KUALA LUMPUR: Melaka state government is expecting between RM3 billion and RM4 billion or about five per cent in the state's annual gross domestic product (GDP) to come from Melaka Waterfront Economic Zone (M-WEZ) by 2035.
Chief Minister Datuk Sulaiman Md Ali said the target would exclude contribution via direct income taxes to the federal government by companies operating in the zone.
"The economic growth would be underpinned by M-WEZ's maritime-oriented zone, given the long coastline and its position as a natural, deep-water harbour," he said at a press conference after launching the state's new economic corridor here today.
Sulaiman said the state's main focus was to boost the maritime sector as a major economic contributor.
"Straits of Melaka is the world's busiest shipping lane with about 100,000 vessels annually.
"It gives an opportunity for Melaka to attract potential investors to invest in our port with various facilities and high technology for shippers," he said.
He also said the current state's Port of Tanjung Bruas facilities were unable to accommodate large vessels.
"If we can have a port with better facilities and high technology, we can attract more ships to Melaka port in the future.
"The development of this port will be carried out by investors and we will offer investment incentive packages to them," he said.
Sulaiman said the state government will encourage the development of container and general cargo ports, cruise and ferry terminals, free-trade zones, logistics hub, oil and gas terminals, ship repair yards and ship-to-ship (STS) transfer facilities.
"STS operations would enable ships to transfer their cargo to other vessels without having to dock at the piers, allowing higher shipping flexibility and reducing costs for shippers," he said.
M-WEZ will sit on a 25,000-acre of coastal and reclaimed land and will have a total distance of 33km between Northern Melaka near Sg Udang and Southern Melaka in Umbai.
"It will be the new engine growth and a game changer with a major economic enabler that is expected to attract more than RM100 billion in high-impact and high-value investments globally over a period of 15 year.
"It is also expected to generate over 20,000 new jobs annually, prioritising local workers," he said.
Sulaiman said the state government has consulted the federal government for the M-WEZ blueprint in terms of infrastructure planning.
"We have the document ready and will present it to the National Physical Planning Council on May 6," he added.
M-WEZ is one of the state's integral parts of the strategic plan aimed at creating a sustainable and viable development and attracting domestic and foreign investments in Industrial Revolution (IR 4.0) industry, using smart and green technologies.
M-WEZ will have five distinct clusters namely the Melaka Harbourfront, Smart Logistic Nucleus, Digital Satellite Township, Central Eco Business Park and Trade Nucleus New Township.