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Bandar Malaysia: Only Fortune 500 companies need apply. (but not from the U.S….)

Bandar Malaysia is quite a famous development. Depending on where you intend to look at it from, it can be negative or positive. Total gross development value is estimated at RM12.3 billion and it was reported in many media recently about Malaysia’s Ministry of Finance issuing a request for proposal (RFP) from companies interested in taking part in the development of Bandar Malaysia. This is also the terminus for the high- speed rail link between Singapore and Malaysia. Here’s the full article in StraitsTimes.com In recent months, the Ministry of Finance terminated an agreement with a consortium comprising Malaysian and Chinese companies that were slated to buy a majority stake in the project. Under the new RFP, interested companies must be in the Fortune 500 list and meet requirements for “local content.” The RFP is open to all and not just foreign firms. These are the 2017 Fortune 500 companies. 

Other requirements include the following. An interested company must also be an affiliate of a firm that has generated cumulatively over the last three years no less than RM50 billion in revenue from its entire value chain of real estate and associated businesses, and have experience in international quality real estate development projects.  (Actually this meant that the winner would be a consortium of companies because there are only a handful of Malaysian companies within the Fortune 500 list. I still think it will include some ASIAN companies. Haha. Okay, China…)  “The proposer also must be able to demonstrate how their (plan) focuses and places emphasis on the key themes of serving people and the national interest of Malaysia.” (Good requirement even if it is almost a certainty that whoever the developer is, it will have to be serving the interests of Malaysia. Cannot be building only for foreigners right) 

To those who would like to know which are the countries that will most probably be submitting a proposal, it may come from 4 countries but will not include companies from Singapore of the U.S. The article in freemalaysiatoday quoting with Independent economist Prof Hoo Ke Ping here. He said that due to the 1MDB controversy, the companies from Singapore and the U.S would not be participating. Those participating would be those who are vyying for the KL – SG High Speed Rail project. They include China, Taiwan, Japan and South Korea. He also ruled out companies from Europe, Middle East and even Canada, citing numerous other reasons. Even though he said the Chinese companies may submit a bid but he also shared that these companies will find it hard to transfer their money out as the Chinese government is currently limiting the outflow of renminbi from the country. Unless the company is super rich. Full article in freemalaysiatoday.com with his comments here. 

As for many, I think they are waiting to see if this happens in the near future. Bandar Malaysia, 5k affordable homes on fast-track basis. Happy following.

written on 7 July 2017

Next suggested article: 600 units RUMAWIP, 882 sq ft from RM300k, 4km from city centre

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kopiandproperty.com is everything about property related writings and news. Enjoy reading with a latte.

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