2 New Developments Reviving The Economic Growth Of Melaka

By: Fahri Ahmed
10th Jun 2022
Property News

On 18 March 2022, 2 new developments were announced to contribute to Melaka’s economic growth. The announcements could not be at a better time as the borders have reopened on 1 April 2022. Melaka has a strong tourist value due to its old town charm and street food. The easing of borders will bring in new tourists to the state.

As such, these 2 developments will cater to the influx of tourists coming to Melaka and create jobs and businesses, which might help revive the state economically

  1. Lulu plans to build a series of supermarkets and hypermarkets in Melaka

    Lulu Group, an Abu Dhabi based supermarket operator plans to invest RM420 million in Melaka. They aim to open a chain of supermarkets, hypermarkets and export centres in Melaka in the next 3 years.

    In a report by Melakahariini.my, Saleem VI, Lulu’s Chief Operating Officer, says, ‘In Melaka, we will invest US$100 million (RM420 million) for not only a retail chain but also a logistics centre to export agricultural products. A team from Lulu will visit Melaka soon to look at suitable locations.’

    While the retail chains will cater to direct consumers, the export centres will purchase agricultural products and goods in Melaka to sell to the conglomerate’s worldwide network.

    Datuk Seri Sulaiman Md Ali, the Chief Minister of Melaka, welcomes Lulu’s decision to invest in the state. He believes this venture will create jobs for the citizens as well as revitalise the state’s retail business. It would also offer business opportunities to farmers, and small and medium enterprises (SMEs) as Lulu’s export centres will export agricultural products and other items from Melaka to sell in their wide network.

    While the cost and financing of the project are being finalised, Invest Melaka Bhd, the state’s investment promotion agency, is exploring suitable locations to best position Lulu in the state.

  2. Melaka government plans to build an undersea tunnel to connect Indonesia with Melaka

    Datuk Seri Sulaiman Md Ali, the Chief Minister of Melaka, plans to build an undersea tunnel across the Straits of Melaka. The tunnel will link a rail system network to connect Melaka with Dumai, Indonesia.

    The straight line distance between Melaka and Dumai is 110 kilometres. If the undersea tunnel is built, the distance will be shortened to just 47 kilometres.

    So far, the government is in talks with one firm to build the tunnel, subject to the approval of the Indonesian government. However, the firm is only capable of financing 50% of the project cost, so the government has yet to source the remaining budget from other means.

    If everything goes well, the tunnel will take about 4 to 5 years to complete and will significantly boost the gross domestic product (GDP) of Melaka.

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