News: Bandar Malaysia Project To Be Revived

Dec 18, 2019

The government will revive the Bandar Malaysia project and will revise the terms agreed upon on 31 December 2015. Finance Minister Lim Guan Eng said one of the changes will be shortening the staggered payment terms from seven years to three years.

The payment by IWH CREC Sdn Bhd (IWH-CREC) for the 60% stake it received for the project was anchored on Bandar Malaysia land priced at RM12.35 billion.

IWH-CREC will now pay another RM500 million as advance payment, in addition to the original deposit sum amounting to RM741 million, reported The Sun.

Read our honest review about Bandar Malaysia here! 

The new dividend split from land sales will now be 50:50 to IWH-CREC and TRX City Sdn Bhd, compared to the previous 60:40 split based on the shareholding.

The number of affordable homes have now been set at 10,000, double than the previous number of 5,000. The recreational and park spaces will now measure 85 acres (3,702,600 sq ft), compared to the previous 48.6 acres (2,003,760 sq ft).

The Bandar Malaysia project will also have an increased bumiputra participation (estimated at 30%) and will have priority for the use of Malaysian-produced construction materials, talent and technology.

“The confidence of IWH-CREC to reinvest in this project is also a result of the government’s successful efforts to quarantine, rationalise and detoxify the project that had been marred by the 1MDB corruption scandal,” said Lim during the the Bandar Malaysia signing ceremony.

Prime Minister Tun Dr Mahathir Mohamad said the project will have a huge impact on Malaysia’s economy as it will be a hub that will attract high-impact global multinationals and will allow potential co-action in the fields of technology, finance and entrepreneurship.

“The revised development plan for Bandar Malaysia will ensure that it will be more inclusive and will be able to be aligned with Malaysia’s socio-economic growth,” he said.

Mahatir also told The Edge Markets that the Kuala Lumpur-Singapore High Speed Rail (HSR) will have a station within the Bandar Malaysia project.

“Yes it will have the HSR station, although we have not decided on the actual HSR project itself, but it (Bandar Malaysia) will have the HSR station,” he explained.

“We hope that this place will become a hub of all kinds of activities, including finance. Finance is of course meant for TRX (Tun Razak Exchange), but it (Bandar Malaysia) will be a centre for mainly international companies who will have their facilities here, so that they can serve the whole of Southeast Asia.”

Malaysia and Singapore agreed in September 2018 to suspend the HSR project until end of May 2020. Malaysia then paid S$15 million (RM46 million) to Singapore for costs arising from the suspension.

 

Check out these latest project reviews today! Or read our helpful Guides to learn all about the various property buying, selling and renting tips!

spacer
agent image
agency logo
Irwan Radzuan
Director of Sales
REN: 08092
RENSTAR PROPERTIES
irwan@renstar.my
(+60) 17-6753606