Termination of deal will not affect development of Bandar Malaysia

 |May 5, 2017
Minister in Prime Minister’s Department Abdul Rahman Dahlan.

The termination of the share sale agreement (SSA) for Bandar Malaysia will not affect the government’s long-term plans for 1Malaysia Development Bhd’s (1MDB) rationalisation and the development of Bandar Malaysia, said Minister in the Prime Minister’s Department, Abdul Rahman Dahlan.

Commenting on the SSA termination, he said the government would invite both local and foreign companies with good and comprehensive plans to become the main developer for Bandar Malaysia development projects.

“We have been informed by Prime Minister Najib Razak in a Cabinet meeting that the successor company will be invited to be the new main developer or investor for Bandar Malaysia. I do not know in detail,” he said after receiving a courtesy call from Japan’s Land, Infrastructure, Transport and Tourism Minister, Keiichi Ishii, at his office in Putrajaya, yesterday.

Yesterday, TRX City Sdn Bhd announced that the Bandar Malaysia SSA with Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC) involving 60 per cent of the issued and paid-up capital of Bandar Malaysia Sdn Bhd has lapsed due to failure of the purchasing companies to fulfil payment obligations.

It was reported that the consortium, IWH-CREC Sdn Bhd, had failed to pay RM7.42 billion for the 60 per cent stake despite it being granted repeated extensions since December 2015.

According to TRX City, the Finance Ministry would continue to retain 100 per cent ownership in Bandar Malaysia and would ensure the development of the property would truly provide benefits to the Malaysian people.

“The termination will not affect our plans…We also terminate the agreement. Give us some time to resolve this. I’m sure the Prime Minister is looking at the available options,” said Abdul Rahman.

He added Bandar Malaysia had the potential to be the new catalyst for Kuala Lumpur and the country.

He stressed that it was important the development project was not implemented in a hurry.

“If the agreement between IWH-CREC and TRX City is going nowhere, that is part of the terms of the agreement but we have to move forward from there.

“I can guarantee that Bandar Malaysia will become part of the best real estate development that has been undertaken in Malaysia because the high-speed rail terminal will start in Bandar Malaysia,” he said. – Bernama