Shahrol -- Work to start early 2012.
KUALA LUMPUR: Work to build the KL International Financial District (KLIFD) will start early next year.
"The master plan is close to completion and we are working closely with City Hall to get the details sorted out," said 1Malaysia Development Berhad (1MDB) chief executive officer Shahrol Azral Ibrahim Halmi. The project is a joint-venture between 1MDB and Abu Dhabi's Mubadala Development Corporation.
The project, which is aimed at strengthening the country's position in the financial services sector and is expected to cost a staggering RM25 billion, will be developed in phases on a 30.35-hectare site in the Imbi area off Jalan Tun Razak.
"We want the development to be orderly and ensure there are marketing benefits," he told Bernama in an interview.
Over the next six months, 1MDB will intensify talks with prospective investors and developers, he said, without revealing details.
The projects in KLIFD are aimed at attracting cutting-edge technology along with promoting sustainable development via green technology, he said.
Such niche development requires huge investment and as a government-owned organisation, 1MDB has the strength and flexibility to execute it, said Shahrol, while also praising the incentives given to IMDB in the 2012 Budget.
"We appreciate the government's commitment to KLIFD. It will ensure that we have the right sort of tenants, such as international banks and financial institutions," he said.
The incentives include a 100 per cent income tax exemption for 10 years and stamp duty exemption on loan and service agreements for KLIFD-status companies.
Others include Industrial Building Allowance and Accelerated Capital Allowance for KLIFD Marquee Status Companies, and a 70 per cent income tax exemption for a period of five years for property developers.
Shahrol said KLIFD was all about building the nucleus for talent and innovation, which was in line with the government's targets under the Economic Transformation Programme.
"We have a lot of programmes that involve the people and the younger generation, such as Dana Belia," he said.
Dana Belia, funded by Yayasan 1MDB, provides young people a platform to express their hopes, ideas and creativity through projects that promote unity. -- Bernama