PUTRAJAYA, 12 March 2013: Malaysia and Abu Dhabi today sealed a RM18 billion strategic partnership to promote new economic initiatives that will spur billions of ringgit in long-term sustainable investments in Malaysia. The partnership will focus in investments in important high-impact projects vital to the long term-economic and social growth of Malaysia.
Separately, Abu Dhabi is moving ahead to provide the required capital for the multi-billion ringgit Tun Razak Exchange (TRX) development, making it the first major multinational anchor investor for Malaysia’s new growth nucleus with billions of major infrastructure works expected to be awarded starting as early as end March 2013. 1MDB will remain as the master developer of the TRX project.
TRX is a national initiative to spur growth in new areas and lead the way for Kuala Lumpur to be a global centre for international finance, trade and services.
The various partnerships are the outcome of continuing talks between Prime Minister Dato' Sri Mohd Najib Tun Haji Abdul Razak and Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces of the United Arab Emirates, His Highness General Sheikh Mohamed Bin Zayed Al Nahyan, promoting long-term sustainable economic growth beneficial to both countries.
The two separate strategic initiatives will be formed between companies under both 1Malaysia Development Berhad (“1MDB”) and Abu Dhabi’s Aabar Investments PJS (“Aabar”).
Aabar is the strategic investment company of Abu Dhabi and is controlled via Abu Dhabi state-owned International Petroleum Investment Company (IPIC). 1MDB is wholly owned by the Government of Malaysia.
Aabar Chairman and IPIC Managing Director, HE Khadem Al Qubaisi and 1MDB Chairman Tan Sri Dato’ Seri Lodin Wok Kamaruddin signed the two strategic agreements at the Prime Minister’s Office in Putrajaya.
Gracing the event were His Highness, The Crown Prince and Dato' Sri Mohd Najib. Aabar CEO Mohamed Badawy Al-Husseiny and 1MDB CEO Datuk Shahrol Halmi signed as witnesses.
Tan Sri Dato’ Seri Lodin said: “These strategic partnerships firmly underscore global investor confidence in Malaysia as a long-term investment destination and economically sustainable growth centre enjoying peace, stability and good governance”
“Crucial to this is the commitment and leadership of Dato’ Sri Najib in shaping the economic transformation of the country towards a high-income economy,” Tan Sri Dato’ Seri Lodin added.
1MDB’s sole shareholder – Government of Malaysia – sees TRX as a key enabler for both the Economic Transformation Programme and the Government Transformation Programme.
HE Khadem Al Qubaisi said: “TRX represents an exciting opportunity for us to help realise a truly dynamic vision, where we can bring our expertise in sustainable infrastructure to anchor Asia’s next economic hub.
“More importantly, it underscores Abu Dhabi’s long-term commitment in the strategic economic development initiatives of Malaysia under Prime Minister Najib Razak’s continued leadership”
1MDB will both enter into smart partnerships and also provide opportunities for local developers and global players to drive new growth and make this national initiative a reality.
TRX is estimated to generate a gross development value of RM26 billion and attract 250 of the world’s leading companies, creating 40,000 new job opportunities for knowledge workers.
The multiplier effect generated will produce up to 500,000 new jobs, directly and indirectly throughout Malaysia, by the time it is fully completed.
The RM18 billion strategic partnership will separately invest, via a 50:50 joint venture between 1MDB and Aabar, in strategic high-impact long-term sustainable economic and social projects for the benefit of Malaysia and Abu Dhabi, to be identified by both parties under the advice of their respective governments.
Abu Dhabi also agreed to develop a RM21 billion strategic petroleum reserve facility in Johor, Malaysia with a capacity to store 60 million barrels of crude oil and petroleum storage facility for the exclusive use of Abu Dhabi.