RM600 million coastal project on hold

The Melaka state government is awaiting Bank Negara's clarification over the status of a RM600 million coastal reclamation development project in Klebang following the central bank's probe into the development company.

Chief Minister Datuk Seri Mohd Ali Rustam confirmed that Bank Negara had launched a probe into the company's activities with the state sending its officials to Kuala Lumpur to determine the outcome of the probe against the company.

'Based on the company's representatives, they said they had answered all queries posed by Bank Negara.

'However, we want to wait for the official letter from Bank Negara,' he told reporters after officiating the 3rd Asian Cities Against Drugs Conference here Tuesday.

Mr Mohd Ali was asked to comment on the status of the 200ha project launched by the Kuala Lumpur based company here in December 2007.

The project, which is to be completed in four years, was to include a marine theme park, a 10,000-seat international convention centre, sailing boat docks, a three-storey shopping complex, 510 small offices, 1,397 apartment units, a five-star hotel with 3,000 rooms, historical gallery and a replica of a Dutch ship.

During the launch of the project, which received wide media coverage, the company carried out a membership drive offering three different packages ranging from between RM1,200 and RM27,500.

It is estimated than 1,000 packages worth some RM30 million were sold.

'I was informed that the probe is almost completed and hope the project would resume once everything has been sorted out,' Mr Mohd Ali said. — THE STAR/ANN