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Factors Influencing Large-Scale Infrastructure Project Abandonment: Lessons from the Melaka Gateway Project

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Considered significant within Malaysia, funds linked to the Belt and Road Initiative (BRI) have been allocated for infrastructural development, primarily focusing on ports and railways. Notably, the Melaka Gateway and the Kuantan Port Expansion projects, situated on the eastern and western coasts of Peninsular Malaysia respectively, are emblematic of these efforts. Both projects, established as joint ventures involving Chinese state-owned enterprises and regional companies, commenced simultaneously. Despite their shared origins, the paths taken by these initiatives have diverged significantly. The Melaka Gateway project has encountered delays and controversies, in stark contrast to the smooth progression of the Kuantan Port Expansion. In response to this disparity, this study adopts a qualitative approach, utilizing content analysis to explore the challenges leading to the abandonment of the Melaka Gateway project. Our findings reveal three primary obstacles: the failure to submit an Environmental Assessment Report (EIA), inadequate planning by the developer, and strained relations with the state government. Furthermore, we discuss the ramifications of project abandonment. This research furnishes empirical insights that can guide governmental bodies and development agencies in mitigating the challenges inherent in project development, thereby enhancing the likelihood of project success.
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