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Press Statement

by Lim Guan Eng

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(Melaka, Wednesday): DAP urges Melaka Chief Minister Datuk Mohd Ali Rustam to give full government guarantees against any possible failure of the proposed RM 1 billion “Venice of The East” six islands reclamation project off Portuguese Settlement to ensure there is no repeat of the Pulau Melaka abandoned project. DAP is surprised that Mohd Ali is still talking about reclaiming as many as 6 man-made islands again despite the abysmal failure of the Pulau Melaka twin-island project.

Mohd Ali said during Christmas that the state government has approved the reclamation of a 72ha site off the Portuguese Settlement here for mixed development to Bumi Tabah Sdn Bhd. The public can not be faulted for asking the chances of success of a little-known company with no track record in land reclamation in delivering this complex reclamation project that creates 6 artificial islands as promised, when listed companies with a track record in carrying out huge construction projections have failed.

For instance the only artificially-created island in Melaka, Pulau Melaka is under receivership when the shop houses were supposed to be completed in 2000. Billed also as a RM 1 billion project in 1994 and supported by publicly-listed companies on the Kuala Lumpur Stock Exchange such as Larut and Talam Corporation, two islands linked by land bridges with an area of 100 acres and 125 acres respectively were supposed to be created. However only one island was created and even that was abandoned. When the project was abandoned, the 1,386 purchasers who paid nearly RM 100 million faced extensive losses. Presently the receivers are trying to revive the project.

The state government must bear some responsibility because they had approved and endorsed this Pulau Melaka project fully. When the project faced financial difficulties, the state government refused to pump in money to revive the project and did not take any action against the developers who had cheated the purchasers of the monies.

With such a poor record in creating artificial islands, the fear is that the same problems bedeviling Pulau Melaka would also affect this proposed Venice of the East project. Would Ali Rustam disclaim responsibility if similar problems affect the RM 1 billion 6 artificial islands of the Venice of the East project comprising hotels, shops and high-end residential apartments?

To ensure that the interests of the public is protected and that purchasers of the Venice of the East project do not face the same problems as Pulau Melaka, the Melaka Chief Minister should give full guarantees that the government would bail out, rescue and revive the project if it fails and is abandoned. Only then will purchasers buy the Venice of the East with assurances that their investment has both value and security.