KUALA LUMPUR: The Malaysia-China Kuantan Industrial Park (MCKIP) has secured additional investments worth RM1.58 billion from China and Malaysia.
With the new ventures, total investments in MCKIP, which is located within the East Coast Economic Region Special Economic Zone (ECER SEZ), increased to RM15.08 billion.
ECER SEZ encompasses Kuantan Port, Kuantan, Gambang and Pekan in Pahang.
ECER Development Council chief executive officer Datuk Seri Jebasingam Isaace John said the high level of interest shown thus far towards MCKIP and its twin sister park, China-Malaysia Qinzhou Industrial Park (CMQIP), underscores the long-standing partnership the two nations have had in driving economic growth in the region.
“We believe our continuous investments into the development of the twin parks, a key component of China’s ‘One Belt, One Road’ policy, will further drive bilateral trade between Malaysia and China.
“Importantly, the strong economic ties between the two countries will help attract more investors, particularly from China, which in turn will boost the socio-economic landscape for local communities in the ECER SEZ,” he said.
The new investors include Guangxi Investment Group Co Ltd, which will invest RM580 million in an aluminium component manufacturing facility, and LJ Hightech Material Sdn Bhd, which will invest RM1 billion in a high-technology production-based centre to produce concrete panels for construction industries and activated rubber powder.
The signing ceremony was held during the second Investment Promotion Conference for Malaysia-China, “Two Countries, Twin Parks”, jointly hosted by the Ministry of International Trade and Industry (Miti), the government of the Guangxi Zhuang Autonomous Region, the Pahang government, Malaysia-China Business Council and the ECER Development Council.
The signing of the agreement was witnessed by International Trade and Industry Minister II Datuk Seri Ong Ka Chuan, Prime Minister’s special envoy to China Tan Sri Ong Ka Ting and Giangxi Zhuang Autonomous Region vice-governor Zhang Xiaoqin.
MCKIP was launched in 2013 and is the first industrial park in Malaysia to be jointly developed by Malaysia and China, and to be accorded the “National Industrial Park” status.
Meanwhile, Ong said Miti planned to use the US$100 billion (RM412 billion) fund under the Asian Infrastructure Investment Bank (AIIB) to strengthen the infrastructure systems and improve trade facilitation between Asean countries.
He said the US$100 billion is the initial capital injection by China to provide soft loans for infrastructure projects to the countries participating in the “One Belt, One Road” initiative, including Malaysia.
“When we say we plan to tap into the fund, we are not thinking that the development is limited to only Malaysia. We hope to develop and upgrade Malaysia and also Asean railway, road and port facilities so that we can have more interaction in commercial trading activities in the region.
“We hope to make use of some of the facilities provided by AIIB to develop infrastructure in Malaysia,” said Ong at the second Investment Promotion Conference for Malaysia-China “Two Countries, Twin Parks”, here, yesterday.
He said the ministry is in the middle of identifying infrastructure projects that fit into the initiative.
In September last year, the Guangdong province of China had signed a memorandum of understanding to enhance friendly and cooperative relations between both parties in the construction of a Maritime Industrial Park, the Guangdong-Malacca Industrial Estate, construction of a deep-sea port in Malacca and the construction/provision land-use areas for trade and commerce.