RM922mil financing for PJD Link project shows growing investor confidence, say economists

 

PJ Link CEO Amrish Hari Narayanan and managing director of MCC Overseas (M) Sdn Bhd Li An Wei at the signing of the heads of agreement between the two companies.

PETALING JAYA: An investment of nearly RM1 billion from China for the Petaling Jaya Dispersal Link project is an indication of growing investor confidence in Malaysia, say economists.

Barjoyai Bardai of Universiti Tun Abdul Razak said the financing is good news for infrastructure development, which will have a multiplier effect on the economy.

“Before this, we know there were memoranda of understanding (entered by Malaysian companies with Chinese counterparts) for investment, but this is a ‘realised’ investment. This is a sign of growing confidence in Malaysia,” he told FMT.

During Prime Minister Anwar Ibrahim’s three-day official visit to China in April, a total investment of RM170 billion was secured through the signing of 19 MoUs between Malaysian and Chinese companies.

On June 6, PJD Link (M) Sdn Bhd, the concessionaire for the project, announced that it has signed a heads of agreement for the financing facility with MCC Overseas (M) Sdn Bhd, a subsidiary of China Metallurgical Group Corporation.

Under the deal, MCC Malaysia will be the engineering, procurement and construction contractor for the project.

Barjoyai said confidence in the market, as well as consumer support for the use of the highway when it is completed, would be important considerations for the financier to greenlight the deal.

The PJD Link Expressway will connect the northern and southern halves of Petaling Jaya, passing through Petaling Jaya Utara, Bandar Utama, Taman Tun Dr Ismail, Petaling Jaya city centre, Taman Dato Harun, Taman Medan Baru, Taman Sri Manja, Bandar Kinrara and Bukit Jalil Technology Park.

The project was launched with the objective to ease traffic congestion and to cater to future traffic growth in the Greater Kuala Lumpur and Klang Valley area.

Meanwhile, Firdausi Suffian of UiTM Sabah said the deal serves as compelling evidence of China’s commitment to its Belt and Road Initiative, an extensive global infrastructure project undertaken by the nation.

“Of course, this also (shows the) growing confidence in Malaysia’s investment infrastructure. Chinese companies have invested considerably in Malaysia,” he said, adding that MCC Malaysia would not have inked the deal if it did not see the potential.

However, he said, it is essential to monitor the progress of the project, including the timelines as well as project milestones. - FMT