Korean Investments In Malaysia To Increase By More Than RM5 Billion Within Next Three Years, Says Najib
SEOUL, April 6 (Bernama) -- South Korean investments in Malaysia are expected to increase by more than RM5 billion within the next three years, Prime Minister Datuk Seri Najib Tun Razak said.
Speaking at a media conference at the end of a three-day visit to South Korea, he said Korean companies were very positive over the new measures introduced, especially the Economic Transformation Programme (ETP).
"They strongly support what we are doing, as with the fast growing economy, they believe there are opportunities for Korean companies to benefit from, he added.
He said among the bigger companies showing an interest in Malaysia is the Lotte Group which has indicated its interest in finding a piece of land to build a hotel complex as well as departmental store and hypermarket.
Meanwhile, a Lotte subsidiary, Honam Petrochemical Corp which fully owns the US$1.3 billion Titan Chemicals Corp in Johor, will invest another US$100 million within a year to expand the petrochemical business.
The world's third largest producer of polysilicon, the OCI Group, will on its part make an investment of between RM600-RM700 million to produce "metallurgical grade silicon", a product needed for the manufacture of solar cells.
It is believed that a factory will be built in Banting for this purpose, under its subsidiary, Elpion Silicon Sdn Bhd.
The prime minister also said, STX Group (previously known as Ssyanyong Heavy Industry) is also keen on investing in the production of solar cells and solar panels in Peninsular Malaysia but this would depend on the "feed-in tariff" rate.
The company also plans to invest in renewable energy, using biomass in Sabah and Sarawak.
Meanwhile, VENS, a subsidiary of the LG Group, has tabled a proposal on the development of "Electric Vehicle" (EV) technology including lithium battery components as well as infrastructure to support the EV.
"They have also expressed an interest in cooperating with Proton," he added.
Another Korean conglomerate, Halla Energy which is involved in the construction sector, automotive engineering, ports management and education among others, has proposed to invest in renewable energy based on municipal waste.
Najib said a number of large companies are also in discussions with MIDA for new investments in Malaysia as well as to expand and diversify their existing operations in the country.
Among the investment sectors being discussed are green technology/renewable energy, petrochemicals, advanced electronics such as ship navigation systems, light emitting diode (LED), wafer foundry, oil and gas services,shipbuilding as well as the setting up of regional offices.