KUANTAN, 1 June 2016: The Vice-Governor of Guangxi Zhuang Autonomous Region of China, H.E. Zhang Xiaoqin led a delegation of investors from China to visit the Malaysia-China Kuantan Industrial Park (MCKIP) and Kuantan Port today, as part of the two-day 2nd Investment Promotion Conference for Malaysia-China “Two Countries, Twin Parks”, which was organised to forge greater bilateral trade and economic relations between the two countries especially in Kuantan and Guangxi.
During this momentous visit to MCKIP and Kuantan Port, H.E. Zhang Xiaoqin announced the commencement of the main piling works for Alliance Steel (M) Sdn. Bhd.’s (Alliance Steel) integrated modern steel mill. Alliance Steel has been granted approvals to invest RM5.6 billion (USD1.4 billion) in its facility, making it one of the largest single investor in the East Coast Economic Region (ECER).
Piling works for Alliance Steel’s production plants and rolling mills are scheduled to begin this week and are expected to be completed within 120 working days. The steel mill is expected to begin operations in late 2017 and will generate more than 3,500 job opportunities.
“China has been a close trading partner and investor in the ECER. The increasing number of investments have spurred more infrastructure projects such as the construction of industrial parks, roads and railways. Importantly, the spillover effects from these investments into the ECER will bring about better socio-economic benefits especially increased job and entrepreneurial opportunities for the local communities,” said YBhg. Datuk Seri Jebasingam Issace John, Chief Executive Officer of the East Coast Economic Region Development Council (ECERDC).
“The ongoing construction, development and expansion of MCKIP are important milestones, as they reinforce investors’ confidence in the ECER as an attractive investment destination,” he added.
H.E. Zhang Xiaoqin and Datuk Seri Issace were joined by more than 300 delegates from China and Malaysia in the visit to MCKIP and Kuantan Port for the investors to explore business opportunities and partnerships in the fast developing region of ECER.
During the visit, government officials, corporate leaders and key investors including H.E. Zhang Xiaoqin, YBhg. Datuk Seri Issace, YH Dato’ Suhaimi Bin Mohd Yunus, Deputy State Secretary of Pahang (Development) and Director of Pahang Economic Planning Division; YBhg. Dato’ Soam Heng Choon, Chairman of MCKIP Sdn. Bhd. and Chief Executive Officer of IJM Corporation Berhad; Mr. Wei Ran, Deputy Secretary General, People’s Government of Guangxi Zhuang Autonomous Region; Mr. Guan Yueqing, Director General, State-owned Assets Supervision and Administration Commission, Guangxi Zhuang Autonomous Region, also took part in a tree-planting ceremony at the MCKIP Monument. Together, they planted a Khaya tree, or more commonly known as African Mahogany, which is a fast-growing tree to symbolise the long lasting cooperation and growth prospects between the investors of both nations.
Yesterday, MCKIP sealed two new investments worth RM1.58 billion (USD395 million). The new investors include, LJ Hightech Material Sdn. Bhd., which will invest RM1 billion (USD250 million) in high-technology production-based centre to produce concrete panels for construction industries and activated rubber powder and Guangxi Investment Group Co., Ltd., which will invest RM580 million (USD145 million) on an aluminium component manufacturing facility.
Construction works at MCKIP for these projects are expected to begin in phases in the first quarter of 2017, and once completed, more than 3,000 job opportunities will be generated for the benefit of the local communities. With the new ventures, the total investments attracted to date stood at RM15.08 billion (USD3.77 billion).
“As Malaysia’s first industrial park to be accorded with a ‘National Industrial Park’ status, MCKIP has continued to solidify its position as a competitive and fast-growing investment destination. In response to the encouraging demand, we are pleased that MCKIP will be expanded by another 800 acres, bringing the total land area to 3,060 acres,” said Datuk Seri Issace.
In addition, Kuantan Port is currently being expanded into a deep water port that is capable of handling 52 million freight weight tonnes and vessels of up to 200,000 deadweight tonnage (DWT).
Poised to be the main gateway to the ASEAN countries and the Asia-Pacific region, the expansion consists of two phases; the construction of Phase 1A, with basin depth of 16 metres consisting of 400 metres of berth space and 20 hectares of cargo yard, is expected to be completed in August 2017. Meanwhile, construction under Phase 1B, with a basin depth of 16 metres consisting of 600 metres of berth space and 25 hectares of dry bulk yard, is targeted for completion by August 2018.
“Kuantan serves as a key growth catalyst for ECER, with its strategic location in the region and close proximity to China. In fact, the city has been earmarked to be Malaysia’s renowned Port City, similar to Rotterdam in the Netherlands, which is known as the “Gateway to Europe”. This will further attract even more investments and trade activities in the ECER Special Economic Zone, including MCKIP,” concluded Datuk Seri Issace.
