The Melaka Gateway Project: High Expectations but Lost Momentum?

Abstract

The Melaka Gateway Project is an ambitious maritime initiative comprising a range of port facilities, specialized economic parks, and tourist attractions. Launched in 2014, and promoted by the Melaka-based property developer and contractor, KAJ Development Berhad, the project secured the backing of the Najib Razak administration, as well as the buy-in of powerful China-based state-owned enterprises, including Power China International. Looking at the Gateway’s location, potential articulation with other transport projects such as the East Coast Rail Link, and the involvement of the Chinese companies, analysts have portrayed this project as a game-changer that can allow China to acquire a strategic foothold in the region. Yet, five years after its launch, construction on the Gateway has fallen far behind schedule. Upon closer examination, the project raises a number of questions, including whether its location is all that strategic, whether its local partners are well connected enough to acquire the necessary capital, and, indeed, if Malaysia needs another port at this point in time.