Malay rights group Perkasa said the dissolution of the RM7.41 billion Bandar Malaysia deal is a blessing because it will mean the government can now look into allowing bumiputera participation in the project.

Ministry of Finance-owned TRX City Sdn Bhd said the deal fell through after the consortium consisting of Iskandar Waterfrot Holdings and China Railway Engineering Cooperation (CREC) did not meet payment obligations, despite multiple extensions.

"The cancellation (of the deal) is a blessing because before this, the development of Bandar Malaysia did not include bumiputera participation.

"If Bandar Malaysia is to be developed by joint venture, the parties must first show how they will implement bumiputera participation including quotas.

"As such, we demand the government form a team of officials with integrity under the Prime Minister's Department, to ensure all mega projects involving China or any other foreign nations include bumiputera participation in a transparent manner," Perkasa vice-president Ruhanie Ahmad said.