Anwar said the sale of the 486-acre (196ha) land from Bandar Malaysia Sdn Bhd (BMSB) to Petronas subsidiary KLCC (Holdings) Sdn Bhd (KLCCH) was on the principle of “willing buyer, willing seller”, taking into account the strategic, long-term goals of the project.

Both BMSB and KLCCH are government-linked companies.

Anwar, who is also the prime minister, said the project will be developed by KLCCH’s subsidiary, KLCC Development Sdn Bhd (KLCCD), and that it would consider the government’s focus of inclusivity.

“This includes the provision of 10,000 units of affordable homes with open spaces and parks, as well as the preservation of 50 acres of Malay reserve land.

“The Bandar Malaysia project will be developed in a controlled manner to ensure its commercial viability, taking into account the dynamics of the property market’s supply and demand.

“Based on the size of the Bandar Malaysia land, the total development is expected to take around 50 years,” he said in a written parliamentary reply.

Anwar reiterated that the Treasury was confident KLCCD has the ability to develop the project and thereby add substantive value to the nation’s economy.

KLCCH had announced the acquisition of the 486 acres of Bandar Malaysia land for an undisclosed sum in December, with a sale-and-purchase agreement signed in October.

The site previously housed the Royal Malaysian Air Force base on Jalan Sungai Besi, Kuala Lumpur.

The developer is known for building and managing key properties in Kuala Lumpur City Centre and Putrajaya.

First announced in 2011, Bandar Malaysia was envisioned as a mixed-use transit-oriented development and was expected to integrate various transportation networks, including the Kuala Lumpur-Singapore high-speed rail line.

The project had faced multiple delays before being postponed indefinitely in 2021 when the agreement with the consortium IWH-CREC fell through.