KUALA LUMPUR (April 19): The Prime Minister's Office (PMO) says today the government has decided to reinstate the Bandar Malaysia project, which was abruptly terminated in May 2017, because the project will have a significant impact on Malaysia's economy.

The PMO said in a statement today the joint venture to take up 60% of Bandar Malaysia Sdn Bhd was awarded to a consortium, IWH-CREC Sdn Bhd. The PMO said the government welcomes the commitment by IWH-CREC to make an advance payment of RM500 million in addition to the original deposit sum of RM741 million. It said the RM500 million is to be paid within 60 days from the date the government officially reinstates the project (April 17, 2019).

The PMO said Bandar Malaysia will serve as a global hub to further attract high impact global finance, technology and entrepreneurial firms.

"After due deliberation by the Cabinet on 17 April 2019, the government has decided to reinstate the Bandar Malaysia project that was abruptly terminated in May 2017. The project is expected to generate tremendous impact on urban development for Malaysia drawing foreign direct investments and generating an expected gross development value of RM140 billion.

"It will draw major international financial institutions, multi-national corporations and Fortune 500 Companies to locate their regional headquarters in Bandar Malaysia. In addition, tech giants such as Alibaba and Huawei have also manifested interest to establish their ICT centres. In line with the government's policy of ensuring that such a development will be people-centric and will add substantive value to the economy, the project will include the construction of a People's Park, 10,000 units of affordable homes, Bumiputra participation throughout the project, and priority for the use of local content in the construction process," the PMO said.

The PMO said these measures will no doubt add further value to the economy via substantive job creation, acceleration of retail and institutional demand for commercial and residential space. It said these measures will move SMEs up the value chain and stimulate demand for Malaysian produced construction materials, technology and home-grown talent in advancing sustainable urban growth.

"Bandar Malaysia will be a trailblazer in urban planning, being a transit-oriented development that will optimise the amount of residential, business and leisure space and contribute towards a greener environment by facilitating and incentivising the use of public transport over private vehicles.

"In an international open tender exercise participated by over 40 world renowned companies, including from Japan, Australia and the Middle East, the JV to take up 60% of Bandar Malaysia Sdn Bhd was awarded to a consortium, IWH-CREC Sdn Bhd," read the statement.

According to the PMO, the Bandar Malaysia project, like the East Coast Rail Link, should be viewed within the larger context of fostering and cementing long-term bilateral relations between Malaysia and China while ensuring that such projects add maximum economic value to Malaysia.

"These two major projects will also be a significant contribution to the Belt and Road Initiative which Malaysia expects to be able to tap on and exploit its multiplier effects along the value chain.

"It should be stressed that the principle of integrity, accountability and transparency will remain paramount at all times. No corruption or any form of shady deals will be tolerated. This approach will prevent leakages, questionable dealings and abuse of power and will translate into massive savings for the government," the PMO said.

https://www.theedgemarkets.com/article/government-reinstates-bandar-malaysia-project