Joint media release – China Eximbank and 1MDB
BEIJING, 31 May 2014: Malaysia-China relations reach new heights today when two state-owned agencies entered into an investment cooperation agreement on strategic initiatives for regional and global economic growth.
This signals China’s commitment to further strengthen economic linkages anchoring on the Tun Razak Exchange’s Signature Tower as a new impetus for trade and economic growth.
Under the agreement, The Export-Import Bank of China (China Eximbank) and 1Malaysia Development Berhad (1MDB) will jointly develop the Signature Tower and drive strategic investment opportunities.
Malaysian Prime Minister Dato’ Sri Mohd Najib Tun Haji Abdul Razak is building upon the strong foundation of friendship laid by his late father Tun Abdul Razak Haji Hussein to create new sources of growth for the long-term economic prosperity of both countries.
“The Signature Tower will be promoted as the focal point for Chinese investors coming to Malaysia as well as a key centre for new businesses for the world’s economic power house,” Dato’ Sri Mohd Najib, who is the Chairman of 1MDB Board of Advisors.
Dato’ Sri Mohd Najib is in China to celebrate the 40th anniversary of Malaysia-China diplomatic relations. Today, China is Malaysia’s biggest trading partner and Malaysia continues to be an investment destination.
TRX’s Signature Tower, which will be a symbol of China-Malaysia’s enduring ties, carries strong significance as it is in prime location off Jalan Tun Razak and carries name of the late Prime Minister.
The tower will be an anchor to the development of Kuala Lumpur’s international financial district, serving as a primary physical marker and icon to the 70-acre business and financial hub.
China Eximbank Vice-President Yuan Xingyong and 1MDB Managing Director and CEO Mohd Hazem Abd Rahman represented their respective agencies in a simple ceremony to exchange documents before Dato’ Sri Mohd Najib.
The agreement follows a joint-venture pact inked in October 2013 to explore investment opportunities in Malaysia, China and the region.
China Eximbank and 1MDB is expected to each contribute up to US$300 million to the JV company responsible for the development of the Signature Tower. The company will also drive investment initiatives, at home and abroad, offered by sectors such as hospitality, commercial aquaculture, agriculture and infrastructure.
TRX is a key step towards the goals of the Government’s Economic Transformation Programme to turn Malaysia into a high income economy by 2020.
For Stage 1, components include four office towers including the Signature Tower, up to five residential towers, up to two five-star hotels and a retail mall.
This mixed-use development in the heart of Kuala Lumpur will encompass a new international financial district underpinned by world-class residential, retail, leisure and cultural offerings. It will also have a dedicated MRT station, planned to be the largest in Malaysia.