Shah Alam Stadium project faces further complications

Murray Hunter


Shah Alam Stadium project faces further complications

Failure by the Selangor Government and contractor to agree on the land swap


18 MAR 2024





Sources within the Selangor State Government claim there has not been any agreement in the land swap deal with the Shah Alam Stadium Development contractor (MRCB and its nominees).

Consequently, the demolition of the Shah Alam Stadium has been delayed once again due to the above issue. Failure for the Selangor State government to agree to the pieces of land that will be transferred to the contractor in lieu of payment will mean the state will have to pay for the project in cash instalments. With the estimated cost of the project at RM 3.28 billion, and Selangor’s annual budget of RM 2.53 billion in 2024, this will increase the burden of state debt substantially.

The delay of the demolition is a clear sign the state government is now trying to raise the funds to make the first instalment to the contractor.

Where Malaysia’s national public debt stands at RM 1.7 trillion, this project is becoming a luxury the nation cannot afford.

An RM 20 million investment could have restored the roof, and another RM 20 million restored the seating and in stadium facilities. This is cheaper than the RM 53 million that will be paid out to the contractor to demolish the stadium.

The Shah Alam Stadium maybe needed if Malaysia goes ahead with the 2026 Commonwealth Games

With the Victorian Government in Australia abandoning to Melbourne Commonwealth Games 2026, due to cost explosions, the Malaysian cabinet is set to make a decision whether Malaysia will jump in as the new host.

If the Malaysian government does agree to host the games, then in the short time available to prepare, it will need support stadiums close to Kuala Lumpur. Malaysia will have to spend at least RM 1.0 billion to prepare for the games and an RM 40 million repair job to the Shah Alam Stadium would be great value. Certainly, the Shah Alam Stadium could be used for Rugby and Hockey, as the 2026 games will be much bigger than the 1998 games, where the Petaling Jaya Stadium was used. The Shah Alam Stadium has a much larger seating capacity than Petaling Jaya.

The Melawati Stadium may also be a potential location for a number of indoor events.

The Shah Alam sports complex may be required, and updated with federal funds.

Its amazing there are still so many rumblings of uncertainty for an RM 3.28 billion project, deemed by the Selangor government to be so important, especially with the high level of national debt.