It was reported yesterday that Bin Zayed International LLC, a subsidiary of Dubai-based conglomerate BZI Group, had withdrawn from the 99-island Langkasuka project due to limited growth prospects.
Sanusi today clarified that BZI’s withdrawal was not a new development as it had already been disclosed to investors.
“I’m not sure why this has become an issue now. BZI’s decision was announced on Bursa Malaysia because it is a public-listed company,” he was quoted as saying.
He said the state government is not directly involved in the project as it was planned as a collaboration with a private company, Widad Business Group Sdn Bhd.
Instead, Sanusi stressed that the state government’s role was limited to land approvals in compliance with legal requirements.
“Once the land is approved, the premium and taxes will be paid. After that, it’s the company’s responsibility to develop the land,” he said.
He added Widad had already paid the land premium and that the first phase of the project was under way, albeit slowly.
BZI Group’s managing director Sheikh Midhat Kidwai yesterday confirmed that the company was no longer involved in the project and is now concentrating on other opportunities and real estate projects that offer a faster return on investment.
Sheikh Midhat said several opportunities have been identified, including one in Kulim, Kedah, where there is ready infrastructure. Two other projects involving the firm are pending approval from the Kuala Lumpur City Hall (DBKL).
BZI previously entered into an agreement with Widad in March 2021 to form a special purpose vehicle called Widad BZI Sdn Bhd for the Langkasuka project.
The joint venture was reported to have been for the development of a cluster of 99 islands at a cost of US$9.6 billion (RM40.2 billion).
In May, Berita Harian reported that the construction of the infrastructure for the project would commence in the last quarter of 2024.
The project, expected to be completed within the next 15 to 20 years, was to span 800ha with nearly 90% of the area located in the sea near Padang Matsirat.
Widad Business Group will also reclaim land and develop a 405ha man-made island, which will account for 50% of the total area.