10,000 Affordable Homes to Be Built in Bandar Malaysia

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The 10,000 affordable homes which will be built in Bandar Malaysia are among the improved terms stipulated in the project’s new agreement.

Finance Minister Lim Guan Eng said the previous agreement, which was signed on Dec 31, 2015, required only 5,000 affordable homes to be built.

He said the new agreement also saw several other revisions, including the payment duration where the purchase price has to be paid in three years, as opposed to seven years previously.

He said an additional RM500 million in advance payment would also be made, on top of the RM740 million deposit payment by consortium IWH CREC Sdn Bhd (IWH-CREC) comprising Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corporation (M) Sdn Bhd (CREC).

“Additionally, 34.4 hectares of park and recreational areas will be built. Only 19.6 hectares of land was agreed for development to meet the 10 percent requirement by Kuala Lumpur City Hall (DBKL),” he said in his speech at the signing ceremony today.

The signing ceremony was witnessed by Prime Minister Tun Dr Mahathir Mohamad at the Putrajaya International Convention Centre (PICC).

Bernama

Lim said the dividend from Bandar Malaysia land sales will be shared 50:50 between IWH-CREC and TRX City Sdn Bhd, which is owned by the government.

“Previously the dividend sharing ratio between the two parties was 60:40,” he said.

He said that with an expected gross development value (GDV) of RM140 billion, Bandar Malaysia, a mixed-use, transited-oriented development, will bring substantive economic value to the nation and create thousands of jobs, particularly in the construction, knowledge, entrepreneurial and technology sectors.

“Once completed, Bandar Malaysia will attract major multinational corporations (MNCs) and Fortune 500 companies to relocate their operations here.

“Alibaba and Huawei have already shown their interest in opening up their hubs in Bandar Malaysia,” he said.

This, said Lim, was in line with the government’s policy of attracting MNCs into Malaysia to invest in high-tech and high-value sectors, and to raise Malaysia’s productivity and competitiveness amid the challenging global environment. – NST