News Column

Malaysia : DEALS worth RM6.5 billion signed by Malaysian and US firms in aviation, biotech, insurance

April 29, 2014

The signing of US$2 Billion (RM6.5 billion) worth of commercial deals between Malaysian and American companies in the aviation, biotechnology and insurance sectors was witnessed by Prime Minister Datuk Seri Najib Tun Razak and US President Barack Obama.

Obama said that the close trade and investment relations between Malaysia and the US would create jobs and economic opportunities in both countries.

He said, "Yesterday, we agreed to a new comprehensive partnership between Malaysia and the United States and work to expand our economic touch. The US is the largest foreign investor in Malaysia and Malaysia is the fastest growing investor in the United states .

He said, Both countries can look ahead for more growth and prosperity.

"This require commitment and stepping up our game, competing hard, investing more, not only in each other's countries, but throughout the region.

He added, "We need to do more to promote more trade and this includes reducing some of the existing barriers for trade and investment, support partnership, exports and jobs .

In the meantime, the first memorandum of understanding (MoU) was inked between GE Aviation and AirAsia X for the selection of CF6-80E1 engines to power AirAsia X's 25 new Airbus A330-300 aircraft, worth more than US$1.5 billion (RM4.9 billion).

These engines will be covered by a multi-year OnPoint solution service agreement for engine maintenance, repair and overhaul. Including this deal, parent company, AirAsia, has ordered more than 600 GE engines.

The second MoU was for Sime Darby to take a 30% stake worth US$30 million (RM98 million) in San Diego-based biotech company, Verdezyne.

Verdezyne will utilizee the investment to sponsor research and development in the US on substituting petroleum-derived materials with renewable sources, decreasing dependence on oil for creating extensively used products for example plastic and nylon.

Both companies in addition decided to develop new processes to convert palm oil by-products into renewable petroleum substitutes for industrial purposes.

The third MoU was for a partnership between Ambank and Metlife, with the latter capitalizing almost US$250 million (RM817 million) to acquire shares in AmLife and AmTakaful.

This investment indicates the first US investment in the Malaysian takaful market. Both Ambank and Metlife anticipates the deal will support jobs and enhance employee expertise in the US and Malaysia.

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Source: TendersInfo (India)