By DASHVEENJIT KAUR / Pic By MUHD AMIN NAHARUL
HSBC Bank Malaysia Bhd, one of the major names that would occupy the country’s tallest structure in Tun Razak Exchange (TRX), lauded the government’s move to proceed with the project as announced last week by Finance Minister Lim Guan Eng.
CEO Stuart Milne said the injection of an additional RM2.8 billion by the government into the project would ensure a smooth flow for its completion after a period of uncertainty about TRX’s status under the Pakatan Harapan-led government.
“It is a good decision by the government and it has allowed the completion progress to go on smoothly. The construction of the bank’s headquarters in the country’s tallest structure is progressing well, in fact, ahead of the group’s schedule.
“It is a significant commitment for the group as we intend to develop Malaysia as a financial hub in Asean,” he told reporters after the launch of HSBC Amanah Malaysia Bhd’s Sri Petaling branch yesterday.
Milne said the group is very happy with the progress of the headquarters in TRX.
“The strategic decision to invest more than RM1 billion in TRX is both a milestone for HSBC and a significant investment, reinforcing our plans to expand our franchise here and for the future of Malaysia,” he added.
Milne said the progress is ahead of the group’s targeted schedule and part of its business will move into the new headquarters by the end of 2020.
“HSBC has enjoyed more than 130 years of remarkable business success in Malaysia, and it is our priority market for the HSBC Group globally.
“The collaboration between HSBC and TRX demonstrates our commitment to our employees, the community and our business in Malaysia,” he added.
The fate of the tower and the entire project was sealed last week when Lim announced the continuation of the project to avoid a loss of over RM3.69 billion incurred by the government if TRX, a concept initiated by the previous ruling party Barisan Nasional, was discontinued.
Lim also outlined a scheme that would help the government continue the project while recouping all misappropriated funds, repay all borrowings and recover all funding investments and loss of opportunity costs.
He said since 2012, the previous government had extended advances and transfers, and bought land from TRX City Sdn Bhd for a total amount of RM3.69 billion.
Of that, he said RM3.07 billion was “misappropriated” by scandalplagued 1Malaysia Development Bhd, mainly for its loan repayments.
The alternative of not coming up with a funding of RM2.8 billion and not completing the project, according to Lim, is to pay RM3.51 billion in compensation claims, as well as an eyesore of an abandoned mega project in the heart of Kuala Lumpur.
In that event, apart from having to pay compensation of RM3.51 billion, the government will also lose the RM3.7 billion transferred earlier to TRX.
“Injecting the additional RM2.8 billion on top of the RM3.7 billion transferred earlier to TRX City would make up total funding by the government to be RM6.5 billion.
“Completing TRX will allow the full value of the project, of at least RM7.6 billion, to be realised,” Lim said in a statement last week.
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