By Hakim Hassan hakim@thestar.com.my

Najib is out of power but his legacy lives on with the skyscraper

ONE of the mega projects during the reign of the ex-prime minister, Datuk Seri Najib Razak, Exchange 106 would continue to be constructed despite the former premier being ousted during the recent GE14. The tower is expected to be the tallest in Southeast Asia and is one of only a few mega-projects cleared by the new government that has pledged to review deals struck by the previous administration, reducing the deficit, and rooting out high-level grafts

The new government said the funds raised to finance the project by scandal-plagued state fund 1MDB were not used for that purpose, and that its Indonesian developer needed an "injection of funds" from the government to keep the project on track.

"The true picture was not told," new Finance Minister Lim Guan Eng said in a video posted online. "It is better to get the building completed and owned by us than to let it be abandoned," he said.

Lim said he could not disclose how much money the government has put into the project.

Big property companies offer value for investors, says brokerage.

MAJOR property players are offering some value that potential investors could look at, according to Kenanga Research. They’ve noted that the property sector outlook is still unexciting with the KL Property Index underperforming the FBM KLCI.

However, it said the value is emerging with the bigger property companies offering deeper value, firmer earning trajectories for the near term and decent balance sheets.

Bank Negara had recommended the government to put up a public tender over the land sale

BANK NEGARA MALAYSIA had recommended the government to undertake a transparent process in the public tender over the sale of a piece of adjoining land that was said to be overpriced.
Governor Tan Sri Muhammad Ibrahim, in a message sent out to the staff regarding his resignation, clarified that the central bank had advised the government to undertake a competitive public tender for the sale of a piece of land measuring 55.79 acres for RM2bil.

Muhammad said Bank Negara had indicated its interest as early as September 2016. It initiated the purchase of the land a year later when it knew that there was an emergent interest by the government then to sell this land.

Muhammad added that Bank Negara, as an institution, would never be involved with 1Malaysia Development Bhd (1MDB). He pointed out that Bank Negara did not know nor did it have any control over the proceeds of the land purchase that would be used to settle 1MDB’s obligations.

“It is simply unthinkable for us to be associated with such a controversial entity mired with accusations of fraud and mismanagement. It is not in our nature to do such things. We even took enforcement action against them earlier.

“The 1MDB scandal has cost the country dearly and as a Malaysian myself, I am deeply angered, distressed and outraged,” the statement said.

An RM2bil ‘deal crash’ on the Pan Borneo Highway

Lebuhraya Borneo Utara Sdn Bhd – the project delivery partner of the Pan Borneo Highway was not given consent to the joint-venture (JV) company formed between Ekovest Bhd and Samling Group to undertake sub-contraction work valued at some RM2.11bil for the highway.

In a filing with Bursa Malaysia, Ekovest said that it had received a letter from its JV partner, Samling Resources Sdn Bhd (SRSB), with regards to this matter.

In January last year, Ekovest first announced that it was to participate in the construction of the Pan Borneo Highway by entering into a JV with Miri-based Samling Group to develop a 95.4 km Sarawak stretch under an RM2.11bil contract.

Back then, Ekovest said that its unit, Ekovest Construction Sdn Bhd had inked a JV and shareholders’ agreement with SRSB to jointly develop and upgrade the stretch from Semantan to Sg Moyan Bridge, plus the Kuching-Serian roundabout interchanges.

The company said a JV company, Samling-Ekovest JV Sdn Bhd, would be incorporated as the vehicle for the parties to undertake the implementation of the project.

Ekovest Construction would hold a 30% stake in the JV company, while SRSB would own the rest. Based on this, Ekovest’s share of the contract value was RM633.8mil.