1MDB: Sale of Bandar Malaysia stake not linked to high-speed rail project

(the Star) – 1Malaysia Development Bhd (1MDB) says the sale of an equity stake in Bandar Malaysia Sdn Bhd is not linked in any way to the KL–Singapore High Speed Rail (HSR) project.

It said on Wednesday that neither it nor the government of Malaysia made any representations or agreements to that effect though Bandar Malaysia has been designated as the terminus for the HSR.

“1MDB and the Consortium both confirm that HSR is an entirely separate project, whose award will  ultimately be determined jointly by the Governments of Malaysia and Singapore, per a separate process, that is and will not be linked or be contingent on, in any way, to the sale of 1MDB equity in the Bandar Malaysia project,” it said.

It issued the statement following certain questions, queries and concerns raised by various parties over the recently announced sale of 60% equity in the Bandar Malaysia project, to the consortium comprising Iskandar Waterfront Holdings (IWH) and China Railway Engineering Corporation (CREC).

On Tuesday, 1MDB  has clarified that China Railway Group Ltd’s revised figure of RM5.28bil for the controlling stake in Bandar Malaysia was in reference to the estimated share of the land’s net equity value.