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Bandar Malaysia marks new milestone with three landmark agreements signed
Bandar Malaysia marks new milestone with three landmark agreements signed
New Straits Times
NST Team

KUALA LUMPUR, 16 June - Bandar Malaysia marks yet another milestone with the signing of three landmark agreements today between Ministry of Finance Incorporated (MOF Inc) and Johor-China consortium IWCH-CREC Sdn Bhd (ICSB) as well as other relevant parties.

 Prime Minister Datuk Seri Najib Razak said the commitment by CREC is a clear endorsement by China of its continued confidence in the strength and resilience of the Malaysian economy.

"I am pleased to note that a consortium of Chinese, Malaysian and London-based banks, including HSBC, will establish a special financing scheme for the Bandar Malaysia development.

"These banks have a total asset base of USD12 trillion, providing more than sufficient firepower for all the required construction and business growth.

"With such a financing facility, which I am told is a first in Malaysia, I have not doubt that Bandar Malaysia can be accelerated and tangible results benefiting the rakyat will be seen in a short span of time," he said in his speech before the signing ceremony.

An agreement was signed between Bandar Malaysia Sdn Bhd shareholders agreement between MOF Inc and ICSB to regulate the relationship between joint venture companies to lead and spearhead the Bandar Malaysia development.

Two other memorandum of understandings were also inked between a consortium of international, Chinese and Malaysian banks to provide funding for investors which included some of the largest banks in the globe such as Bank of China, Industrial and Commercial Bank (ICBC), China Construction Bank (CCB) and HSBC with local banking groups such as CIMB, Maybank, RHB and Affin Bank.

Another MoU was between MRCB Bhd, which will be leading a joint venture company with Bandar Malaysia Sdn Bhd to design, develop and construct an integrated transportation terminal over an area of 60 acres.

Najib also announced the commitment for 5,000 units of affordable homes to be constructed in the first phase of Bandar Malaysia which would be undertaken on a fast-track basis.

"The master developer of Bandar Malaysia and its wholly-owned subsidiaries would also be granted incentives such as income tax exemption for 10 years, stamp duty exemptions for 8 years, RPGT exemption for 8 years, exemption from withholding tax for 8 years and import duty exemption on selected construction materials not being manufactured locally.

"The government had also agreed to consider granting tax incentives to top high-ranked global companies and financial instituitions as well as industrial building allowance, accelerated capital allowance, rental payments deduction, stamp duty exemption for service agreement or pre-package incentive to other investors and tourism operators," added Najib.

On Dec 31 last year, 1Malaysia Development Board (1MDB) sold 60 per cent of its stake in Bandar Malaysia to the Johor-China consortium known as IWCH-CREC Sdn Bhd (ICSB). In March this year, ICSB announced a US$2 billion investment by CREC to build its regional centre in Bandar Malaysia.