Malaysia's richest state will rethink a RM4 billion project to turn part of its coastline into a beach paradise rivalling Australia's Gold Coast amid environmental concerns, media reports said today.

Mohd Khir Toyo, chief minister of Selangor, was quoted by The Star newspaper as saying the project had been stopped temporarily pending the results of an environmental study.

The so-called Sepang Gold Coast project, being planned on a 604 hectares site, would involve heavy land reclamation and environmentalists fear construction would destroy mangrove swamps and the shoreline's ecology, the newspaper said.

The Selangor government has recently come under fire for approving housing projects that had caused severe environmental damage.

Apart from environmental concerns, Khir said the state government was also reviewing the project amid a proposal to construct a coal-based power plant several kilometres from the area.

State officials told the newspaper that the project site would likely be scaled down to 60 hectares, about one-tenth of the original proposal.

Instead of a massive holiday complex complete with theme park, a nature resort, an open zoo and even a replica of a Venetian canal, it would be a cosy hideaway featuring clusters of chalets branching out into the sea like a palm tree, they said.