Melaka Gateway Integrated World-Class Development
Melaka Gateway Integrated World-Class Development
The World’s 1st & ONLY combined Tourism, Lifestyle, Business and Integrated Port development.
DEMANDDEMAND DRIVEN DRIVEN AND AND SUSTAINABLE SUSTAINABLE May 2017
Development Sponsor:
Advisors:
Development Valuation Economic Master Planning Strategic Strategy Assessment Benefits Advisor 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) World Class Investment Opportunity A unique combination for sustainable investment returns
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 Malaysian Government 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 by multi national consultants Broadway Malyan, allows for the creation of an effective platform for investment, new business and large scale economic growth.
Globally renowned advisors PwC have commented on the positive investment and revenue generating capabilities of Melaka Gateway; providing our strategic development business plan.
Furthermore, international property consultants JLL have provided a very positive valuation assessment for the development, based on the connectivity, infrastructure, master plan, and land use investment opportunities.
Melaka Gateway is not a ‘speculative’ real estate project, this is a unique ‘industry-led’ strategy combined with tourism, commercial, and industrial land use. Melaka Gateway will become the new Central Business District (CBD) for the State of Melaka, being fully self sustaining due to its strategic location half-way between two great cities of Singapore and Kuala Lumpur. This location becomes even stronger in the near future as world class connectivity is further enhanced with the SG-KL High Speed Rail, new highway links, international cruise terminal, and shipping routes.
1. Embraces National and State interests, strong alignment with NKEAs: This approach provides the significant ‘enablers’ for the Melaka State economy to reposition itself from a 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 for sustainable revenues, as the ‘engine room’ for sustainable economic growth.
5. The port and maritime land uses, provide the ‘feeder port’ to the new central belt development 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 ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 2 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Position Paper: the Melaka Gateway Investment Opportunity World class development strategy
This Paper provides an overview of the investment opportunities in respect of the Melaka Gateway Development Project (“MG”) and related infrastructure projects. It has been prepared for the main development Sponsor and Concession Holder, KAJ Development Sdn Bhd (“KAJ”), and is based on information provided by KAJ, site visits & inspections, meetings with the Chief Minister, Malaysian Ministries and Related Agencies, and other key stakeholders. Complimentary to these information sources, KAJ have also engaged the expert advise and opinions from the following Advisors:
World Class Advisors
Development PwC Capital Producing the development Strategy Projects & strategy, demand sources analysis, Infrastructure investment memorandums, and strategic business plan advisory Singapore
Economic Deloitte Evaluate & forecast socio– Benefits economic benefits at Federal & Kuala Lumpur State levels, including job creation and sustainable development
Valuation Jones Lang Assessment of commercial and port Assessment LaSalle development valuation potential for the development Hong Kong
Master Broadway Creation of a commercially viable Planning Malyan master plan, effective land use planning, urban design guidelines, London & phasing plans and investment Singapore memorandums
Development Ernst & Young Planning and Advising on Company Strategy Kuala Lumpur Potential and Initial Public Offering (IPO) in Stock Exchange of Hong Kong, Singapore and Malaysia
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 3 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Position Paper: the Melaka Gateway Investment Opportunity Overview of the key investment & development opportunities
Contents
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 Overview PME1, 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
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 4 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Executive Summary ‘Investor-friendly’ 1
Melaka Gateway project comprises an ‘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
5 Introduction Purpose & objectives of the report
Purpose & Objectives These types of incentives provide an important component to effectively attract The key objective is to adopt a investment to strategic developments of partnership environment between public national importance in the Asian Region. and private sectors. In this way we can structure ourselves to achieve the highest To enable Melaka Gateway to achieve possible positive development outcome the required competitive regional for Melaka Gateway. We seek to forge positioning, the project Master long-term sustainable and effective Concessionaire, KAJ Development Sdn partnerships between public sector and Bhd, it’s investors and development private sector; to create a platform of partners have cultivated an efficient and appropriate ‘risk allocation’ and ‘value for effective partnership with the money outcomes’. KAJ has created a Government of Malaysia. viable regional business plan embracing effective collaboration of common goals Experience tells us that successful major between Federal Government, the State developments of national, regional and of Melaka, private sector business and global impact require effective investment, along with the people of partnerships between public and private Melaka; fully aligned with NKEA’s, as well sectors that can only be delivered as economic development targets of the effectively with a long term robust State of Melaka, which can only produce business orientated plan. positive outcomes for overall socio- economic benefits. A key element of the SEZ proposal is that the Melaka Gateway development has This report will demonstrate to all been planned and executed as a stakeholders the unique value proposition Regional Development Project, as of Melaka Gateway. The development is opposed to a ‘developer-driven real a ‘National Project’ and already estate project’, transforming the appreciates and enjoys a range of Melaka State economy from a attractive Government granted predominantly ‘weekend’ economy, development incentives for investment, to a ‘365 day’ economy development and new business.
Melaka Gateway: Special Economic Zone Industry-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
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 6 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Executive Summary Melaka 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 project with regional and global significance: fully aligned with national and state socio-economic development targets. At the core of the strategic delivery planning is adherence to an ‘industry-led’ policy, to secure sustainable 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 and growth opportunities: This is an Industry-led development strategy; its all about attracting new business, creating new jobs and higher income for the people of Melaka. The initial development thrust builds on Melaka’s success as a World Heritage tourism destination, and brings new industry opportunities to propel commercial and real estate opportunities 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, as well as significant ‘knock on’ positive factors that will be the multiplier for significant income opportunities, social services provision, as well as improved education options and infrastructure for everyone in Melaka. We will see Melaka Gateway as the thriving commercial hub half-way between two great cities of Singapore and Kuala Lumpur, connected by the high speed rail project, new highways, and sea access for tourists, business people and industry.
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 7 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Master Plan Overview Industry-led strategy with a demand-driven integrated master plan
Fully integrated development eco-system
PME-1 Tourism & Lifestyle Tourism Cruise Terminal & Ferry PME-2 MICE & Hotels SMART-Commercial Residential Innovation, Knowledge, GreenTech, R&D Commercial Insurance, Banking Health Offshore Financial Education, Vocational Training Corporate Training Centres Innovation Business Park Business Support, BPO Maritime Business Park Port Industry Offices Support space for 2 Cities: “…. half way between SG & KL”
Portopolis
PME-3 (PP) PME-4 Deep Sea Port Facilities Maritime Industrial Park Bulk Handling Marine Repair & Maintenance Bulk Storage Container Facilities Bunkering, Trading Services & Logistics Oil & Gas Shipyard & Offshore Fabrication Ship & Marine Equipment Manufacturing
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 8 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Creating a Viable Business Plan Fully integrated development ecosystem
Development Ecosystem
The clear benefit of Melaka Gateway as a regional development project is the ability to facilitate so much of the national economic strategy, alignment with National Key Economic Areas (NKEAs), and bring appropriate economic benefits to the people of Malacca.
To harness these opportunities KAJ have created a development ecosystem; this illustrates the overall integration efficiencies, as well as significant synergies with national and regional development initiatives.
Melaka Gateway has been planned and will be delivered as a ‘national project’. The master concessionaire, KAJ, takes this responsibility very seriously, and therefore significant planning and strategic elements of the development ecosystem are being planned & delivered in a manner that meets the ‘national interest’.
Consequently, the most effective and efficient way to deliver this opportunity is through partnerships between public and private sectors, under a robust long-term structured business plan, as illustrated in the diagram overleaf.
Therefore, private sector investor-operators will form a critical component of successful investment in Melaka Gateway.
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 9 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Melaka Gateway’s Unique Value Proposition Public Sector initiatives, delivered by Private Sector
Industry-led Strategy & Connectivity
Tourism & Lifestyle Public Private Partnership under a Special Economic Zone framework (FCZ/FIZ) Tourism: Cruise Terminal Marina, Ferry Macro Economic Benefits: Waterfront Promenade 1. Aligned with NKEA’s Events & Concerts 2. This is a National Project Healthcare & Education 3. Integrated Master Planning Hospitality & MICE Development Ecosystem Catalyst for new urban Initial Phases of growth areas along North- the SMART City South Highway; MG Port as & Commercial Tourism & ‘Feeder’ to Malaysia’s Hub Lifestyle emerging ‘Central Belt’ Developments
PME-1 PME-3
& Melaka Portopolis; Gateway Port Related PME-2 Ecosystem Activities
Smart City PME-4 MG Strategic & Partnership with International sources Commercial under the Hub 21st Maritime Silk Road BPO Drives Investment, Regional Offices Aligned with National Trade, Industry GreenTech, R&D Development Targets Offshore Financial Insurance, Banking Portopolis, Trade Routes Corporate Training Port Related Offices Deep Sea Port Support space for 2 Cities: Services & Logistics “…. half way between SG & KL” Container/ Bulk handling Storage, Bunkering, Trading SMART Commercial Marine Repair & Maintenance Ship Building & Offshore Fabrication
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 10 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Fully Integrated Business Plan Key elements to achieve successful integrated development ecosystem
(1) Stakeholder Alignment
Melaka Gateway is a project aligned with the national interests; consequently the project needs to be delivered to meet the strategy of the NKEAs and relevant State development initiatives. The project also needs to be commercially viable, to attract private investment, development, new business, tourists, visitors, residents etc. Therefore, the development strategy is fully aligned with the needs of the key stakeholders; 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 industry initiatives; this facilitates economic growth, population expansion, commerce, job creation, and income generation to support new commercial businesses across the State. In this way the development is able to attract talent and residents for new business and to occupy the residential development components
(3) Development Ecosystem
There are a range of benefits, that will be achieved by Melaka Gateway executing the development under a regional framework. These benefits reach across Federal, State, Local Community, and further afield to boost regional and international trade, provide a central location for new business expansion, as well as overall socio-economic benefits; this is what we mean by a ‘Development Ecosystem’, whereby the development components and the delivery strategy give equal opportunities to a range of land use, industries and ‘end-user’ groups.
11 Fully Integrated Business Plan Key elements to achieve successful integrated development ecosystem
(4) Deep Sea Port & Maritime Industries
This is the ‘ace card’, whereby the development can leverage from effective FDI partnerships and contribute to, as well as benefit from, international trade facilitation. Melaka Gateway has an extensive maritime heritage, and today the Deep Sea Port facilities, combined with a Maritime Industrial platform, provides exactly what our China partners require, aligned with OBOR and Silk Maritime initiatives. We refer to this as the World’s First Combined Tourism, Lifestyle destination, a ‘custom-designed’ SMART Commercial City, together with a vibrant Portopolis.
(5) Emerging Central Belt; HSR ‘TOD’ Growth
The Malaysian Government along with the Singapore Government have confirmed the ‘green light’ for a high speed rail system between the two capital cities. This will see an emerging central development belt along the HSR route; encouraging Transit Orientated Development (TOD). The new station locations will be a catalyst for new urban developments and business, however, those locations are ‘land locked’. We see Melaka Gateway port facilities as the ‘feeder’ port to the new urban growth areas, and a significant component to encourage and enable the economic growth around the new HSR stations: the ‘umbilical cord’ for HSR related urbanization opportunities.
(6) Sustainable development
KAJ have adopted a long-term strategy and policy for the development; the planning and land use promotes sustainable growth and will benefit from the ‘multiplier effect’ of related land uses and development catalysts, such as: deep sea port, international cruise terminal, demand-driven master planning, economic infrastructure (utilities, transport, connectivity), social infrastructure (health, education, housing), incentives (duty free, tax, pioneer status, human capital support, knowledge worker schemes), regional development status
.
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 12 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Melaka Gateway’s Unique Value Proposition Key demand drivers for growth & investment
The right platform for development
There are a range of benefits, that will be To effectively achieve stakeholder achieved by Melaka Gateway. These alignment on such a large scale, KAJD benefits reach across Federal, State, Local have recognised the need to create Community, and further afield to boost partnerships with the Melaka State, and regional and international trade, provide a outwith the project: international trade and central location for new business commercial partnerships, alignment with expansion, as well as overall socio- NKEAs economic benefits.
01 02 Build on Existing Catalyst for Trade, Strengths of Melaka Goods & Services
Maritime heritage enhanced by International trade International Cruise Terminal & partnerships: significant Deep Sea Port; recognised component of the 21st Tourism location & energised Century Maritime Silk waterfront Road initiatives
Deep Sea Port Maritime Facilities Industrial Park
Melaka Gateway facilitates new Prime location for co-located urban growth areas along the shared services, corporate North-South Highway; the training, healthcare & ‘feeder’ port for trade links education. Tourism & Lifestyle The ‘Feeder’ Port to new Commercial growth urban areas on emerging serving SG & KL Central Belt 03 04
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 13 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) National Development Targets Key objectives for economic growth and wellbeing
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-economic level, 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 life that 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 is a 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
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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 integration of 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.
Extract from EPU, 11th Malaysia Plan
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 15 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Development Benefits Sustainable growth
The right platform for development
Full range of socio-economic benefits to be This unique combination of strategic achieved by the Melaka Gateway location, effective development planning, development; reaching across Federal, and support of the Malaysian Government, State, Local Community, and further afield allows for significant long-term partnering to boost regional and international trade, opportunities, investment and new provide a central location for new business businesses expansion, as well as overall socio- economic benefits.
1 Alignment with NKEAs
2 Industry-led Development Strategy
3 Development Ecosystem; Integrated Planning
4 Port & Maritime Industry Growth Catalyst
5 Feeder Port to HSR Central Developments
6 Sustainable Business Growth Strategy & Jobs
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
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 16 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Development Benefits Sustainable growth over the life of the asset
The right platform for development
Full range of socio-economic benefits to be This unique combination of strategic achieved by the Melaka Gateway location, effective development planning, development; reaching across Federal, and support of the Malaysian Government, State, Local Community, and further afield allows for significant long-term partnering to boost regional and international trade, opportunities, investment returns and new provide a central location for new business business opportunities. expansion, as well as overall socio- economic benefits.
1. Embraces National and State interests, strong alignment with NKEAs; a fundamental obligation of all public-private initiatives. This approach provides the significant ‘enablers’ for the Melaka State economy to reposition itself from a predominantly ‘weekend economy’ to a ‘365 day economy’
2. Focus on an ‘Industry led’ strategy; this provides sustainable direction and stability for growth, new jobs, and investment, and does not rely on speculative real estate investments.
1. The master planning has been created as a ‘demand-driven’ approach, incorporating and understanding the ‘end-user’ requirements. In this way, it’s the commercially viable business case that leads the development planning.
2. The comprehensive Port & Maritime industry opportunities provides a cornerstone for sustainable 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 new central belt development corridor along the HSR route, with critical connectivity to 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
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 17 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Introducing the Project Sponsor: 2
Concession Holder & Master Developer KAJ DEVELOPMENT Sdn Bhd (“KAJ”)
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 18 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Introducing the Sponsor The driving force behind successful development
Concession Holder & Master Developer KAJ DEVELOPMENT Sdn Bhd
KAJ is the concession holder and master developer of the Melaka Gateway development projects. Incorporated in Malaysia on 5th January 2007, as a private limited company under the Companies Act 1965. Its company registration number is 758285-D.
The initial conceptualization and planning for Melaka Gateway commenced in 2013, and the project was officially launched by the Prime Minister of Malaysia in 2014. As the master developer, KAJ is fully committed to accelerate the planning, strategy and delivery of the project components in phases, with a target substantial completion by 2015. To this end, KAJ will collaborate and seek effective partnerships with globally renowned property developers and industry players in their respective fields.
Vision, Mission & Values
Melaka Gateway is a significant component of Malaysia’s economic growth strategy and economic development. Consequently the project strategy has been planned to be fully aligned with Malaysia’s National Key Economic Areas (NKEAs); with an additional 2.5m tourists arrivals, creating 45,000 new jobs.
•To be a respected leader in our specialized field of diversified Vision business activities
•To maximize our business potential by relentlessly pursuing Mission innovation and new opportunities in niche and emerging markets
•Core values form the foundation of the company’s success. These Values values will project professionalism in all of our business relations
Our Core Values
Innovative Focused Professionalism Venture into new Never divert from the Adhere to high ways of doing intended and agreed morale and ethical business, and always business objectives principles in all endeavor to meet business dealings client & partner expectations
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2019 Key Achievements Melaka International Cruise Jetty KAJ has made great strides forward with the project, from Construction Commenced when it was first conceptualized in 2013 and officially launched in 2014. 2018 Melaka Gateway project has been granted PME-1 & PME-3 One Belt One Road (OBOR) status by the Topside Development and Chinese Government. construction started 2017 KAJ have signed development agreements For initial stages of the Port Development Construction of Deep Sea Port, Islands with Port from Shenzhen. Cruise Jetty & Ferry Terminal This will provide the initial inertia to with CIQ accelerate development progress and create a platform for new trade and maritime activities. MOU with China Shipbuilding & Offshore International (CSOC)
MOA with PowerChina for Finance, Engineering, Procurement and Engineering (FEPC) 2016
Collaboration with Royal Caribbean Cruise (RCCL) for International Cruise Jetty 2015
Application of Tax incentives to the Ministry of Finance
Obtained the National Key Economic Transformation (ETP) status
2014 Unveiling of the Melaka Gateway Master Plan
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 20 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Project Description & Development Phasing 3
Integrated land use strategy Demand-driven Master Planning Industry led development approach
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any means or otherwise 21 without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Master Plan Overview Industry-led strategy with demand-driven planning
Planning Concepts Main Themes for Development & Urban Design Guidelines The key themes are linked to Melaka’s The four ‘man-made’ islands allow for existing strengths: maritime heritage, World considerable creativity with the master Heritage City location, and therefore land and planning. The plan successfully embraces sea is closely integrated into the planning both lifestyle and tourism with maritime themes. Tourism relates to Melaka as an industrial land uses. existing destination, which will be boosted by Many coastal cities are known for their the International Cruise Terminal, retail and vibrancy, where ships and maritime activity entertainment offerings. provide the city-scape and ‘active’ views. Melaka Gateway is a unique development and therefore ‘standard’ Malaysian planning Incentives & Partnerships guidelines are not fully applicable, and would Understanding the available incentives and give a negative impact to the overall development partnerships allows the planning development viability. The Planners will look brief to be more realistic: we can evaluate at planning ‘best practice’ to be implemented land use, development density, plot ratios, in the project, and bring innovation of GFA allocation much more efficiently. planning design guidelines to Melaka, such National project status for the project directly as: centralised car parking, amendments to enhances the effectiveness of the commercial utility reserves, amendments to public developments, and related businesses. services land requirements, etc
Deep Sea Port & Maritime Industries Demand Analysis The planning, use and execution of the Deep The approach to master planning has been Sea Port & the Maritime Industrial Park is ‘industry-led’ and this provides an appropriate dependent on the operators business plan. level of confidence in respect of demand However, it is clear that the water depth and drivers for industry, business, commerce, available space is sufficient to accommodate service industries. The plan does not rely the largest vessels and the full suite of trade, on ‘speculative’ real estate projects. shipping, and maritime industries. A key demand driver for commercial space is the strategic location; half way between KL Innovation Business Park and Singapore. This is seen as a key driver to business support services, corporate Aligned with Malaysia's NKEAs, the master training, shared services etc plan provides suitable space and Education space is driven by corporate environments for the ‘innovation’ and ‘digital’ training and business schools, Healthcare is industry group. This also covers media, driven by a more affordable offering in an creative and communications businesses. accessible location; heath tourism, MG has already obtained tax incentives and Indonesian market research & science, etc. ’pioneer status’ for hi-tech, ‘green’ tech.
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 22 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Master Plan Overview Industry-led strategy with demand-driven planning
Maritime Business Park Healthcare, Education & Vocational Training To meet the needs of a ‘Portopolis’ as a shipping and maritime hub, the master plan Provision of the key elements of social caters for an ‘incentivised’ zone called the infrastructure services allows for new Maritime Business Park, where shipping and population catalytic growth; Health Tourism, maritime businesses can group together and specialist clinics, Digital Health innovation. benefit from the project’s tax and other International çity campus schools, corporate incentives specifically for these industries. training & skills development, business The Maritime Business Park is located on the schools. Vocational training to suit key waterfront and adjacent to the port facilities. industry needs, such as a Maritime University.
Cre8tive BizHub Development Phasing To respond to the demand for ‘start ups’, Master Development Phases: digital business space requirements, Phase 1 of the development has the computer and digital businesses, the master reclamation of PME-1 Tourism & Lifestyle, plan provides a bright and vibrant location with the International Cruise Terminal. called “Cre8tive BizHub”. These are more Phase 2 sees reclamation of PME-3 & 4 likely to be small businesses, SME’s, ‘young’ Deep sea Port & Maritime Industrial Park businesses, and therefore the master plan Phase 3 marks the commencement of the envisages more affordable building types, SMART Commercial City, island PME-2 naturally ventilated common circulation areas, to reduce build cost, energy bills, and set Sub Development Phases: Refer to the more affordable space costs. relevant section of this Paper entitled “Development Phasing Plan”
SMART City Commercially Viable Master Plan Many jurisdictions are seeking a viable location for new SMART City developments, As with capital cities around the world, the suitable to meet changing expectations and cost of doing business becomes increasingly social demands, as well as efficiency of doing challenging. Not only the cost, but the lack of business. PME-2 island is the perfect available land in a suitable location is also a location because this can be ‘custom- considerable barrier. The four ‘man-made’ designed’ to accommodate the necessary islands respond to that barrier in an effective technology and Smart infrastructure to enable manner, by creating new usable land from the a SMART City development. free from any sea. The strategic location and combination existing obstructions. These initiatives make of industry, commercial, tourism and lifestyle Melaka Gateway more competitive and land use provides an integrated development, respond to modern lifestyle needs. which is essential for a commercially viable master planned development.
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 23 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Master Plan Overview Development phasing plan
Phase 1 Phase 2 Phase 3 Island PME-1 Island PME-3 & 4 Island PME-2 International Cruise Deep Sea Port, SMART Commercial City Terminal, Tourism & Maritime Industrial Park Lifestyle, Business services
Sub Phase (A) The reclamation to provide the 1. EIA & Technical Studies 1. Environmental Impact structural support platforms for Assessment (EIA) both Deep Sea Port (PME-3) and 2. Reclamation phases 2. Hydraulics Surveys Maritime Industrial Park (PME-4) 3. Technical Marine Design will commence as soon as the 3. SMART Infrastructure ‘custom 4. Reclamation of 212 acre technical design and designed’ (Below ground): Environmental Impact • Common services ducts for Assessments are completed and utilities & technology Sub Phase (B) approved. • Pneumatic waste extraction 1. International Cruise Terminal • transport provision, 2. Duty Free Retail The structural platforms will be autonomous vehicle 3. Mega Mall, Entertainment able to accommodate phased systems 4. MICE & Hotels delivery of the various port, oil & • Traffic control sensors 5. Civic Plaza & Theatre gas, shipping, maritime uses and 6. Serviced Residences to suit ‘natural’ demand, as well 4. SMART Infrastructure (above 7. Promenade (1) as ‘induced’ demand for these ground): services. • Pedestrian & Cycle tracks Sub Phase (C) • Rapid bus systems 1. Destination Mall The combined and integrated • People-mover Pods 2. Business, Education, uses are known as the MG • Communications & Healthcare ‘Portopolis’, full range of Information Systems 3. Vocational Training, Maritime integrated Maritime Industries, Oil University & Gas, incorporating: 5. Development Phasing: 4. Waterfront Residences, F&B Bulk Handling • Innovation, Knowledge, 5. Cr8tive BizHub Bulk Storage GreenTech, R&D 6. Central Park Oil & Gas support services • Maritime Business Hub 7. Floating Theatre Bunkering, Trading • Cre8tive BizHub: Marine Repair & Maintenance incubators, media, creative, Sub Phase (D) Container Facilities digital 1. Promenade (2) Services & Logistics • Insurance, Banking 2. Business, Residential Shipyard & Offshore • Offshore Financial 3. Innovation Business Park Fabrication • Corporate Training Hub 4. Urban Beach Ship & Marine Equipment • Business Support, BPO 5. Waterfront Development, F&B Manufacturing • Port Industry Offices Logistics & Storage • Support space for 2 Cities: • “…. half way between SG Sub Phase (E) & KL” 1. Maritime Business Park 2. Mixed Commercial 3. Integrated Resort
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PME1, PME2, PME3 & PME4
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any means or 25 otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) PME-1 – Tourism, Lifestyle, Business Tourism focus, with the initial elements of SMART Commercial
Tourism, Lifestyle, Education, Health, Business Predominantly in the initial phases the business model for Island 1 (PME-1) is driven by Tourism & Lifestyle. To sustain revenue generating business and increase the population, the plan introduces business uses (health, education, creative, innovation, shared services, maritime offices); demand driven by the strategic location, being half way between two great cities of Singapore & KL.
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ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 27 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) PME-1 – Tourism, Lifestyle, Business Main land use & effective transport solutions
‘People-Pod’ Mover ‘hop-on hop-off’ stations Autonomous Vehicles
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 28 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) PME-2 – SMART Commercial City Springboard for R&D, innovation, blockchain and digital business hub
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 29 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) PME-3 – Integrated Deep Sea Port – Liquid Terminal Substantial contribution to trade across the Region and Nationally
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 30 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) PME-3 – Integrated Deep Sea Port – Liquid Terminal Substantial contribution to trade across the Region and Nationally
ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any 31 means or otherwise without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) PME-4 – Melaka Maritime Industrial Park Synergy with onshore adjacent industrial hinterland
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ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any means or otherwise 33 without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) The Investment Opportunity PME-1 gross floor area & comprehensive land use options
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.
GFA (sqft) Main Land Use Description Million 1 MICE, Mixed Commercial Integrated MICE Facilities, Events, 7.5 Weddings, Commercial Business Services 2 Business Hub, Office Offices, BPO, Shared Services, 6.8 Innovation & Maritime Parks, Cr8tive BizHub 3 Hospitality Range of types and standards to suit 3.1 ‘end-users’ 4 Retail, F&B, Mega Mall, Destination Themed Mall, 3.2 Entertainment Entertainment Zones 5 Serviced Apartments, MICE & Business visitors, Health 7.2 Residential tourism facilities, Waterfront Residences 6 Education, Vocational Corporate Training, Business Schools, 2.0 Training & Healthcare Maritime University, Specialist Health Clinics & Services, Research 7 Civic Use, Theatre Public Areas, Event Space, Theatres 1.5
8 Green Space, Parks City Parks, Green environments
9 International Cruise Duty Free shopping & Waterfront 1.0 Terminal F&B, Marina Clubhouse 10 Ferry Terminal 0.4
11 Car Parking, Utilities 1.2
Total Development GFA (sqft) 33.9m
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PME-2 SMART Commercial City
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, • Innovation, Knowledge, GreenTech, R&D Office, Innovation, • Maritime Business Hub • Cre8tive BizHub: incubators, media, creative, digital 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, • Full range and types of accommodation and lifestyle Residential, Hospitality, offerings to suit the functionality, as well as énd- user’requirements Retail, F&B, Entertain 6 Financial services Hub • Offshore trading hub • Banking, insurance, financial services Projected Total Development GFA (sqft) 70m
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SMART City Benefits Catalyst for Growth The Smart City platform will create a Melaka Gateway offers the scale and springboard for innovation and digital opportunity to ‘custom-design’ and ‘build-in’ businesses. This will include research and the necessary technology infrastructure to related education services. The strategic facilitate Smart City developments. location will be a hub to service the Asian region. Many urban areas around the world must ‘force-fit’ Smart technology and sensors into existing infrastructure and buildings, with inherent problems and barriers; Melaka Gateway provides technology companies with a ‘blank canvas’ to create the right and effective platform to facilitate Smart City initiatives and benefits.
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The ‘Portopolis’ concept is a key unique selling proposition for Melaa Gateway; this is the world’s first combined tourism, lifestyle, SMART City and port development. The combination of deep sea port and the maritime industrial park provides the platform for all aspects of maritime industries
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-3 • Bulk Handling Deep Sea Port • Bulk Storage • Oil & Gas support services 98 acres • Bunkering, Trading
3 PME-4 • Marine Repair & Maintenance • Container Facilities Industrial Maritime • Services & Logistics Park • Shipyard & Offshore Fabrication • Ship & Marine Equipment Manufacturing 750 acres • Logistics & Storage
4 Future ’onshore’ • Provides the connectivity to onshore logistics, industrial manufacturing: boosts the efficiency and handling volumes of the port facilities manufacturing and • Key component of Portopolis efficiency strategy industrial Estate
37 Economic Benefits 6
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A regional catalyst project such as Melaka Gateway will deliver the ‘promise’ much more efficiently and effectively as a national project
National Project Status is already a key advantage for both public and private sector interest. However, in terms of being regionally competitive, and meeting the national interests, Melaka Gateway will be delivered more efficiently and maximise its potential returns 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 propel the ‘industry led’ strategy of Melaka Gateway to success, the project must be seen as a national and regional catalyst, that encompasses the full support of the Malaysian Government, together with private sector expertise and international trade and development partnerships.
The following sections of this Paper illustrate the national and regional benefits that Melaka Gateway will be capable of generating.
On the other side of the ‘risk and reward’ development equation, the Melaka Gateway development needs to demonstrate the ‘return’ to government; the socio-economic benefit that can be generated by the development. Some of the ‘direct’ and ‘indirect’ sources of socio-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
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We see the provision of enabling infrastructure in two main categories, involving a range of capital 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
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
2. Catalyst Projects in the national interest Provision of Social Infrastructure
MICE Facilities: Potential PPP transaction as a Tourism driven initiative. For example, the Melbourne Convention Centre PPP where PPP was used to make the project commercially viable, and meets the government objective of increasing tourism revenues
Hi-Tech/Innovation/Green-Tech/Research Facilities: These facilities are critical for development of a knowledge economy for today’s business environments
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Government incentives & development support, in the national interests
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Typical Government Support Options in Malaysia The types of Government support measures for large infrastructure projects in Malaysia are shown below. There could be various support mechanisms, depending on the implementation phase (i.e. construction or operations phase), support amount and requirements, and extent of positive impact. Usually, government support needs to be facilitated by the corresponding economic and social benefits analysis.
Construction phase Operations phase Cash Subsidy/ grant Off-take agreement support Preferential loan Revenue from existing assets 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 In-kind/ Comfort Letter/ Letter of Support Ancillary facilities/ revenue non cash Government land enhancements Real estate development rights Concession extension support Real estate development rights Tax relief Guarantee Construction cost guarantee Exchange rate guarantee Exchange rate guarantee Equity guarantee Equity guarantee Debt/ Bond guarantee Debt/ Bond guarantee
Facilitation funds Facilitation funds are another form of government support for the development basic infrastructure (e.g. access road to the site, bridges, and utilities) and to encourage private sector investment in high impact projects in line with the government strategic thrusts. This includes projects within the National Key Economic Areas (NKEA). Its ultimate objective is to bridge the ‘’viability gap’’ for large scale projects with significant economic benefit as a catalyst for private sector investment. The facilitation fund will be provided in the form of a grant 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 the Prime Minister’s Department, is the central agency responsible for the processing of approvals, disbursement and monitoring the Facilitation Fund.
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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 the manufacturing and services sector irrespective of its project location. The relevant projects which 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 (for operators, industry players and logistic operators within the Halal Parks), and others tax incentives.
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ALL RIGHTS RESERVED. No part of this document may be reproduced or transmitted, in an form or by any means or otherwise 44 without the prior written permission of KAJ DEVELOPMENT SDN BHD (KAJD) Benefits of ‘Portopolis’ Development Approach Strengthening national & international port & maritime opportunities
Integrated Maritime Land Use: Portopolis Handling Capacity Portopolis The ‘’base case’’ projections for initial The unique value proposition for Melaka container business are in the region of 5 Gateway is the fact that the full and million TEUs per annum. This volume comprehensive range of multi-use maritime would be achieved by the Portopolis activities, services and businesses can be securing its share of the growing Malaysian brought together in adjacent vicinity. container volumes. There is also a significant element of To any multi use port investor/operator ‘’induced demand’’ to be generated by the the Melaka Gateway advantages are strategic partnerships with KAJ’s Chinese clear: high level government support, partnerships; this could easily double the strategic location, port licenses normal demand share for TEUs. Likewise approved, deep sea facilities, adjacent the strategic partnerships (OBOR and Silk hinterland for industry and connectivity. Maritime Route) will see significant multipliers to all forms of maritime trade and services, including shipbuilding, repair and maritime maintenance. Commercially Sustainable The strategic location of Melaka Gateway Portopolis cannot be ignored; for centuries, Synergy with ‘’onshore’’ adjacent Melaka has been a key location for trade industrial ‘’hinterland’’ and maritime services; this advantage is This again adds value to Melaka Gateway’s even stronger today; particularly with the attraction as a regional port development, increased size of shipping, and the need whereby onshore lands will be allocated for for deep sea facilities. related industrial use, supporting the overall efficiency and effectiveness of the China shipping fleets have largely bi- Portopolis concept. Key maritime services passed Malaysia ports in the years gone will be conducted within the reclamimed by; the new OBOR and Silk Maritime platforms that form the Deep Sea Port and stratgeies being embraced by Melaka the Maritime Industrial Park, in addition Gateway with their Chinese partners, will land will be available for logistics, see the return of China fleets, causing a manufacturing (light and heavy), adjacent significant multiplier to trade flows into the to, and forming part of the overall Melaka Gateway Portioplois; recently the Portopolis offering. Chinese Ambassador to Malaysia was quoted as predicting China maritime trade to ASEAN, which is currently worth USD500 Billion, to grow to USD1 Trillion in 5 years
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Integrated Development Strategy Adopting the “portopolis” Concept
The “Portopolis” concept will be a catalyst to the development in respect of the central core areas, capitalising on integrated development opportunities. The coexistence between the port, industrial, commercial and urban areas of any development 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 business and the interests of port operators, assuming that the needs of citizens must bend to those of the companies working in the port. This implies satisfying the logistics requirements of the port as well as the needs of industrial/ residential; if one is to achieve the enhancement of both.
Connectivity and Development The commercial port has the potential to evolve as driver of business location, industrial and related development for the project. This is primarily due to the strategic location and the sea 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 and distance 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
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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 = deadweight tonnage). The Penang port has a draft of ~12 metres currently which is proposed to be dredged to 18.5 metres in future as part of Bagan Bay development.
The current draft of many Asian port Types ACD Effect on shipping volumes facilities supports small handy-size of Vessels vessels and are therefore too restrictive, leading to smaller cargos ~12. Small • Seawaymax – carriers of and limited growth for the port 5m Handy 20,000-28,000 DWT; Handy business. The standard major size size – carriers of 28,000-40,000 carriers; DWT; and Handymax – are break-bulk commodities handled in Panamax carriers of 40,000-50,000 DWT Asian ports will need to evolve so • Panamax, the largest size that that effective vessel draft of 18.5 can traverse the Panama Canal metres would provide the optimal (52,000 DWT loaded) solution. This gives the Melaka Gateway ~14. Aframax ; • oil tankers between 75,000 and port an ability to handle the world’s 5m Q-max 115,000 DWT largest tankers and cargo vessels; ~18. New • Upgraded Panama locks with this is effectively the only suitable 5m Panamax 120,000 DWT; suitable for and sustainable option for viable projected Penang Port demand port expansion. ~22. Suezmax; • Suezmax typically ships of 5m Chinamax about 160,000 DWT, • Chinamax are carriers of Melaka Gateway offers ACD 380,000-400,000 DWT up to 24 to meet the requirements of m (79 ft) draft the world’s largest vessels – this is the most effective solution to allow for sustainable Portopolis development; as the catalyst to enable the most effective integrated port expansion integrated solutions
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Integrated Development Strategy, Industry-Led approch Adopting the “Portopolis” Concept
Characteristics for Development of Portopolis A key objective of the land-use planning for a waterfront developments is to optimize the effectiveness of the port while efficiently developing and using as much of the adjacent hinterlands as possible for industrial and commercial users. The net result is to achieve significantly higher socio-economic cumulative benefits as a whole.
Highlight transitional spaces between port and related development
•via development of connectivity and green belts to integrate the port areas back into the industrial & urban domain
Streamline transportation infrastructure
•to ensure adequate availability of roads and access routes within the development and supplement commercial revenue generation by efficient trade distribution and handling
Explore use of the water and waterfront between urban and port functions for land-use planning
•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
Appropriate density of the land-use development plan
•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
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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 to conduct detailed EIA studies, and comply with the relevant regulatory requirements in respect 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 State government representatives and approved. Subsequently the State Government and the Department of Environment (DOE) has authorized KAJD to commence reclamation.
• Island PME-3: Preliminary EIA was approved by DOE in 2013 and expired 2015. In accordance with the revised environmental regulation (October 2015) DOE instructed KAJD to conduct a new Detailed EIA, which will be completed this year.
• Island PME-4: In accordance with the new environmental regulations, KAJD will conduct 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 for development by the Drainage and Irrigation Department, in year 2014.
• PME 4: KSJD will conduct the necessary Hydraulics Study and that will be completed within this year.
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Future comparison:
….how would the New Melaka City measure up 10 years from now
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PwC has just recently published the 7th Edition of Cities of Opportunity, which evaluates and ranks 30 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.
City Indicators Singapore Kuala Lumpur Melaka Melaka 2nd out of 30 cities 20th out of 30 cities (Today) (in 10 years)
1 Intellectual Capital & 136 65 10 50 Innovation
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 95 67 50 75 Environment
7 Demographics & Livability 108 67 50 75
8 Economic Clout (Power) 107 98 10 25
9 Ease of Doing Business 209 151 75 100
1 Cost 99 119 150 100 0
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.
In relation to a comparison of other Asian cities in the study, we make that comparison below: In a matter of 10 years from now, Melaka 30 Global Cities Asian Cities Score has the real potential to be a liveable city at Ranking the standard of Kuala Lumpur. Melaka can ‘leap-frog’ other Asian cities in Singapore 2nd 1,377 such a short timeframe by adopting an Hong Kong 9th 1,290 integrated master plan approach, with a focus on ‘ease of doing business’, and socio- th Seoul 11 1,238 economic benefits for residents. Beijing 19th 956 A core part of this strategy, in addition to development of a Smart City Zone, is Kuala Lumpur 20th 914 Melaka attracting new business and job creation by Melaka adopting a robust ‘industry-led’ strategy, Jakarta 28th 573 and also providing healthcare, education Mumbai 29th 568 and social services. Addressing the needs of all residents of
years Melaka, we will see an amazing and rapid Melaka - 575 10 transformation for good.
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Terima kasih
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COPYRIGHT © 2016 KAJ Development Sdn Bhd. The copyright is this documents and its contents (including without limitation the content, artwork, design, graphics, photographs, images, logos, text such as “MELAKA GATEWAY and KAJ DEVELOPMENT SDN BHD” and other coined phrases, files and the selection and arrangement, computer code, music, audio material, video material and audio-visual materials on this website) is owned by KAJ Development Sdn Bhd (Co. No. 758285-D “KAJD”). All rights are reserved. Save as provided by law, KAJD does not grant you any rights in relationship to this document or its materials. The following activities are deemed to be infringement of our copyright and are punishable offences and are strictly prohibited: (a) the reproduction of the materials or any part thereof in any form including adapting, editing, modifying, transforming, publishing, republishing; (b) the communication to the public in any form; (c) the performance, showing or playing to the public; d) exploiting the materials for a commercial purpose; and (e) redistributing materials from this document except strictly with prior and written permission from KAJD. (f) KAJD takes the protection of its intellectual property including trade marks and copyright seriously. In the event of infringement of its intellectual property including the use of its copyright materials in any of the circumstances stated above, KAJD may bring legal proceedings, seeking monetary damages, legal costs (on a solicitor and client basis) and an injunction to stop from using the materials. All rights reserved.
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