I wrote about Bandar Malaysia earlier when some colleagues asked why is Bandar Malaysia still popular. Read here: Why are there interest with Bandar Malaysia Today, we have some good news to share. It was reported in all major Malaysia dailies today. A few agreements were signed today for Bandar Malaysia. They included those of Ministry of Finance Incorporated (MOF Inc) and Johor-China consortium IWCH-CREC Sdn Bhd (ICSB) as well as other relevant parties. China remains committed through CREC in ensuring Bandar Malaysia comes to fruition. Earlier news here: US$2 billion (RM8 billion) from CREC into Bandar Malaysia
Besides that a consortium of banks have also teamed up to provide funding for investors. These banks include those of Chinese and Malaysian banks as well as 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. The consortium of banks have a total asset base of USD12 trillion and I think with this, Bandar Malaysia’s development can benefit from the global exposure as well. Another MOU was also signed with MRCB which will build Bandar Malaysia’s integrated transportation terminal over an area of 60 acres.
MORE IMPORTANTLY, 5,000 units of affordable homes would be built within the phase 1 of Bandar Malaysia on a fast-track basis. Let’s see when this would be completed. Besides that, 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.
Even more importantly, despite all those reports of oversupply of offices, Malaysia continues to attract more high-ranked global companies and financial institutions. This would be through tax incentives 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. Happy investing in Bandar Malaysia.
written on 16 June 2016
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