KUALA LUMPUR — April 19, 2019: The government has decided to resume work for the Bandar Malaysia project with an expected gross development value of RM140 billion after it was stopped abruptly in May.
The decision was made after deliberations at the Cabinet meeting on April 17 to allow IWH-CREC Sdn. Bhd., the Malaysia-China consortium, the master developer, to resume work.
Prime Minister Tun Dr. Mahathir Mohamad said today that Bandar Malaysia will have a significant impact on Malaysia’s economy and will serve as a global hub to further attract high impact global finance, technology and entrepreneurial firms.
“It will draw major international financial institutions, multi-national corporations and Fortune 500 companies to locate their regional headquarters. In addition, tech giants such as Alibaba and Huawei have also manifested interest to establish their information and communications technology centres,” he said at a news conference at Yayasan Al-Bukhary.
The project, he added, is expected to generate tremendous impact on urban development for Malaysia, drawing foreign direct investments and generating an expected GDV of RM140 billion
“We were (initially) under the impression (that) it was given entirely to (a) Chinese company. When we investigated, the company that was doing the preliminary work actually is a not a Chinese company.”
Mahathir acknowledged that IWH-CREC, which had won the tender to develop Bandar Malaysia, is in fact a Malaysian company in which the Malaysian government holds 40 per cent while the Chinese company has only a 24 per cent. The rest of the stake belongs to foreign companies.
“Practically, it is a government company. Because of that, we’ve changed our stance and we want to reinstate Bandar Malaysia to the company that first won the bid — IWH-CREC,” he remarked.
When the government terminated the contract, it had paid back about RM800 million in deposit to the consortium.
“Now they have to pay back the government. The government welcomes the commitment by IWH-CREC to make an advance payment of RM500 million in addition to the original deposit of RM741 million to be paid within 60 days from the date the government officially reinstates the project,” said Mahathir. — Bernama