Rafizi doesn’t understand TRX business model, says BN

(MMO) – PKR’s Rafizi Ramli’s claim that the government could incur debts of up RM35 billion to fund the Tun Razak Exchange (TRX) shows his lack of understanding about the project’s business model, Barisan Nasional (BN) said today.

The BN strategic communications team explained that the acquisition of the TRX project will be fully managed by a government-owned firm — TRX City Sdn Bhd.

Among others, it said the role of TRX City would include planning, promoting, handling matters related to land acquisition, and constructing the relevant infrastructure for the project.

All these, it said, was estimated to be at RM3.3 billion.

“While it is true that the planned GDV (gross development value) of the TRX projects is RM40 billion, but this is based on private entities and private investments to develop 26 buildings over a 15 years period — not by the government

“Numerous past publicly available media reports and statements clearly show projects worth a total GDV of at least RM14 billion have been committed by private investors as part of the first phase of TRX,” the BN strategic communications team said in a statement.

Citing several of such projects already undertaken by established companies such as Affin Bank and WCT Holdings, BN said many of these projects have since accelerated into the construction phase and were “generating economic activity” for the country.

“Anybody who passes by the TRX site will see visible evidence of the scale and speed of the physical construction progress.

“It is anticipated that tens of thousands of high-value jobs would be created when these projects for phase 1 of the world-class financial hub of TRX are completed,” it said.

The BN communication team also took a swipe at Rafizi over the Pandan MP’s claims that the Mass Rapid Transit (MRT) project would exceed RM100 billion.

“Rafizi is again advised to stop making inaccurate accusations which not only serves to undermine efforts by the government to develop the economy of Malaysia and elevate the well-being of Malaysians, but will also result in more public embarrassment for him,” it said.

On Thursday, Rafizi said that upon completion of the TRX project, the government would incur debt amounting to RM35 billion.

On the issue of the MRT, the Pandan MP had claimed that the second and third lines of the MRT project would cost at least RM50 billion each and that by adding the Sungai Buloh-Kajang (SBK) line, the total cost of the project would be more than RM120 billion.