Cover Story: The key China deals across Malaysia

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This article first appeared in The Edge Malaysia Weekly, on December 12 - 18, 2016.

 

KUALA LUMPUR

Bandar Malaysia

Parties: Bandar Malaysia Sdn Bhd and Greenland Holdings Group Overseas Investment Co Ltd

Details: Greenland Holdings to purchase land in Bandar Malaysia and carry out development

Value: NA

 

Bandar Malaysia

Parties: China Railway Group Ltd (CREC) and Iskandar Waterfront Holdings

Details: Development of an integrated office complex as a hub for multinationals

Value: US$2 billion

 

Huawei Technologies

Details: China’s telecommunications giant Huawei Technologies to place its regional headquarters in Kuala Lumpur

 

China Construction Bank

Parties: China Construction Bank and Ministry of Finance

Details: China Construction Bank (Malaysia) Bhd has been granted a banking licence to operate in Malaysia. It will provide infrastructure financing for Malaysia’s infrastructure development projects.

Value: The bank has an initial paid-up capital of US$200 million

 

Bandar Malaysia Financial Scheme

Parties:  A consortium of eight foreign and local banks have set up a new fund to finance the Bandar Malaysia development

 

Defence Deal

Parties: Malaysia’s Ministry of Defence and China’s State Administration for Science, Technology and Industry for National Defense

Details: Purchase of four littoral mission ships, which are fast patrol vessels that can be equipped with a helicopter flight deck and carry missiles. The first two ships are to be built in China, with the other two to be built in Malaysia. Further Malaysian-built ships may be in the pipeline, subject to government financing.

Value:  Undisclosed

 

SELANGOR

Bird’s Nest Development

Parties: Yanming Resources Sdn Bhd and Fuzhou Xin Zibu Culture Communication Co Ltd

Details: Memorandum of understanding signed for both parties to collaborate on growth and development of the bird’s nest market in China

 

Bird’s Nest Research

Parties: Royal Bird’s Nest, Walet Company-International Pte Ltd Co and Peking University

Details: Research and development collaboration agreement on edible bird’s nest extract and medical properties for pharmaceutical drug discovery

 

SEPANG

Xiamen University Malaysia

Details: Xiamen University opened its 150-acre Malaysia campus in Bandar Sunsuria  in February 2016 following an invitation from Malaysia’s Ministry of Higher Education

Value: Estimated total investment of RM1.3 billion

 

MELAKA

Melaka Gateway Project

Parties: PowerChina International and KAJ Development Sdn Bhd

Details: Joint venture to reclaim three islands off Melaka’s coast for a massive harbour development

Value: Estimated RM30 billion

 

Melaka Gateway Port

Parties: KAJ Development Sdn Bhd, PowerChina International, Shenzhen Yantian Port and Rizhao Port

Details: Partnership collaboration on the Melaka Gateway Port, a deepsea port that is expected to be completed in 2019 and attract about 100,000 — mostly China — vessels

Value: Estimated RM8 billion

 

JOHOR

Forest City

Parties: Country Garden Holdings Ltd and Esplanade Danga 88 Sdn Bhd, an associate of Kumpulan Prasarana Johor

Details: A massive integrated development on four artificial islands comprising 700,000 residential units, shopping malls, medical facilities, hotels, international schools and its own immigration centre

Value: US$42 billion

 

Greenland Projects

Parties: Greenland Group

Details: Property development projects in Tebrau and Danga Bay

Value: US$3.2 billion

 

PAHANG

East Coast Rail Link

Parties: Malaysia Rail Link Sdn Bhd, China Communications Construction Company Ltd (CCCC) and China Communications Construction Company (M) Sdn Bhd (CCCCM)

Details: Engineering, procurement, construction and commissioning (EPCC) agreement for the construction of the East Coast Rail Link

Value: RM55 billion

 

Green Tech Park

Parties: BHS Industries Bhd and China Nuclear Huaxing Construction Co Ltd

Details: Development of a Green Technology Park in Pekan, Pahang

Value: NA

 

Solar Project in Kuantan

Parties: East Coast Economic Region Development Council (ECERDC) and Wuxi Suntech Power Co Ltd

Details: Wuxi Suntech to produce crystalline silicon solar cells and modules in the Malaysia-China Kuantan Industrial Park

Value: NA

 

Kuantan Port

Parties: Kuantan Port Consortium Sdn Bhd is co-owned by IJM Corp Bhd and Beibu Gulf Holding (Hong Kong) Co Ltd on a 60:40 equity holding basis, with the government of Malaysia holding a special rights share

Details: Kuantan Port has received government approval to establish a free zone port. The port’s construction of Phase 1A New Deep Water Terminal is slated for completion in end-2017 while Phase 1B is expected to be completed by end-2018.

 

Malaysia-China Kuantan Industrial Park

New deals totaling RM1.58 billion signed this year, bringing the total investments in the industrial park to RM15.08 billion. This includes a RM580 million investment by Guangxi Investment Group Co Ltd in an aluminium component manufacturing facility and a RM1 billion investment by LJ Hightech Material Sdn Bhd in a centre to produce concrete panels for the construction industry and activated rubber powder.

Alliance Steel (M) Sdn Bhd, a wholly-owned Malaysian subsidiary of China’s Guangxi Beibu Gulf Iron and Steel Investment Co Ltd, is also investing RM5.6 billion in an integrated modern steel mill.

 

SARAWAK

Sarawak Steel Plant

Parties: Sarawak government, Hebei Xinwuan Steel Group and MCC Overseas Ltd

Details: Cooperation to develop a steel plant in the Samalaju Industrial Park in Bintulu

Value: RM13 billion

 

Solar Ingots Manufacturing

Parties: Comtec Solar Systems Group Ltd

Details: Investment to manufacture solar ingots and wafer slicing

Value: RM1.2 billion

 

Solar Ingots Manufacturing

Parties: Xi’an LONGi Materials Corp

Details: Integrated manufacturing facility for producing solar ingots, wafers, cells and modules at the Sama Jaya High Tech Park

Value: RM1.066 billion

 

Rubber Factory

Parties: Sarawak Farmers’ Association and Guangken Rubber Group Co Ltd

Details: Joint venture for a Standard Malaysia Rubber factory in Debak, Sri Aman

Value: US$20 million

 

Hydropower Dam

Parties: Sinohydro Corp, Yangtze Three Gorges Technology & Economy Development Co Ltd

Details: Construction of hydropower dams in Sarawak

Value: NA

 

Power Plant Deal

Parties: China Machinery Engineering Corp

Details: EPCC for coal-fired power plants in Sejingkat and Mukah and a combined cycle power plant in Bintulu

Value: NA

 

SABAH

Trans Sabah Gas Pipeline

Parties: China Petroleum Pipeline Bureau and Suria Strategic Energy Resources Sdn Bhd

Details:  Agreements for the EPCC of Trans Sabah Gas Pipeline and Multi-product Pipeline Projects in Sabah

Value: NA

 

Petrochemical Plant

Parties: Sabah Oil and Gas Development Corp Sdn Bhd and a consortium of three China companies: China National Complete Plant Import and Export Corp (Complant), Sichuan Chemical Industry Holding (Group) Co  Ltd and China Chengda Engineering Co Ltd

Details: Memorandum of understanding signed in July to undertake feasibility studies for the production of a urea and ammonia petrochemical development in the Sipitang Oil and Gas Industrial Park

Value: No details yet

 

Tourism Resort

Parties: Diving Best

Details: Proposed development of a tourism-based integrated resort near Sipadan Island

Value: RM2.5 billion