As Melaka was not included in any of the country’s economic corridors, he said the state government needed to come up with its own corridor project to drive the state’s economic growth.

“This recognition (as a national project) will give investors the opportunity to receive incentives, including special incentives related to tax exemptions from the federal government,” he said at the Melaka state legislative assembly sitting here.

He said this in reply to a supplementary question from Lim Ban Hong (BN-Kelebang) who wanted to know what incentives the state government could expect from the federal government for the project.

Rauf said the results of studies by various parties found that the 33-kilometre MWEZ development along the Melaka Straits had the potential to become a deep sea port.

“Every year some 90,000 ships sail through the straits. If there is a deep sea port, Melaka will surely surpass other states that have port areas because we are in the most strategic location,” he said.

Earlier, replying to Kerk Chee Yee (PH-Ayer Keroh), who wanted to know about the environmental impact caused by sea reclamation for MWEZ, Rauf said an environmental impact assessment report needed to be prepared and evaluated by the department of environment before planning approval could be considered by the local authority.