KUALA LUMPUR: The Tun Razak Exchange development, formerly the Kuala Lumpur International Financial District, is expected to generate a gross development value of more than RM26 billion, placing KL on the road to becoming one of the top 20 global liveable cities.
At the launch of the project yesterday, Prime Minister Datuk Seri Najib Razak said the development on 28.33 ha site in the Jalan Imbi area fronting Jalan Tun Razak is also expected to draw in RM3.5 billion worth of foreign direct investments (FDI).
"It will encompass world--leading international design and progressive planning tenets. Its buildings and infrastructure will conform to the highest levels of sustainability. Pedestrians will be able to walk and play in green public areas and it will have seamless links to public transportation, including the MRT," he said in his speech.
"We also expect more than 250 of the world's leading companies to locate here, creating 500,000 jobs directly and indirectly by the time it is completed.
The developer of the project is 1Malaysia Development Berhad (1MDB) and the aim is for the development to be a new international hub for financial and professional services.
It offers a comprehensive business and living environment to spur economic growth within a sustainable, urban mixed--use development comprising office, residence, retail and hospitality spaces as well as public institutions.
The target is to draw top multinational companies from various industries, financial institutions, support services, commercial and hospitality corporations to set up shop in the area.
The project is expected to take more than 15 years to complete, with Phase 1 targeted for completion in 2016.
Najib said the federal government clinched a partner for this phase and there would be a strategic investor to draw in the RM3.5 billion in investment.
He said the entities would LUMPURbe revealed in September during a special ceremony.
The prime minister reiterated some of the tax breaks and incentives to attract investors, such as the tax exemption of 100 per cent for 10 years; stamp duty exemption on loan and service agreements; Industrial
Building Allowance and Accelerated Capital Allowance; and an income tax exemption of 70 per cent for five years for eligible property developers in the Tun Razak Exchange.
He said a special task force, led by the Economic Planning Unit, was formed to offer support.
It will be chaired by EPU head Tan Sri Nor Mohamed Yakcop and will comprise members from the Finance Ministry, Bank Negara Malaysia and the Securities Commission.
Najib also revealed the federal government would begin "a comprehensive review of business regulations", but stopped short of revealing any details.
"Our logic behind this review is simple: Anything that contributes to future progress stays, anything that is outdated goes."
Special Advisor to the Japanese Cabinet Tadashi Maeda, who attended the launch, revealed investors from his country would be involved in the development, adding discussions with 1MDB were ongoing.