In a statement, the two companies said they intend to jointly pursue a variety of projects in SCORE, with the ultimate intent to act as major investors in SCORE as a whole. The projects currently envisaged by the two companies may create as much as US$11B worth of economic value.
According to local media, these projects include construction of three hydroelectric dams and a smelter plant, although no specific details were available on the projects to be developed.
Besides negotiations between the two companies, both 1MDB and SGCC will also work together to engage the relevant authorities in both countries on legal compliance and securing project approvals.
SGCC’s interest in SCORE was triggered when the Malaysian Prime Minister went to Beijing in June 2009 to renew China-Malaysia commitments to further strengthen friendship and economic ties. This was followed by a visit from Chinese President Hu Jintao to Malaysia five months later.
“SGCC has long focused on SCORE and Malaysia as its priority investment area as it provides an attractive investment climate and tremendous investment potential,” said SGCC President, Mr Liu Zhenya. "It is a partnership that will bring mutual benefit to China and Malaysia as we will jointly participate in the economic development of Malaysia and China through our investment. Our government is fully aware of Malaysia's potential and we will continue to promote Malaysia to our companies as an investment location.”
“Our drive to achieve sustainable economic development for Malaysia with partners such as a global giant like SGCC will achieve many objectives,” added 1MDB Chief Executive Officer, Mr Shahrol Halmi. “Most important to 1MDB is our strategy to identify catalytic projects that set the base for capacity expansion and economic growth for the longer term."
