This article first appeared in The Edge Malaysia Weekly on August 1, 2022 - August 7, 2022

THE redevelopment of the Shah Alam Sports Complex will include commercial and residential components, apart from sporting and leisure components, according to Menteri Besar Selangor Incorporated (MBI Selangor).

An MBI Selangor representative says the Selangor government’s plan is to turn the area in Section 13 Shah Alam into a modern, sustainable and liveable community.

“In other words, the proposed development will incorporate not just sporting and leisure facilities, but will also encompass commercial and residential components to further spur economic activities, providing opportunities [for the area] to be self-sustaining in the future.

“We are also excited that the LRT3 line will have a station near the stadium and is expected to be operational in 2024. This will certainly add value and complement the current development in the surrounding area in Section 13,” the representative adds in response to queries from The Edge.

However, the representative also points out that the state has yet to make a decision on whether to demolish the Shah Alam Stadium and build a new one or repair and refurbish it, and is awaiting a proposal by the appointed contractor with the best option for the redevelopment of the Shah Alam Sports Complex.

On July 15, the state government handed a letter of intent (LOI) to Malaysian Resources Corp Bhd (MRCB) to come up with a proposal for the development of the Shah Alam Sports Complex, which includes not just the Shah Alam Stadium but also its surrounding facilities such as Malawati Stadium, Shah Alam Mini Stadium and Shah Alam Extreme Park.

The developer is expected to submit a proposal with the best options, taking into consideration the interests and benefits to the state and the people of Selangor.

The Shah Alam Stadium — an 80,000-plus seat capacity multipurpose outdoor stadium — has fallen into a state of disrepair after years of neglect. Built in the early 1990s at a cost of RM480 million, it was the largest stadium in Malaysia before the completion of the National Stadium in Bukit Jalil.

According to the state government, the cost to repair and refurbish the stadium is estimated at RM787 million. However, this cost will eventually be confirmed after a contract is signed between the state government and MRCB, depending on what needs to be done to rejuvenate the iconic stadium.

A representative from MRCB tells The Edge that the scope of any proposed redevelopment or refurbishment design and budgetary value has yet to be set by the prospective client and will only be determined after a detailed engagement process.

“This process will take six months and [is] subject to the details that would have to be reviewed and approved by the committee set up by the Selangor government,” says the representative in an email response to The Edge.

MRCB will be compensated by way of land swap, which will be determined together with the contract. Since the scope and scale of the project are yet to be determined, the value and locations of the land parcels are also unknown at this juncture, says the MRCB representative.

“Any agreement to participate in this project will be dependent on us being satisfied that the value to be released from any land swap is fully commensurate to the work that is to be undertaken and adequate returns can be made for all our shareholders,” adds the representative.

The refurbishment or redevelopment of the Shah Alam Sports Complex will not be the first sports complex refurbishment job to be undertaken by MRCB. The construction and property development group was the contractor for the refurbishment of the Bukit Jalil National Stadium in 2015.

The stadium was refurbished at a cost of RM1.34 billion, which was compensated by way of land swap as MRCB’s wholly-owned subsidiary Rukun Juang Sdn Bhd received three parcels measuring a total of 76.14 acres in Bukit Jalil.

The developer is developing the land into a RM21 billion mixed development project called Bukit Jalil Sentral. The project will be undertaken with MRCB’s largest shareholder, the Employees Provident Fund (EPF). In December 2018, the EPF paid RM1.07 billion to Rukun Juang for the subscription of an 80% stake in Bukit Jalil Sentral Property Sdn Bhd, the developer of the project.

The appointment of MRCB as the contractor to redevelop the Shah Alam Sports Complex came as a surprise to some, who say the flooded pitch of the Bukit Jalil National Stadium during the Asian Cup 2023 qualifiers between the Harimau Malaya and Bahrain in June is an indication that MRCB did not do a good job in refurbishing the stadium.

However, it should be noted that the pitch was not part of MRCB’s job scope nor is it the maintenance contractor for the National Stadium.

In fact, after the refurbishment works were completed in time for the 2017 Kuala Lumpur Southeast Asian Games, the National Stadium received multiple accolades including Winner of Stadium of the Year by World Stadium Congress 2018 in the Netherlands.

The project subsequently went through a rigorous cost and due diligence process by the Public Works Department and the Audit Department. Moreover, the project was also reviewed by the Public Accounts Committee (PAC), with the scope of review covering cost, the process of the contract award, safety features, management of defects and the usage of assets.  The PAC reported its satisfaction with the delivery project.

Nevertheless, some have issues with the estimated cost of RM787 million to repair and refurbish the Shah Alam Stadium as, given the amount, a new stadium could be built — and for less.

The 35,000-seat capacity Sultan Ibrahim Stadium in Johor Baru was developed at a cost of RM200 million and has been recognised as among the best football stadiums in the region.

The MBI Selangor representative tells The Edge that the cost is an approximation if the stadium were to be repaired and refurbished, based on the latest reassessment after reviewing current construction costs and the extent of the damage at the Shah Alam Sports Complex.

“The cost has taken into account several issues that need to be urgently addressed, among others, to solve the flooding issue — by raising the stadium field level, repairing and fixing all electrical wiring and piping systems including replacing the roof, as well as refurbishment of the whole sports complex including the indoor arena,” the representative details.

MRCB was selected to redevelop the Shah Alam Sports Complex because of its experience in undertaking similar projects, the state representative adds, noting that “MRCB was also involved in the rejuvenation of the Bukit Jalil National Stadium. The company also has a good track record and is financially strong”.

If MRCB secures the contract to redevelop the Shah Alam Sports Complex, the job will add to the group’s already-huge external order book of RM27.2 billion, whose unbilled portion stands at RM18.5 billion.

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