Artist's rendering of the planned 196.7ha Bandar Malaysia business district in Kuala Lumpur. (Photo: Global Construction Review)

Malaysia will revive a $34 billion Chinese-backed transport and property development that was abandoned in 2017, the prime minister said on Friday.

The announcement came after the countries agreed this month to resume work on a previously suspended railway project in Malaysia.

The 140-billion ringgit ($34 billion) Bandar Malaysia development in Kuala Lumpur is expected to attract financial institutions and companies, and will be an interchange for a number of rail lines, said a statement from Prime Minister Mahathir Mohamad's office.

There were some changes to the original plan, including 10,000 units of affordable housing, and a "People's Park," it said.

The project was originally launched in 2011 under the government of ex-leader Najib Razak, but was abandoned in 2017 during his administration due to a dispute about payments.

The Bandar Malaysia project was initially backed by the scandal-hit state fund 1MDB, but a major stake was later sold to a joint venture between a Malaysian firm and State-owned company China Railway Engineering Corp. It will resume with the same contractors.