Putrabay Integrated Development Project – Support from the State Government

Putrabay Integrated Development Project – Support from the State Government


Kuala Perlis is the third largest town in the state of Perlis and has been regarded as the main entrance and the seagate to the world renowned island of Langkawi. According to statistics from the Langkawi Development Authority (LADA), more than three million tourist visited Langkawi in 2013, and almost 70% arrived from this humble town and fishing village of 21,000 population, while the rest departed from the port of Kuala Kedah and Penang.

The current ferry terminal in Kuala Perlis is now handling in excess of 2 million passengers annually, and it has already reached its maximum potential of handling capacity. This travel preference informally bestowed to Kuala Perlis by tourists over its southern ports counterparts, is due to the fact that travel time through Kuala Perlis is only 45 minutes, compared to the time taken to travel to Langkawi through Kuala Kedah jetty which is 1 hour and 15 minutes.

Tourist entry to Langkawi increased at the rate of 8% in 2012 compared to the year before that. This trend is expected to increase at 5% every year due to the increasing tourism activities and infrastructure upgrading by The Langkawi Development Board (LADA) and The Ministry of Culture and Tourism Malaysia. We expect the increase in tourists to Langkawi to be around 1 million in the next 6 years. However the infrastructure development and facilities offered at the Kuala Perlis ferry terminal is not in tandem with the projected increase of potential tourists using the jetty. This might dampen the interest of tourist using the Kuala Perlis terminal and the state of Perlis might lose out on tourist’s revenues.

Putrabay Integrated Development Project

1. After identifying various weaknesses aspects that are correlated to the increasing number of visitors to Kuala Perlis, XXXXhas proposed a comprehensive initiative to overcome the problems.

2. The proposed solution is an integrated development project called PUTRABAY.

3. This integrated development project will include the following development such as:
a. A new Ferry Terminal with the capacity of 5 million passengers every year.
b. A parking lot with capacity of 1000 vehicles.
c. 8 new passenger ferries (Option-to-build).
d. The first ever Water Theme Park in Perlis.
e. An Outlet Village.

4. These 5 development projects are estimated to manoeuvre the economic growth of Perlis tremendously, in align to the flows of the federal government to drive the Northern Corridor agenda.
5. All of 5 projects are proposed to be built on 2 different areas which are:
a. Pulau Ketam area, that will have the following development:
i. A new ferry terminal
ii. An ample vehicle parking lots
iii. The new passenger ferries
iv. A water theme park
b. Kuala Perlis (vacant side behind Putra Brasmana Hotel) that is to be developed into an Outlet Village with parking facilities.
c. At present, the land status at Pulau Ketam is known as the state land, whereas the land for Outlet Village development is owned by Pens Holdings, a subsidiary of the Perlis State Economic Development Corporation .


1. XXXXis trying to target 5 different funding sources which are :

a. Internal capital injection of RM10 millions
i. This includes the initial funding startups such as site survey professional employment, infrastructure design planning, land acquisition (if approved) and initial reclamation of land to start the site work.

b. Loan fund through multilateral development banks
i. According to the plan company will request the support from Northern Corridor Implementation Authority (NCIA), a management body for development of the Northern Corridor.
ii. This support is to facilitate the process of obtaining funds from the appointed development banks by NCIA such as SME Bank, Development Bank and Exim Bank.
iii. On top of that, the company will also get support from Tourism Malaysia for grants to develop the tourism infrastructure particularly to raise the crowd awareness of Visit Malaysia 2014.

c. The company is also willing to share the investment with GLC companies in order to develop the tourism industry at Perlis.

d. Investments with private companies are also likely to provide an injection of capital, expertise and experience in management. Some of the potential private companies to contribute in the investment are:

i. Ferry Line Ventures
1. This ferry operator has a great asset in terms of total ferry, manpower and experience in the public transportation sector.
ii. Pena Group from Thailand
1. Experienced in managing outlet industry and seen as an asset that can be shared in Putrabay development, particularly in luring global and international brands into Perlis Outlet Village (P.O.V)

e. Public Listing
1.This is a long term move most likely in the final stages of the development due to the potential for high earning in the first and second phase

Support from the State Government

1. To accomplish this integrated development project, XXXXhas applied for some measure of support which are:
a. Infrastructure and access facilities to Putrabay Pulau Ketam.
i. The developer requested the state government to build a wider road along the river at Seberang Ramai leading to the main entrance of Putrabay (paired roads).
ii. This is due to the development area at Pulau Ketam (by Putrabay Holdings) that is confined within the proposed site.
2. Support and guarantees from the state government to the company’s application in securing funds from major development banks.
3. Promotion through grants from government in order to romote and attract tourists using facilities at Putrabay.