KUALA LUMPUR (March 12): Malaysia and Abu Dhabi today sealed a RM18 billion strategic partnership, said to spur billions of long-term investments in Malaysia.
“The partnership will focus in investments in important high-impact projects vital to the long term-economic and social growth of Malaysia,” said a statement from state-owned 1Malaysia Development Bhd.
In addition, Abu Dhabi “also agreed” to develop a RM21 billion strategic petroleum reserve facility in Johor, Malaysia, with a capacity to store 60 million barrels of crude oil and petroleum storage facility for the exclusive use of Abu Dhabi.
The statement added that Abu Dhabi “is moving ahead” to provide the required capital for the multi-billion ringgit Tun Razak Exchange (TRX) development, making it the first major multinational anchor investor in TRX.
TRX is Malaysia’s new growth nucleus with billions of major infrastructure works expected to be awarded starting as early as end March 2013, the statement said.
1MDB will remain as the master developer of the TRX project, it added.
Present at the signing at Putrajaya today were Prime Minister Datuk Seri Najib Razak and Abu Dhabi’s Crown Prince Sheikh Mohamed Bin Zayed Al Nahyan.
The strategic initiatives will be formed between companies under both 1Malaysia Development Berhad (1MDB) and Abu Dhabi’s Aabar Investments PJS (Aabar), state owned company of Abu Dhabai.
TRX, launched in mid-2012, is estimated to generate a gross development value of RM26 billion and attract 250 of the world’s leading companies, creating 40,000 new job opportunities for knowledge workers.
The multiplier effect generated will produce up to 500,000 new jobs, directly and indirectly throughout Malaysia, by the time it is fully completed.