Singapore’s Temasek Holdings has canceled an RM1.3 billion business outsourcing project (BPO) with the Penang government, New Straits Times reported today.

The daily cited an unnamed spokesman for the Singapore sovereign wealth fund attributing “market conditions” for dropping the development.

“Temasek and its partners, PDC and EDIS have carefully deliberated on it and the parties have come to an agreement not to proceed with the development of BPO Prime in Penang, principally due to market conditions.

“We remain open to investment opportunities in Malaysia,” the Temasek spokesman was quoted saying.

The PDC refers to the Penang Development Corp while EDIS is an acronym for the Economic Development Innovations Singapore Pte Ltd.

The BPO Prime project, comprising residential and office blocks in Bayan Baru on Penang island, should have been completed early this year.

According to the report, the termination of BPO Prime means no more Penang International Technology Park (PITP) in Batu Kawan on the state’s mainland.

PDC had signed a memorandum of understanding on BPO Prime on May 23, 2014 to set up a joint venture company for the project.

One of the clauses includes having the Penang investment arm hold the majority 51 percent stake and the rest by other investors, including Temasek.

EDIS was supposed to provide project management services in the joint venture.

In 2014, the Penang government said the PITP and BPO Prime would be completed between five and 10 years. Both projects would have covered a total of 82.7 hectares.

The projects were expected to generate between 25,000 and 30,000 high-income jobs.

Source: MalayMail.com