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Friday, November 13, 2026

Melaka, the state of failed projects?

 FMT takes a look at several projects that have long been regarded as needless, such as the monorail, Arab City and Melaka Gateway.

Pulau Melaka is a reclaimed island developed under the Twin Island City Centre project, but several attempts to revitalise it have been in vain.
PETALING JAYA:
Melaka has often been associated with projects that have failed to meet expectations, particularly before 2018, when the state was under the Barisan Nasional administration.

Several projects launched during that period have yet to be completed or have been abandoned altogether, such as the now-defunct monorail service.

Pakatan Harapan has vowed to review these projects if it is given the mandate to form the next state government.

FMT takes a look at some of the more prominent projects that have plagued the state over the years.


Twin Island City Centre

In May 1996, then prime minister Dr Mahathir Mohamad launched the RM2 billion Twin Island City Centre project, promising to turn two reclaimed islands into new business districts featuring hotels and shopping malls.

It was Malaysia’s first artificial island project. The first island, known as Pulau Melaka, was to be located off the coast of Bandar Hilir and connected to the mainland by a 300m bridge.

Pulau Melaka was completed in the late 1990s but remains largely unoccupied, with hardly any economic activity on the island to this day.

The second island never took shape.

Melaka Gateway

In an attempt to salvage Pulau Melaka, the state government introduced plans for the Melaka Gateway project in 2014. The proposal involved developing a cluster of four artificial islands, including Pulau Melaka.

The RM43 billion project was to include a free trade zone, a port, an industrial zone, as well as residential and commercial developments.

Malaysian property developer KAJ Development Sdn Bhd was tasked with managing the project in partnership with China-owned PowerChina International under China’s Belt and Road Initiative.

Work began in October 2017, with the initial phase scheduled for completion and opening to the public the following year, while the entire project was expected to be completed by 2025.

However, the Kristang community objected to the project. According to a report by Forbes, community members claimed they had been kept in the dark about the plans and that their livelihoods, particularly fishing, would be affected by the land reclamation works near their shores.

The project was scrapped in November 2020 after the developer failed to complete the reclamation works within the three-year period stipulated in its contract.

It was revived in 2022 but significantly scaled down, with the revised plan focusing on a cruise terminal that is scheduled to begin operations in 2028.

Separately, KAJ Development has signed a memorandum of understanding with the Dubai Integrated Economic Zones Authority to collaborate on the investment and operation of a free trade zone, although there have been few updates since then.

The Arab City is a multi-phase project to be developed in various parts of Melaka, with the first involving 240 commercial lots constructed on Pulau Melaka. (Arab City Melaka pic)

Arab City

The Arab City was planned as a multi-phase development spread across several locations in the state.

The first phase, which was expected to cost RM400 million, would comprise 240 commercial lots on a 1.84ha site on Pulau Melaka.

As its name suggests, it was envisioned as a hub for Arab businesses, with shops selling Middle Eastern products and restaurants serving Arab cuisine.

The second phase, planned for a 4ha site in Klebang, would feature a five-star hotel, a water theme park, an aquarium and a floating restaurant. This phase was expected to cost another RM700 million.

The third phase, planned for Kampung Jawa, would comprise a series of Arab restaurants and coffee shops.

According to its developer, Golden Corporate Heritage Sdn Bhd, the original plan was to develop Arab City in Bukit Bintang, Kuala Lumpur. However, the project was relocated to Melaka at the request of then chief minister Ali Rustam.

Work on the first phase began in 2009 and was scheduled for completion by 2012. However, construction has since stalled, with no significant updates. The project’s still-active website nevertheless states that work on the first phase is about 70% complete.

The most recent development came in 2023, when current chief minister Ab Rauf Yusoh described the project as an “eyesore” that needed to be resolved as soon as possible.

The Melaka monorail operator’s contract was cancelled in 2021 and has remained inactive, while one of its three stations has been demolished. (Atlas Obscura pic)

Melaka monorail

An initiative to improve public transport, ease traffic congestion within Melaka city and offer tourists an alternative mode of transport has deteriorated into a non-functioning rail service.

Work on the first phase of the two-phase Melaka monorail project began in 2008 and was completed in 2010 at a cost of RM15.9 million.

Services along the 1.6km route between the Hang Tuah and Hang Jebat stations began on Oct 20 that year. However, the train stalled just hours after its inaugural run, trapping 20 passengers on board.

A series of technical problems led to the suspension of the service two months later.

Meanwhile, work on the second phase, which involved extending the line by another 1.3km to the Tun Ali station, began in December 2011, adding RM13.2 million to the project’s cost.

The train finally resumed operations in 2017 but was suspended again in 2020 following the outbreak of the Covid-19 pandemic and the ensuing lockdowns.

The state government cancelled the operator’s service contract in 2021, citing violations of an agreement with the state economic development unit.

The service did not survive this second setback. The train has not run since, and the Hang Tuah station has been demolished. - FMT

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