KUALA LUMPUR (Jan 11): Exchange 106 was touted as the country’s new signature tower when the multibillion-ringgit Tun Razak Exchange was launched in 2012 by then prime minister Datuk Seri Najib Razak. But when the 1Malaysia Development Bhd scandal blew up three years later, the construction of the building became an issue when Indonesia-based developer Mulia Group, which had pumped in RM1.2 billion, could not raise further financing to complete the project.

This forced the Malaysian government to salvage the situation by coming in as a 51% shareholder in 2017 and to act as a loan guarantor, enabling the tower to be completed in December 2019 just before the outbreak of Covid-19.

The 1,615-foot Exchange 106 tower with a reflective blue glass facade and a 12-story clear glass crown was eventually completed in December 2019, marking a new landmark in Kuala Lumpur.

However, a dispute involving the two shareholders of the skyscraper has ended up in court.

According to court documents, Mulia claims that it never agreed to the clause that allowed MKD Signature Sdn Bhd to buy its 49% stake for RM1 if the option was not exercised but was assured that it would not be executed and that the clause was put in for “political reasons and good optics”.

The group argues that the dispute should be referred to arbitration administered by the International Centre for Settlement of Investment Disputes as it involved the Malaysian government and Mulia Group, an investor from Indonesia.

To find out more about the case, read Cover Story 1 in this week’s issue of The Edge Malaysia weekly.

Meanwhile, in Cover Story 2, we look at investing ideas for 2025, with stock picks by fund managers, heads of research, as well as The Edge.

In anticipation of increased volatility and uncertainty in global markets, how should investors adjust their investment portfolios this year? Are potential laggards and dividend-yielding stocks a better option this time around?

Grab a copy of The Edge Malaysia weekly today to read more.

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