Bandar Malaysia sale termination an isolated case, won't affect ties with China - ASLI

The termination of the share sale agreement (SSA) for the Bandar Malaysia development project is an isolated case and will not affect bilateral relations between Malaysia and China.

Asian Strategy and Leadership Institute (ASLI) Chief Executive Officer, Tan Sri Dr Michael Yeoh, said although the agreement did not go through as planned, he still believed Malaysia is still deemed as an attractive investment destination for Chinese companies.

He said over the years, Malaysia had attracted massive investments from China and had gained a lot of benefits from its special relationship with the republic.

"The Bandar Malaysia issue won't damage China-Malaysia close ties, we see this as an isolated case where business didn't go as planned," he told reporters after a roundtable discussion on ''United States-China Relations and the Future of Korean Peninsula'' held here, today.

The roundtable discussion featured Korean-American Association (KAA) Chairman, Park Jin, who shared his thoughts on the topic.

In a statement yesterday, TRX City Sdn Bhd announced that the SSA with Iskandar Waterfront Holdings Sdn Bhd and China Railway Engineering Corporation (M) Sdn Bhd regarding the sale of 60 per cent of the issued and paid-up capital of Bandar Malaysia Sdn Bhd has lapsed due to the failure of the purchasing parties to fulfil payment obligations.

Commenting on the prospects of Bandar Malaysia, Yeoh said the project had the potential to be a catalyst for future economic growth.

"This project will certainly have a positive impact on our economy, it will house the terminus of the planned high speed rail connecting Kuala Lumpur and Singapore and will surely promote more economic activities," he said.

Bandar Malaysia, which will be developed under the public-private partnership is an urban development project with an estimated cumulative gross development value of RM150 billion.

The long-term project is expected to be completed over the next 30 years.

-- BERNAMA