ISKANDAR Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corporation (M) Sdn Bhd (CREC)’s will restart the Bandar Malaysia project, after the initial deal was scrapped in 2017.

The consortium IWH-CREC will reprise the deal to buy a 60% stake in Bandar Malaysia Sdn Bhd from TRX City Sdn Bhd for RM12.35 billion, the same sum agreed upon in December 2015, it was announced today at a signing ceremony for the project in Putrajaya.

TRX City is a wholly-owned subsidiary of the Ministry of Finance Incorporated. The gross development value for Bandar Malaysia is around RM140 billion.

The Pakatan Harapan government announced in April this year that the project would be revived to ensure continued good relationships with China. 

In the revived deal, IWH-CREC will make the payments in three years instead of the original seven.

In addition to the deposit sum of RM741 million which was paid in December 2015, IWH-CREC will pay an additional RM500 million as advance payment.

The IWH-CREC (60:40) joint venture was initially signed in November 2015, whereby the consortium would acquire a 60% stake in Bandar Malaysia.

But the share sale agreement, which was signed on December 31, 2015, was terminated as the joint venture company failed to make requisite payments after as many as 12 extensions. 

The Barisan Nasional government then cancelled the deal in May 2017.

In the aftermath of the cancellation, some Chinese authorities termed the cancellation as “ungrateful”, considering how the Chinese company was buying a stake in Bandar Malaysia to help a Malaysian government that was in trouble as a result of 1Malaysia Development Bhd’s debts.

Prime Minister Dr Mahathir Mohamad witnessed the signing of the deal today, along with Finance Minister Lim Guan Eng, Transport Minister Anthony Loke, Economic Affairs Minister Mohamed Azmin Ali, China’s Ambassador to Malaysia Bai Tian and China Railway Group Ltd president Chen Yun.

Also present were Treasury Secretary-General Ahmad Badri Mohd Zahid, his deputy Asri Hamidon, IWH executive vice chairman Lim Kang Hoo and TRX City chief executive officer Azmar Talib. – December 17, 2019.