The Bandar Malaysia project was launched in the year 2015 and was shelved by the government in 2017 and on July 14, 2021 the Ministry of Finance (MoF) and IWH-CREC Sdn Bhd (ICSB) mutually agreed to terminate the deal for ICSB to buy a 60 percent stake in the development located in Sungai Besi for RM7.4 billion.

This was the second deal for Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC) for the Bandar Malaysia venture. The deal was mutually terminated as the parties could not agree on the conditions precedent to proceed with the project.

But sources familiar with the deal say the project will continue but depends on what the next steps are to be taken by the parties involved. IWH-CREC is a 50:50 joint venture between IWH and CREC (a unit of China Railway Group Ltd).

IWH, which is 63 percent owned by Credence Resources Sdn Bhd, is a vehicle controlled by Tan Sri Lim Kang Hoo, while the remaining 36.9 percent is owned by the Johor State Government’s Kumpulan Prasarana Rakyat Johor Sdn Bhd.

In a joint statement on July 14, 2021 TRX City Sdn Bhd, a 100 percent subsidiary of the MoF and IWH-CREC announced they mutually agreed to terminate the deal for IWH-CREC to buy a 60 percent stake in the project.

Both TRX City and ICSB have been working together to find solutions to preserve the partnership so as to realize the common vision of unlocking Bandar Malaysia’s potential. However, despite the efforts the parties have not been able to come to a mutual agreement.

The Bandar Malaysia project was revived in 2019, with an estimated Gross Development Value of over RM140 billion. It is an integrated development that sits on the single-largest tract of 486 acres of premium land in Jalan Sungai Besi.

Industry sources are confident that the project will be revived post-Covid 19 pandemic and assure that the parties to an agreement will meet in future to revive the project which has been earmarked as a regional hub for multinational companies.

-THE MALAYSIA VOICE