During the recent Belt and Road Forum in Beijing, Malaysian and Chinese companies signed memoranda of understanding (MoUs) on two major projects: the second phase of the East Coast Rail Link and the gas and petroleum pipeline infrastructure project which runs from Malacca to the Singapore Strait.

China Communications Construction Company signed an MoU with Malaysia Railway Link for an 88km railway running from Gombak to Port Klang. This is an extension of an existing planned project, also being built by the China Communications Construction Company. The first phase will run down the east coast and then turn inland to terminate at the integrated transportation terminal in Gombak. The total first phase project cost is estimated at 46 billion ringgit (US$10.6 billion).

The second phase will run from the integrated transportation terminal in Gombak to Port Klang on the west coast, and will cost an estimated 9 billion ringgit. Upon completion of the East Coast Rail Link in June 2024, the railway will thus link the Greater Klang Valley to the East Coast Economic Region. Stops such as industrial hubs, airports and tourism zones will be located along the way.

The second MoU was signed by China Petroleum Pipeline Engineering Co and Suria Strategic Energy Resources Sdn Bhd, and involves the construction of a 370km gas and petroleum pipeline from Sungai Udang, Malacca, to the Petronas refinery and petrochemical integrated development project in Pengerang, Johor, on the Singapore Strait.

The pipeline will also connect with the existing 130km Multi Products Pipeline which runs inland from refineries in Malacca City and Port Dickson. The entire pipeline network should be completed within two to three years.

Both Malaysia Rail Link and Suria Strategic Energy Resources are owned by the Ministry of Finance. Prime Minister Najib Razak was present at the MoU signings.

There were a number of other agreements signed between China and Malaysia during the Belt and Road Forum.

One high profile deal involved AirAsia Berhad exchanging an MoU with China Everbright Group and Henan Government Working Group to establish a low-cost carrier in China. The MoU outlines how the parties will incorporate a joint venture to be known as AirAsia (China), for the purposes of operating a low-cost aviation business based in Zhengzhou, the capital of Henan province in central China.

In addition, AirAsia (China) will invest in aviation infrastructure, including a dedicated low-cost carrier terminal at Zhengzhou airport, an aviation academy to train pilots, crew and engineers, and maintenance, repair and overhaul facilities to service aircraft.

The MoU was signed by AirAsia Group CEO Tony Fernandes, Everbright Financial Investment Holding executive director and president Wang Weifeng, and Henan Airport Group general manager Li Weidong.

“We chose Zhengzhou as our base due to its strategic location and importance as a logistics hub,” says Fernandes. “As China’s gateway to Europe, Zhengzhou sits at the centre of a vast rail, highway and air transport network that forms the linchpin of China’s development plans for its central and western regions. With President Xi Jinping’s vision for One Belt, One Road, Zhengzhou is set to become even more important, not least as the heart of low-cost air travel in North Asia.”

AirAsia was the first foreign low-cost carrier to enter China and has carried more than 40 million passengers since its inaugural route to China in April 2005.

Ahead of the Beijing Forum, Prime Minister Najib Razak also stopped in Hangzhou, Zhejiang province, to meet Alibaba founder and executive chairman Jack Ma. An MoU between the Malaysia Digital Economy Corporation, Hangzhou Municipal Government, and Alibaba was signed during the visit.

Other MoUs signed involved sectors such as construction, agriculture, stock exchange, infrastructure, and port cooperation.

One involved an engineering, procurement, construction and commissioning contract for a methanol plant and methanol derivatives plant in Tanjung Kidurong, Bintulu.

Yayasan Hartanah Bumiputera Sarawak, a Sarawak state government entity, signed the agreement with a consortium comprising China Huanqiu Contracting and Engineering Co Ltd and MACFeam Sdn Bhd, a subsidiary of Pegasus Diversified Bhd.

Photo courtesy of Wikipedia.