Asian Economic News: Malaysia opens giant mall

KUALA LUMPUR, Sept. 29 Kyodo

Malaysia's biggest shopping mall was officially opened by Prime Minister Mahathir Mohamad on Monday, much to the relief of its owner Vincent Tan, a controversial corporate figure.

Covering a 5.14-hectare site, Berjaya Times Square has been dubbed the ''mother of all malls.'' It took nine years and 1.85 billion ringgit ($486.8 million) to build.

Located along the city's popular Bukit Bintang shopping belt, Berjaya Times Square boasts it has Asia's biggest indoor theme park, featuring among others, a 0.8-kilometer rollercoaster that spans eight stories, a 56-lane bowling alley, 900 retail outlets, 65 restaurants and cafes and 1,200 five-star hotel service suites in its two 29-story tower blocks.

Total builtup area is a staggering 7.5 million square feet (700,000 square meters.)

''With such a wide range of amenities and its prime location in the city, Berjaya Times Square is set to become a premier retail and entertainment landmark in Kuala Lumpur, Tan, who is also Berjaya Group chairman and chief executive officer, said in his welcoming speech.

Mahathir said the giant mall would be an added lure to tourists.

The mall, which houses Malaysia's first IMAX 3D theatre, has been a huge personal gamble for Tan and his brother Danny.

But Tan is no stranger to controversial big projects.

A long time friend of Mahathir, he has been a beneficiary of government projects, including the privatization of the national sewerage system and the city monorail project.

But both projects were riddled with problems and Tan soon divested his interest, with the government having to take control of both projects.

Most recently, Tan was embroiled in controversy when conservative Muslim groups and an opposition party protested the government issuance of a gambling license to his Bukit Tinggi highland resort.

The license to operate 265 slot machines would have made Bukit Tinggi the biggest slot machines haven in the country, but the outcry forced the government to order the resort to suspend operation of its slot machines.

The Berjaya Times Square was originally scheduled for completion in 1999, but as the 1997 financial crisis hit the region, the future of the project hung in limbo. The initial building cost ballooned from 1.5 billion ringgit to 1.85 billion ringgit.

But Tan, who also owns the country's third biggest cellular telecommunication network Digi.Com, was determined to see it through. He sold part of his stake in Digi.Com to raise about 250 million ringgit, which he injected into Berjaya Times Square.

''It's a big personal challenge for me...the prime minister has been very encouraging. He said you must complete this and it's my dream and goal to complete this,'' Tan told reporters.

The delay in the project also meant Tan had to compensate buyers for late delivery of shop lots they had bought, claims that amounted to 270 million ringgit.

''With the improved economy, the complex will do very well. The theme park will be a great attraction,'' Tan said.

He holds up to 90% of Berjaya Times Square, but he may half his interest when the company goes public.

He has recouped 900 million ringgit from the sale of retail lots, but he still owed the banks 700 million ringgit, Tan added.