Malaysia’s Ekovest Bhd has entered into a collaborative agreement with China’s Zhejiang Communications Investment Group Co Ltd (CICO), the largest state-owned enterprise under the Zhejiang provincial government, to jointly explore and develop various infrastructure and other projects in Malaysia.
The partnership will encompass infrastructure concession assets, large-scale infrastructure ventures, food security initiatives, retail ventures, and transit-oriented development (TOD) projects.
TOD projects are particularly noteworthy for their emphasis on creating integrated mixed-use communities centered around high-quality transportation systems, aligning with contemporary urban development principles, Ekovest stated.
The collaboration agreement was inked by Ekovest and Universal Cosmos Co Ltd, a wholly-owned overseas subsidiary of CICO, on Wednesday.
Ekovest expressed enthusiasm about the partnership with CICO, noting the latter’s global reputation and extensive experience in transport infrastructure, including thousands of kilometers of expressways and railways. The collaboration aims to diversify project portfolios and enhance Malaysia’s infrastructure capabilities.
“Our collaboration with CICO opens a new chapter in our journey towards infrastructural innovation. CICO’s global reputation and vast experience in transport infrastructure, spanning thousands of kilometers of expressways and railways, make them an invaluable partner in our quest to diversify our project portfolio and enhance Malaysia’s infrastructure capabilities,” said Ekovest.
While the collaboration intends to ensure balanced participation, shared funding responsibilities, and equitable leadership rights for both parties, detailed terms of the agreement were not disclosed.
Ekovest’s shares concluded 0.5 sen or 1.01% lower at 49 sen, giving the group a market capitalization of RM1.45 billion. Year-to-date, the stock has risen by 40%.
This partnership between Ekovest and CICO signifies a significant step towards fostering infrastructure development and fostering economic collaboration between Malaysia and China.