The Melaka government has signed the reclamation and development agreement today with LBS Bina Group Bhd’s (LBS) indirect subsidiary, Leaptec Engineering Sdn Bhd (LESB).

In a filing with Bursa Malaysia, LBS said the approved reclamation area is part of the Melaka Waterfront Economic Zone blueprint for the project covering 10,117ha.

The project, along the coast of Melaka, provides an effective platform for sustainable business generation and economic transformation for the state.

“The approved reclamation area is intended to be developed into an industrial hub with port facilities, which include logistic and warehouse facilities, manufacturing, liquified natural gas, port-related business and such other development or economic activities,” it said.

LBS said the state government will be paid RM94.86 million and LESB would carry out the reclamation works within five years after the approval of the reclamation works.

In a separate statement, LBS executive chairman Lim Hock San said the agreement provided the company with an opportunity to procure sizeable tracts of coastal land fringing the Strait of Melaka, one of the busiest shipping lanes in the world.

“This will enable the company to establish a dominant presence in this area with access to a new market catchment, particularly in the industrial and commercial segment.

“With the company’s strong presence and foothold in the Guangdong province, China, we will be able to further leverage the ‘Friendly State and Province’ relations between Melaka and Guangdong to explore bilateral investment cooperation and establishments.”

He added that the project is expected to contribute positively to the future earnings of the group.