‘SAUDI ARAMCO FDI TO BOOST RINGGIT’
Firm to invest US$7b in petrochemical project this month, says Najib
THE ringgit is expected to grow even stronger in line with the latest US$7 billion (RM27.3 billion) foreign direct investment (FDI) in the country, said Prime Minister Datuk Seri Najib Razak.
He said Saudi Arabian Oil Company (Saudi Aramco) was expected to invest the amount before March 31 for its refinery and petrochemical integrated development (RAPID) project in Pengerang, Johor.
He said an agreement was penned between Minister in the Prime Minister’s Department Datuk Seri Abdul Rahman Dahlan and Saudi Aramco in Riyadh three days ago.
“The new investment will help strengthen the value of the ringgit because the US$7 billion will enter our financial system and boost the value of the currency.
“I am happy to say that the agreement was penned three days ago in Riyadh,” he said at the closing of Ekspo Muafakat Kedah 2018 at Stadium Darul Aman here yesterday.
Present were his wife, Datin Seri Rosmah Mansor, and Kedah Menteri Besar Datuk Seri Ahmad Bashah Md Hanipah.
Najib, who is also finance minister, said the world’s confidence in Malaysia had improved with major companies setting up their bases in the country.
They included SK Group, the second-largest company in South Korea by stock market value, after Samsung.
“A company with 5G service chose Malaysia as its regional hub, which means that it has confidence in the government’s policies.
“HSBC invested RM1 billion in TRX (Tun Razak Exchange), making Kuala Lumpur its hub in the Asean region.
“PSA Peugeot, meanwhile, signed a joint venture agreement with Naza Group to produce 21,000 units of Peugeot cars in Gurun that will contribute RM1.6 billion in revenue and some 1,200 job opportunities for the locals.”
In February last year, Petronas and Saudi Aramco signed a Share Purchase Agreement, which enabled the Saudi Arabian oil and gas company to purchase a 50 per cent stake in the RAPID project.
The agreement saw both parties having an equal equity stake in selected ventures and assets of the venture.
The deal was made during Saudi Arabia’s ruler King Salman Abdulaziz Al-Saud’s visit to Malaysia.