UEM Sunrise cancels mega project in Iskandar region

JOHOR BARU (May 26) The main developer of Iskandar Malaysia, UEM Sunrise Bhd, has abandoned its plans to build the Asian Trade Centre, one of the major projects for the region, the Straits Times reported today.

The Singapore daily said no reasons were given for the decision which has come as a surprise to property experts as previous media reports in December had said that UEM Sunrise was in the midst of getting approvals for the project.

The report noted that the cancellation of the project would likely intensify concerns that fast-growing region in Johor is hitting some speed bumps.

"Cancelling it is not good for business. Others may have made plans based on the announcement," The Straits Times reported a property consultant as saying.

The first phase of the project, the China Mall, was supposed to have been the catalyst with a mall that is touted to be bigger than the Pavilion in Kuala Lumpur.

The Asian Trade Centre is in the Nusajaya area, about a five- minute drive from the Johor Baru checkpoint at the Second Link.

The Asian Trade Centre was to have been part of the 1,840ha Gerbang Nusajaya, the site of the second development phase of Nusajaya city. The area includes the Puteri Harbour and the upcoming Nusajaya Tech Park and Motorsports City.