Explain Dubai firm’s exit from RM40bil Langkawi project, Sanusi told

FMT: 

Explain Dubai firm’s exit

from RM40bil Langkawi

project, Sanusi told

FMT Reporters

-23 Nov 2024, 09:23 PM

Sungai Petani MP Taufiq Johari fears that the 99-island Langkasuka land reclamation project could be abandoned after BZI Group’s withdrawal.

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The proposed Langkasuka project calls for the development of a cluster of 99 islands at a cost of US$9.6 billion (RM40 billion).

PETALING JAYA: 

Kedah menteri besar Sanusi Nor has been urged to explain why a Dubai-based conglomerate has withdrawn from the proposed RM40 billion 99-island Langkasuka land reclamation project in Langkawi.

Kedah PKR Youth chief Taufiq Johari said in a statement: “The people of Kedah, especially in Langkawi, deserve to hear his explanation for this disappointment.”

He urged Sanusi to reveal how his government would prevent investors from similarly pulling out in future. He said the decision by BZI Group to quit the project reflected the PAS-led state government’s inability to inspire the confidence of investors.

Taufiq, who is Sungai Petani MP, said he feared that the Langkasuka project might now be abandoned.

Taufiq Johari.

He described BZI’s exit as a disappointment for Kedahans as the development was expected to spur the island’s economic activity, and blamed the state government for its weakness in strategic planning and managing large investments.

He cited the statement by BZI managing director Sheikh Midhat Kidwai that since 2022 the company no longer saw value in the project, which calls for the development of a cluster of 99 islands at a cost of US$9.6 billion (RM40 billion).

The project, expected to be completed within the next 15 to 20 years, will span 800ha with nearly 90% of the area located in the sea near Padang Matsirat.

Sanusi Nor.

BZI is a subsidiary of a group founded by Sheikh Khaled bin Zayed Al Nahyan, a member of the Abu Dhabi royal family. In March 2021, it entered into an agreement with Widad Business Group Sdn Bhd to form a special purpose vehicle called Widad BZI Sdn Bhd for the Langkasuka project.

In September 2021, Sanusi said Widad BZI had paid RM4.5 million to the state as a “commitment fee” for the project.

Taufiq also expressed concern that the BZI decision could affect the Visit Kedah Year 2025 campaign and the state’s overall image as a tourist destination. He said tourists might prefer to visit Thailand instead as it offered better infrastructure and more appealing attractions.