade links

Commercial growth serving SG & KL

Prime location for co-located shared services, corporate

training, healthcare & education. Tourism & Lifestyle

Melaka Gateway’s Unique Value PropositionKey demand drivers for growth & investment


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1 Enhancing inclusiveness towards an equitable society

lnclusivity has always been a key principle in Malaysia's national socio-economic development agenda, and a fundamental goal of the New Economic Model. This commitment to enable all citizens - regardless of gender, ethnicity, socio-economiclevel, and geographic location- to participate in and benefit from the country's prosperity, is anchored on a belief that inclusive growth is not only key to individual and societal wellbeing, but also critical for sustaining longer periods of solid economic growth.

2 Improving wellbeing for all

The Government has always adopted a balanced development approach that gives equal emphasis to both economic growth and the wellbeing of the rakyat.Wellbeing refers to a standard

of living and quality of lifethat addresses an individual's socio-economic, physical, and psychological needs. Wellbeing is essential to enhancing productivity and mobility, while simultaneously strengthening social cohesion and national unity.

3 Accelerating human capital development for an advanced nation

Human capital development isa critical enabler for driving and sustaining Malaysia's economic growth and supporting the transition of all economic sectors towards knowledge intensive activities. An efficient and effective labour market

is also necessary to attract investments into Malaysia and enable everyone to participate in and enjoy the benefits of economic growth.

Extract from EPU, 11th Malaysia Plan

National Development TargetsKey objectives for economic growth and wellbeing


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4 Pursuing green growth for sustainability and resilience

Green growth refers to growth that is resource-efficient, clean, and resilient. It is a commitment to pursue development in a more sustainable manner from the start, rather than a more conventional and costly model of 'grow first, clean up later'.A reinforced commitment to green growth will ensure that Malaysia's precious environment and natural endowment are conserved and protected for present and future generations.

5 Strengthening infrastructure to support economic expansion

Infrastructure development ensures that the rakyat have access to essential amenities and services such as transport, communications, electricity and clean water. Better integrationof different transport modes will create seamless movement for people and goods. Moreover, an efficient infrastructure lowers the cost of doing business, which in turn improves national competitiveness and productivity. Good infrastructure is therefore the foundation of social inclusion, economic expansion, and growth.

6 Re-engineering economic growth for greater prosperity

Robust economic growth is crucial to ensure that the aspiration of becoming an advanced economy is attained. A strong and broad-based economy, producing high- value goods and services, will generate the high-paying jobs associated with an advanced nation. The economy must be placed on a solid foundation to withstand external shocks and generate undisrupted prosperity for the people.

National Development TargetsKey objectives for economic growth and wellbeing

Extract from EPU, 11th Malaysia Plan



Full range of socio-economic benefits to beachieved by the Melaka Gatewaydevelopment; reaching across Federal,State, Local Community, and further afieldto boost regional and international trade,provide a central location for new businessexpansion, as well as overall socio-economic benefits.

This unique combination of strategiclocation, effective development planning,and support of the Malaysian Government,allows for significant long-term partneringopportunities, investment and newbusinesses

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Development BenefitsSustainable growth

Feeder Port to HSR Central Developments

Development Ecosystem; Integrated Planning

Alignment with NKEAs

Industry-led Development Strategy

Port & Maritime Industry Growth Catalyst

Sustainable Business Growth Strategy & Jobs

1

2

3

4

5

6

Melaka Gateway in partnership with government, will generate a significant and sustainable ‘Catalyst for Transformation’

…. propelling the Melaka Regional Economy from a predominantly ‘weekend economy’ to a ‘365 day’ economy



Full range of socio-economic benefits to beachieved by the Melaka Gatewaydevelopment; reaching across Federal,State, Local Community, and further afieldto boost regional and international trade,provide a central location for new businessexpansion, as well as overall socio-economic benefits.

This unique combination of strategiclocation, effective development planning,and support of the Malaysian Government,allows for significant long-term partneringopportunities, investment returns and newbusiness opportunities.

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Development BenefitsSustainable growth over the life of the asset

1. Embraces National and State interests, strong alignment with NKEAs; a fundamentalobligation of all public-private initiatives. This approach provides the significant‘enablers’ for the Melaka State economy to reposition itself from apredominantly ‘weekend economy’ to a ‘365 day economy’

2. Focus on an ‘Industry led’ strategy; this provides sustainable direction and stabilityfor growth, new jobs, and investment, and does not rely on speculative real estateinvestments.

1. The master planning has been created as a ‘demand-driven’ approach,incorporating and understanding the ‘end-user’ requirements. In this way, it’s thecommercially viable business case that leads the development planning.

2. The comprehensive Port & Maritime industry opportunities provides a cornerstone forsustainable revenues, as the ‘engine room’ for sustainable economic growth.

3. A significant component of the HSR ‘Transit Orientated Development’ plans,whereby, the port and maritime land uses, provide the ‘feeder port’ to the newcentral belt development corridor along the HSR route, with critical connectivityto those ‘land locked’ developments.

4. Melaka Gateway provides an effective platform for sustainable business generation,new jobs, and economic transformation for the State.

Melaka Gateway is a regional catalyst project, and delivers the ‘promise’ much more efficiently and effectively as a national project, in partnership

with private sector


Introducing theProject Sponsor:

Concession Holder & Master Developer

KAJ DEVELOPMENT Sdn Bhd (“KAJ”)

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18ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD)

Concession Holder & Master DeveloperKAJ DEVELOPMENT Sdn Bhd

KAJ is the concession holder and master developer of the Melaka Gateway developmentprojects. Incorporated in Malaysia on 5th January 2007, as a private limited companyunder the Companies Act 1965. Its company registration number is 758285-D.

The initial conceptualization and planning for Melaka Gateway commenced in 2013, andthe project was officially launched by the Prime Minister of Malaysia in 2014. As themaster developer, KAJ is fully committed to accelerate the planning, strategy and deliveryof the project components in phases, with a target substantial completion by 2015. To thisend, KAJ will collaborate and seek effective partnerships with globally renowned propertydevelopers and industry players in their respective fields.

Vision, Mission & Values

Melaka Gateway is a significant component of Malaysia’s economic growth strategy andeconomic development. Consequently the project strategy has been planned to be fullyaligned with Malaysia’s National Key Economic Areas (NKEAs); with an additional 2.5mtourists arrivals, creating 45,000 new jobs.

Our Core Values

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Introducing the SponsorThe driving force behind successful development

•To be a respected leader in our specialized field of diversified business activitiesVision

•To maximize our business potential by relentlessly pursuing innovation and new opportunities in niche and emerging marketsMission

•Core values form the foundation of the company’s success. These values will project professionalism in all of our business relationsValues

Innovative Focused Professionalism

Venture into new ways of doing

business, and always endeavor to meet client & partner

expectations

Never divert from the intended and agreed business objectives

Adhere to high morale and ethical

principles in all business dealings


Key Achievements

KAJ has made great strides forward with the project, fromwhen it was first conceptualized in 2013 and officiallylaunched in 2014.

Melaka Gateway project has been grantedOne Belt One Road (OBOR) status by theChinese Government.

KAJ have signed development agreementsFor initial stages of the Port DevelopmentIslands with Port from Shenzhen.This will provide the initial inertia toaccelerate development progressand create a platform for newtrade and maritime activities.

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Introducing the SponsorThe driving force behind successful development

Unveiling of the Melaka Gateway Master Plan

Obtained the National Key Economic Transformation

(ETP) status

Application of Tax incentives to the Ministry of Finance

MOA with PowerChina for Finance, Engineering, Procurement and

Engineering (FEPC)

Construction of Deep Sea Port, Cruise Jetty & Ferry Terminal

with CIQ

Collaboration with Royal Caribbean Cruise (RCCL) for

International Cruise Jetty

2016

2017


Melaka International Cruise Jetty Construction Commenced

2018

MOU with China Shipbuilding & Offshore International (CSOC)

2014

2015

PME-1 & PME-3 Topside Development and

construction started

2019

Project Description&Development Phasing

Integrated land use strategyDemand-driven Master Planning

Industry led development approach

3


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Planning Concepts& Urban Design Guidelines

The four ‘man-made’ islands allow forconsiderable creativity with the masterplanning. The plan successfully embracesboth lifestyle and tourism with maritimeindustrial land uses.Many coastal cities are known for theirvibrancy, where ships and maritime activityprovide the city-scape and ‘active’ views.Melaka Gateway is a unique developmentand therefore ‘standard’ Malaysian planningguidelines are not fully applicable, and wouldgive a negative impact to the overalldevelopment viability. The Planners will lookat planning ‘best practice’ to be implementedin the project, and bring innovation ofplanning design guidelines to Melaka, suchas: centralised car parking, amendments toutility reserves, amendments to publicservices land requirements, etc

Demand Analysis

The approach to master planning has been‘industry-led’ and this provides an appropriatelevel of confidence in respect of demanddrivers for industry, business, commerce,service industries. The plan does not relyon ‘speculative’ real estate projects.

A key demand driver for commercial space isthe strategic location; half way between KLand Singapore. This is seen as a key driverto business support services, corporatetraining, shared services etcEducation space is driven by corporatetraining and business schools, Healthcare isdriven by a more affordable offering in anaccessible location; heath tourism,Indonesian market research & science, etc.

Main Themes for Development

The key themes are linked to Melaka’sexisting strengths: maritime heritage, WorldHeritage City location, and therefore land andsea is closely integrated into the planningthemes. Tourism relates to Melaka as anexisting destination, which will be boosted bythe International Cruise Terminal, retail andentertainment offerings.

Incentives & Partnerships

Understanding the available incentives anddevelopment partnerships allows the planningbrief to be more realistic: we can evaluateland use, development density, plot ratios,GFA allocation much more efficiently.National project status for the project directlyenhances the effectiveness of the commercialdevelopments, and related businesses.

Deep Sea Port & Maritime Industries

The planning, use and execution of the DeepSea Port & the Maritime Industrial Park isdependent on the operators business plan.However, it is clear that the water depth andavailable space is sufficient to accommodatethe largest vessels and the full suite of trade,shipping, and maritime industries.

Innovation Business Park

Aligned with Malaysia's NKEAs, the masterplan provides suitable space andenvironments for the ‘innovation’ and ‘digital’industry group. This also covers media,creative and communications businesses.MG has already obtained tax incentives and’pioneer status’ for hi-tech, ‘green’ tech.

Master Plan OverviewIndustry-led strategy with demand-driven planning


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Maritime Business Park

To meet the needs of a ‘Portopolis’ as ashipping and maritime hub, the master plancaters for an ‘incentivised’ zone called theMaritime Business Park, where shipping andmaritime businesses can group together andbenefit from the project’s tax and otherincentives specifically for these industries.The Maritime Business Park is located on thewaterfront and adjacent to the port facilities.

Cre8tive BizHub

To respond to the demand for ‘start ups’,digital business space requirements,computer and digital businesses, the masterplan provides a bright and vibrant locationcalled “Cre8tive BizHub”. These are morelikely to be small businesses, SME’s, ‘young’businesses, and therefore the master planenvisages more affordable building types,naturally ventilated common circulation areas,to reduce build cost, energy bills, and setmore affordable space costs.

SMART City

Many jurisdictions are seeking a viablelocation for new SMART City developments,suitable to meet changing expectations andsocial demands, as well as efficiency of doingbusiness. PME-2 island is the perfectlocation because this can be ‘custom-designed’ to accommodate the necessarytechnology and Smart infrastructure to enablea SMART City development. free from anyexisting obstructions. These initiatives makeMelaka Gateway more competitive andrespond to modern lifestyle needs.

Healthcare, Education & Vocational Training

Provision of the key elements of socialinfrastructure services allows for newpopulation catalytic growth; Health Tourism,specialist clinics, Digital Health innovation.International çity campus schools, corporatetraining & skills development, businessschools. Vocational training to suit keyindustry needs, such as a MaritimeUniversity.

Development PhasingMaster Development Phases:

Phase 1 of the development has thereclamation of PME-1 Tourism & Lifestyle,with the International Cruise Terminal.Phase 2 sees reclamation of PME-3 & 4Deep sea Port & Maritime Industrial ParkPhase 3 marks the commencement of theSMART Commercial City, island PME-2

Sub Development Phases: Refer to therelevant section of this Paper entitled“Development Phasing Plan”

Commercially Viable Master Plan

As with capital cities around the world, thecost of doing business becomes increasinglychallenging. Not only the cost, but the lack ofavailable land in a suitable location is also aconsiderable barrier. The four ‘man-made’islands respond to that barrier in an effectivemanner, by creating new usable land from thesea. The strategic location and combinationof industry, commercial, tourism and lifestyleland use provides an integrated development,which is essential for a commercially viablemaster planned development.

Master Plan OverviewIndustry-led strategy with demand-driven planning


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Phase 1 Phase 2 Phase 3

Island PME-1

International Cruise Terminal, Tourism & Lifestyle, Business services

Island PME-3 & 4

Deep Sea Port,Maritime Industrial Park

Island PME-2

SMART Commercial City

Sub Phase (A)1. Environmental Impact

Assessment (EIA)2. Hydraulics Surveys3. Technical Marine Design4. Reclamation of 212 acre

The reclamation to provide the structural support platforms for both Deep Sea Port (PME-3) and Maritime Industrial Park (PME-4) will commence as soon as the technical design and Environmental Impact Assessments are completed and approved.

The structural platforms will be able to accommodate phased delivery of the various port, oil & gas, shipping, maritime uses and to suit ‘natural’ demand, as well as ‘induced’ demand for these services.

The combined and integrated uses are known as the MG ‘Portopolis’, full range of integrated Maritime Industries, Oil & Gas, incorporating: Bulk Handling Bulk Storage Oil & Gas support services Bunkering, Trading Marine Repair & Maintenance Container Facilities Services & Logistics Shipyard & Offshore

Fabrication Ship & Marine Equipment

Manufacturing Logistics & Storage

1. EIA & Technical Studies

2. Reclamation phases

3. SMART Infrastructure ‘custom designed’ (Below ground):• Common services ducts for

utilities & technology• Pneumatic waste extraction• transport provision,

autonomous vehicle systems

• Traffic control sensors

4. SMART Infrastructure (above ground):• Pedestrian & Cycle tracks• Rapid bus systems• People-mover Pods• Communications &

Information Systems

5. Development Phasing:• Innovation, Knowledge,

GreenTech, R&D• Maritime Business Hub• Cre8tive BizHub:

incubators, media, creative, digital

• Insurance, Banking• Offshore Financial• Corporate Training Hub• Business Support, BPO• Port Industry Offices• Support space for 2 Cities:• “…. half way between SG

& KL”

Sub Phase (B)1. International Cruise Terminal2. Duty Free Retail3. Mega Mall, Entertainment4. MICE & Hotels5. Civic Plaza & Theatre6. Serviced Residences7. Promenade (1)

Sub Phase (C)1. Destination Mall2. Business, Education,

Healthcare3. Vocational Training, Maritime

University4. Waterfront Residences, F&B5. Cr8tive BizHub6. Central Park7. Floating Theatre

Sub Phase (D)1. Promenade (2)2. Business, Residential3. Innovation Business Park4. Urban Beach5. Waterfront Development, F&B

Sub Phase (E)1. Maritime Business Park2. Mixed Commercial3. Integrated Resort

Master Plan OverviewDevelopment phasing plan


4

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Master Plan&Concept Overview


PME1, PME2, PME3 & PME4

Tourism, Lifestyle, Education, Health, Business

Predominantly in the initial phases the business modelfor Island 1 (PME-1) is driven by Tourism & Lifestyle. Tosustain revenue generating business and increase thepopulation, the plan introduces business uses (health,education, creative, innovation, shared services, maritimeoffices); demand driven by the strategic location, beinghalf way between two great cities of Singapore & KL.

PME-1 – Tourism, Lifestyle, BusinessTourism focus, with the initial elements of SMART Commercial


26

CHARACTER DISTRICTS


27

PME-1 – Tourism, Lifestyle, BusinessMain land use & effective transport solutions

‘People-Pod’ Mover‘hop-on hop-off’ stationsAutonomous Vehicles


28

PME-2 – SMART Commercial CitySpringboard for R&D, innovation, blockchain and digital business hub


29

PME-3 – Integrated Deep Sea Port – Liquid TerminalSubstantial contribution to trade across the Region and Nationally


30

PME-3 – Integrated Deep Sea Port – Liquid TerminalSubstantial contribution to trade across the Region and Nationally


31

PME-4 – Melaka Maritime Industrial ParkSynergy with onshore adjacent industrial hinterland


32

Main Assetsto be Developed 5


Main Land Use DescriptionGFA (sqft)

Million

1 MICE, Mixed Commercial Integrated MICE Facilities, Events, Weddings, Commercial Business Services

7.5

2 Business Hub, Office Offices, BPO, Shared Services,Innovation & Maritime Parks, Cr8tive BizHub

6.8

3 Hospitality Range of types and standards to suit ‘end-users’

3.1

4 Retail, F&B,Entertainment

Mega Mall, Destination Themed Mall, Entertainment Zones

3.2

5 Serviced Apartments, Residential

MICE & Business visitors, Health tourism facilities, Waterfront Residences

7.2

6 Education, Vocational Training & Healthcare

Corporate Training, Business Schools, Maritime University, Specialist Health Clinics & Services, Research

2.0

7 Civic Use, Theatre Public Areas, Event Space, Theatres 1.5

8 Green Space, Parks City Parks, Green environments

9 International Cruise Terminal

Duty Free shopping & Waterfront F&B, Marina Clubhouse

1.0

10 Ferry Terminal 0.4

11 Car Parking, Utilities 1.2

Total Development GFA (sqft) 33.9m

PME-1 Tourism, Lifestyle & Business

The master plan provides wide ranging flexibility of land use combinations; it is an ‘investor-friendly’ distibution of landuse, green space, in response to identified demand sources.KAJ have have produced a commercially vaible master planning solution for investment.

The Investment OpportunityPME-1 gross floor area & comprehensive land use options


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Main Land Use Description

1 SMART Infrastructure • Common services ducts for utilities & technology• Pneumatic waste extraction• transport provision, autonomous vehicle systems• Traffic control sensors• Pedestrian & Cycle tracks• Rapid bus systems• People-mover Pods• Communications & Information Systems• High-speed connectivity

2 Commercial, Business, Office, Innovation, Digital

• Innovation, Knowledge, GreenTech, R&D• Maritime Business Hub• Cre8tive BizHub: incubators, media, creative, digital• Insurance, Banking• Offshore Financial• Corporate Training Hub• Business Support, BPO• Port Industry Offices• Key demand-driver for Business Support space for

2 Cities: “…. half way between SG & KL”

3 Education & Training • Corporate training & business schools• International schools, city campus style• Vocational training: Maritime University, hospitality

& tourism schools

4 Healthcare • Health Tourism• Regional treatments centres• Specialist clinics, research, digital health

5 Serviced Apartments, Residential, Hospitality, Retail, F&B, Entertain

• Full range and types of accommodation and lifestyle offerings to suit the functionality, as well as énd-user’requirements

6 Financial services Hub • Offshore trading hub• Banking, insurance, financial services

Projected Total Development GFA (sqft) 70m

PME-2 SMART Commercial City

The Investment OpportunityPME-2 gross floor area & comprehensive land use options


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SMART City Benefits

Melaka Gateway offers the scale andopportunity to ‘custom-design’ and ‘build-in’the necessary technology infrastructure tofacilitate Smart City developments.

Many urban areas around the world must‘force-fit’ Smart technology and sensors intoexisting infrastructure and buildings, withinherent problems and barriers; MelakaGateway provides technology companies witha ‘blank canvas’ to create the right andeffective platform to facilitate Smart Cityinitiatives and benefits.

Catalyst for Growth

The Smart City platform will create aspringboard for innovation and digitalbusinesses. This will include research andrelated education services. The strategiclocation will be a hub to service the Asianregion.

PME-2 The SMART Commercial CitySMART city concepts


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Main Land Use Description

1 Portopolis • A fully integrated land use plan and strategy that encompasses maritime industries, oil & gas, with commercial developments

• Provides economies of scale and allows for significant synergies from integrated development approach, related ‘demand drivers’, platform for industry, services, job creation

2 PME-3Deep Sea Port98 acres

• Bulk Handling• Bulk Storage• Oil & Gas support services• Bunkering, Trading

3 PME-4Industrial Maritime Park750 acres

• Marine Repair & Maintenance• Container Facilities• Services & Logistics• Shipyard & Offshore Fabrication• Ship & Marine Equipment Manufacturing• Logistics & Storage

4 Future ’onshore’ industrial manufacturing and industrial Estate

• Provides the connectivity to onshore logistics, manufacturing: boosts the efficiency and handling volumes of the port facilities

• Key component of Portopolis efficiency strategy

PME-3 & PME-4 – The ‘Portopolis’Main land use concepts

The ‘Portopolis’ concept is a key unique selling proposition for Melaa Gateway; this is theworld’s first combined tourism, lifestyle, SMART City and port development. Thecombination of deep sea port and the maritime industrial park provides the platform for allaspects of maritime industries

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Economic Benefits

6


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A regional catalyst project such as Melaka Gateway will deliver the ‘promise’ muchmore efficiently and effectively as a national project

National Project Status is already a key advantage for both public and private sectorinterest. However, in terms of being regionally competitive, and meeting the nationalinterests, Melaka Gateway will be delivered more efficiently and maximise its potentialreturns more effectively as an SEZ.

Other competing developments and locations in the Asian region are able to offer‘national project’ equivalent incentives as currently granted to Melaka Gateway. To propelthe ‘industry led’ strategy of Melaka Gateway to success, the project must be seen as anational and regional catalyst, that encompasses the full support of the MalaysianGovernment, together with private sector expertise and international trade anddevelopment partnerships.

The following sections of this Paper illustrate the national and regional benefits thatMelaka Gateway will be capable of generating.

On the other side of the ‘risk and reward’ development equation, the Melaka Gatewaydevelopment needs to demonstrate the ‘return’ to government; the socio-economic benefitthat can be generated by the development. Some of the ‘direct’ and ‘indirect’ sources ofsocio-economic benefit are listed below:

Economic Benefit Description

DIRECT • Provision of economic growth infrastructure (transport, utilities, etc)• Provision of Social Infrastructure (Health Education, services)• Tourism & MICE expenditure• Alignment with NKEA target sectors• Job creation, through an ‘industry led’ development strategy• Knowledge generation and business revenues

INDIRECT • Multiplier effects to the national and state economy, national, regional and local business communities

• Transform the State economy from ‘weekend’ to ‘365 day’ economy• Sustainable growth, value creation over the life od the assets• The ‘feeder’ port to new HSR stations in the emerging ‘central

development belt’ of Malaysia

Economic BenefitsOptimising the advantages of ‘national project’ status


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Socio-economic BenefitsSignificant advantages to Government, Business, & the Local Community

We see the provision of enabling infrastructure in two main categories, involving a range ofcapital funding and support initiatives:

1. Critical Infrastructure in the national interest

Melaka International Cruise Terminal: Marine Substructure, Reclamation,Breakwater construction

Port Facilities: Marine Substructure, Reclamation and Breakwater construction

2. Catalyst Projects in the national interestProvision of Social Infrastructure

MICE Facilities: Potential PPP transaction as a Tourism driven initiative. Forexample, the Melbourne Convention Centre PPP where PPP was used to makethe project commercially viable, and meets the government objective ofincreasing tourism revenues

Hi-Tech/Innovation/Green-Tech/Research Facilities: These facilities arecritical for development of a knowledge economy for today’s businessenvironments

Macro Benefit Generated by Melaka Gateway

17 years (2015 – 2032)

Population Growth 875,000 to 1,000,000

Job Creation 40,000 - 45,000

Gross Development Product (GDP) RM 125.0 Billion

Gross National Income (GNI) RM 99.0 Billion

New Businesses Created 800 New Tenants

Multiplier Effect RM 1.188 Trillion

Gross Development Value (GDV) RM 68.0 Billion

Gross Development Cost (GDC) RM 50.0 Billion


DevelopmentIncentivesas theCatalystsfor Investment 7

41

Government incentives &

development support, in the

national interests


42

Construction phase Operations phase

Cash

support

Subsidy/ grant

Preferential loan

Direct co-lending

Guaranteed lender

Land acquisition & clearance

Construction of Related Facilities

Revenue from existing assets

Infrastructure Fund/ Bonds

ECAs and multilaterals

Tax Increment Financing

Off-take agreement

Revenue from existing assets

In-kind/

non cash

support

Comfort Letter/ Letter of Support

Government land

Real estate development rights

Ancillary facilities/ revenue

enhancements

Concession extension

Real estate development

rights

Tax relief

Guarantee Construction cost guarantee

Exchange rate guarantee

Equity guarantee

Debt/ Bond guarantee

Exchange rate guarantee

Equity guarantee

Debt/ Bond guarantee

Typical Government Support Options in Malaysia

The types of Government support measures for large infrastructure projects in Malaysia areshown below. There could be various support mechanisms, depending on theimplementation phase (i.e. construction or operations phase), support amount andrequirements, and extent of positive impact. Usually, government support needs to befacilitated by the corresponding economic and social benefits analysis.

Facilitation funds

Facilitation funds are another form of government support for the development basicinfrastructure (e.g. access road to the site, bridges, and utilities) and to encourage privatesector investment in high impact projects in line with the government strategic thrusts. Thisincludes projects within the National Key Economic Areas (NKEA). Its ultimate objective isto bridge the ‘’viability gap’’ for large scale projects with significant economic benefit as acatalyst for private sector investment. The facilitation fund will be provided in the form of agrant or conditional adjustable grant with a funding limit of 10% of the total project cost.

Unit Kerjasama Awam Swasta or the Public Private Partnership Unit (UKAS) under thePrime Minister’s Department, is the central agency responsible for the processing ofapprovals, disbursement and monitoring the Facilitation Fund.

Development incentivesThe platform for successful partnerships, with appropriate risk allocation


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Project Incentives for Catalyst Tenants

Incentives to attract catalyst-status investors should be:

(1) easily understood by investors/partners, eligibility criteria, incentives and processes;(2) efficiently processed in application and approval procedure and;(3) customized to target certain investors/partners by addressing their key concerns

Potential incentives could include but not limited to

Seed Capital: Structuring ‘lease back’ transactions that allow world class operators to provide services, with Government providing the construction capital; the operator will pay-back Government ‘soft loan’ over a fixed term ; only for selected “Catalyst Operators”

Ease of entry approvals which include company registration, residence and work permit, tax registration, foreign investment licensing, business and trading permits, healthcare and pension plan, etc.

Subsidies which could be in the form of subsidized land, rent free period for the land, subsidized or free construction cost for the buildings, etc.

Infrastructure support which includes building infrastructure (e.g. road, bridge, reclamation, breakwaters, etc) that will increase the physical connectivity of Melaka Gateway, as well as improvement in power and water supply in the area, etc.

Ease of development approvals which include facilitation in seeking for approvals such as building permits, EIA and SIA approval, etc.

Tax incentives which could be in the form of tax holidays, reduced tax rate, investment allowances, tax credits, accelerated depreciation, tax exemptions, etc.

Malaysian Investment Development Authority (MIDA)

The various incentives under MIDA are offered based on products or activities in themanufacturing and services sector irrespective of its project location. The relevant projectswhich may be eligible for incentives under the Promotion of Investments Act (PIA) include:

• General investments• High Technology Projects• Strategic Projects• Production of Halal Food Products• R&D activities• Technical or vocational training company and private higher educational institution

Tax exemptions include pioneer status, investment tax allowance, Halal park status (foroperators, industry players and logistic operators within the Halal Parks), and others taxincentives.

Development incentivesThe platform for successful partnerships, with appropriate risk allocation


8

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Benefits of the ‘Portopolis’development approach


45

Integrated Maritime Land Use: Portopolis

The unique value proposition for MelakaGateway is the fact that the full andcomprehensive range of multi-use maritimeactivities, services and businesses can bebrought together in adjacent vicinity.

To any multi use port investor/operatorthe Melaka Gateway advantages areclear: high level government support,strategic location, port licensesapproved, deep sea facilities, adjacenthinterland for industry and connectivity.

Commercially Sustainable

The strategic location of Melaka GatewayPortopolis cannot be ignored; for centuries,Melaka has been a key location for tradeand maritime services; this advantage iseven stronger today; particularly with theincreased size of shipping, and the needfor deep sea facilities.

China shipping fleets have largely bi-passed Malaysia ports in the years goneby; the new OBOR and Silk Maritimestratgeies being embraced by MelakaGateway with their Chinese partners, willsee the return of China fleets, causing asignificant multiplier to trade flows into theMelaka Gateway Portioplois; recently theChinese Ambassador to Malaysia wasquoted as predicting China maritime tradeto ASEAN, which is currently worthUSD500 Billion, to grow to USD1 Trillion in5 years

Portopolis Handling Capacity

The ‘’base case’’ projections for initialcontainer business are in the region of 5million TEUs per annum. This volumewould be achieved by the Portopolissecuring its share of the growing Malaysiancontainer volumes.There is also a significant element of‘’induced demand’’ to be generated by thestrategic partnerships with KAJ’s Chinesepartnerships; this could easily double thenormal demand share for TEUs. Likewisethe strategic partnerships (OBOR and SilkMaritime Route) will see significantmultipliers to all forms of maritime tradeand services, including shipbuilding, repairand maritime maintenance.

Synergy with ‘’onshore’’ adjacentindustrial ‘’hinterland’’

This again adds value to Melaka Gateway’sattraction as a regional port development,whereby onshore lands will be allocated forrelated industrial use, supporting theoverall efficiency and effectiveness of thePortopolis concept. Key maritime serviceswill be conducted within the reclamimedplatforms that form the Deep Sea Port andthe Maritime Industrial Park, in additionland will be available for logistics,manufacturing (light and heavy), adjacentto, and forming part of the overallPortopolis offering.

Benefits of ‘Portopolis’ Development ApproachStrengthening national & international port & maritime opportunities


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Integrated Development StrategyAdopting the “portopolis” Concept

The “Portopolis” concept will be a catalyst to the development in respect of the central coreareas, capitalising on integrated development opportunities.

The coexistence between the port, industrial, commercial and urban areas of anydevelopment is the core idea behind land-use planning with an objective to aim for port &land-use continuity. This is characterized by an “industrial” approach focusing on businessand the interests of port operators, assuming that the needs of citizens must bend to thoseof the companies working in the port. This implies satisfying the logistics requirements of theport as well as the needs of industrial/ residential; if one is to achieve the enhancement ofboth.

Connectivity and Development

The commercial port has the potential to evolve as driver of business location, industrial andrelated development for the project. This is primarily due to the strategic location and thesea routes which will offer the users a speedy connectivity to their distant suppliers,customers, and partners worldwide.

In the Portopolis model, time and cost of connectivity is bound to replace space anddistance as the primary metrics shaping development, with "economies of connectivity”becoming as salient for competitiveness as economies of scale and economies of scope.

The basic drivers for development of the surrounding area include:

1. The industrial and logistics sectors’ pursuit of affordable, accessible land near port

2. Increased gateway cargo traffic (and international passengers via cruise ships)generated by port

3. Ports serving as a catalyst to attract regional business development

4. Ports are often spatial clusters for innovation, research and development



Natural Deep Sea, avoiding the cost of repeated dredging

Comparative analysis of port through-put and the navigable water depth (ACD)

The table below indicates the various vessel types and shipping volumes (DWT = deadweighttonnage). The Penang port has a draft of ~12 metres currently which is proposed to bedredged to 18.5 metres in future as part of Bagan Bay development.

ACD Types

of VesselsEffect on shipping volumes

~12.5m

Small Handy size carriers; Panamax

• Seawaymax – carriers of 20,000-28,000 DWT; Handy size – carriers of 28,000-40,000 DWT; and Handymax – are carriers of 40,000-50,000 DWT

• Panamax, the largest size that can traverse the Panama Canal (52,000 DWT loaded)

~14.5m

Aframax ; Q-max

• oil tankers between 75,000 and 115,000 DWT

~18.5m

New Panamax

• Upgraded Panama locks with120,000 DWT; suitable for projected Penang Port demand

~22.5m

Suezmax;Chinamax

• Suezmax typically ships of about 160,000 DWT,

• Chinamax are carriers of 380,000-400,000 DWT up to 24 m (79 ft) draft

The current draft of many Asian portfacilities supports small handy-sizevessels and are therefore toorestrictive, leading to smaller cargosand limited growth for the portbusiness. The standard majorbreak-bulk commodities handled inAsian ports will need to evolve sothat effective vessel draft of 18.5metres would provide the optimalsolution.

This gives the Melaka Gatewayport an ability to handle the world’slargest tankers and cargo vessels;this is effectively the only suitableand sustainable option for viableport expansion.

Melaka Gateway offers ACDto meet the requirements ofthe world’s largest vessels –this is the most effectivesolution to allow forsustainable Portopolisdevelopment; as the catalystto enable the most effectiveintegrated port expansionintegrated solutions

Benefits of ‘Portopolis’ Development ApproachCritical importance of deep sea facilities


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Integrated Development Strategy, Industry-Led approchAdopting the “Portopolis” Concept

Characteristics for Development of Portopolis

A key objective of the land-use planning for a waterfront developments is to optimize theeffectiveness of the port while efficiently developing and using as much of the adjacenthinterlands as possible for industrial and commercial users. The net result is to achievesignificantly higher socio-economic cumulative benefits as a whole.

•via development of connectivity and green belts to integrate the port areas back into the industrial & urban domain

Highlight transitional spaces between port and related development

•to ensure adequate availability of roads and access routes within the development and supplement commercial revenue generation by efficient trade distribution and handling

Streamline transportation infrastructure

•this may involve waterfront residential development co-existing with the commercial/ industrial port usage; creating a vibrancy, similar to the spectacular Hong Kong waterfront locations

Explore use of the water and waterfront between urban and port functions for land-use planning

•to ensure an optimum balance between density of development and intended functionality via suitable plot ratios for different land-use categories; also to achieve the balance of appropriate and related land uses

Appropriate density of the land-use development plan



EnvironmentalConsiderations 9

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People, Prosperity, Planet…. protecting our future


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Environmental Impact Assessments

All major development projects, especially waterfront marine locations, are required toconduct detailed EIA studies, and comply with the relevant regulatory requirements inrespect of environmental matters.

We detail below the compliance status for the Melaka Gateway developments:

EIA Studies

• Islands PME-1 & PME-2: The Macro EIA has been undertaken by the Stategovernment representatives and approved. Subsequently the State Government andthe Department of Environment (DOE) has authorized KAJD to commence reclamation.

• Island PME-3: Preliminary EIA was approved by DOE in 2013 and expired 2015. Inaccordance with the revised environmental regulation (October 2015) DOE instructedKAJD to conduct a new Detailed EIA, which will be completed this year.

• Island PME-4: In accordance with the new environmental regulations, KAJD willconduct a Detailed EIA, which will be completed this year.

•• Total Development EIA: A combined Detailed EIA will be produced for the whole

development which will be completed this year.

Hydraulics Studies

• PME 1, 2 & 3: With a total reclaimed land area of 609 acres, has been approved fordevelopment by the Drainage and Irrigation Department, in year 2014.

• PME 4: KSJD will conduct the necessary Hydraulics Study and that will be completedwithin this year.

Environmental ConsiderationsPeople, prosperity, planet – protecting our future


PwC’s “Cities of Opportunity”Report 2016 10

51

Future comparison:

….how would the New Melaka City measure up

10 years from now


City IndicatorsSingapore

2nd out of 30 citiesKuala Lumpur20th out of 30 cities

Melaka(Today)

Melaka(in 10 years)

1 Intellectual Capital & Innovation

136 65 10 50

2 Technology Readiness 167 67 50 75

3 City Gateway 146 128 50 100

4 Transport & Infrastructure 174 110 50 100

5 Health, Safety & Security 136 42 75 100

6 Sustainability & the Natural Environment

95 67 50 75

7 Demographics & Livability 108 67 50 75

8 Economic Clout (Power) 107 98 10 25

9 Ease of Doing Business 209 151 75 100

10

Cost99 119 150 100

1,377 914 575 800

*Note: The score of 914 gave KL a ranking of 20th out of 30 global cities evaluated in the study.

Asian Cities30 Global Cities

RankingScore

Singapore 2nd 1,377

Hong Kong 9th 1,290

Seoul 11th 1,238

Beijing 19th 956

Kuala Lumpur 20th 914 Melaka

Jakarta 28th 573

Mumbai 29th 568

In a matter of 10 years from now, Melakahas the real potential to be a liveable city atthe standard of Kuala Lumpur.Melaka can ‘leap-frog’ other Asian cities insuch a short timeframe by adopting anintegrated master plan approach, with afocus on ‘ease of doing business’, and socio-economic benefits for residents.A core part of this strategy, in addition todevelopment of a Smart City Zone, isattracting new business and job creation byadopting a robust ‘industry-led’ strategy,and also providing healthcare, educationand social services.Addressing the needs of all residents ofMelaka, we will see an amazing and rapidtransformation for good.

PwC has just recently published the 7th Edition of Cities of Opportunity, which evaluates and ranks30 global cities. We look at where potentially would Melaka sit in this evaluation today, and in ten(10) years from now: the results are very encouraging for viable urbanisation growth.

In relation to a comparison of other Asian cities in the study, we make that comparison below:

52

Melaka

Melaka - 575 10

yea

rs

PwC’s Cities of Opportunity ReportHow would Melaka score across future international comparisons


Thank you

Terima kasih


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