Big ticket China projects in Malaysia – Yay or nay? • An encroaching, aggressive presence
In November last year, Malaysia’s government initiated one of its largest investment agreement with China.
A total of 14 agreements worth RM144 billion were exchanged between Malaysian and Chinese companies during Prime Minister Datuk Seri Najib Tun Razak’s official visit to China last year.
The agreements and memoranda of understanding include:
1. Engineering, Procurement, Construction and Commissioning Agreement between Malaysia Rail Link Sdn Bhd, China Communications Construction Company Limited ( CCCC) and China Communications Construction Company (M) Sdn Bhd (CCCCM)
2. Memorandum of Agreement for Investment, DevelopmentandConstruction of Melaka Gateway Project (KAJ Development and Power China)
3. Heads of Agreement between Bandar Malaysia Sdn Bhd and Greenland Holdings Group Overseas Investment Company Limited in respect of the Proposed Purchase of Land and Development thereon in Bandar Malaysia
4. Heads of Agreement between Selat PD Sdn Bhd and CCCC Dredging (Group) Co Ltd
5.Framework Cooperation Agreement between the State Government of Sarawak, Hebei Xinwuan Steel Group and MCC Overseas Limited on the Proposed Development of Steel Plant in Sarawak
6.Memorandum of Agreement between KAJ Development Sdn Bhd, Power China, Shenzhen Yantian Port and Rizhao Port for partnership collaboration on Melaka Gateway Port
7. Heads of Agreement for the Bandar Malaysia Financial Scheme between IWH CREC Sdn Bhd and Industrial and Commercial Bank of China (ICBC)
8.MemorandumofUnderstanding between East Coast Economic Region Development Council ( ECERDC) and Wuxi Suntech Power Co Ltd for Production of Crystalline Silicon Solar Cells and Module within the Malaysia-China Kuantan Industrial Park
9. Memorandum of Agreement between BHS Industries Bhd and China Nuclear Huaxing Construction Co Ltd for Green Technology Park in Pekan, Pahang, Malaysia
10. China Construction Bank (Malaysia) Bhd was granted a banking licence by the Minister of Finance under the Financial Services Act 2013. With an initial paid-up capital of US$200 million, China Construction Bank will be able to provide infrastructure financing to support Malaysia’s infrastructure development
11. Memorandum of Understanding between Yanming Resources Sdn Bhd and Fuzhou Xin Zibu Culture Communication Co Ltd for the Growth and Development of Bird’s Nest Market in China
12. Memorandum of Understanding between Malaysia External Trade Development Corp (MATRADE) and Alibaba.com
13. Research and Development Collaboration Agreement between Royal Bird’s Nest, Walet Company-International Private Limited Company and Peking University on Standardisation of Edible Bird’s Nest Extract and Medical Properties for Pharmaceutical Drug Discovery
14. Memorandum of UnderstandingbetweenAladdin Group Sdn Bhd and Suzhou Lian Cheng Yihao Information Technology Co Ltd
While under China’s ‘One Belt, One Road’, according to Deloitte, Chinese outbound foreign direct investment towards countries covered by the Belt and Road Initiative in 2016 reached a stunning US$14.5 billion, of which most went to Singapore, Indonesia, India, Thailand, and Malaysia.