The project entails the reclamation of three islands and the building of a deep sea port and a cruise terminal.

The developer, KAJ Development Sdn Bhd, said it was awaiting further details from the state government after receiving a termination notice of its contract to carry out the project.

The state cited KAJ Development’s failure to complete the work by the given date, but Adly said the deadline given was impractical.

“The reclamation project involving 609 acres with an investment of RM43 billion requires a longer implementation period and more strategic planning. It has to be carried out in stages,” he said in a statement.

He said he was concerned that the termination of the contract would lead to legal action against the state government.

“It could affect investor confidence in Melaka and lead to a loss of time (for the project’s completion) as several development proposals have already been obtained.”

Adly said the state government should sit down and negotiate the matter with KAJ Development to ensure the project could continue so it could create more jobs and boost the economy.