According to The Independent Singapore, port operators from China have been pouring S$2 billion worth of investments into a joint venture with a Malaysian company to revitalize the ailing Penang Port in Malaysia.
The project aims to boost operations at Penang Port and will be piloted by Shenzhen Yantian Port Group Co and Rizhao Port Group Co. The local Malaysian company involved in t he work is KAJ Development.
Chinese investors expect a rise in demand for Malaysian port services in the future, which is why the 2 PRC companies have invested so much money into the project. They expect Penang Port to be able to handle up to 100,000 ships a year after construction is complete.
This development follows reports that PRC companies are attempting to rebuild and expand on existing Malaysian ports like Malacca and Johor to rival Singapore’s predominant position as a trade hub in South East Asia.