The Terengganu government today anticipated the possibility of discontinuing Bayas Island development project in Lake Kenyir, Terengganu as a tax-free zone for several reasons.

State Tourism, Culture and Information Technology Committee chairman Ariffin Deraman said the government needed to take a clear step following the failure of the contractor to complete the project.

However, he said the announcement of the decision would be made after it was brought to the Exco meeting.

“We are actually drafting a paper for the Exco meeting to decide whether or not we want to end it. We already have a decision but we can't announce it.

"The project was postponed because the contractor could not complete it and it is likely that it will be terminated," he said after attending the opening of the Ganite Kite Batik Festival at the Noor Arfa Craft Complex (NACC) in Batik Pavilion, Chendering today.

Also present were Batu Burok State Assemblyman Muhammad Khalil Abdul Hadi and Noor Arfa Holding Sdn Bhd Executive Chairman Wan Mohd Ariffin Wan Long.

In this regard, Ariffin welcomes any party who wishes to redevelop the Bayas tax-free area if the government decides to end the project later to avoid wastage.

"We are offering any player interested in taking over Bayas Island to come see me with a proposal, we will look and value," he said.

The Terengganu government has reportedly been considering whether to continue or terminate the Bayas Tax Free Zone project in Lake Kenyir after it has been delayed for two years.

A special committee was set up and chaired by the Chairman of the Infrastructure, Public Facilities, Utilities and Green Technology Committee, Dr Mamat Puteh to resolve the issue.