THE property market is buzzing that the Najib government is sitting on a blockbuster Bandar Malaysia deal, that dwarfs the agreement with the IWH-CREC consortium which it suddenly nixed on Wednesday.

Government and 1Malaysia Development Berhad (1MDB) officials have spent the last 48 hours briefing ministers and senior ruling party officials ‎on the reasons why Finance Minister Najib Razak pulled the plug on the RM7.42 billion deal signed with IWH-CREC on Dec 31, 2015.

“Najib has a better deal, otherwise he wouldn’t abort the IWC-CREC purchase,” a real estate veteran told The Malaysian Insight.

“No one kills a deal without a better deal in hand,” he added.

Economics Minister Abdul Rahman Dahlan had disclosed that Najib briefed the Cabinet on Wednesday and mentioned a new company will be invited to be the master developer for the 486-acre project.

The Malaysian Insight understands that a major Chinese real estate conglomerate is being considered as the master developer with several local developers in the running to be partners for the Bandar Malaysia development.

Putrajaya has said that any new deal for Bandar Malaysia will not involve any land sale, unlike the IWH-CREC purchase of 60% of shares in TRX CIty Sdn Bhd, the owner of Bandar Malaysia. The new deal only gives master developer rights to the massive project.

“It is bigger than before and it is those with money and a track record,” one source said, declining to give details.

1MDB president Arul Kanda had told Barisan Nasional MPs on Thursday that there will be a major announcement next week but did not give further details. He had also said the government would benefit from the new deal.

Government officials have also played down concerns that aborting the deal could lead to a fallout with China and result in Chinese companies pulling out of infrastructure projects in Malaysia‎.

“Bandar Malaysia is a prime piece of land in Kuala Lumpur. The Chinese definitely want it, especially with the high-speed rail terminus there,” one official told The Malaysian Insight.

“Anyone talking up a fallout with the Chinese is talking rubbish,” he said.

Another official noted Najib is due to visit China next week for the Belt and Road Forum for International Cooperation to be held from May 14 to 15 in Beijing. He is one of 28 heads of state and government leaders at the conference chaired by Chinese President Xi Jinping.

Chinese companies have sealed deals for Malaysian infrastructure projects, including ports in Kuantan and Malacca, and a rail line between Port Klang and Kuantan.

It is also eyeing the high-speed rail project between Kuala Lumpur and Singapore which is expected to take off once tenders are called. Chinese and Japanese rail companies are in a tight race for the multi-billion ringgit project. – May 6, 2017.