Monday, July 7, 2014

Khazanah buying back land from the Middle Easterns?

Rumours that Khazanah is buying back land from the Middle Easterns makes me wonder why our funds are being used to support development in Johor...If one remembers, the Middle Easterns were the early ones to back the Iskandar project but to later back off from their overly ambitious ideas. As a result of this, the land measuring about 2,500 acres as reported is now sort of abandoned or postponed to say the least.

It would be good for the development of the area for the land to be repurchased but I am wondering why Khazanah, a national fund rather than other property developers? Why not UEM Sunrise which is owned by Khazanah anyway. I am sure if the land has good value, many developers would not hesitate to bid for it. One can see this through many purchases of land recently by Ecoworld, Tropicana and even E&O but isn't it a coincidence that these purchases centered around Klang Valley or Greater KL?

Is Iskandar worth that much or is it just a lot of sovereign money thrown into but the return is just minimal. It is high time, the government start looking at ROI i.e. the true level of investments rather than just a handful of Legoland, Hello Kitty projects. One thing for sure, Singapore would not be complaining about this though...

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