Property overhang fear following revival of Bandar Malaysia

  • Nation
  • Thursday, 19 Dec 2019

KUALA LUMPUR: Tun Daim Zainuddin (pic) has raised concerns over the possibility of a huge property overhang from the revival of the 196ha Bandar Malaysia project.

The former finance minister said currently, there was already a RM20bil worth of residential property overhang in the local market that the government was concerned about.

“My worry is the huge property overhang and they’ll have to handle it. If there are buyers (for Bandar Malaysia), okay, then good.

“They (government) have been telling us that there is a huge property overhang of RM20bil. They’re very concerned about it now.

“I’m not saying it, they’re saying it, ” Daim told reporters after speaking at the 29th Tunku Abdul Rahman Lecture organised by the Malaysian Institute of Management yesterday.

Asked if the Bandar Malaysia’s revival would contribute to the worsening of the property overhang issue, Daim replied: “Unless you can get buyers, you don’t develop, isn’t it?”

The Bandar Malaysia project, which was stalled following the 1Malaysia Development Bhd (1MDB) scandal, was officially revived on Tuesday following the signing of an agreement between Malaysia and China.

Under the revised deal, the developers will also be required to build 10,000 affordable homes as well as 34.4ha of parks and recreational areas.

Located on the site of the air force base in Jalan Sungai Besi, it has an expected gross development value of about RM140bil.

Prime Minister Tun Dr Mahathir Mohamad, who witnessed the signing, said that the project was a testimony to Malaysia and China’s ability to collaborate for the benefit of the rakyat.

The agreement was inked between TRX City Sdn Bhd, a wholly-owned subsidiary of the Ministry of Finance Inc and IWH CREC Sdn Bhd, a consortium comprising Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd.

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