SHAH ALAM, Nov 21 — The state government is confident that it can finance the Shah Alam Sports Complex (KSSA) redevelopment project, despite its staggering RM2.937 billion cost, said Menteri Besar Dato' Seri Amirudin Shari.
He said the state government, via Menteri Besar Selangor (Incorporated) or MBI, has mapped out several financing mechanisms, including sukuk issuance, commercial loans, land swaps, and asset monetisation, to ensure the project proceeds as scheduled.
“In terms of repayment capability, MBI has held several rounds of discussions, including with lending institutions (for a commercial loan). The overall project financing needs to be completed by 2029 through a single payment method.
"Options such as issuing sukuk can also be explored," Amirudin said in his winding-up speech for the 2026 Selangor Budget during the State Legislative Assembly session today.
He added that MBI has also identified eight land parcels worth RM295.7 million for exchange with the project developer’s Malaysian Resources Corp Bhd (MRCB).
Several commercial components of the KSSA project, including a hotel, transport terminal, event hall, parking plaza, and sports facilities, could also generate up to RM500 million even before the project is fully completed.
"This means that land swapping, monetising several project components, as well as financing through sukuk and commercial loans, can be pursued to cover the RM2.93 billion cost. So, we are confident we can finance (the project),” Amirudin said.
The Menteri Besar is confident that MBI would be able to service its loans or sukuk through several planned initiatives and investment strategies, noting that the state government would guarantee any financing undertaken.
Liquidating state assets will remain the government’s last resort, providing assurances that Selangor’s reserves will not be touched.
Earlier, he said the KSSA project, which is in the construction planning phase, will proceed once the architects and engineers finalise the detailed designs.
As of now, the engineering, procurement, construction and commissioning (EPCC) agreement has not been signed and is expected to be finalised in the first quarter of next year.
"However, through a development agreement between MBI and the developer, we have allowed them to begin land works, meaning that even before the EPCC agreement is signed, preliminary land works can proceed,” Amirudin said.
On consultancy fees, the 9.4 per cent rate falls within the typical range for large-scale developments, which is eight to 12 per cent.
The new KSSA development will feature a new stadium for Selangor FC with a seating capacity of 30,000 to 40,000, along with areas for public recreational and commercial activities.
It will also feature public recreational spaces, sports facilities, and amenities like indoor courts, a multi-purpose hall, a hotel, a mosque, event spaces, and retail areas.
