Johor Launches 3,200-Acre Maharani Freeport to Boost Regional Energy Trade

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“Johor launches the 3,200-acre Maharani Freeport in Muar, a deep-water free zone aimed at boosting regional oil, gas and maritime trade.”

Johor, 01st December 2025, 02.45pm – Johor officially launched the 3,200-acre Maharani Freeport in Muar on Saturday, marking the debut of a deep-water, three-island free zone designed to support regional oil and gas activities along the Strait of Malacca.

Developed by Maharani Energy Gateway Sdn Bhd (MEG), the privately driven project sits within the Muar port limits and comprises three reclaimed islands along with a mainland site. The development will feature an energy hub, deep-sea port, industrial park and financial hub.

According to the project fact sheet, the freeport will offer a range of incentives, including tax exemptions for energy and maritime activities, import-duty exemptions for most raw materials and manufacturing equipment, unrestricted capital and profit repatriation and up to 100% foreign ownership subject to conditions.

The facility’s natural water depth of more than 24 metres enables operations for very large crude carriers (VLCCs), positioning it strategically along one of the world’s busiest oil shipping routes.

Key activities planned for the freeport include oil and gas trading, product storage, ship-to-ship transfers, refinery and petrochemical processing, LNG floating terminal operations, and ship repair services. MEG executive chairman Datuk Dr Daing A Malek said the project has already commenced business activity.

He added that the initiative is expected to generate at least 45,000 direct and indirect jobs and create new opportunities for local businesses in logistics, ship repair, construction and related services.

The project—backed by both federal and state governments—was officiated by the King, Sultan Ibrahim Sultan Iskandar. Prime Minister Datuk Seri Anwar Ibrahim, who also attended the launch, said the government had gazetted the Maharani Freeport and its free zones on Nov 28, declaring it “open for business.”

MEG will serve as the master developer, landowner and deep-seaport operator. The freeport will have its own governing authority and a one-stop facilitation centre for investors.

Maharani Freeport expands Johor’s ambition to grow its regional energy hub, complementing the large-scale Pengerang Integrated Petroleum Complex (PIPC) on the east coast. PIPC houses refineries, petrochemical plants, storage terminals and LNG facilities, including Petronas’ 6,000-acre Pengerang Integrated Complex—one of the region’s largest petrochemical facilities.

With its free-zone incentives and deep-water capabilities, Maharani Freeport is positioned to compete with regional corridors, including Singapore, along the Malacca Strait, which handles over 100,000 vessel passages annually and nearly a quarter of the world’s seaborne oil trade.

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