Mohamed Azmin Ali, the Economy Affairs Minister of Malaysia, has stated that there are plans for Felcra Bhd to sell a few components of the Menara Felcra project along with associated mixed development properties in the city center. This would allow Felcra to raise the living standards and dividends for its 96,137 members Azmin stated that this step was being taken because the land development authority could not pay the project bill. Felcra is owned by the government. He also said that there were no plans by the government to cancel or postpone this project.
Due to the cash flow issues, efforts are being taken to ensure that the project continues. Azmin said that the government is willing to consider good offers that can monetize the assets.
Azmin’s comments were a response to the statements made by Ismail Mohamed Said, BN-Kuala Krau. Said had requested the ministry to provide an explanation about the reasons and the long-term impact of putting the Felcra tower up for sale. After all, construction was just around 50% complete.
Azmin also said that there were plans to put up commercial blocks and flats for sale. However, that will only happen if satisfactory offers were received.
Felcra’s role is similar to Felda. It was planning to create a new corporate office as well as additional mixed development projects. This would have taken place on the Jalan Semarak site which covers an area of 4.2 acres.
However, financial difficulties are forcing the agency to put the project up for sale. The estimated gross development value of the project is RM 1.1 billion.