First phase of Bandar Malaysia to cost up to RM60 bil

KUALA LUMPUR (June 17): The first phase of the Bandar Malaysia project is expected to cost between RM50 billion and RM60 billion, said Iskandar Waterfront Holdings Bhd (IWH) executive vice-chairman Tan Sri Lim Kang Hoo (pictured).

He said the first phase on a 100-acre (40.46ha) site will start next year and will take five years to complete. It will include 5,000 units of affordable homes as announced by Prime Minister Datuk Seri Najib Razak yesterday.

Lim noted that the total gross development value of the entire Bandar Malaysia project has increased to RM200 billion. It will be carried out over three to four phases, and likely to take 20 to 25 years to complete.

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Lim told reporters that 40 consortiums have tendered for projects in Bandar Malaysia, and that he is also talking with local and foreign partners in order to bring in new investors.

He does not exclude the possibility of Lembaga Tabung Angkatan Tentera, the owner of the air force base that occupied the Bandar Malaysia site, participating in the development.

On concerns about potential over supply of properties as a result of the rapid development of the Tun Razak Exchange project and Bandar Malaysia, Lim dismissed them by pointing out the experience of Johor Bahru before the creation of Iskandar Malaysia in 2006.

He said that after the Asian financial crisis, Johor Bahru had a serious property glut, with many failed projects.

“The creation of Iskandar Malaysia coupled with targeted government incentives, right policies and investments in key infrastructure has ended the property glut and even revived failed projects,” he said.

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This article first appeared in The Edge Financial Daily, on June 17, 2016. Subscribe to The Edge Financial Daily here.