GLOBAL PVQ

DAVOS: Several multinational companies have agreed in  principle to invest a total of RM5.5bil over several years, mostly on  Malaysia's resurgent oil and gas (O&G) industry.

While the investment amount is just a ballpark figure, Prime Minister Datuk Seri Najib Tun Razak said several companies had agreed in principle to invest in various industries.

These  meetings were held on the sidelines of the World Economic Forum with  the heads and senior management of the multinational companies.

“I met with Itochu Corp  which has expressed interest in partnering with Petronas to further  develop the petrochemical industry in the Refinery & Petrochemical  Integrated Development (Rapid) project in Pengerang,” he said.

Najib said the talks were coming to fruition and this would positively impact the development of the RM60bil Rapid project.

He  said that besides this project, Itochu has also expressed an interest  in setting up an integrated seamless pipe factory for the O&G  industry.

Meanwhile, Najib said the Hanwha Group,  a South Korean conglomerate, has expressed interest in several  investments including taking over Thalheim, Germany-based Q-Cells SE's  Malaysian operations.

He said the industrial group was keen on  setting up a research and development centre for the production of  photovoltaic systems and solutions.

“They may increase their  investments in the future. Besides this, they have expressed interest in  investing in an asset management company involved in the construction  industry as well as acquiring a life insurance company,” he added.

Najib also met with Germany's Evonik Industries AG which has agreed to set up a joint venture with Petronas for the petrochemical industry, also in Pengerang.

“This  project has been agreed on in principle and the company will be making a  one-year detailed study before starting work next year,” he said.

Najib also updated the media on his meeting with Canadian Finance Minister James Flaherty, who hoped that economic relations between both countries would strengthen.

Najib,  who conveyed Malaysia's appreciation to the Canadian government for the  approval of Petronas' US$5.21bil (RM15.86bil) takeover of shale-gas  producer Progress Energy Resources Corp, said the investment would further increase the state-owned oil company's gas reserves.

He  said World Trade Organisation director-general Pascal Lamy had conveyed  his appreciation to the country over its active and positive  involvement in supporting rules-based trade as well as in helping to  kickstart the moribund Doha Round of global trade talks.

Najib said Dutch Prime Minister Mark Rutte  had suggested that Malaysia do a study on how the Netherlands, an  important agricultural producer, uses technology to help the  agricultural sector.

“I shared with him that Malaysia was interested in having Rabobank involved in the agricultural sector,” he said.

Utrecht-based Rabobank is involved in food and agriculture-based financing.