Malaysia to revive major China-linked property project
KUALA LUMPUR, Malaysia (AP) — Malaysia’s government says it will resurrect a multibillion-dollar property project in Kuala Lumpur involving a Chinese state company, calling it a contribution to China’s “Belt and Road” infrastructure initiative.
Prime Minister Mahathir Mohamad says the Cabinet agreed to reinstate the Bandar Malaysia project, which is expected to cost 140 billion ringgit ($33.8 billion).
He said Friday the project, which is 40% owned by the government, will be developed with the same consortium partners, local developer Iskandar Waterfront Holdings and China Railway Engineering Corp.
The project was started by the indebted 1MDB state investment fund, which sold a 60% stake to the consortium. The project was terminated in May 2017 due to a payment dispute. The 1MDB scandal led to former Prime Minister Najib Razak’s election ouster last May.