MALAYSIA-CHINA KUANTAN INDUSTRIAL PARK (MCKIP) DEVELOPMENT ACHIEVES SIGNIFICANT PROGRESSConstruction works by ECERDC & Alliance Steel Currently Ongoing; IJM Land and Sime Darby Property Announced As New Malaysian Consortium Partners Of MCKIP Master Developer

KUANTAN, Saturday 4 April 2015: Property and construction giants IJM Land Berhad and Sime Darby Property Berhad have signed up as the new Malaysian consortium partners in developing the Malaysia-China Kuantan Industrial Park (MCKIP).
International Trade and Industry Minister Dato’ Sri Mustapa Mohamed made the announcement during a working visit to MCKIP here today. During the visit, the Minister was briefed on works in progress at MCKIP by YBhg. Datuk Seri Jebasingam Issace John, CEO of the East Coast Economic Region Development Council, as well as officials from the Malaysia-China Kuantan Industrial Park Sdn. Bhd. (MCKIPSB).
“As the Master Developer of MCKIP, MCKIPSB will play a key role in constructing the major infrastructure within the park and providing the required amenities for investors in MCKIP. I am pleased with the recent progress of MCKIP,” said YB Dato’ Sri Mustapa.
MCKIP, a Malaysia-China consortium, is the first industrial park in Malaysia to be jointly developed by both Malaysia and China and to be accorded the “National Industrial Park” Status. Together with its sister park, China-Malaysia Qinzhou Industrial Park (CMQIP), the two parks have been identified by both governments as an “Iconic Project for Bilateral Investment Cooperation” that will drive the development of industrial clusters in both countries.
MCKIPSB is a 51:49 joint venture between a Malaysian consortium and a Chinese consortium. IJM Land holds a 40 percent equity interest in the Malaysian consortium, Kuantan Pahang Holding Sdn Bhd, together with Sime Darby Property (30 percent) and the Pahang State Government (30 percent).
The 49 per cent stake of the Chinese consortium is led by the state-owned conglomerate Guangxi Beibu Gulf International Port Group, with a 95 per cent equity interest. The remaining 5 per cent is held by the Qinzhou Investment Company.
“With the strong support and commitment from both the Malaysian and Chinese Governments and the involvement of the private sector, we are confident of the success of MCKIP and CMQIP projects. The parks will serve as testimony of the close relationship enjoyed by our countries,” Dato’ Sri Mustapa noted.
He said that the participation of IJM Land and Sime Darby in the development of MCKIP marks a significant milestone. “Both firms have strong credentials as master developers and they are also well-established names not only in Malaysia, but also internationally,” he said.
The MCKIP has already attracted RM9.7 billion in investments, while construction works to build primary infrastructure at the park by the ECERDC and the construction of an integrated steel mill by Alliance Steel (M) Sdn Bhd are ongoing.
Alliance Steel (M) Sdn Bhd, a subsidiary of Guangxi Beibu Gulf Iron and Steel Co Ltd from China, is investing RM4.2 billion to build a modern integrated steel plant on a 710-acre site in MCKIP. The plant, which will produce high carbon steel and H-shaped steel, is scheduled to become operational in 2017, with an annual production capacity of 3.5 million tonnes.
In addition, Guangxi Beibu Gulf International Port Group and IJM Corporation Berhad are investing RM3 billion in the Kuantan Port expansion project. Another RM2.5 billion investment is committed by MCKIPSB. The investments in MCKIP are expected to create more than 12,000 new job opportunities by 2020, said Datuk Seri Issace.
Target industries for MCKIP include energy-saving and environment-friendly technologies, alternative and renewable energies, high-end equipment manufacturing and the manufacture of advanced materials.
To attract strategic emerging industries to the park, ECERDC is collaborating with the Ministry of International Trade and Industry (MITI), the Malaysian Investment Development Authority (MIDA) and the Pahang State Government to promote MCKIP to potential investors.
MCKIP was officially launched in 2013 by Prime Minister YAB Dato’ Sri Mohd. Najib Tun Haji Abdul Razak and His Excellency Jia Qinlin, Chairman of the Chinese People’s Political Consultative Conference. China has emerged as Malaysia’s largest trading partner over the past five consecutive years. In 2014, total trade between China and Malaysia stood at USD 102 billion. MITI’s target is to grow bilateral trade to USD160 billion by 2017.
The expansion of Kuantan Port into a deepwater port, expected to be completed by 2016, will help enhance its position as the quickest and most direct route between Malaysia and ports in China’s eastern region. The completion of the project will also see Kuantan cementing its status as the integrated industrial and logistics hub for the ECER