Progress on 1Malaysia Development Bhd’s (1MDB) mega projects Tun Razak Exchange (TRX) and Bandar Malaysia is being hindered by financing difficulties, says Deputy Finance Minister Datuk Johari Abdul Ghani.
Johari said the troubles faced by 1MDB are deterring banks from giving out loans to the state investment fund’s project partners seeking to move the projects forward.
“Right now the issue is … you know TRX, we have a joint venture with Land Lease (Australia-listed property developer), they cannot move because the project partners cannot get financing because of the 1MDB issue.
“In Bandar Malaysia, [it is] also the same thing. So it is very difficult for the local or international banks to finance when you have issues at 1MDB,” he told reporters yesterday after launching the Malaysian Directors Academy (Minda) 2.0.
Johari said this was why Parliament’s Public Accounts Committee (PAC) had recommended that 1MDB’s assets and subsidiaries be transferred to the Minister of Finance Inc (MoF Inc). MoF Inc fully owns 1MDB.
Lend Lease formed a 60:40 joint venture with 1MDB in March last year to develop a A$2.8 billion (RM8 billion) project at TRX, with Lend Lease taking the majority stake. Dubbed The Lifestyle Quarter, the development would span over 17 acres (6.88ha), comprising a shopping centre integrated with TRX’s multi-layer central park, as well as three residential towers and a hotel.Construction was reportedly scheduled to start late last year.
1MDB also announced last year that it would sell 60% of its equity interest in Bandar Malaysia Sdn Bhd to consortium IWH-CREC Sdn Bhd for RM7.41 billion. The IWH-CREC consortium is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp.
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Johari said the troubles faced by 1MDB are deterring banks from giving out loans to the state investment fund’s project partners seeking to move the projects forward.
“Right now the issue is … you know TRX, we have a joint venture with Land Lease (Australia-listed property developer), they cannot move because the project partners cannot get financing because of the 1MDB issue.
“In Bandar Malaysia, [it is] also the same thing. So it is very difficult for the local or international banks to finance when you have issues at 1MDB,” he told reporters yesterday after launching the Malaysian Directors Academy (Minda) 2.0.
Johari said this was why Parliament’s Public Accounts Committee (PAC) had recommended that 1MDB’s assets and subsidiaries be transferred to the Minister of Finance Inc (MoF Inc). MoF Inc fully owns 1MDB.
Lend Lease formed a 60:40 joint venture with 1MDB in March last year to develop a A$2.8 billion (RM8 billion) project at TRX, with Lend Lease taking the majority stake. Dubbed The Lifestyle Quarter, the development would span over 17 acres (6.88ha), comprising a shopping centre integrated with TRX’s multi-layer central park, as well as three residential towers and a hotel.Construction was reportedly scheduled to start late last year.
1MDB also announced last year that it would sell 60% of its equity interest in Bandar Malaysia Sdn Bhd to consortium IWH-CREC Sdn Bhd for RM7.41 billion. The IWH-CREC consortium is a 60:40 joint venture between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp.
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