Two industrial parks that are slated to partially house data centers are part of a US$ 20 billion flagship project being promoted jointly by the AREA Group and a Shenzhen-based government association. According to a statement released by AREA, its subsidiary, AREA Real Estate Advisory Sdn Bhd (AREA), a regional based private equity and advisory firm, had recently signed a “Heads of Agreement” and MOU with the Shenzhen Government Procurement Association to jointly promote the project, “Two Countries, Twin Parks”. The twin parks refer to Pentas Industrial City @ Delapan SBEZ in Kedah and COMPASS @ Kuala Sri Langat Industrial Park in Selangor. Both parks are currently in various stages of construction.
“This Memorandum of Understanding, with its bold vision of US$20 billion in strategic investments, is not just a document, it is a testament to the unwavering friendship and shared ambition between our nations. This flagship project will redefine industrial collaboration, introducing the latest Industrial Park concepts, drive investments in Malaysia by Shenzhen’s industrial community, encourage technology exchange, and unlock unprecedented opportunities for growth,” said Dato Stewart LaBrooy, Executive Chairman of the AREA Group of Companies at the MOU signing ceremony held in Shenzhen recently.
The “Two Countries, Twin Parks” initiative rests on five areas of cooperation:
Job Creation: The initiative aims to generate significant employment opportunities in both Malaysia and China through investments, establishment of enterprises, and industrial growth.
Technology Transfer: Facilitate the transfer of advanced technology and knowledge-sharing in high-tech manufacturing, supply chain management, and green technologies.
Investment Promotion: Drive the successful realization of the US$20 billion investment by enterprises from Shenzhen and the Guangdong-Hong Kong-Macao Greater Bay Area by 2027.
Industrial Collaboration: Establish partnerships in industry, trade, and technology.
Economic Growth: Strengthen Malaysia’s role as a key partner in Shenzhen’s global expansion strategy by enhancing trade and high-tech industrial chains.
AREA led a delegation from Malaysia comprising senior representatives from PNB, Invest Kedah Berhad, Invest Selangor Berhad, Jabatan Kemajuan Islam Malaysia (JAKIM), Malaysia Investment Development Authority (Guangzhou Office), Northern Gateway Sdn Bhd, Malaysia PROMAS International Business Society: Malaysia Shenzhen Chamber of Commerce, Selangor EXCO of Investment, Trade and Mobility; YB Tuan Ng Sze Han, and YB Prof Dr. Haim Hilman Bin Abdullah, AMK (Pengerusi Jawatankuasa Industri & Pelaburan, Pengajian Tinggi dan Sains, Teknologi & Inovasi).
Northern Gateway Sdn Bhd (a subsidiary of the Ministry of Finance) is the Master Developer of the Delapan Special Border Economic Zone (Delapan SBEZ), and of which AREA is engaged in an advisory role and COMPASS @ Kota Seri Langat (COMPASS @ KSL), a Joint Venture between Permodalan Nasional Berhad (through its indirect wholly-owned subsidiary MIDF Property Berhad), KWEST Sdn Bhd (wholly owned subsidiary of Kumpulan Wang Persaraan (Diperbadankan) (KWAP) and the AREA Group of Companies (AREA) (through their Subsidiary; AREA Industrial Development). AREA is the Investment Manager for the COMPASS Joint Venture.
A comprehensive three-day program was organized by the Shenzhen Government Procurement Association that included visits to the China Development Institute, the latest Industrial Parks in Shenzhen and meetings with business leaders in Shenzhen. The visit took place ahead of Chinese President Xi Jinping’s three-day state visit to Malaysia where 31 memoranda of understanding were signed.
