KUALA LUMPUR (Jan 7): Malaysia Pacific Corp Bhd (MPCorp) says it is still in discussion to extend a memorandum of understanding (MoU) inked with China firm Black Sea Horizon Investment Holdings Ltd to promote Malaysia as Asia’s 'Economic Corridor' for trade and services with China, Asean, India and the Middle East.

In a response to Bursa Malaysia's request for update on the MoU, signed with Black Sea, on Oct 3, 2013, MPCorp said: “The board of directors wishes to inform that the company and Black Sea are still in discussion to extend the MOU period and to re-negotiate further some of the material terms of the MOU.

"Further announcement on any material development will be made as and when appropriate,” read the MPCorp’s announcement.

To recap, MPCorp and Black Sea entered into an MoU to jointly coordinate and secure relevant cooperation of appropriate partners - with the approvals from the respective regulatory bodies in China and Malaysia - to develop the Asia-Pacific Trade and Expo City (APTEC) in Iskandar Malaysia, Johor.

APTEC, to comprise facilities like hotels, convention halls, shopping malls, international tourist replica cities, and factory discount outlets, is to be the largest showcase of products from China and other Asian producing countries.

This is the fourth time that Black Sea is seeking an extension on the MoU. In a Bursa filing on Jan 3 last year, MPCorp said the MOU had been extended to March 3, 2014, as Black Sea had requested for further time to study the APTEC project.

Subsequently, on March 13, 2014, MPCorp told Bursa that both parties had mutually agreed to extend the MoU to May 3, 2014. Then, on May 26, 2014, it reiterated it was in discussion with Black Sea to extend the MoU again, but did not elaborate.

MPCorp fell into Practice Note 17 (PN17) status on Dec 1 after its former auditors Messrs BDO issued a disclaimer on its financial statements for the financial year ended June 30, 2014 (FY14), due to insufficient audit evidence.

Then, on Dec 17, its auditors voluntarily resigned and said their resignation would take effect upon the appointment of new auditors at the forthcoming AGM of MPCorp.