Mega deals with Abu Dhabi
Putrajaya: Abu Dhabi's investment arm, Mubadala, will partner 1Malaysia Development Bhd (1MDB) to build a US$4.2 billion (RM12.7 billion) aluminium smelter in Sarawak.
The two will also rope in other strategic partners to develop downstream industries valued at about US$1.8 billion (RM5.4 billion).
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These industries include a rolling mill, a wire cabling plant, a wheel casting facility and up to 10 extrusion plants.
Prime Minister Datuk Seri Najib Razak said the project will be fast-tracked and will contribute "significantly" to the national economy.
It is expected to create more than 40,000 skilled jobs once the cluster is mature, generate US$3 billion (RM9.05 billion) of incremental gross domestic product and contribute US$2.6 billion (RM7.8 billion) to trade balance, he said.
1MDB is a strategic development company that is fully owned by the government.
Najib announced the government's approval for the project here yesterday after a meeting with Abu Dhabi's Crown Prince Sheikh Mohammed Zayed Al Nahyan, who was in Malaysia for a one-day visit.
The oil-rich state affirmed plans to keep a stake in Malaysia's fifth largest banking group, RHB Capital Bhd (RHBCap).
The RHB group is in discussions with 1MDB and Mubadala to be the first major financial institution to set up presence in the Kuala Lumpur International Financial District (KLFID), Najib said.
The group is planning for a modern, energy-efficient building.
The US$8 billion (RM24 billion) KLIFD, to be set up by a Mubadala-1MDB joint venture, is intended to tightly cluster banking and financial entities.
Construction is expected to take off in June, according to reports earlier this year.
Najib also said that oil-rich Abu Dhabi was collaborating with state oil firm Petroliam Nasional Bhd to develop a block in Sarawak.
He said investments were coming in from Abu Dhabi as the latter wanted to be a long-term investor in Malaysia.
"All this is a strong signal of Abu Dhabi's confidence in Malaysia as a growth enabler. It opens the way for more investments from the Middle East pouring into Malaysia," he remarked.
The two will also rope in other strategic partners to develop downstream industries valued at about US$1.8 billion (RM5.4 billion).
These industries include a rolling mill, a wire cabling plant, a wheel casting facility and up to 10 extrusion plants.It is expected to create more than 40,000 skilled jobs once the cluster is mature, generate US$3 billion (RM9.05 billion) of incremental gross domestic product and contribute US$2.6 billion (RM7.8 billion) to trade balance, he said.
Najib announced the government's approval for the project here yesterday after a meeting with Abu Dhabi's Crown Prince Sheikh Mohammed Zayed Al Nahyan, who was in Malaysia for a one-day visit.
The oil-rich state affirmed plans to keep a stake in Malaysia's fifth largest banking group, RHB Capital Bhd (RHBCap).
The RHB group is in discussions with 1MDB and Mubadala to be the first major financial institution to set up presence in the Kuala Lumpur International Financial District (KLFID), Najib said.
The group is planning for a modern, energy-efficient building.
The US$8 billion (RM24 billion) KLIFD, to be set up by a Mubadala-1MDB joint venture, is intended to tightly cluster banking and financial entities.
Construction is expected to take off in June, according to reports earlier this year.
Najib also said that oil-rich Abu Dhabi was collaborating with state oil firm Petroliam Nasional Bhd to develop a block in Sarawak.
He said investments were coming in from Abu Dhabi as the latter wanted to be a long-term investor in Malaysia.
"All this is a strong signal of Abu Dhabi's confidence in Malaysia as a growth enabler. It opens the way for more investments from the Middle East pouring into Malaysia," he remarked.
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