ALOR STAR: The decision by global investment leader Bin Zayed International Group of Companies (BZI) to withdraw from the RM40 billion Langkasuka project in Langkawi has not caused any loss to the state.
Menteri Besar Datuk Seri Muhammad Sanusi Md Nor stressed that the project did not involve the state government, since it was a collaboration between two private companies.
Therefore, Sanusi said he was baffled at why certain parties were pinning the blame on him and the state government for the group's decision to withdraw from the investment.
"It is common practice for companies to withdraw from any investment. This is not a new issue, but I'm not sure why it's only now being raised again.
"I believe the announcement of BZI's withdrawal was made on Bursa Malaysia, as they are a listed company. It's not something that can be interfered with arbitrarily (by the state).
"However, some people are hitting out at me, even though I have no connection to Bin Zayed and I don't even know them.
"The collaboration between BZI and Widad Business Group Sdn Bhd was announced by the then prime minister in Kuala Lumpur, not in Kedah.
"The announcement was made at the Finance Ministry by the Finance Minister, who is now the Investment, Trade and Industry Minister. So, you can ask him," he said in a press conference at the State Legislative Assembly after presenting the 2025 Kedah Budget in Wisma Darul Aman today.
Commenting further, Sanusi said he was informed that Phase 1 of the project was still ongoing, undertaken by Widad, although progress has been somewhat slow.
"The land premium, valued at tens of millions of ringgit, has already been paid by Widad. Only after they acquired the land did the company form a partnership with BZI, which has no connection to the state government.
"In this matter, the state government's role was limited to approving the alienation of the land in accordance with the law, after which the companies involved paid the premium and taxes. Once all that was completed, it was up to the company to develop the land," he explained.
Sanusi was responding to Kedah PKR Youth chief Dr Taufiq Johari's call for Sanusi to explain the reasons behind the Dubai-based conglomerate's decision to withdraw from the Langkasuka project.
Yesterday, Dr Taufiq, who is also the Sungai Petani member of parliament, claimed that the Langkasuka project risked being stalled due to the state government leadership's weaknesses.
He said Sanusi should not be pointing fingers at others when an international investor withdraws from a project, claiming that the failure was resulting from the lack of the state government's strategic planning and weak policy.
On Friday, BZI managing director Datuk Seri Shamir Kumar Nandy was reported as saying that the company had decided to officially withdraw from the Langkasuka project in Langkawi, citing a lack of viable opportunities.
He said through the years, since 2022, the company did not see the value of the project any more.
The Langkasuka project was launched as a collaboration between Widad Group and Bin Zayed International LLC, aiming to develop a sprawling mixed-use estate featuring luxury villas, a golf course, and commercial spaces.
Widad Group and Bin Zayed International LLC signed a joint-venture agreement on March 7, 2022, to further solidify their partnership, pursuant to the collaboration agreement inked on March 30, 2021.
Bin Zayed International LLC is a subsidiary of BZI, a Dubai-based conglomerate with interests in building, energy, trading, real estate, technology, and finance.
It is owned by Sheikh Khaled Zayed Al Nahyan, a prominent member of the Abu Dhabi royal family.