RM1.5bn support for China-backed Kuantan industrial park

Expansion of Kuantan port, new roads and interchange, and tax-free incentive for 15 years

KUALA LUMPUR: The Federal Government is committing about RM1.5 billion in incentives and infrastructure support for the new Malaysia-China Kuantan Industrial Park (MCKIP).

Jebasingam Issace John, chief executive of the East Coast Economic Region Development Council, said Malaysia is currently developing the primary infrastructure in the area, which includes the construction and upgrading of a road between Kuantan Port and MCKIP, and providing water, electrical and telecommunication services.

“The construction of an elevated diamond interchange at the main entrance to MCKIP and the upgrading of the Sungai Ular interchange to Kuantan Port, as well as the construction of primary access roads, water supply and other supporting infrastructure in MCKIP had commenced in 2014 and are expected to be ready by February 2016.

“The Malaysian government has also approved a special incentive package for all investors in MCKIP, including 100 per cent income tax exemption for up to 15 years,” he said.

Jebasingam said this at a “Two Countries, Twin Parks” investment promotion conference in Nanning, China, on Saturday.

In a statement here, Jebasingam said the key infrastructure component was the expansion of Kuantan Port to double its capacity to 52 million freight weight tonnes per year.

The Malaysian government will invest RM1.1 billion in this project, while RM3 billion will be invested by Kuantan Port Consortium, the concessionaire of Kuantan Port, which is a joint venture between Guangxi Beibu Gulf International Port Group Co. Ltd. from China and IJM Corporation Bhd.

— BERNAMA