PETALING JAYA: The compensation settlement linked to the cancellation of a Bandar Malaysia theme park development agreement involving a Singapore-listed company raises serious questions over transparency and accountability, says Datuk Seri Dr Wee Ka Siong.
Describing the payout to the company as substantial, the MCA president called for greater clarity over how the agreement was approved and later terminated.
According to him, a 75-acre parcel of land in Bandar Malaysia was leased to Sim Leisure Group in November 2023 for 15 years, with an option for a further 15-year extension.
However, he said the agreement was terminated by the government in December 2024, barely a year after it was signed.
“As a result, RM46.67mil in compensation was paid to the Singapore-based company to avoid legal action. This is not a small amount. It involves public funds,” he said in a Facebook post on Friday (May 8).
Dr Wee questioned why the lease agreement was signed in the first place if the long-term plans for Bandar Malaysia had yet to be fully finalised.
He also asked who approved the agreement, who advised the government on the matter and who ultimately decided to terminate the deal.
Dr Wee further questioned why details of the compensation only surfaced through the annual report of a foreign-listed company instead of being disclosed openly by the Malaysian government.
“If the government truly believes in reform, accountability and transparency, then it must explain this matter openly instead of remaining silent until it is disclosed by a foreign company,” he said.
He also called for a clearer standard operating procedure (SOP) for agreements involving strategic national land and assets.
According to Dr Wee, comprehensive assessments should be conducted before any long-term contract is signed, including reviews of development plans, financial implications, cancellation risks and potential compensation liabilities.
“Such incidents should not become the norm. The rakyat has the right to know who made the decisions, whether there was negligence involved and why taxpayers’ money was used to pay for this mistake,” he said.
It was reported that Bandar Malaysia Sdn Bhd, the state-owned developer of the Bandar Malaysia project, has agreed to pay compensation as part of a settlement following the termination of a deal to develop an Escape theme park.
Sim Leisure Group Ltd, a Singapore-listed company, said in an exchange filing that it would have no further claims against Bandar Malaysia once it receives the undisclosed settlement sum.
