Melaka Corporation (MCORP), formerly known as Melaka State Development Corporation (PKNM), was established in response to the Federal Government's recommendation that each state in the country establish their own state development corporation in order to improve economic and socioeconomic development. At the time, each PKEN was responsible for conducting economic and social development activities in their respective states as a Statutory Body. It is also consistent with the government's goal of implementing the New Economic Policy (NEP), particularly in securing the involvement of the Bumiputera community.

Furthermore, its primary function is to raise living conditions and reorganize society through balanced development and equitable income distribution.

As a result of the implementation of the MCORP Enactment, Enactment No. 1 of 1971, the Melaka Corporation (MCORP) was founded on 30 April 1971 with a staff of only 20 people.

The State Government's purpose in establishing MCORP at the time was to play a role in growing and expanding Melaka in four major areas: industry, tourism, housing, and business and trade.