Securing China’s Dalian Wanda Group as the master developer of Bandar Malaysia would lead to more international investments in the country, according to Starfish Training Sdn Bhd Director Warrick Singh, reported the New Straits Times.
“The deal will potentially raise confidence among international investors to get involved in Malaysian mega projects.”
He also thinks that Bandar Malaysia would benefit from Beijing’s strict anti-corruption laws and capital outflow controls if it ropes in Dalian Wanda as an investor.
However, the transaction needs to be announced transparently as Dalian Wanda is a publicly-listed firm.
“There will not be any credibility issue, as the company seeks the best value rather than price, for its shareholders,” Warrick explained.
Although the deal is anticipated to have a positive spill-over effect, like the creation of more employment opportunities, it may take a while before the agreement is officially signed.
Nevertheless, the Malaysian government should make sure that the development of Bandar Malaysia remains on schedule, particularly for the Singapore-Kuala Lumpur High Speed Rail (HSR).
According to Ho Chin Soon Research CEO Ishmael Ho, there should be no delay in the construction of the HSR.
“This is because it is a good infrastructure project, and any delays will affect the confidence of investors and other stakeholders.”
Meanwhile, The Straits Times reported last week that talks with Dalian Wanda have reached an advanced stage. The only thing required for it to take off is the approval of China’s financial regulators.
According to unnamed banking executives, the Chinese company intends to use half of Bandar Malaysia for tourism and entertainment-related projects valued at around US$8 billion (RM34.74 billion).
Located on the former site of the Kuala Lumpur Air Base in Sungai Besi, the 197ha prime site has a gross development value of about RM150 billion. It will also house the country’s terminus in the HSR line that will link Singapore with Kuala Lumpur.
Image sourced from Deadline.com
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email Editorial-MY@propertyguru.com.my
For more information on new top homes, check out PropertyGuru’s New Property Launches and Project Reviews.
