Khazanah Nasional Bhd, the Malaysian government’s $25 billion investment fund, is making evaluations on investments in China’s infrastructure, environmental products, financial and healthcare services, with an aim to tap growth opportunities in the Chinese market.

Expanding beyond owning government-linked companies such as Telekom Malaysia Bhd and Bumiputra-Commerce Holdings Bhd, the Malaysian agency holds $100 billion worth of equity stakes in more than 50 companies in five countries. Its investments include stakes in India’s Apollo Hospital Enterprise Ltd, Hong Kong-traded Parkson Retail Group Ltd, Singapore’s Mobile One Pte and Indonesia’s PT Bank Lippo. It joins the $60 billion Qatar Investment Authority and Singapore’s Temasek Holdings Pte to tap the Chinese market as well as other emerging markets.

“We have a longer horizon compared with the traditional private-equity investors, and we’re experienced in many emerging economies,” said Khazanah’s Managing Director Azman Mokhtar. “We want to offer our experience and our network as the bridge for Chinese companies to invest in third countries.”

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China, investment fund, Malaysia

Chalco, China’s largest aluminum producer whose shares are traded both in Shanghai and Hong Kong, agreed last Friday to set up a joint venture with Malaysia’s MMC and the Saudi Binladin Group to build and operate an aluminum smelter plant in Saudia Arabia.

The plant is to be built in three stages and the total investment is estimated to reach $4.5 billion. In the joint venture, the aluminum producer Chalco will own a 40% stake to become the largest single shareholder. Syed Mokhtar Al-Bukhary-backed MMC will hold a 20% share while a consortium of local investors led by the Saudi Binladin Group will hold the remaining stake.

The smelter plant is to be located in the Middle East country’s Jizan Economic City (JEC), where electricity costs an average of $20 per megawatt-hour compared with $28 in the US and $40 in China for the same measure. The annual aluminum production capacity of the plant is expected to reach one million tons.

In addition, an associated 1,860mW power plant with an estimated $2 billion will also be built, in which Chalco will take a 20% stake to become the third largest shareholder.

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aluminum, Chalco, China, industry, investment, joint venture, Malaysia, MMC, Saudia Arabia