LBS, ORIENTAL HOLDINGS JOIN FORCES FOR MELAKA’S FUTURE CITY

A major development corridor spanning from Kota Laksamana to Klebang in Melaka has been earmarked as the future state capital, says the Melaka Chief Minister.

Datuk Seri Ab Rauf Yusoh said that the upcoming city would act as a catalyst for growth in the tourism, industrial and commercial sectors of the state.

“This initiative will play a vital role in supporting the state government’s plans under the Straits of Malacca Special Economic Zone (SM-WEZ), envisioned as a ‘Future Maritime City’ and the new administrative capital,” he said.

Ab Rauf emphasised that the Melaka government remains committed to taking proactive steps to support private sector involvement in developing high-technology industrial sectors.

He made these remarks during the signing of a memorandum of understanding (MoU) between property developer LBS Bina Group Bhd (LBS) and diversified conglomerate Oriental Holdings Bhd.

The two parties will collaborate on a mixed-use industrial development project.

The MoU was signed by LBS executive director Datuk Seri Daniel Lim and Oriental Holdings executive chairman Datuk Loh Kian Chong.

LBS executive chairman Tan Sri Ir Dr Lim Hock San, who was present, said the MoU marks a key step in their southern expansion, reinforcing their commitment to regional growth and people-focused communities.

“In partnership with Oriental Holdings, we are excited to shape Klebang into a vibrant, sustainable township.

“By combining our expertise and shared vision, we aim to deliver lasting value, both in building sustainable developments and uplifting Melaka’s economic and social landscape.

“We look forward to a strong, long-term partnership built on shared goals and mutual success.”

Ab Rauf also noted that this partnership marks the first strategic collaboration between LBS and Oriental Holdings.

He expressed confidence that the synergy between the two companies, drawing on their combined expertise, experience and resources will yield significant benefits for the state.

“This partnership is expected to be a driving force behind more sustainable and competitive development in the state.”

He added that the initiative forms part of efforts to strengthen the industrial and commercial landscape through strategic public-private collaboration, in line with the state’s agenda for progressive, inclusive and sustainable development.

The agreement, he said, involves a high-impact development in the strategic Klebang area, comprising commercial and industrial components.

One of the key projects includes an integrated development spanning over 227ha, which will feature a blend of industrial zones, a logistics hub, commercial lots, business spaces and clusters of modern residential units.

Ab Rauf stated that the project would significantly contribute to the progress of the SM-WEZ. “It’s expected to address last-mile connectivity challenges within the core zone of the SM-WEZ blueprint.

“I believe that development along this coastal economic corridor will enhance investor confidence and unlock broader opportunities for capital inflows and long-term economic sustainability,” he said.

Ab Rauf also noted that the project’s strategic location, positioned between three current and planned key ports, would provide a competitive advantage.

“The presence of nearby shipbuilding and maintenance industries will further support the area’s emergence as a new central business and commercial hub,” he said.

In a statement, LBS said the project has an estimated gross development value (GDV) exceeding RM7bil.

“Klebang was selected due to its strategic position within the SM-WEZ, offering high growth potential through coastal access, expanding infrastructure and alignment with Melaka’s long-term economic transformation plan,” the company said.

The development is primarily aimed at meeting the needs of small and medium enterprises, particularly those operating in oil and gas production, manufacturing, food and beverage supply chains, as well as logistics and warehousing.

The statement also highlighted the project’s location along a main access road, adding that the industrial units will possess commercial value, functioning as retail showroom warehouses.