New Malaysian financial district takes shape amid 1MDB tumult

Kuala Lumpur

MALAYSIA'S newest financial district is taking shape and drawing investment after spending years mired in controversy for its links to an embattled state investment fund.

The Tun Razak Exchange has reached critical mass for its initial phase after HSBC Holdings plc this month said that it will invest US$250 million to build its local headquarters in the development, according to TRX City Sdn chief executive officer Azmar Talib.

The 70-acre (28 hectare) site in downtown Kuala Lumpur has at times been the focus of domestic furore surrounding 1Malaysia Development Bhd (1MDB), a government fund which has spurred criminal and regulatory investigations around the world. Named after Prime Minister Najib Razak's father and the country's second premier, the development has a projected sales value of RM40 billion (S$12.9 billion). "It d…