‘SELL BANDAR MALAYSIA LAND TO GLCS’
Expert also says project must meet sustainable development goals
THE revival of the Bandar Malaysia mega-project should be thoroughly planned and studied to ensure that it is in line with Malaysia’s socio-economic growth, said economists.
Economist Professor Dr Barjoyai Bardai proposed that the 196-ha
project site at the old Sungai Besi air force base be sold to government-linked companies (GLCs).
“Let GLCs like Khazanah Nasional or Permodalan Nasional Bhd buy the land. As the land value appreciates, the shares in the company will also appreciate,” he told the New Sunday Times.
He also said the project must be in line with sustainable development goals to preserve the environment.
“It is time that we create a city within parks, filled with greenery and public spaces for the people.
“We can still have tall buildings but we must try to think of ways to have spaces and commercial activities underground so the surface will remain green and sustainable.”
Barjoyai also said the development must take the Fourth Industrial Revolution into account, with futuristic facilities and features in the plans.
On Friday, Prime Minister Tun Dr Mahathir Mohamad announced that the Bandar Malaysia project, which was terminated in May 2017, would be reinstated with some adjustments to the original plan.
The project would include the construction of a people’s park, 10,000 units of affordable homes, Bumiputera participation throughout the project, and priority for the use of local content in the construction.
Commenting on the 10,000 affordable homes, Barjoyai said its concept must be re-evaluated.
He proposed instead for the government to implement microhomes, similar to Kuala Lumpur City Hall’s facility.
Professor Dr Mohd Nazari Ismail of Universiti Malaya said it was important not to borrow money to reinstate the project.
He said many Malaysians wanted to see fast economic growth under Pakatan Harapan.
Hence, this placed pressure on the government to get the economy moving to satisfy expectations.
“The project is very risky because of the sluggish economic condition. And most people don’t care about the long-term effects of government debt,” he said.
Sunway University economics Professor Dr Yeah Kim Leng said due to its location, Bandar Malaysia would attract major financial institutions and multinational corporations (MNCs).
“Interest among MNCs will be growth-positive for the country’s economy. The spillover will be very high, particularly in creating high-income jobs and sharing of business knowledge.
“Another possible gain is the potential synergies that can be derived from the integration of finance, technology and entrepreneurship. These are among the long-term benefits for the country,” he said.
Yeah said the 10,000 affordable homes were a most welcome addition to the high-value development project that lent credence to the inclusive development approach adopted by the government.
However, he said a concern with the project’s revival was the oversupply of commercial properties.
Professor Hamzah Jusoh of Universiti Kebangsaan Malaysia said the government must consider the country’s competitiveness and the comparative advantages of Kuala Lumpur in the region.
“The development of Bandar Malaysia should strategise the specific development actions to enhance our competitive edge.
“However, as comparative advantages are seen to be very insecure and fragile, the government needs to be concerned on strategies that will maintain and strengthen Kuala Lumpur’s competitive advantages.”
The Bandar Malaysia project was announced in 2011 by the then prime minister Datuk Seri Najib Razak. The integrated property development was previously owned by 1Malaysia Development Bhd and was supposed to host the Kuala Lumpur-Singapore High-Speed Rail terminus.
In 2017, TRX City Sdn Bhd undertook a share swap agreement with Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corporation (M) Sdn Bhd (IWH-CREC).
The deal involved the sale of 60 per cent of issued and paid-up capital of Bandar Malaysia Sdn Bhd.
However, the deal collapsed due to a breach in contractual terms, when the parties failed to meet obligation payments.
The latest joint venture to take up 60 per cent of Bandar Malaysia Sdn Bhd was awarded to IWH-CREC in an international open tender participated by more than 40 world-renowned companies, including from Japan, Australia and the Middle East.
The government said the consortium had committed to pay RM500 million in advance in addition to the original deposit of RM741 million within 60 days of the announcement on Friday.