MALAYSIAN investors in the Battersea Power Station redevelopment in London suffered losses because of the project’s high initial investment cost, Prime Minister Datuk Seri Anwar Ibrahim told Parliament today.
He said efforts were under way to restore the investment’s performance, but acknowledged that the original cost had been excessive and resulted in losses.
“Although it is now being turned around, the initial investment was too high and incurred losses,” he said during Prime Minister’s Question Time in the Dewan Rakyat.
Anwar was responding to Hassan Abdul Karim (PH-Pasir Gudang), who asked about the amount invested by government-linked companies (GLCs) and government-linked investment companies (GLICs) in the 15-year redevelopment and the economic benefits it had generated.
More than £5 billion (approximately RM27.26 billon) has been invested by Malaysian shareholders in the 42-acre integrated development, led by a consortium comprising S P Setia Bhd, Sime Darby Property Bhd, the Employees Provident Fund (EPF) and Permodalan Nasional Bhd (PNB).
Anwar also said the government was directing GLICs to place greater emphasis on domestic investment, initially setting a target of 20% before increasing the share according to their readiness and capacity.
He said the government had mobilised GLICs to invest RM150 billion over the coming years, while acknowledging that some overseas investments had generated substantial returns.
On the Government-Linked Enterprises Activation and Reform Programme (GEAR-uP), Anwar said implementation remained on schedule, with investment disbursements expected to accelerate towards the end of this year and into 2027.
He said the programme’s first year had focused heavily on planning and studies, while investment institutions were taking a more cautious approach to their decisions.
Anwar added that political figures were barred from interfering in investment decisions, stressing that projects and priorities must be determined by professional investment bodies with the relevant expertise.
The Battersea Power Station redevelopment in south-west London is a major Malaysian overseas property investment involving more than £5 billion from Malaysian shareholders.
In 2012, a Malaysian consortium acquired the 16.99-hectare site for about £400 million and embarked on a major regeneration project. The wider development is led by property developers S P Setia and Sime Darby Property, alongside the Employees Provident Fund (EPF).
In 2019, Permodalan Nasional Bhd (PNB) and EPF acquired the commercial assets within the power station building for about £1.58 billion, establishing long-term ownership of the landmark itself.
The restored building opened to the public in October 2022 and now houses shops, restaurants, leisure facilities, apartments and Apple’s UK headquarters. - October 27, 2026