KUALA LUMPUR, April 20, 2019 (BSS/AFP) – Malaysia will revive a $34
billion Chinese-backed transport and property development that was abandoned
in 2017, the prime minister said Friday, adding the project would contribute
to Beijing’s global infrastructure drive.
The announcement came after the countries agreed this month to resume work
on a previously suspended railway project in Malaysia, and is the latest sign
of improving ties after a rocky period.
The 140-billion ringgit ($34 billion) Bandar Malaysia development in Kuala
Lumpur is expected to attract financial institutions and companies, and will
be an interchange for a number of rail lines, said a statement from Prime
Minister Mahathir Mohamad’s office.
There were some changes to the original plan, including 10,000 units of
affordable housing, and a “People’s Park”, it said.
The project was originally launched in 2011 under the government of ex-
leader Najib Razak, but was abandoned in 2017 during his administration due
to a dispute about payments.
Najib lost power at historic elections last year, and has since been
slapped with dozens of charges over his alleged role in looting state fund
1MDB.
The Bandar Malaysia project was initially backed by the scandal-hit state
fund, but a major stake was later sold to a joint venture between a Malaysian
firm and state-owned company China Railway Engineering Corp.
It will resume with the same contractors, who own a 60 percent stake while
the government owns the rest.
Bandar Malaysia and the revived rail link, which will run from Malaysia’s
east to west coast, “should be viewed within the larger context of fostering
and cementing long-term bilateral relations between Malaysia and China,” the
statement said.
The projects will “be a significant contribution to the Belt and Road
Initiative which Malaysia expects to be able to tap on,” it added.
Mahathir is due to join other world leaders at a summit focused on
Beijing’s Belt and Road infrastructure drive in China next week. The $1
trillion programme includes maritime, rail and road projects in Asia, Africa
and Europe.
Ties had been strained between the two countries since Najib, a close
Beijing ally, lost power, and Mahathir suspended a series of Chinese-financed
projects amid concerns the terms were unfair to Malaysia.