Chinese to hold only 24pc stake in Bandar Malaysia, Parliament told

By Syed Jaymal Zahiid
Chua (second from right) said Bandar Malaysia will be fully operated by the Ministry of Finance. — Picture by Saw Siow Feng

KUALA LUMPUR, March 7 — Chinese companies will only own a 24 per cent stake in Bandar Malaysia in terms of structured equity, International Trade and Industry deputy minister Datuk Chua Tee Yong told the Dewan Rakyat today.

He said the transport integrated underground city project will be fully operated by the Ministry of Finance.

A joint consortium between China Railway Engineering Corp (CREC) and Johor’s Iskandar Waterfront Holdings (IWH) known as IWH-CREC Sdn Bhd which has been appointed as the developer, will own 60 per cent stake in the project, he added.

“But the real structured equity owned by Chinese companies will only be 24 per cent.

“The main operator of the project is MoF,” Chua said in reply to Opposition Leader and Permatang Pauh MP Datuk Seri Dr Wan Azizah Wan Ismail during Question Time.

The project, to be built over the 486-acre old Royal Malaysian Air Force base in Sungai Besi here, is expected to be worth RM200 billion in gross development value.

The master developer of the Bandar Malaysia project has said it will start carrying out groundwork for the planned multi-billion-ringgit new township.

Tan Sri Lim Kang Hoo, whose Iskandar Waterfront Holdings (IWH) is part of a joint consortium with China Railway Engineering Corp (CREC) acting as Bandar Malaysia’s master developer, reportedly said the initial funding of RM10 billion for the project was ready.

Lim, who is vice-chairman of IWH, said all that remains before groundwork can start is the tying up of “two or three loose ends” with the governments of Malaysia and China in the weeks to come.

Chua said the Bandar Malaysia project was part of the many investments made by Chinese companies and a reflection of strong bilateral ties shared between the two nations.

The Labis MP dismissed claims that Putrajaya was conceding its sovereignty by awarding many infrastructure projects to Chinese companies, as claimed by the Opposition.

"The fact that the Opposition recently met with the Chinese ambassador supposedly to strengthen ties proved the need to maintain a good relation with them," he said.