Tun Razak Exchange (TRX)

One mega project that was spared the axe, despite being linked with a multi-billion ringgit scandal, was the Tun Razak Exchange (TRX) development.

Scrapping it would have meant paying RM3.51bil in compensation claims, as well as having to deal with the eyesore of an abandoned mega-project in the heart of Kuala Lumpur.

TRX’s total land value is worth about RM7.6bil, while the development cost is estimated to be around RM6bil.

Located on 70 acres of prime land, 1Malaysia Development Bhd (1MDB) acquired the TRX land from the Federal Government for RM302.38mil in 2010.

In March 2013, Abu Dhabi Malaysia Investment Co Ltd (a 50%-50% joint venture between 1MDB and Aabar Investments PJS) became the first major multinational anchor investor in TRX.

A month later, US$3bil was raised overseas for the TRX development. However, no money was channelled to the development. Last year, master developer TRX City Sdn Bhd (TRXC), then a subsidiary of 1MDB, was transferred to the Finance Ministry because 1MDB was unable to service its debts.

To date, the Malaysian government has injected RM3.69bil into TRXC.

After reviewing the project, the Pakatan Harapan government has decided to see through the completion of the RM40bil TRX development.

To date, seven plots of land on TRX totalling RM2.88bil have been sold to Lendlease, Tabung Haji, Mulia Group, Affin Bank, WCT, IJM Corp and HSBC.

Mulia’s Exchange 106 and the IJM’s Prudential building expected to be ready by next year.

Cost: RM6bil (development cost) 70-acre, international finance and business centre in the heart of Kuala Lumpur Status: Ongoing