Chinese company, banks back Malaysia's future high speed rail terminal project

Chinese leading banks and company on Thursday express their support for a flagship project in the Malaysian capital, which will also house the terminal of the proposed high speed rail linking Kuala Lumpur and Singapore.

Bank of China, the Industrial and Commercial Bank of China and China Construction Bank will join hands with HSBC and several leading local banks to provide funding to the investors of the Bandar Malaysia project, according to a memorandum of understanding signed here Thursday.

Located about 7 km from the Kuala Lumpur city center, Bandar Malaysia will serve as a future transport, business and commercial hub for Kuala Lumpur.

China Railway Group Limited (CREC), one of China's largest state-owned companies, owns 24 percent equity of the project.

The Malaysian government, through the finance ministry, owns the majority stake of the project.

"The ministry of finance in particular is proud to partner with CREC, a major international developer that is also a Chinese state-owned company", said Malaysian Prime Minister Najib Razak, who also holds the finance minister portfolio.

"This commitment by CREC is as a clear endorsement by China of its continued confidence in the strength and resilience of the Malaysian economy," he added.

Najib pointed out that the joint venture between Malaysia and China in the Bandar Malaysia project was "another indication of the strong and vibrant relations between the two countries."