Prime Minister Tun Dr Mahathir Mohamad revealed that the government has “changed its stance” on the Bandar Malaysia project, hence, it would be revived but with some modifications.
This comes as the government expects the previously suspended project to “generate tremendous impact on urban development in Malaysia”, reported The Star.
“It will draw major international financial institutions, multinational corporations and Fortune 500 companies,” he stated during a press conference held at Yayasan Al-Bukhary.
Changes to the original plan will see the use of local content and materials as a priority, the addition of 10,000 affordable homes, a people’s park and bumiputra participation.
The original contractors, consisting of China Railway Engineering Corp Sdn Bhd (IWH-CREC) and Iskandar Waterfront Holdings Bhd, are also given 60 days to fully pay the original deposit of RM741 million and an additional amount of RM500 million.
On whether the project will have the terminal for the Kuala Lumpur-Singapore High Speed Rail (HSR) project, the Prime Minister stated “We will keep that in mind. If we do build the HSR, there will be sufficient room for the station”.
It has been reported by the Sin Chew Daily that the Pakatan Harapan government would to revive the project.
Citing a source, the daily wrote that the Cabinet had gone over the matter on 17 April and that negotiations with China were already in the final stage.
The 486-acre integrated property development project was first announced during Prime Minister Datuk Seri Najib Razak’s term in 2011.
With an estimated cumulative gross development value of RM200 billion, the project was previously linked to the 1Malaysia Development Bhd (1MDB) and was supposed to house the HSR terminus.
The Finance Ministry sold off a 60 percent stake in the project in December 2015 to a consortium comprising Iskandar Waterfront Holdings Bhd and China Railway Engineering Corp Sdn Bhd to be the master developer of Bandar Malaysia.
However, the government called off the deal to dispose of the stake to the consortium in May 2017 due to the purchasing parties’ failure to fulfil payment obligations.