Move to revive stalled KL projects

The Star 05/10/2004

PUTRAJAYA: Stalled commercial projects in Kuala Lumpur that were affected by the 1997 financial crisis will be revived once City Hall and financial institutions approve the move. 

”We are interested to help these developers identify key problems and ensure the projects will not be abandoned and become an eyesore,” said Federal Territories Minister Tan Sri Mohd Isa Samad. 

Twenty-eight projects have been identified and the ministry has been charged with helping the developers find a solution. 

Five of the affected developers have agreed to convert their commercial projects into residential ones. 

In encouraging the move, Mohd Isa said developers, many of whom were involved in mid-scale developments, should look into ways to make their projects viable. 

The five developers have the funds and are confident of completing their projects if the ministry and City Hall give the approval to convert the status of their projects, he told a press conference at his office here yesterday.  

Mohd Isa said the others had financial problems but his ministry would ask Bank Negara to lend a hand. 

“We understand that financing unfinished projects can be difficult, as about RM1.2bil had been spent to develop these projects before the 1997 economic crisis hit,” he said.  

“It’s up to them what they want to develop, as long as they focus on their scope and do a market study to determine viability,” he said. 

On the overdue Plaza Rakyat mixed development project at Puduraya, Mohd Isa said the developers needed funding. 

“We hope financial institutions can look into the matter.”