(Nov 23): Once at the heart of the global spice trade, Malacca is pumping nearly US$3 billion ($4.2 billion) into an ambitious plan to put itself in demand in a different hot commodity - oil.

The Malaysian state is reclaiming land along the Straits of Malacca to build a port that can handle the biggest tankers on the planet. The target: a slice of traffic sailing on to nearby Singapore, the top but congested trading hub in a region with US$600 billion in annual oil trade - a third of global oil demand.

Funded largely by Chinese investors, port operator TAG Marine and developer Linggi Base are building the 12.5 billion ringgit ($4.02 billion) Kuala Linggi International Port to offer storage, repair and refuelling services. At Singapore, 200 kilometres away, ships can spend costly time just waiting to deliver or take on goods, refuel or undergo maintenance work.

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