DEALS WORTH RM31B SIGNED
AirAsia (China), Melaka Gateway projects among them
CHOK SUAT LING BEIJING news@nst.com.my
PRIME Minister Datuk Seri Najib Razak witnessed the exchange of nine business-to-business (B2B) memoranda of understanding (MoU) and agreements yesterday, with the proposed investments estimated at RM31.26 billion.
The MoUs cover sectors such as construction, agriculture, stock exchange, infrastructure, aviation and port cooperation
(see box).
AirAsia Bhd exchanged an MoU with China Everbright Group and Henan Government Working Group to establish a low-cost carrier (LCC) in China.
The MoU outlines how the parties will incorporate a joint venture, to be known as AirAsia (China), to operate a low-cost aviation business based in Zhengzhou, the capital of Henan province in central China.
In addition, AirAsia (China) will invest in aviation infrastructure, including a dedicated LCC terminal at Zhengzhou airport and an aviation academy to train pilots, crew and engineers, as well as maintenance, repair and overhaul (MRO) facilities to service aircraft.
The MoU was exchanged between AirAsia Group chief executive officer Tan Sri Tony Fernandes, Everbright Financial Investment Holding executive director and president Wang Weifeng, and Henan Airport Group general manager Li Weidong at China World Hotel here yesterday.
Fernandes said Zhengzhou was chosen as the base due to its strategic location and importance as a logistics hub.
“As China’s gateway to Europe, Zhengzhou sits at the centre of a vast rail, highway and air transport network that forms the lynchpin of China’s development plans for its central and western regions. With Chinese President Xi Jinping’s vision for One Belt, One Road, Zhengzhou is set to become even more important, not least as the heart of low-cost air travel in North Asia,” Fernandes said.
“This Chinese venture represents the final piece of the AirAsia puzzle. In just 16 years, we have successfully built a presence in Malaysia, Thailand, Indonesia, Philippines, India and Japan, with China closing the loop on all major territories in the Asia-Pacific. AirAsia can now live up to its name as the only airline that connects travellers across the Asia-Pacific, from China, Japan and South Korea in the north, Australia and New Zealand to the south, India and the Middle East to the west, and Asean at the centre.”
AirAsia was the first foreign LCC to enter China and has carried more than 40 million guests since its inaugural route to China in April 2005. AirAsia and AirAsia X currently fly to 15 destinations in China and is the largest foreign LCC operating into the country.
Most of the other investment projects will be carried out throughout Malaysia, for example Melaka Gateway in Melaka, Robotic Future City in Johor Baru, and a methanol and derivatives project in Sarawak.
For Melaka Gateway, KAJ Development signed an agreement with Power China, Shenzhen Yantian Port Group and Rizhao Port Group to jointly develop Melaka Gateway as a mixed development comprising four islands for tourism, smart-city and commercial hub, deep sea port, shipbuilding and repair services, and maritime industrial park. The gross development value of Melaka Gateway is RM30 billion.
Transport Minister Datuk Seri Liow Tiong Lai said Melaka was an important port of call during the ancient Maritime Silk Road, leading to trade and cultural exchange between Melaka and China.
“I am glad to note that, with the One Belt, One Road initiative and deep sea port, Melaka will once again rise and play a prominent role in the world’s maritime sector.”
The Robotic Future City MoU was between Johor Corporation and Siasun Robot Investment Co Ltd. The cooperation involves the development of 1,000 acres (404.686ha) of land to establish Robotic Future City in Johor with investments of over RM15 billion. The futuristic city aims to develop the robotic industry and spur the growth of various supply chains in Malaysia.
The MoU for the methanol and derivatives project in Sarawak was between Yayasan Hartanah Bumiputera Sarawak, Consortium of Huanhqiu Contracting & Engineering Co and MACFEAM Sdn Bhd.
The project in Sarawak comprises two phases with an investment value of RM2 billion. The project is located at Tanjung Kidurong and is expected to be completed by 2021.