Bandar Malaysia's revival in good hands with new owner: Analysts

But critics question transparency of deal for site of scrapped KL-S'pore HSR terminus

- Zunaira Saieed

KUALA LUMPUR - Bandar Malaysia's revival is in good hands, say analysts, after KLCC Holdings announced on Dec 23 that it had acquired the 486-acre (196ha) stalled megaproject in Malaysia's capital.

The site, formerly an air force base on Jalan Sungai Besi in Kuala Lumpur, was intended to be the terminus for the now-scrapped Kuala Lumpur-Singapore High Speed Rail (HSR), and house a subterranean shopping mall, canals, indoor theme parks, a financial centre and residential units.

Analysts say that KLCC Holdings has a good track record for large-scale property development such as Kuala Lumpur City Centre, where the capital's iconic Twin Towers are located, and administrative capital Putrajaya. It will also have sound financial backing from its main shareholder Petronas, Malaysia's national oil company.

Mr Siva Shanker, chief executive of property consultant Rahim & Co, said KLCC Holdings has the requisite experience to manage huge developments. "They did it successfully, they have a track record, and they can do it again," he told The Straits Times.

Financing should be less of an issue now that a more stable investor is involved, said Dr Geoffrey Williams, founder and director of Williams Business Consultancy. "This significantly increases the chances of success," he said.