The Malaysian government’s investment arm Khazanah Nasional Bhd has signed a cooperation agreement with Beijing Enterprises Group Co Ltd to pursue strategic co-operation and explore investment opportunities in green and clean energy industries in Malaysia.
The agreement was among 11 signed at the China-Malaysia Business Summit, witnessed by Prime Minister Datuk Seri Najib Tun Razak and Vice Premier of China’s State Council Wang Yang here today.
Under the agreement, Khazanah via its investee company CIMB Group would be involved in assisting Beijing Enterprises Group Ltd, a subsidiary of Beijing Enterprise Group Co, to issue ringgit denominated Islamic bonds to fulfil the financing needs of a water supply enhancement construction project in Terengganu.
Prior to the agreement, Khazanah had invested US$152 million in Beijing Enterprises Group, representing a 4.62 per cent stake.
Khazanah has also sold three of its wholly-owned waste incineration power generation projects in China to Beijing Enterprise Group Co for a total consideration of 650 million Renminbi.
Part of the consideration was settled by the issuance of 347 million shares, comprising a 23 per cent stake in Beijing Development (Hong Kong) Ltd, a subsidiary of Beijing Enterprise Group Co.
The prime minister also witnessed the signing of a memorandum of understanding (MoU) between Universiti Tun Razak and Beifang University of Nationalities for the exchange of students and staff members.
The MoU also includes collaborative research and possible exchange of academic papers, mutual assistance in the preparation of seminars, conferences and workshops, delivery of award and non-award courses, and an articulation arrangement which could involve credit for prior study.
Malaysian automotive company Naza Corporation Sdn Bhd signed a MoU with CSR Zhuzhou Electric Locomotive Co Ltd on the construction of a proposed transportation project in Malaysia.
Both companies also agreed on a strategic collaboration for the assembly of railway rolling stock in Malaysia.
LY-80 Missile System
Another MoU, between Aneka Bekal Sdn Bhd and Aerospace Long-March International Trade Co Ltd, sees the latter offering the LY-80 Medium-Range-Air-Defence Missile Weapon System bundled with transfer of technology.
Meanwhile, 1Malaysia Development Corporation Bhd signed an investment cooperation agreement with Export-Import Bank of China for the establishment of a joint venture partnership for the proposed development of projects in Malaysia on terms and structure to be mutually agreed to by the parties at a later stage.
Both parties intend to make the same contribution of up to US$300 million in tranches to be utilised for the development cost of projects.
The cost would be identified and agreed to by both parties subject to the outcome of joint feasibility, evaluation, relevant government and corporate approvals.
Another company, Pemaju Jaya Capital Sdn Bhd, signed a framework agreement on joint venture projects with Handan City Government to open a charter airline business in Malaysia to promote interoperability between the two countries.
The agreement also includes the expansion of Handan Airport phase three and the construction of Handan City Airport.