Malaysia’s ambitious Bandar Malaysia development project will unfold gradually over the next five decades, according to Finance Minister Anwar Ibrahim. The massive RM140 billion urban transformation initiative, located on the former Royal Malaysian Air Force base in Kuala Lumpur, represents one of the nation’s most significant long-term infrastructure commitments.
The land transfer between government-linked entities Bandar Malaysia Sdn Bhd and KLCC (Holdings) Sdn Bhd followed standard commercial principles, ensuring alignment with national economic objectives. KLCC Development Sdn Bhd, a subsidiary of the Petronas-owned KLCC Holdings, will oversee the project with a strong emphasis on social inclusivity and sustainable urban planning. Among its key features will be 10,000 affordable housing units and the preservation of 50 acres of Malay reserve land.
Originally conceived in 2011 as a transit-oriented hub, Bandar Malaysia was intended to integrate major transport networks, including the now-canceled Kuala Lumpur-Singapore high-speed rail. After years of delays and a failed partnership with the IWH-CREC consortium in 2021, the project has been revived under new management. The government remains confident in KLCC Development’s ability to execute the vision while maintaining commercial viability amid shifting property market conditions.
The acquisition of the 486-acre site was finalized late last year, though the exact transaction value remains undisclosed. Given the scale of development, authorities anticipate a phased approach spanning generations rather than years. Once completed, Bandar Malaysia is expected to serve as a major economic driver, reinforcing Kuala Lumpur’s position as a regional business and transportation hub.