Malaysia revives massive China-backed project

Bandar Malaysia rail and property development back on track after government corruption scandal

Malaysia will revive a $34 billion Chinese-backed transport and property development that was abandoned in 2017, the prime minister said on Friday, adding that the project would contribute to Beijing’s global infrastructure drive.

The announcement came after the countries agreed to resume work on a previously suspended railway project in Malaysia this month, and is the latest sign of improving ties after a rocky period between the two governments

The 140 billion ringgit ($34 billion) Bandar Malaysia development in Kuala Lumpur is expected to attract financial institutions and companies, and will be an interchange for a number of rail lines, said a statement from Prime Minister Mahathir Mohamad’s office.

There were some changes to the original plan, including 10,000 units of affordable housing, and a “People’s Park,” it added. who own a 60 percent stake in the venture, while the government owns the remaining 40.

Bandar Malaysia and the revived rail link, which will run from Malaysia’s east coast to its west, “should be viewed within the larger context of fostering and cementing long-term bilateral relations between Malaysia and China,” the statement said.

The projects will “be a significant contribution to the Belt and Road Initiative which Malaysia expects to be able to tap on,” it added.

Mahathir is due to join other world leaders at a summit focused on Beijing’s Belt and Road infrastructure drive in China next week. The $1 trillion program includes several large maritime, rail and road projects across Asia, Africa and Europe.

Ties had been strained between the two countries since Najib, a close Beijing ally, lost power, and Mahathir suspended a series of Chinese-financed projects amid concerns the terms were unfair to Malaysia.