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Chinese company invests in future transport hub of Malaysian capital

(Xinhua) Updated: 2016-01-01 10:01

KUALA LUMPUR - China Railway Engineering Corporation (CREC) on Thursday signed an agreement to invest in Bandar Malaysia, a strategic location that will be the future transport hub of the Malaysian capital of Kuala Lumpur.

CREC entered a Purchase Agreement with its local partner to buy 60 percent equity in Bandar Malaysia from state investment firm 1MDB for 7.41 billion Ringgit ($1.72 billion). The company will own 24 present of the project equity after the deal.

Statically located about 7 km from the Kuala Lumpur city center, Bandar Malaysia will serve as the terminal of the proposed high speed railway between the Malaysian capital and Singapore.

It will also serve as the central transport hub of the city, linking other rail lines and new highways.

Yao Guiqing, CREC's General Manager, said in a statement that the participation of CREC as a Consortium partner is due to its confidence in the Malaysian economy, the strength of leadership, the high quality of legal and regulatory environment, as well as the unique nature of Bandar Malaysia and as a strategic development project for the government of Malaysia.

"CREC views our investment in Malaysia as a key part of our global portfolio. In particular, we have global expertise in master planning and construction of transport-oriented developments. We look forward to transferring technology, knowledge sharing and working closely with our Malaysian partners to make the Bandar Malaysia development a world class destination to be proud of."

CREC is one of the world's largest engineering and construction firms, and also has businesses, amongst others, in industrial manufacturing, real estate development, and resources and mineral products. It is currently ranks 71 in the Fortune 500, with a turnover exceeding 100 billion U.S. dollars per annum.

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