Daim warns of property overhang as Bandar Malaysia resumes

Daim Zainuddin says there are concerns of a property overhang, a day after the government announces the continuation of the suspended Bandar Malaysia project.

KUALA LUMPUR: The government’s key adviser Daim Zainuddin has raised concerns on the possibility of a property overhang as Putrajaya agreed to reinstate the multi-billion dollar Bandar Malaysia project.

“My worry is on a huge property overhang. They (government) will have to handle it. If we have buyers, it’s okay,” the former finance minister told reporters when asked on the continuation of the project announced yesterday.

Daim earlier spoke at the 29th Tunku Abdul Rahman Lecture Series here.

He said the problem of unsold properties was well known to the public, adding that the government had said it was worth over RM20 billion.

“They are very concerned now. I am not saying it. They (government) is the one saying it.”

Asked if the Bandar Malaysia project could worsen the problem, Daim replied:
“You don’t develop unless there are buyers.”

Bandar Malaysia, to be built on a 195.5ha land in the heart of Kuala Lumpur with an expected gross development value of RM140 billion, was cancelled by the previous government in May 2017, citing IWH-CREC’s failure to meet payment deadlines for the purchase of a 60% stake in the project.

IWH CREC Sdn Bhd is the consortium comprising lskandar Waterfront Holdings (IWH) and China Railway Engineering Corporation (CREC), to develop Bandar Malaysia.

Yesterday, the prime minister witnessed the signing of a revised agreement for the project, some seven months after Putrajaya approved its continuation.