Development of Bandar Malaysia first phase to start next year
Published on: Saturday, June 18, 2016
Kuala Lumpur: The first phase of the Bandar Malaysia development, which has a gross development value (GDV) of RM50 billion to RM60 billion and will be developed over five years, is set to kick off next year.Executive Vice Chairman of Iskandar Waterfront Holdings Sdn Bhd (IWH), Tan Sri Lim Kang Hoo, said the first phase will include the development of 5,000 units of affordable homes and the mass rapid transit and light rail transit development, among others."The total project, which consists of three to four phases, will take up to 25 years and will have a total GDV of around RM200 billion," he said.
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Lim said this to reporters after the signing ceremony of the shareholder agreement with IWH CREC Sdn Bhd here.Prime Minister Datuk Seri Najib Tun Razak witnessed the ceremony.IWH CREC is a 60:40 joint venture company between IWH and China Railway Engineering Corp (CREC).Under the agreement, IWH CREC and Ministry of Finance Inc will hold 60:40 stake in equity respectively in Bandar Malaysia Sdn Bhd (BMSB) the joint-venture company that will spearhead the development.
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BMSB has also signed a memorandum of understanding (MoU) with MRCB Bhd to set up a joint-venture company to design, develop and construct integrated transportation area for the project.Another MoU was signed among a consortium of international, Chinese and Malaysian banks to provide funding for investors in the Bandar Malaysia project.
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Among the banks involved are Bank of China and HSBC Bank Malaysia Bhd, which teamed up with local banking groups such as CIMB Bank Bhd, Malayan Banking Bhd, RHB Bank Bhd and Affin Bank Bhd.Meanwhile, the government has agreed to give the master developer of Bandar Malaysia, IWH CREC Sdn Bhd and its wholly-owned subsidiaries, several incentives in relation to the development of the project. The prime minister said the incentives would include a 10-year income tax exemption and eight years of exemption from stamp duty, as well as real property gains tax and withholding tax. Datuk Seri Najib Tun Razak said that IWH CREC and its wholly owned subsidiaries would also be given exemptions from import duty on selected construction materials which were not manufactured in Malaysia. "In addition, the government has also agreed to consider granting tax incentives to top high-ranked global companies and financial institutions (taking part in the project). "We are also considering other measures such as industrial building allowance, accelerated capital allowance, deduction of rental payments, stamp duty exemptions for service agreement or pre-package incentive, to other investors and tourism operators," he said.Najib said the government would tailor incentives for the project to bring in global-stature companies and individuals from around the world to Bandar Malaysia. "I sincerely hope multinational corporations will seize the moment and come to Malaysia and to Bandar Malaysia, in particular. I can assure you that Bandar Malaysia will become the place to do business in the region," he added. The prime minister also witnessed the signing of three landmark agreements which would set the pace for the Bandar Malaysia development. The signing include a shareholders agreement for Bandar Malaysia Sdn Bhd between TRX City Sdn Bhd, IWH CREC and the Minister of Finance Incorporated (MoF Inc); a memorandum of understanding (MoU) for the Bandar Malaysia Fund by a consortium of banks; and an MoU for the Bandar Malaysia Integrated Transportation Terminal. Stay up-to-date by following Daily Express’s Telegram channel.
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