Earlier this month, TRX City Sdn Bhd which owns Bandar Malaysia announced that the agreement with Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corp (M) Sdn Bhd have failed.
This is because Iskandar Waterfront and China Railway Engineering failed to pay the money to buy a 60 percent stake in Bandar Malaysia.
If Bandar Malaysia succeeds or fails, what would the impact be to the rakyat?
Let us take a look.
Bandar Malaysia is still on, has not collapsed
Although Iskandar Waterfront and China Railway Engineering is out of the picture, the Bandar Malaysia project is still happening because another group is possibly interested to take over.
Bernama reportered on May 15 that Chinese multinational conglomerate Wanda Group could be the new master developer of Bandar Malaysia.
During his visit in Beijing recently, Prime Minister Datuk Seri Najib Abdul Razak met Wanda Group’s owner and China’’s richest man, Wang Jianlin, who expressed his deep interest and desire to participate in the development of Bandar Malaysia.
Wanda Group is the world’s biggest private property developer and entertainment conglomerate.
So the deal could still take place and will bring massive benefits to Malaysia.
Bandar Malaysia is good for the economy and the rakyat
The Bandar Malaysia project is worth a cumulative gross development value of RM150 billion over the next 30 years.
Some of its projects include property projects such as housing, commercial centers, offices, tourism, hospitality industries such as organising meetings, seminars and forums.
Such projects will be good for the country and the rakyat as it will boost economic activities.
TRX City Sdn Bhd chief executive officer Datuk Azmar Talib told Bernama on May 2 that Bandar Malaysia will be the catalyst for future economic growth which will trickle down to the rakyat.
Construction sector will benefit first
Bandar Malaysia will first benefit the construction sector as workers will be busy building it.
Bandar Malaysia will be alive with various activities such as buying of raw materials such as steel, cement, wood, tiles, bricks and so many others.
This is good business for local companies supplying buildings materials as they will earn an income and contribute to the country’s economy.
It will then provide jobs for the rakyat such as engineers, architects, technicians, drivers, general workers and the labourer who are usually foreign workers.
Then, once completed, Bandar Malaysia will then benefit another sector – property.
Bandar Malaysia will then benefit the property sector
Once completed, Bandar Malaysia will then benefit the property sector.
Bandar Malaysia will help make the property sector more active providing jobs for the real estate sector, the salesmann, insurance, banks and others.
Commercial and office properties sold at Bandar Malaysia to foreign investors will benefit the government as they will pay tax.
The tax will then be used for the rakyat to build schools and roads.
Bandar Malaysia will include local property companies
Although Wanda group could be the master developer, other local companies and contractors could also participate.
Bumiputera and non-Bumiputera contractors will be able to participate in various tenders such as wiring, airconditioners, lighting and so many others.
These contractors will have workers who will then be supporting their families.
Some of these construction and property companies could be listed on Bursa Malaysia.
If the local companies win a project, it will be good for investors in the company.
This is because the profit will be shared with investors as the companies will pay dividends to investors.
For institutional investors such as Permodalan Nasional Berhad, the profit will be shared with the rakyat through Amanah Saham Nasional or Amanah Saham Bumiputera.
The high speed rail will start at Bandar Malaysia
Bandar Malaysia will also be the starting point for the high speed rail which will link Kuala Lumpur and Singapore.
The high speed rail project is an economic project which has a lot of economic spillover effects to the rakyat.
The project will also provide jobs for engineers, technicians and general workers such as ticketing staff and office workers.
All these are jobs which can be filled by Malaysians.
The high speed rail first station will be at Bandar Malaysia and a lot of tourists from Singapore and all over the world will come to Malaysia through Bandar Malaysia.
The tourists will come to Malaysia and spend on hotels and shopping which will be good for our economy.
So Bandar Malaysia is very important for the country and the rakyat.
Bandar Malaysia will be home to the Digital Free Trade Zone
Bandar Malaysia will also be home to the Digital Free Trade Zone which was launched by Prime Minister Datuk Seri Najib Razak and Jack Ma founder and executive chairman of Alibaba Group.
The Digital Free Trade Zone is divided into two with the first one at the Kuala Lumpur International Airport and the second one called the Kuala Lumpur Internet City which will be at a 4 hectare land in Bandar Malaysia.
The KL Internet City will be the hub for the digital economy such as online shopping, development of software and the setting up of new companies and others.
Malaysia Digital Economy Corporation said the Digital Free Trade Zone will export goods worth over US$25 billion and create 60,000 jobs by 2025.
Foreign investors still have confidence in our economy
Although the deal with Iskandar Waterfront and China Railway Engineering did not happen, the Wanda Group may take over.
This shows that foreign investors still have confidence in our economy and its future potential.
In a Bernama report, Wanda owner Wang Jiliang said : “We are very optimistic about Malaysia’s investment and commercial climate. We are willing and ready to contribute our share to Malaysia’’s economic development and to create a unique commercial centre in Malaysia.”