Malaysia Revives China-backed US$34b Scheme

Malaysia will revive a US$34 billion Chinese-backed transport and property development that was abandoned in 2017, the prime minister said on Friday, adding the project would contribute to Beijing's global infrastructure drive.

The announcement came after the countries agreed this month to resume work on a previously suspended railway project in Malaysia, and is the latest sign of improving ties after a rocky period.

The Bandar Malaysia development in Kuala Lumpur is expected to attract financial institutions and companies, and will be an interchange for a number of rail lines, Prime Minister Mahathir Mohamad's office said.

There were some changes to the original plan, including 10,000 affordable homes, and a "People's Park", it said.

The project was originally launched in 2011 under the government of ex-leader Najib Razak, but was abandoned in 2017 during his administration due to a dispute about payments.

The Bandar Malaysia project was initially backed by the scandal-hit state fund, but a major stake was later sold to a joint venture between a Malaysian firm and state-owned company China Railway Engineering Corp.

It will resume with the same contractors, who own a 60 per cent stake while the government owns the rest. (AFP)