.jpg "Prime Minister Tun Dr Mahathir Mohamad looks at a scale model of Bandar Malaysia during the signing ceremony between TRX City and IWH CREC in Putrajaya December 17, 2019. u00e2u20acu2022 Picture by Shafwan Zaidon")
KUALA LUMPUR, Dec 18 — Renegotiation of the previously-stalled Bandar Malaysia development project’s terms has resulted in Malaysia netting over RM4 billion in profit, said Finance Minister Lim Guan Eng.
He said allegations by irresponsible parties that claim the project has been revived under the same terms as before were untrue.
“Compared to the original agreement signed on December 31, 2015, the new agreement signed on December 17 includes several changes such as 10,000 affordable home units from the original 5,000 units, purchasing price terms to be paid within three years instead of seven, and the parks and recreational space of 85 acres instead of the original 48.6 acres,” Lim said in a statement.
Other improved terms include the project’s deposit of RM741 million with an additional advance payment of RM500 million instead of the RM741 million alone, and a 50:50 dividend payment between the project’s developing consortium Iskandar Waterfront Holdings dan China Railway Engineering Corp, and the government-owned company TRX City Sdn Bhd.
Almost 17 months after the project was signed on December 2015, it was abruptly cancelled by the former BN government when the 1MDB scandal began to come to light.
Following the removal of the scandal’s elements in the project, the Pakatan Harapan government decided to continue it once again after it was proven to be able to generate economic benefit for Malaysia’s urban development.
A Framework Agreement was signed on April 25 this year, with the Cabinet approving the Bandar Malaysia Development Advisory Committee under the ministry to renegotiate better terms. This eventually to the new agreement being signed yesterday for the RM140 billion project along Jalan Sungai Besi in Kuala Lumpur.
