CHINA CONFIDENT INVESTING IN MALAYSIA

PUTRAJAYA, Feb 9 (Bernama) -- Prime Minister Najib Razak Tuesday said the
joint venture agreement between Malaysia and China to develop an aluminium
smelting plant in Samalaju Industrial Park reflected the confidence the Chinese
government and investors had in making large investments in the country, and in
the East Malaysian state of Sarawak specifically.

"This gives a positive sign to the investment climate in Malaysia," the
prime minister told reporters after witnessing the signing of an agreement here
between GIIG Holdings Sdn Bhd and Aluminium Corp of China Ltd for the setting up
of the plant.

A company, Smelter Asia Sdn Bhd, will be the special purpose vehicle for the
venture.

"I hope this marks a recovery in economy this year. Many more foreign
investments should be flowing into our country.

He said the development of the smelting industry in Sarawak would also
provide a strong drive in the development of SCORE (Sarawak Corridor of
Renewable Energy).

"I believe these industries that use energy, industries that generate high
income, high value and high tech industries using high energy can be located in
Sarawak."

Asked on whether there was still room to locate large smelting plants in
Sarawak, Najib said: "Two licenses have been given out. That is the
commitment by the government. We just have to work out the supply of power."

Najib said the construction of the plant will begin this year and is
expected to be completed in two-and-a half years.

On the investment amount, Najib, who is also Finance Minister, said the
initial amount alone is already more than a billion US dollars.
-- BERNAMA