Ismawi (second left) signing the MoU on behalf of Sarawak Government with Xinwuan Steel president Wang Wenan (third left) and MCC Overseas vice-president Cheng Changan (fifth left) signing on behalf of their companies.
HUBEI: The State Government yesterday signed a Memorandum of Understanding (MoU) with Hebei Xinwuan Steel Group and MCC Overseas Limited to conduct preliminary feasibility studies for the development of a steel plant in Sarawak.
The proposed RM13-billion (USD3 billion) integrated project will be located in Samalaju Industrial Park (SIP) in Bintulu. MCC Overseas is a Fortune 500 company.
The project will be the largest ever foreign direct investment (FDI) in Sarawak if it materialises. All parties involved have pledged their support and commitment to facilitate the study and roll out the project.
Deputy State Secretary Datu Ismawi Ismuni signed the MoU on behalf of Sarawak while president Wang Wenan and vice-president Cheng Changan signed for Xinwuan Steel and MCC Overseas respectively in Handan City in Hebei Province.
Ministry of Industrial and Entrepreneur Development, Trade and Investment permanent secretary Dato Liaw Soon Eng, Xinwuan vice-president Gao Wei and MCC Overseas Yang Roubin signed as witnesses of the MoU.
Industrial and Entrepreneur Development, Trade and Investment Minister Datuk Amar Awang Tengah Ali Hasan welcomed the interest and commitment of the companies from China under their ‘One Belt, One Road’ strategic plan to expand abroad by choosing Sarawak.
Zhang Chen Liang, secretary of Wu’An City Committee of Communist Party of China and deputy mayor Meng Guangjun in their speeches welcomed this collaboration and looked forward to a positive outcome, pledging their support for the venture.
Awang Tengah said the MoU underscored the state government’s commitment to facilitate the study to ensure the success of the project, which would be another milestone in building trade between the People’s Republic of China and Malaysia and establishing stronger socio-economic relationship between Sarawak and China.
In 2015, the trade volume
between China and Malaysia was RM230.8 billion and RM11.9 billion with Sarawak.
“There is certainly still plenty of room for China and Sarawak to increase our bilateral trade and investment,” he said.
“There are also many other areas that China can participate in SCORE particularly in the state’s priority industries namely aluminium, steel, oil-based, glass, oil palm, fishing and aquaculture, livestock, timber based, marine engineering and tourism,” Awang Tengah elaborated.
He mentioned that the State was also developing infrastructure and utilities and required skilled human capital to meet the needs of the industries.
The minister however stressed that the state government put great emphasis on the protection of environment to ensure balanced and sustainable development for future generations.
“For this reason, we only welcome industries that have world class technology and system to control pollution,” he pointed out, adding he was confident that Xinwuan and
MCC had the expertise and technology to meet the regulations and requirements.
Malaysian Investment Development Authority investment counsellor in Beijing, Mohd Zukepli Embong, was in the Sarawak delegation that earlier on attended a briefing and toured the manufacturing plant at Xinwuan Steel in Wu’An before attending a lunch hosted by mayor Wei Xuesheng.
Awang Tengah is spearheading a high powered investment promotion mission to China from Aug 20-29 to promote trade and investment in Sarawak.
Also in the delegation are Assistant Minister for Entrepreneur Development Datuk Naroden Majais, Assistant Minister of Public Health Datuk Dr Jerip Susil, Recoda chief executive officer Tan Sri Datuk Amar Wilson Baya Dandot, Limbang MP Hasbi Habibolah, Assistant Minister of Public Health Datuk Dr JeripSusil and Entrepreneur and Halal Development Unit director Samat Julaihi.
A second group led by Assistant Minister of Industrial Development (Investment and Promotion) Datuk Julaihi Narawi comprising Sarawak Timber Development Corporation (STIDC) general Datu Sarudu Hoklai and industry players had a meeting with China Timber & Wooden Products Distribution Association, after which they visited Beijing Daybreak Wenyi furniture factory.