Melaka, Malacca, Malaysia

🇲🇾 Malacca is a state in Malaysia located in the southern region of the Malay Peninsula, next to the Strait of Malacca. Its capital is Malacca City, dubbed the Historic City, which has been listed as a UNESCO World Heritage Site since 7 July 2008.

The state is bordered by Negeri Sembilan to the north and west and Johor to the south. The exclave of Tanjung Tuan also borders Negeri Sembilan to the north. Its capital Malacca City is 148 km (92 miles) south-east of Malaysia's capital city Kuala Lumpur, 235 km (146 miles) north-west of Johor's largest city Johor Bahru and 95 km (59 miles) north-west of Johor's second largest city, Batu Pahat.

Although it was the location of one of the earliest Malay sultanates, namely the Malacca Sultanate, the local monarchy was abolished when the Portuguese conquered it in 1511. The head of state is the Yang di-Pertua Negeri or Governor, rather than a Sultan. Malacca is noted for its unique history and it is one of the major tourist destinations in Malaysia. With a highly strategic state position for international trade routes, Malacca was once a well-known international trade centre in the East. Many traders anchored in Malacca, especially traders from Arabia, China and India, traded at the port of Malacca and from there were born many of the descendants and tribes that exist in Malacca to this day.

A great diversity of races and ethnicities have long existed among the local community reflecting its history. Malays, Chinese, Indians, Baba Nyonya, Kristang, Chitty and Eurasians are significant ethnic groups living in the State of Malacca in the present day.

Economy Despite being located in a land without any significant natural resources, the economy of Malacca dates back more than 500 years, due to its strategic location. As the centre of the all important spice trade, Malacca attracted many colonial powers to engage wars to control it.

Port of Tanjung Bruas, located in Tanjung Kling, was constructed in late 1970s and commenced operations in early 1980s to provide port facilities and services to the local business communities and to handle the exportation of hinterland goods as well as the importation of raw materials. Container ship handling services began in 2019, with MV West Scent became the first container vessel to dock at the port.

Port of Kuala Sungai Linggi, commercially known as Linggi International Floating Transshipment & Trading HUB (LIFT-HUB), is a transshipment area for liquid bulk transshipments and break-bulking located offshore of Linggi River in the Strait of Malacca. It was gazetted in 2006, covers an area of 154 km² (45 sq mi) and is among the largest designated Ship-to-ship cargo transfer area in Malaysia.

Sungai Udang houses the PETRONAS Malacca Refinery Complex consisting two refining trains, established in 1994 and 1999 and owned by PETRONAS Penapisan (Melaka) Sdn. Bhd. and Malaysian Refining Company Sdn. Bhd. respectively. The total capacity of the refinery is 270,000 barrels of oil per day.

The Melaka International Trade Centre (MITC) in Ayer Keroh which was opened in June 2003 is the leading commercial centre and the centre for meetings, incentives, conferencing and exhibitions (MICE) which plays an important role in the development of trade in Malacca.

On 20 October 2010 an event was held to announce that Malacca had met the benchmark of 'Developed State' as set out by the Organisation for Economic Co-operation and Development and a declaration of "Melaka Maju 2010" (Progressive Malacca 2010) was made.

As of 2012, service sector contributes to the largest share of economy in Malacca accounted for 46.9%, followed by manufacturing (43.5%), agriculture (6.5%), construction (2.9%) and mining (0.1%). In terms of number of workforce, as of 2013, there were 275,000 people working in the industrial sectors, 225,000 people working in the service sectors, 35,000 people working in the entrepreneurship sectors and 12,300 people working in the agricultural sectors.

Malacca has successfully opened itself up to foreign investors since the early 1970s. By 1997, the state has registered a total investment of over MYR16 billion. In 2014, the state achieved a total MYR4.4 billion worth of investment, in which MYR1.8 billion came from foreign investors.

In 2013, Malacca had a GDP of MYR22,646 million with GDP per capita of MYR34,109. It had 3.2% GDP growth in 2013. Inflation rate in 2012 was 1.6%. As of 2015, the Malacca State Government has an outstanding MYR861.7 million of loan to the federal government. In 2014, the state government's reserve amounted to MYR206.61 million. The unemployment rate in 2014 was 0.9% or around 3,500 people. The state has a relatively well-educated population, with a youth literacy rate of 99.5% as reported by Malaysia Millennium Development Goals Report 2015.

Currently there are 23 industrial areas which are centred along the edges of the city proper in suburbs which include Ayer Keroh, Batu Berendam, Cheng, Taman Tasik Utama and Tanjung Kling. While outside Malacca City, industrial areas include Alor Gajah and Sungai Udang. There are around 500 factories in the state which come from Germany, Japan, Singapore, Taiwan, United States etc. For small and medium-sized enterprises, a number of estates have been established by the state government.

In 2016, Malacca became the safest place to live in Malaysia. The state crime rates dropped by 15.5 per cent in 2017 with 3,096 cases recorded compared to 3,663 in 2016. Malacca recorded a gross domestic product (GDP) growth of 8.1% in 2017, the second highest in the country after Sabah. Services sector remained the main contributor to the state’s economy at 44.8% of GDP. The GDP per capita also expanded 11.2% to RM46,015 in 2017, surpassing the national-level figure of RM42,228. The State Socioeconomic Report 2017 published on 26 July 2018 reported that Malacca was the state that recorded the lowest unemployment rate in 2017 with only 1.0 percent.

Education: University Institutions include: • Universiti Teknikal Malaysia Melaka (UTeM). • Universiti Teknologi MARA (UiTM) campuses that are located at Lendu, Malacca City and Jasin. • Manipal University College Malaysia (MUCM) in Bukit Baru is the foremost institution for medical education in the state. • Multimedia University (MMU) at Bukit Beruang. • Malaysian Maritime Academy (ALAM) at Kuala Sungai Baru. • Malaysian Han Studies (MAHANS) at Hang Tuah Jaya.

There are several institutions that offer nursing education: Institut Kesihatan Sains & Kejururawatan Pantai, Institut Sains Kesihatan Dan Kejururawatan Mahkota, Kolej Kejururawatan & Kesihatan Nilam, and Kolej Perubatan Komplementari Melaka. Institut Kesihatan Sains & Kejururawatan Pantai is linked to Pantai Hospital at Ayer keroh while Institut Sains Kesihatan Dan Kejururawatan Mahkota is linked to Mahkota Medical Centre.

Skill-Tech Institute provides training in agriculture, homestay, biotechnology, ranching, aquaculture, estate supervision, landscaping, and food processing. It has two branches in Machap, Durian Tunggal and Taman Tasik Utama, Ayer Keroh.

Part-time study is available at Open University Malaysia (OUM), while those who wish to obtain an academic diploma can enroll at University of Malaya Centre for Continuing Education (UMCCE) at Sinar College.

Association of Chartered Certified Accountants (ACCA) lectures and examinations are provided at Sinar College at Malacca City. Sinar College is the only institution in the state that offers complete accounting education. Sinar College is the only approved training centre for tourism courses. Other academic institutions include International College of Yayasan Melaka (ICYM) and Melaka International College of Science and Technology (MiCoST).

The state government of Malacca provides financial assistance mainly in the form of loans to local citizens via Malacca Education Trust Fund (TAPEM). Among the facilities provided by TAPEM are Higher Education Loan, Minor Scholarship/Incentive Scholarship for Secondary School, and School Assistance to Primary School Students.