Proposed KL Sports City at Bukit Jalil National Sports Complex

MRCB has been awarded the RM1.632 billion job to regenerate and upgrade the Bukit Jalil National Sports Complex into the Kuala Lumpur Sports City (KL Sports City) for which it will be repaid by the government with three pieces of leasehold land, totalling 92.5 acres nearby.

The job was awarded to MRCB’s Rukun Juang Sdn Bhd, which was chosen by the federal government for offering “the best overall development concept”, after 11 companies submitted proposals in an open nationwide tender, MRCB said in a statement this evening. The tender process was undertaken by the Public Private Partnership Unit (UKAS).

The upgrading project will be undertaken in two phases; the first is to get the 17-year old Bukit Jalil National Stadium ready to host the 2017 Southeast Asian Games (SEA Games); and subsequently the second phase will commence once the games are over and will create KL Sports City.

The first phase of the project will entail readying the national stadium as well as enhancing the Putra Stadium, the National Aquatic Centre and the National Hockey Stadium and improving integration to the current and existing public transportation links and increasing pedestrian access across the site.

Several parks would also be built around the regenerated stadium and the Commonwealth Park will be integrated in the stadium surroundings. MRCB will be building a youth park with facilities for skating, rock climbing, futsal and other outdoor activities.

The regeneration works will commence in January next year and will be completed in 18 months and will begin one week after the necessary approvals are obtained. One of the most notable work would be installing a retractable roof on the Bukit Jalil National Stadium.

After the SEA Games, the second phase will commence no later than 1 January 2018 — and is slated to complete in three years, consisting of the creation of KL Sports City, a fully integrated sports hub which would include high-performance training facilities, a sports rehabilitation science centre, a new youth park, public sports facilities, a sports museum, a convention centre, youth hostel and a sports-focused retail mall, which would create recurring income for the Ministry of Youth and Sports to fund maintenance work.

“The KL Sports City project marks MRCB’s entry into sports and recreational infrastructure and allows us to build on our core strengths of delivering multi-use developments that regenerate areas of national importance. By working in a private-public partnership, we can ensure that our own corporate goals are aligned with the nation’s objective for growth and development,” said MRCB’s group managing director Tan Sri Salim in a press release.

Artist impression: The proposed refurbishment works at Bukit Jalil National Sports Complex, and the facility transformation into KL Sports City.Artist impression: The proposed refurbishment works at Bukit Jalil National Sports Complex, and the facility transformation into a full-fledged, purpose-built sporting city called KL Sports City.


A privatisation agreement (PA) in relation to the job and the transfer of lands was signed in Putrajaya today by Department of Lands and Mines director-general Datuk Dr Sallehuddin Ishak, with Rukun Juang director Kwan Joon Hoe, and Ministry of Youth and Sport’s secretary-general Datuk Jamil Salleh.

MRCB said that Rukun Juang had appointed international stadium expert Populous as the project designer, as it had worked on more than 2,000 projects worth US$30 billion and was a specialist in creating sporting facilities that drew people and communities together. 

The firm is behind many architectural marvels such as London's The Stadium at Queen Elizabeth Olympic Park, the refurbished Wembley Stadium, and South Korea's Incheon Stadium, which used for the Asian Games 2012.

The first phase would cost RM499.2 million and the second, RM1.1 billion, while the balance of RM31.9 million would be paid to the Federal Government in cash.

In its filing with Bursa Malaysia, MRCB said the transfer of the three tracts located near the Bukit Jalil National Sports Complex to Rukun Juang is in exchange for the RM1.6 billion total cost of the project that the group will bear.

It will be developed into an integrated development with a gross development value (GDV) of RM14.6 billion over 16 years from 2018. The location is nearby to a potential station for the new mass rapid transit (MRT) Line 2.

The contract sum represents a premium of RM31.9 million, equivalent to 2% over the market value of the tracts, but MRCB said it was reasonable, as the lands present it with an opportunity to undertake a mixed development in a fast-developing suburban area of Kuala Lumpur.

A proposed concept for a property development by MRCB on the exchanged land parcels of approximately 92.5 acres.A proposed preliminary concept for a property development by MRCB on the exchanged land parcels of approximately 92.5 acres.



Rukun Juang is a 85%-owned unit of MRCB Land Sdn Bhd, which in turn is a wholly-owned subsidiary of MRCB. The remainder 15% is owned by Rasma Contractors.

It is worth noting that among others, MRCB group managing director Tan Sri Salim and Employees Provident Fund (EPF), each hold an 85% indirect stake in Rukun Juang.

Former Federal Territories and Urban Well-being Minister and Lembah Pantai Umno division chief Datuk Seri Raja Nong Chik Raja Zainal Abidin and his wife, Datuk Seri Nafesah Raja Nong Chik Abidin, also each hold a 15% indirect stake in Rukun Juang.

MRCB said Rukun Juang will fund its obligations under the agreement via bank borrowings and/or advances from its shareholders, the quantum of which is yet to be fixed.

Rukun Juang’s issued and paid-up share capital now is only RM300,000, comprising 300,000 shares. Under the PA, it will have to have an issued and paid-up share capital of at least RM5 million to undertake the job.


World-class facilities to be built at KL Sports City.World-class facilities to be built at KL Sports City.



As such, MRCB Land and Rasma Contractors have agreed to proportionately increase their shareholdings in Rukun Juang to achieve that.

MRCB expects to fund its future subscription of shares in Rukun Juang, and any shareholders’ advances to be provided to fulfil the PA, via internally-generated funds, bank borrowings and/or equity fund raising.

The development plans for the exchanged lands have yet to be finalised at this juncture, but is expected to contribute positively to the company’s earnings and financial position in the future, said MRCB.

“Securing such a strategic land bank with development potential is in line with the company’s strategy of increasing its focus in the property development segment, as its core business,” it added.


Artist impression of a regenerated sports complex at KL Sports City.Artist impression of a regenerated sports complex at KL Sports City.


Artist impression of a regenerated sports complex at KL Sports City.


Artist impression of a regenerated sports complex at KL Sports City.


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