With an asset base of more than US$13 trillion (approximately RM53.39 trillion), eight banks – four international and four local banks have set up a new fund aimed at financing the Bandar Malaysia project in Kuala Lumpur.
The local banks to fund the development and construction works are Affin Bank, RHB, Maybank and CIMB, while the international banks include HSBC, Industrial and Commercial Bank of China (ICBC), the Bank of China and China Construction Bank (CCB).
Bandar Malaysia Sdn Bhd made the announcement during the signing of three key agreements pertaining to Bandar Malaysia, which is poised to become a premier mixed-use transport oriented development in Kuala Lumpur.
Spearheaded by IWH CREC Sdn Bhd (ICSB), the project is a 60:40 joint venture (JV) between the China Railway Engineering Corp (CREC) and Iskandar Waterfront Holdings Bhd. CREC invested US$2 billion (approximately RM8.21 billion) in the project to build its regional centre within Bandar Malaysia.
In the second agreement, Malaysian Resources Corp Bhd (MRCB) will set up a JV with Bandar Malaysia for the development of the Bandar Malaysia terminal. The JV will design, develop as well as construct a mixed-use integrated transport terminal spanning 60 acres. Notably, the terminal will serve as a central transportation hub for the KTM Komuter, Mass Rapid Transit, Express Rail Link (ERL) and Bus Rapid Transit (BRT) lines.
Under the third agreement, the master developer commits to building 5,000 units of affordable homes during the first phase of Bandar Malaysia.
Image: Sourced from mediapermata.com
In addition to this, the Malaysian prime minister Datuk Seri Najib Tun Razak announced many incentives will be given to the master developer of Bandar Malaysia and its subsidiaries. This includes 10 years of income tax exemption, 8 years of stamp duty, real property gains tax and withholding tax exemptions, as well as import duty exemptions on selected construction materials which are not manufactured in Malaysia.
Besides that, the government is also considering granting tax incentives to the firms and financial institutions which take part in the project. Other incentives such as industrial building allowance, accelerated capital allowance, deduction of rental payments, stamp duty exemption for service agreements or pre-package incentives for other investors and tourism operators are also under consideration.
According to Najib, this move is to attract more companies and individuals around the world to Bandar Malaysia.
Featured Image: Sourced from skyscrapercity.com
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.m
