Malaysia: RM 22 Billion Mersing Laguna Project To Be Completed In Seven Years

Mohd Haikal Mohd Isa Bernama 8 Mar 12;

JOHOR BAHARU, March 8 (Bernama) -- Mersing Laguna, the RM22 bilion eco-tourism project which will see the transformation of Mersing from a sleepy coastal town into an international tourist destination, will be completed in seven years time.

Ungku Safian Abdullah, the chief executive officer of Radiant Starfish Bhd, the master developer of the project, said reclamation works to create three islands off the coast of Mersing which are vital to the project, will start tomorrow and completed within 36 months.

"I expect the first hotel under the Mersing Laguna project to be completed within 24 months," he told reporters after the signing of agreements with four partners of Mersing Laguna here, Thursday.

Radiant Starfish signed agreements with Sinohydro Group Limited, YPJ Holdings Sdn Bhd, Shengrong International Group Co Limited and CIMB Insurance Brokers Sdn Bhd.

Menteri Besar Datuk Abdul Ghani Othman also attended the signing ceremony.

Ungku Safian said the reclamation works to create 2,000 acres of land will be carried out by China's Sinohydro.

Touted as the biggest land reclamation work in Malaysia, the RM4.2 billion work will be carried out by Sinohydro.

Sinohydro is one of the biggest dredging and reclamation companies in the world and has been involved with the construction of the Three Gorges Dam in China and the Bakun Dam in Sarawak.

Ungku Safian said 22 parcels of Mersing Laguna's land have been also pre-sold to investors, which will see the construction of 22 hotels and about 4,000 villas and service apartments, marina facilities as well as other commercial development.

Radiant Starfish also signed agreement with Shengrong and OCT, a Chinese government-linked company to develop a water-based theme park in Mersing Laguna costing RM1 billion.

Ungku Safian said YPJ Holdings and Radiant Starfish will also join hands and participate in a RM1 billion urban renewal project to makeover Mersing town.

Abdul Ghani said the Mersing Laguna project would be a boon to Johor's tourism industry, complementing its long list of tourism products.

On Desaru, another of Johor's beachfront tourism attraction, he said, works to construct four premier hotels and golf courses worth RM1.3 billion were ongoing.

--BERNAMA

Mersing to be RM22b tourist haven
New Straits Times 9 Mar 12;

ECO-TOURISM: Laguna project to be developed on 809ha reclaimed land

THE once sleepy district of Mersing in the northeast of Johor is set to be transformed into a RM22 billion high-end international eco-tourism destination in seven years.

Called Mersing Laguna, the resort will see a new wave of exciting developments that include boutique hotels, service apartments and waterfront villas on 809ha of reclaimed land, touted to be the country's biggest land reclamation project.

The project was launched yesterday with the signing of agreements by master developer Radiant Starfish Development Bhd and four partners -- Chinese construction conglomerate Sinohydro Corporation (M) Sdn Bhd, China-based theme park developers Shengrong International Group Co Ltd, Johor education foundation YPJ Holding Sdn Bhd and CIMB Insurance Brokers Sdn Bhd.

Johor Menteri Besar Datuk Abdul Ghani Othman, who launched the event, also witnessed the signing ceremony.

Present were Johor state secretary Datuk Obet Tawil, East Coast Economic Region (ECER) chief executive officer Datuk John Isaace and Radiant Starfish Development Bhd president and chief executive officer Ungku Safian Abdullah.

Mersing Laguna, which started its three-year reclamation work, is located between the Endau-Rompin and the Marine Parks off the coast of Mersing.

The reclamation project will involve a 36km stretch of the beach. The project was one of the nine announced by Prime Minister Datuk Seri Najib Razak to be implemented in the ECER region that straddles Pahang, Terengganu, Kelantan and Mersing in Johor on Feb 28.

Ungku Safian said the project took years of detailed hydrographic, environmental impact and socio-economic studies before it could take off.

"We will consciously work towards environmental sustainability by adapting green and advanced technologies in the provision of energy and waste management."

Ungku Safian was confident that the project had the potential to be a high-niche global tourist resort similar to the Gold Coast in Australia and Bali in Indonesia.

"We want to turn Mersing into a premier tourism product and use it to leverage on eco-tourism."

The reclamation work alone would cost RM4.2 billion, while related infrastructure would cost a further RM1 billion.

Another RM17 billion will be required to complete the entire development of 22 hotels, 4,000 villas, marina facilities and other commercial development, including a 80ha theme park.

On the livelihood of traditional coastal fishermen in the area, Ungku Safian said the development would not in any way hamper them, adding that the project was also expected to provide jobs for the people of Mersing.

Ungku Safian also assured Johoreans that they would be able to see for themselves the first hotel under Mersing Laguna in two years.

Ghani said Mersing now had a huge potential to develop into an international tourist destination.

"Johor is the only state with two economic growth corridors with Mersing Laguna coming under the ECER in the east and Iskandar Malaysia in the west of the state," he said, adding that Johor had a good mix of investment assets.

Ghani also said the government would improve the infrastructure connectivity between Mersing and other parts of Johor as well as the rest of the east coast.

Big plans for Mersing
Developer building $9.2b tourist playground on reclaimed land
Reme Ahmad Straits Times 9 Mar 12;

JOHOR BARU: A private Malaysian developer is planning to reclaim 810ha of land off sleepy Mersing town in north-east Johor in an ambitious RM22 billion (S$9.2 billion) project to create a tourist playground.

Led by a member of Johor royalty, the developer named Radiant Starfish Development said it plans to build hotels, serviced apartments, waterfront villas and a marina on three new islands created by reclaiming the land.

A RM1 billion theme park is being planned on the mainland.

Called Mersing Laguna, the three islands together will be larger than one of Singapore's biggest residential estates, Ang Mo Kio, which is about 680ha in size.

Mersing town, about a 90-minute drive from Johor Baru, is often visited by Singaporeans as a starting point for exploring Malaysian islands in the South China Sea, such as Pulau Tioman, and for fishing holidays on kelongs.

The town is also located near the Endau-Rompin National Park, a rainforest popular with jungle trekkers and nature lovers. Offshore are 42 small islands, which are part of the Johor marine park.

Unlike most big projects going up in Johor that form part of Iskandar Malaysia, the economic development zone in southern Johor, Mersing Laguna is part of investments in the East Coast Economic Region.

The region encompasses Kelantan, Terengganu, Pahang and Mersing district in Johor - mostly rural towns and districts which have been targeted for development.

The three reclaimed islands will be linked to mainland Johor by separate bridges, artist's impressions released by the company yesterday showed.

When asked why land is being reclaimed when there is ample land in Malaysia, Radiant Starfish president and chief executive Ungku Safian Abdullah said in an interview yesterday that he wants to retain the rustic feel around Mersing as that is what tourists look out for in eco-tourism.

This includes the fishing villages, the 36km-long beachfront and the fruit trees.

'These are my tourist products. You can buy fish from the fishermen at the jetty, get fresh fruit. How much would it cost to set up such a fishing village?' he asked.

The dredging of sand from the bottom of the South China Sea and the land reclamation will take about three years and some RM4.2 billion.

It will be carried out by China's Sinohydro Group, which was involved in building the Three Gorges Dam and Sarawak's Bakun Dam.

The islands raised from the sea will have to be left alone for just a few months before low-rise hotels, apartments and villas can be built on them.

Radiant Starfish, as the project's master developer, yesterday signed agreements in Johor Baru with several parties to kick-start the project.

The agreements included one to buy several parcels of land near Mersing town, another to dredge sand for the land reclamation and one for the development of the 80ha onshore theme park by two companies from China.

Inevitably, the huge size and cost of the project raised questions on its financing viability, as Malaysia has a mixed record on mega projects.

Ungku Safian said the project would be spread over seven years and that the company has 'presold' all the 22 parcels of land on the three upcoming islands to investors.

'It is an ambitious project. A lot of people will scoff at the period of seven years (to build up everything). I take that as a challenge,' he said.

Radiant Starfish is 30 per cent owned by foreign investors, including those from China, with the remainder being held by Malaysians. The company has a paid-up capital of about RM700 million.

Chequered history

Malaysia has a mixed record in building mega-projects.

Port Klang Free Zone

A 404ha commercial and free zone. Has been mired in controversy over escalating costs and bribery scandals.

Penang Bridge

Although panned by critics as wasteful, it became the lifeblood link to the mainland. A second, bigger bridge is being built.

Putrajaya

The administrative capital was built to house all government ministries in one area. But the city is silent at night and its centrepiece, Putrajaya International Convention Centre, is a white elephant.

North-South Expressway

The 772km highway links Johor to northern Kedah, and helped spur development along its route.

Entertainment Village

Built at a cost of RM400 million (S$167 million) outside Kuala Lumpur, it was abandoned after failing to attract moviemakers.

Multimedia Super Corridor (MSC)

This is Malaysia's 'Silicon Valley', built just outside KL. MSC's core, Cyberjaya town, has a number of high-tech companies and several universities, but most of the land remains empty.

Kuala Lumpur City Centre

Another project that critics said was a wasteful showpiece, the twin 88-storey towers, which were ready in 1998, have become an icon of modern Malaysia.