BNM buys govt land for RM2b

KUALA LUMPUR (Jan 5): Bank Negara Malaysia (BNM) has acquired a 22.5ha land here from the government for RM2 billion to be used primarily for the relocation of its Global Islamic Finance University and the International Shari’ah Research Academy for Islamic Finance.

BNM said the completion of this transaction is the culmination of several months of discussions with the government.

The RM2 billion proceeds  may come in handy for the government to replenish the nation’s coffers considering  the Minister of Finance Incorporated’s (MoF Inc) wholly-owned unit 1Malaysia Development Bhd (1MDB) had just paid some US$600 million to International Petroleum Investment Co PJSC (IPIC) pursuant to a settlement deed with MoF Inc  and IPIC.

On Dec 27 last year, 1MDB revealed that all funds were paid from proceeds from the “ongoing rationalisation programme”.

However, the 1MDB’s statement did not reveal details of the ongoing rationalisation programme, whether it concerns assets or investment units, for instance, that the fund sold to raise cash for payment.

Situated next to the central bank’s Sasana Kijang complex, the tract will also be used for the future development of education and training facilities that will focus on enhancing the technical capabilities of the talents in the financial industry, BNM said in a statement.

“The entire combined area will be designated and integrated as a world-class education hub for financial services. The hub is envisioned to be a focal point for international learning and research that will nurture a sustainable pool of local talents to support the development of the domestic financial services industry,” the central bank said.

BNM said the land valuation was mutually agreed on between the bank and the government based on a valuation process conducted by an appointed independent private sector valuer.

It added that the acquisition cost is subject to a final survey of the area involved.

This article first appeared in The Edge Financial Daily, on Jan 5, 2018.

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