Malacca will have its first International Cruise Terminal in 2022 off the coast near the Encore Melaka area here.

Chief Minister Adly Zahari said the project was believed to drive economic development, logistics and tourism as well as being a key player in furthering the state's economic and social development which was recognized as a UNESCO World Heritage Site.

"The terminal will allow cruise ships anchored directly to the terminal to replace the 'fiddle boat' service to bring tourists from cruises anchored in shallow areas.

"This project will not only enhance the state's tourism sector but will also have an impact on the state economy in terms of providing employment opportunities," he told a press conference after the state executive council meeting here.

He said the state government was in talks with Encore Malacca to determine the total cost that would have to be incurred for the project which would take two years to complete.

The project also received cooperation from cruise ship operators from Singapore.

Adly said last year, Melaka received 60 cruise ships with each carrying about 2,000 tourists using existing terminals, each at Melaka Marina and the Melaka Immigration, Customs, Quarantine, and Security (ICQ) Complex.

"We are confident that this will increase after the opening of the International Cruise Ship Terminal facing the Straits of Malacca," he said.

The International Cruise Ship Terminal at Encore Melaka is one of three ports currently under development by the state government and related agencies.

The other two terminals are Tanjung Bruas Port and Kuala Linggi International Port (KLIP).