KUALA LUMPUR (March 23): Malaysia-China Kuantan Industrial Park (MCKIP), whose shareholders include IJM Land Bhd and Sime Darby Property Bhd, has attracted investments totalling RM13.5 billion as at January 2016, the Dewan Rakyat was told today.

Deputy Minister in the Prime Minister's Department Datuk Razali Ibrahim said this included RM3 billion for the upgrading of Kuantan Port, RM2.5 billion for infrastructure construction by developer MCKIP Sdn Bhd, and RM8 billion in the form of investments from the manufacturing sector.

"The upgrading of the Kuantan Port is expected to be completed by 2018. The activities involving the RM8 billion investments, part of it was completed, but part of it is still in the process.

"As for the infrastructure, the developer is waiting to sign the sale and purchase agreement. We have scheduled it to be signed by next month," said Razali.

He said the investments in MCKIP could generate 16,015 jobs in the surrounding areas.

Razali said MCKIP has gone through two phases. The phase one, involving 710 acres of land, has been fully taken up by investors, while phase two, involving 550 acres of land, has mostly been offered to interested investors.

"MCKIP is planning [on] rais[ing] an additional 1,000 acres of land in the national industrial park for the next phase," he said.

The deputy minister was responding to Sungai Petani MP Datuk Johari Abdul, who had asked the prime minister to state the amount of investments attracted by MCKIP and whether the land for the development is owned by the federal government, state government or privately owned.

Razali said the industrial lots were sold to the interested investor, with a land tenure of 99 years.

MCKIP is a joint venture between Malaysian and China consortiums. The Malaysian consortium, Kuantan Pahang Holdings Bhd, holds 51% of the equity.

The Malaysian consortium is jointly owned by IJM Land Bhd (40%), Sime Darby Property Bhd (30%) and the Pahang state government (30%).

Meanwhile, the Chinese consortium is led by state-owned company Guanxi Beibu Gulf International Port Group (95%) and Qinzhou Investment Company (5%).

MCKIP is also a sister park of the China-Malaysia Qinzhou Industrial Park (CMQIP) in Nanning China.