Xiamen Zhong Seng Oil & Grains Company Ltd to Explore Investment Opportunities In ECER Malaysia
XIAMEN, Sept 09: The East Coast Region Development Council (ECERDC) of Malaysia today signs a Memorandum of Understanding (MOU) with Xiamen Zhong Seng Oil & Grains Company Ltd for a collaboration between both parties in the future development of palm oil downstream production activities in the East Coast Economic Region (ECER) Malaysia.
ECERDC is the statutory body entrusted by the Government of Malaysia to develop ECER Malaysia, a rapidly transforming region that is positioning itself as a distinctive, dynamic and competitive investment destination to investors.
Xiamen Zhong Seng Oil & Grains Company Limited, on the other hand, is one of the major edible vegetable oil manufacturers in China which is seeking to invest in ECER Malaysia.
Chief Executive Officer of ECERDC, Dato’ Issace John and Xiamen Zhong Seng Oil & Grains Company Limited’s Chairman, Mr. Huang Wen Chuan, both signed the MOU on behalf of their respective organisation. The signing ceremony was witnessed by Tan Sri Lee Shin Cheng, Council Member of ECERDC and other distinguished guests.
Under the MOU signed today, ECERDC will act as the facilitator to ensure a smooth and successful implementation of future projects that will be undertaken by Xiamen Zhong Seng Oil & Grains Company Limited in ECER Malaysia.
“Today’s MOU signing definitely marks a significant milestone for ECER Malaysia, especially in ECERDC’s effort to attract more private investments into the Region, particularly from China,” said ECERDC Council Member, Tan Sri Lee Shin Cheng.
The MOU was signed during ECERDC’s first investment mission to China, via its participation in the 14th China International Fair for Investment and Trade (CIFIT 2010).
Chief Executive Officer of ECERDC, Dato’ Issace John said the strategic collaboration between ECERDC and Xiamen Zhong Seng Oil & Grains Company Limited is a significant step in the development of the Palm Oil Industrial Cluster (POIC) in ECER Malaysia.
The POIC is an initiative by ECERDC that is aimed at accelerating the development of the palm oil industry in the region. Located in Kuantan in the state of Pahang, POIC takes advantage of its proximity to Malaysia’s major palm oil producing areas, petrochemical feedstock and easy accessibility to palm oil mills that produce sufficient feedstock to the downstream activities.
It is also part of the larger Kuantan Port City development, that allows it to benefit from the available support services in logistics and transportation, as well as bulking and distribution facilities.
The POIC includes facilities for both upstream and downstream industries. The upstream industries include the plantation industry, milling and bulk transport of milled products, while the downstream involve the development for the oleochemical industry to cater for the food and non-food based manufacturing activities.
Among the promoted sectors of the POIC are surfactant, biodiesel, food, biofertiliser, animal feedmeal, biomass, phytonutrient and polyutherane.
“To encourage investments in the ECER’s palm oil cluster, special incentives and tax breaks will be offered. These companies also have an opportunity to tap into the region’s halal trade,” said Dato’ Issace.
Malaysia is the second largest palm oil producer in the world, with 15.82 million tonnes last year.
ECER Malaysia, which covers the states of Kelantan, Terengganu, Pahang and the district of Mersing in Johor, is a rapidly transforming region that is steadily positioning itself as a distinctive, dynamic and competitive destination for investments.
The economic growth in ECER Malaysia will be driven by five key clusters of economic activities namely tourism; oil, gas & petrochemical; manufacturing; agriculture; and education. These clusters will be supported by the developments in social and human capital, transportation, infrastructure, property, and environment.
One of ECER Malaysia key attractions is the ECER Special Economic Zone (ECER SEZ), which comes with its own special incentives for investors who intend to venture in this cost-competitive and vibrant business hub.
Dato’ Issace said besides opening a booth to promote ECER Malaysia at CIFIT 2010, ECERDC will also be conducting a series of business meetings with identified potential investors from China, as well as an investment briefing to CIFIT participants.
“That being said, we welcome any potential investors from China who are interested to know more about ECER Malaysia and the investment opportunities available in the region to come and approach us,” he added.
Interested parties may visit ECER Malaysia’s booth (no. C260) throughout CIFIT 2010. For more information on ECER Malaysia, log on to ECERDC’s website www.ecerdc.com.my or contact the Secretariat at telephone number +603 2035 0021/22 or fax number +603 203 0020.