Smart Melaka Blueprint 2035

SMART MELAKA BLUEPRINT 2035

MELAKA: PRESENT AND FUTURE 40 % 15 years urbanisation rate expected population to increase by year 2035 in the last increase population by Melaka continues to experience rapid urbanisation 86.5 % 1,546,275

The rapid growth in population has fuelled a demand for new urban development, improved infrastructure, and better services and facilities. Melaka 2035 Structure Plan has successfully preserved the original historical site estimated to be less than 0.05 percent of the land (World Bank, 2019). The delicate balance between historical and modernisation is a challenge for the state future development. Embracing smart city solutions pave the way for promoting innovations and digitalisation to address these challenges by 2035. Melaka will retain strong connectivity between quality of life, business and environment.

STRENGTH, ISSUES AND CHALLENGES

Strength

Strategic Location

The Melaka state is strategically located between Kuala Lumpur and Singapore, the two commercial and financial centres and with proper positioning the state has the potential to attract high quality investments, businesses, and talents. The uniqueness and historical value of Melaka will continue to attract tourists. It is located between Phuket in Thailand and Bali in Indonesia which are two popular holiday destinations. Melaka can be the niche port of call for cruise liner servicing these destinations. Melaka could also position itself as Marine Hub for fish landing port for fishing fleets operating in the Indian ocean and south China sea. The economic performance of Melaka over the last 10 years has been impressive. The Gross Domestic Product (GDP) recorded 3.1 percent in 2020 with total GDP revenue of RM41 billion. The services and manufacturing sectors dominated Melaka’s economic landscape, contributing 48.6 percent and 37.3 percent, respectively, followed by agriculture (11.2 percent), construction (2.4 percent), and mining and quarrying (0.1 percent). Melaka attracts investments of RM4.26 billion between January and June 2021. However, due to the uncertainties of the global economy and the COVID-19 pandemic, Melaka’s gross domestic product (GDP) performance in 2020 declined by 5.9 percent. Melaka’s unemployment rate in 2020 was the second lowest after Putrajaya, which is 2.2 percent compared to the national rate of 4.5 percent. In term of its fiscal sustainability, Melaka received an allocation of RM369 million under the 12th Malaysia Plan for the implementation of 169 projects and programmes that was planned through 2021. The budget highlighted a total of 171 development projects with a total cost of RM5.534 billion for implementation involving RM574 million to be disbursed in 2022. Melaka has a good policy in place that governs the permissible uses of debt financing, debt limits, and the prioritisation of debt repayment over other obligations.

150km

240km

2 hours

3 hours

K. LUMPUR

MELAKA SINGAPORE

Tourist Arrival

18.72mill

5.05mill

2.67mill

2019

2020

2021

37.3%

48.6% Services

Manufacturing

GDP by sector

Agriculture 11.2%

0.1%

Mining & Quarrying

2.4%

Construction

Source: PSMJ, 2022

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