KUALA LUMPUR – Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) and Hong Kong’s MTR Corporation Ltd (MTR Corp) signed a memorandum of understanding (MoU) today to develop a mixed property venture that will rejuvenate Bukit Chagar in Johor Baru, Johor, into a southern economic hub.
MRT Corp chief executive officer Datuk Mohd Zarif Hashim said this is the company’s first large-scale property rejuvenation project and will be implemented concurrently with the planned JB-Singapore rapid transit system (RTS) link.
“Today’s MoU is the culmination of a series of discussions over the past month.
“It started when Transport Minister Anthony Loke led a delegation to Hong Kong (last month) in a new chapter of bilateral relations with a mission to attract foreign investments,” he said at the MoU signing ceremony here today.
Loke said Bukit Chagar is a potential catalyst for economic growth. With 4.45ha surrounding the Bukit Chagar station being government land, MRT is mandated to develop a 2.42ha central business district in Johor Baru.
He said the (Madani Economy) framework launched by the prime minister yesterday is part and parcel of the government’s strategy to turn Johor Baru into an important city.
“We will have a special financial zone with special incentives for companies, special tax rates for working professionals, and a dedicated lane for immigration clearance for foreigners working there,” said Loke.
Meanwhile, Zarif said the MoU will maximise the value capture of MRT’s RTS link, a JB-Singapore cross-border transit system.
He said Bukit Chagar’s regeneration will redefine urban living and offer convenience on a new level via a curated mixed development that comes with integrated hardware, software, and mobility.
Zarif said the 2.45ha mixed development is expected to have a gross development value of over RM3 billion. With a gross floor area of about three million square feet, it will be big enough to attract local and international investors.
“MTR is synonymous with property development in Hong Kong using the ‘rail plus property’ model. We are currently doing the master plan with MTR.
“For now, the MoU is about technical cooperation and sharing of experiences. As we go along, we will assess investments and opportunities,” said Zarif.
Meanwhile, MTR’s Property and International Business director David Tang Chi-Fai said having completed 50 projects around railways in Hong Kong, it is an honour to share over 40 years of experience via the cooperation and friendship between the two governments.
The MoU was among 11 signed following Hong Kong Special Administrative Region chief executive John Lee’s visit to Malaysia organised by the Hong Kong Trade Development Council. – Bernama, July 28, 2023
