Thursday, 6 July 2017

(The Star) Fortune 500 firms sought

KUALA LUMPUR: The Finance Ministry (MoF), which owns Bandar Malaysia, has singled out companies in the Fortune Global 500 list as its priority when it considers bids to develop the single largest piece of property in the city.

Towards this end, the MoF has opened the request for proposal (RFP) to seek a new master developer for the Bandar Malaysia project and among the criteria is that the company must be in the Fortune Global 500 list.

MoF secretary-general Tan Sri Dr Mohd Irwan Serigar Abdullah said the RFP had been opened yesterday and that they had received enquiries from several interested parties for further information on the project.

“Among the criteria is that the company must be in the Fortune Global 500 list. They must have experience and the cumulative revenue of the company must be above RM50bil,” he said.

Asked if the developer must be a foreign firm, he said it was open to all.

“Of course, there is a criterion in the RFP that local content must be met,” he told reporters on the sidelines of the RHB Regional Conference 2017 here yesterday.

The Fortune Global 500 is an annual ranking compiled and published by Fortune magazine. It lists the top-500 corporations worldwide as measured by revenue.

The latest round of exercise to call bidders for Bandar Malaysia comes after the MoF rescinded an earlier award to a consortium comprising China Railway Engineering Corp (M) Sdn Bhd and local firm Iskandar Waterfront Holdings Sdn Bhd.

On May 3, TRX City Bhd, an entity under the MoF, announced that it had terminated a deal to sell a 60% equity stake in Bandar Malaysia to the consortium.

It said the share-sale agreement for the development of the 197-ha plot was terminated as the consortium had failed to meet the payment obligations despite having been granted repeated extensions.

The RM7.41bil deal was inked in December 2015.

Bandar Malaysia, planned to be a RM200bil integrated property development project, will house the KL-Singapore high-speed rail’s terminal in Kuala Lumpur.

On another matter, Mohd Irwan said China’s Belt Road initiative and the funding offered for infrastructure projects here would create a win-win situation for both countries.

“We must take the opportunity. We need the funds, and it is being offered at a low rate, and of course, they offer a long-term repayment period.

“We will benefit in terms of infrastructure projects and this will drive growth. If we don’t start these projects now, the cost will continue to go up,” he said.

He added that there were no concerns about security or sovereignity.

“It is purely business for the development of the country for the future generations and to sustain economic growth,” he said.