KUALA LUMPUR (June 16): Bandar Malaysia Sdn Bhd has obtained funding for its massive project with the setting up of a fund backed by leading Chinese and Malaysian banks, with an asset base exceeding US$13 trillion.
Participating in the Bandar Malaysia Fund are top Chinese banks such as Bank of China, Industrial and Commercial Bank (ICBC), China Construction Bank (CCB) and HSBC, and top local groups like CIMB Group Holdings Bhd, Malayan Banking Bhd, RHB Bank Bhd and Affin Holdings Bhd.
At a ceremony today, Bandar Malaysia signed three agreements, including a memorandum of understanding (MOU) with the banks for the establishment of the fund.
The Ministry of Finance Inc and IWCH-CREC Sdn Bhd (ICSB) executed a shareholder agreement to regulate their relationship in a joint venture (JV) company, which will lead the Bandar Malaysia development.
ICSB is a JV between Iskandar Waterfront Holdings (60%) and China Railway Engineering Corporation (CREC) (40%).
Meanwhile, MRCB Bhd will lead a JV with Bandar Malaysia to develop a mixed-use, integrated transportation terminal, on a 60-acre land.
The hub will serve as the terminus for the proposed KL-Singapore high speed rail service, and a central transporatation hub for mass rapid transit, KTM Komuter, Bus Rapid Transit and express rail link.
Prime Minister Datuk Seri Najib Tun Razak, who officiated at the event, said the Bandar Malaysia Fund will provide a convenient framework for local and foreign investors to source financing.
"With such a financing facility, I have no doubt that Bandar Malaysia can be accelerated, and tangible results benefiting the rakyat will be seen in a short span of time," he said.
The government has agreed to give Bandar Malaysia's master developer, several incentives, including exemption from real property gain tax, stamp duty and withholding tax for eight years.
Najib said other incentives include income tax exemption for 10 years, and exemption from import duty on selected construction materials which are currently not being manufactured in Malaysia.
He added that the government has also agreed to consider granting tax incentives to top high-ranked global companies and financial institutions.
The government is also considering other measures such as an industrial building allowance, accelerated capital allowance, deduction of rental payments, stamp duty exemption for service agreement or pre-package incentive, to other investors and tourism operators, according to him.
The prime minister said 5000 units of affordable homes will be constructed in the first phase of Bandar Malaysia. — theedgemarkets.com
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