EcoWorld and PetroChina to bid for infrastructure projects in Malaysia

Finance Minister Lim Guan Eng (centre, standing) witnessing the signing of the MoU between Eco World Malaysia and PowerChina Group.

KUALA LUMPUR: Eco World Development Group Berhad (EcoWorld Malaysia) has entered into two landmark deals with PowerChina Group on industrial and infrastructure development in Malaysia.

The collaboration with PowerChina will open doors for potential industrialists seeking to set up businesses in Malaysia.

This will not only enhance Malaysia-China bilateral ties but improve relations between the people of both countries, said EcoWorld Malaysia’s chairman Liew Kee Sin.

The first is a conditional joint venture between a Malaysian incorporated subsidiary of the PowerChina Group and Paragon Pinnacle Sdn Bhd to jointly develop 47ha of industrial land to be known as Eco Business Park V.

Phase Two is located in Puncak Alam, Shah Alam. The proposed development will complement the 210ha Eco Business Park V, which is EcoWorld Malaysia’s first business park in the Klang Valley — situated right next to Eco Grandeur, the group’s largest township development.

The second MoU is for both the companies to jointly bid for infrastructural projects in Malaysia.

Liew said the landmark deals also indicate the strong commitment of Chinese state-owned entities to seek out quality investments and like-minded joint venture partners to realise the objectives of China’s Belt & Road Initiative.

“We are also gratified that PowerChina Group has chosen to work with us in their first industrial real estate venture in Malaysia and to bid for potential infrastructure work with EcoWorld in their projects in Malaysia,” he added.

The MoUs signed today were witnessed by Finance Minister Lim Guan Eng along with Power China Real Estate Group Limited chairman Xia Jin.

Xia said the joint ventures not only represented a milestone for both PowerChina and EcoWorld “but serves as a platform for peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit for both countries”.

Lim said the opening of doors to Chinese manufacturers is particularly important at this point of time when the global supply chain is undergoing significant reorientation due to the China-US trade war.

“Malaysia has been benefitting from business relocation, as well as trade and investment diversions, caused by this trade war,” he added.

The proposed conditional joint venture envisages the formation of a JV company, known as Eco World PowerChina Business Park Sdn Bhd.

It will purchase 47ha of industrial land from Paragon Pinnacle Sdn Bhd for RM249.2 million.

It will jointly develop the 47ha into an industrial project involving the development of medium to large individual industrial lots for light industries, such as warehousing, logistics areas, spaces for assembly, disassembly, fabricating, finishing, manufacturing, packaging, repairing or processing materials.

Eco World PowerChina Business Park Sdn Bhd will be 60% owned by PowerChina via its Malaysian incorporated subsidiary and 40% owned by Paragon Pinnacle Sdn Bhd.