'Is waterfront economic zone another white elephant?'

Summary

• Malacca opposition leader Yadzil Yaakub criticises the Straits of Melaka Waterfront Economic Zone (SM-WEZ) as another “white elephant”, saying it lacks transparency.

• He warns of severe environmental damage, flood risks, and air pollution, with the project potentially endangering Malacca’s Unesco status.

• He also laments the plight of fisherfolk who will be affected by the project.

Malacca opposition leader Yadzil Yaakub asked if the Straits of Melaka Waterfront Economic Zone (SM-WEZ) is another white elephant project.

He said the RM100 billion cited for the SM-WEZ mega project does not include explanations of the investment’s composition, foreign direct investment sources, or an implementation schedule that can be fiscally scrutinised.

“Are we once again building a ‘white elephant’ in the name of progress?” he asked in a statement today.

He pointed to the nearby Melaka Gateway and Twin Island City Centre projects, which he said undermined investor confidence after they were abandoned.

He called for the SM-WEZ to be temporarily suspended until a social impact assessment has been carried out.

Project background

The project aims to reclaim 1,123.41ha across 16 plots along the Strait of Malacca for commercial and industrial development.

This is part of the larger Melaka Waterfront Economic Zone (M-WEZ) plan, which seeks to reclaim 10,117.141ha of land along 33km of Malacca’s coastline.

Earlier this month, Save Our Seashores Melaka (SOS Melaka) slammed the project as “unsustainable, environmentally devastating, and economically reckless.”

The NGO described the reclamation as “the largest and most destructive” ever attempted in Malaysia.

Set up task force

In his statement, Yadzil urged the government to establish a task force under the state legislative assembly, whose role would be to investigate approval processes under the project.

The task force would also assess real-time effects on communities, he added.

“In addition, investment progress reports must be presented to the public clearly, including who the investors are, how much foreign investment is compared to local, as well as the composition between the private and government sectors.

“Any development should not proceed without open engagement with the fishing community, environmental experts and cultural heritage activists who have been excluded from the negotiating table,” he said.

He further called for a development moratorium in all areas within heritage zones and environmentally sensitive locations until Malacca’s State Structure Plan has been reviewed on the basis of sustainable development.

“As the Malacca legislative assembly opposition leader, I emphasise that progress should not come at a price that the people and the environment cannot bear.

“The balance between economic growth, social justice, and heritage sustainability is a fundamental principle that must be upheld in every state development policy,” he added.

He questioned if Malacca could lose its status as a Unesco World Heritage site.

“Development within the buffer zone of the Malacca World Heritage site poses the risk of losing its Unesco status - as happened in Liverpool.

“If this happens, it will not only embarrass Malaysia on the world stage but also hamper the state’s tourism economy, which contributed RM12.68 billion during Visit Malacca 2024.

“Are short-term profits more important than the hundreds of years of historical heritage?” he asked.

Potential health crisis

Yadzil went on to comment on the SM-WEZ’s environmental impact assessment (EIA) report, which found that mitigation measures for the mega reclamation project have not taken into account the 40 recorded floods in areas nearby.

He asked whether the state government is prepared to bear the legal and social consequences of any catastrophic flooding resulting from the project.

He also said air pollution levels in surrounding areas will be too high even with mitigation measures in place.

“Residents - including the elderly and children - will be exposed to chronic respiratory problems.

“Who will be responsible if this pollution triggers a health crisis at the community level?” he asked.

Besides that, he brought up that fisherfolk in the area have not been provided with support or an economic recovery plan.

“There is no provision for training, no job opportunities, and most disappointingly, no meaningful engagement with these communities.

“This is a classic example of how large-scale development often oppresses the small and voiceless,” he asserted.

The EIA found that fisherfolk stand to lose more than RM12 million annually if the SM-WEZ project goes through.

This loss is due to higher fuel expenses, increased boat and engine maintenance, and opportunity costs from additional time at sea, as the land reclamation project will disrupt fish stocks, forcing fisherfolk to spend more time and travel further to secure their daily catch.

COMMENT | URA: Cautionary tale from Malacca's historic core

Malacca fisherfolk to lose RM12m a year from SM-WEZ project: EIA report

Melaka Gateway component: Loke vows to 'double-check' with DOE

Melaka Gateway: No EIA from developer yet for Pulau Satu project - ministry

NGO pans 'most destructive' Malacca waterfront economic zone project