IJM Group

IJM and CHEC’s mixed development and logistics hub set to be game changer for the east coast

Petaling Jaya, 3 August 2022 – IJM Corporation Berhad (“IJM”) has recently entered into a strategic partnership with China Harbour Engineering Company Ltd. (“CHEC”) for the development of Malaysia-China Kuantan International Logistics Park (“MCKILP”), an integrated mixed development and logistic hub in Kuantan. This marks IJM’s first foray into the industrial and logistics market to meet the growing logistics demands in the east coast region.


The JV agreement for a new joint-venture company was signed between CHEC and Asas Panorama Sdn. Bhd, IJM Corporation Berhad’s (“IJM”) indirect subsidiary that is owned 60:40 by IJM Land Berhad and Guangxi Beibu Gulf International Port Group Co Ltd (“Guangxi Beibu”). CHEC will hold an equity interest of 51% in the new joint-venture company while Asas Panorama Sdn Bhd, will hold the remaining 49% equity interest.


MCKILP will be developed on a proposed 640-acre site in MCKIP 3. The mixed property development and logistics hub will comprise light and medium industrial, logistics and warehousing, residential and commercial components. This ambitious new development will turn MCKIP 3 into a premier industrial and logistics hub in the East Coast Economic Region (ECER) of Malaysia.


MCKILP is set to attract downstream industries in logistics, automobile, marine engineering, advanced steel materials, palm oil processing, petrochemical and e-commerce that could become value chain suppliers to surrounding industrial parks such as MCKIP 1 and 2, Gebeng Industrial Estate and Pekan Automotive Park.


On the same day, a collaboration agreement for a proposed construction JV company was signed between CHEC and IJM Construction Sdn Bhd. The JV company will undertake construction works for the main infrastructure and facilities in MCKILP.


“This marks an important milestone for us as we embark on a strategic partnership with CHEC to design, develop and operate MCKILP. I am excited for the opportunities that MCKILP will bring to the ECER. Its development is extremely timely and will provide critical infrastructure that will enhance the region’s logistics and supply-chain capabilities. Together with MCKIP 1 and 2, we envision MCKILP’s complement to the industrial ecosystem, catalysing more investments to the region in the future,” said Mr. Lee Chun Fai, Chairman of MCKIP, who signed the agreement on behalf of Asas Panorama. Mr. Lee is also the Deputy CEO & Deputy Managing Director of IJM Corporation Berhad.


CHEC’s track record and core capability in the development of industrial parks in Bangladesh, Port City in Sri Lanka and ports in Africa and the Middle East will give future investors and tenants considerable assurance about the quality of infrastructure that will be available; as well as seeing to the successful implementation of MCKILP. Both Guangxi Beibu and CHEC will bring their vast networking and access to Chinese investors, which will be key in attracting investments into MCKILP, while IJM Land will contribute its property development, operation and maintenance expertise gained through the development of MCKIP 1 and 2.


CHEC is a subsidiary of China Communications Construction Company, the main contractor of the East Coast Rail Link (ECRL) which ranks as one of the largest engineering and construction company in the world.


“We are looking forward to working with IJM and Guangxi Beibu to realise the tremendous opportunities this project offers. Notably, the JV will tap on the expertise of the respective shareholders – we are indeed honoured to have such esteemed partners. The MCKILP endeavours to provide a trusted multimodal logistic and transportation hub, offering world-class infrastructure and services that can stimulate economic growth and enable strategic integration with the transportation ecosystem that connects the east coast to the economic heartland on the west coast,” said Mr. Ou Weihui, Chief Financial Officer, CHEC.


In terms of growth, Kuantan Port, MCKIP and now, MCKILP go hand in hand. MCKILP serves as the missing link that would boost the trade distribution network and functions as an intermodal connecting point with Kuantan Port, the national highways, airport and ECRL.


The ECRL, which is planned for completion in 2027, is anticipated to serve as a land-bridge between the west and east coast, increasing the export of goods from the hinterland, especially containerised cargo. The alignment of the spur line route from the ECRL to pass through MCKIP into Kuantan Port is expected to be finalised in 2023.


MCKILP will be strategically located less than 10km from the ECRL’s Kuantan Port station, and is 1.7 km from Kuantan Port and 25 km from Kuantan town.


The enhanced connectivity of the ECRL, provides a viable land route alternative to the traditional and overcrowded shipping routes between the South China Sea and Melaka Straits, positioning Kuantan Port as a major regional shipping hub.


“MCKIP, MCKILP and ECRL are expected to contribute positively to IJM-owned Kuantan Port’s bulk cargo and container throughput. Collectively, these ambitious projects represent one of the most significant integrated industrial, transport and logistics hub that the east coast region has seen in recent years,” added Mr. Lee.



Photos and captions:















IJM marked another milestone with the signing of the Malaysia-China Kuantan International Logistics Park (MCKILP) Joint Venture and Collaboration Agreements via live video conference with CHEC and its counterparts in China.


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About Malaysia-China Kuantan Industrial Park (MCKIP)

MCKIP was launched in 2013 and is the first industrial park in Malaysia to be jointly developed by both Malaysia and China and to be accorded the “National Industrial Park” status. An important component in the China-Malaysia supply chain, MCKIP’s target industry clusters include: steel and non-ferrous metals, machinery & equipment manufacturing, clean technology & renewable energy, oil & gas and petrochemical, electric & electronic, and research & development.


MCKIP is the sister park of China-Malaysia Qinzhou Industrial Park (CMQIP) and these two parks have been identified by the Malaysian and Chinese governments as an “Iconic Project for Bilateral Investment Cooperation” that will drive the development of industrial clusters in both countries.



About China Harbour Engineering Company Ltd. (CHEC)

China Harbour Engineering Company Ltd. (CHEC) was established in the 1980s. As a subsidiary of China Communications Construction Company Ltd. (CCCC), a Global Fortune 500 company, it explores the overseas market on behalf of CCCC. At present, CHEC has more than 90 branches (subsidiaries) and representative offices around the world conduct business in over 100 countries and regions with more than 15,000 employees undertaking hundreds of international projects whose total contract amount is over USD 30 billion.



About IJM Corporation Berhad

IJM Corporation Berhad (“IJM”), formed in 1983, is today one of Malaysia’s leading construction groups and is listed on Bursa Malaysia. Its business activities encompass construction, property development, manufacturing and quarrying, infrastructure concessions and plantations.


Headquartered in Selangor, its operations are located in seven countries, with primary focus in Malaysia, and India. The Group presently has a market capitalisation of around RM6.4 billion and as of March 2022, the Group employed around 3,000 employees and had total assets of RM21.0 billion.


For more information, visit www.ijm.com


For media enquiries, please contact:

Ms. Mandy Chen, Corporate Communications, at mandychen@ijm.com or + 60 12 607 6121

Mr. Shane Guha Thakurta, Investor Relations, at shanethakurta@ijm.com or + 60 3 7985 8041