Port Klang Free Zone Sdn Bhd (PKFZSB), the manager and marketer of the RM4.6 billion (S$2 billion) free zone in Pulau Indah, Selangor, has secured four new investors, bringing the total confirmed investment since its inception in November 2006 to RM734 million, says a report in Malaysia's Business Times.
'The confirmation of the latest investors brings to 43 the number of confirmed tenants in Port Klang Free Zone (PKFZ),' PKFZSB director Tengku Zainal Rashid told MBT in an interview.
'We are continuing negotiations with another 50 companies with a potential investment of RM610 million,' he said.
Having to deal with a lot of flak for the huge cost of developing the free zone and the pullout of Jafza International from the project, PKFZSB has been working overtime to create awareness and bring investments into PKFZ.
Tengku Zainal, who is also the past president of the Malaysian International Chamber of Commerce and Industry, acknowledged that much still needs to be done to create greater awareness of the economic benefits of investing in PKFZ.
'While the shipping and logistics community is aware of PKFZ, there are still some sections in the manufacturing industry and small and medium enterprises that are not fully aware of the advantages of investing in the free zone. We are now increasing our efforts to reach out to these groups,' he said.
The 405 ha free zone offers 512 light house/warehouse units, 258 ha of prepared industrial sites for long-term lease and 500,000 sq ft of office space.
PKFZ also has a 135-room business hotel and exhibition centre, which is scheduled to be opened by the end of the second quarter.
'We have removed or reduced a lot of red tape that normally hinders the setting up of a business. For instance, an investor can start a business in PKFZ within a week as we have set up a one-stop centre to liaise with relevant parties and bodies to ensure quick and smooth application,' said Tengku Zainal.
'Another major draw card is the incentives from the Malaysian Industrial Development Authority such as no sales and service tax or duty fees on goods produced and exported, full repatriation of profits and 100 per cent foreign equity,' he added.
Tengku Zainal is one of 10 directors appointed by the Transport Minister to serve one-year terms on the board of PKFZSB. PKFZSB comes under the purview of Port Klang Authority (PKA), which owns PKFZ.
'Of the 10 directors, two are alternate directors. Three of the directors are also from the private sector (namely Tengku Zainal, Federation of Malaysian Manufacturers of Selangor chairman James Alfred and Westports Malaysia Sdn Bhd executive chairman G Gnanalingam). We meet once a month. All of us are mandated to see the development and progress of the free zone. We have to pull our resources and ideas and consult with the management on how to promote PKFZ,' he said.
Tengku Zainal believed that PKFZ is on the right track.
'PKFZ is a national project. It will further enhance Port Klang as the main gateway to the country. We are in the process of generating employment, new business and earning foreign exchange for Malaysia.
'It just takes time to develop a new thing like this. Dubai also took nearly 10 years to develop the Jebel Ali Free Zone. We are only two years old,' he added.
'The confirmation of the latest investors brings to 43 the number of confirmed tenants in Port Klang Free Zone (PKFZ),' PKFZSB director Tengku Zainal Rashid told MBT in an interview.
'We are continuing negotiations with another 50 companies with a potential investment of RM610 million,' he said.
Having to deal with a lot of flak for the huge cost of developing the free zone and the pullout of Jafza International from the project, PKFZSB has been working overtime to create awareness and bring investments into PKFZ.
Tengku Zainal, who is also the past president of the Malaysian International Chamber of Commerce and Industry, acknowledged that much still needs to be done to create greater awareness of the economic benefits of investing in PKFZ.
'While the shipping and logistics community is aware of PKFZ, there are still some sections in the manufacturing industry and small and medium enterprises that are not fully aware of the advantages of investing in the free zone. We are now increasing our efforts to reach out to these groups,' he said.
The 405 ha free zone offers 512 light house/warehouse units, 258 ha of prepared industrial sites for long-term lease and 500,000 sq ft of office space.
PKFZ also has a 135-room business hotel and exhibition centre, which is scheduled to be opened by the end of the second quarter.
'We have removed or reduced a lot of red tape that normally hinders the setting up of a business. For instance, an investor can start a business in PKFZ within a week as we have set up a one-stop centre to liaise with relevant parties and bodies to ensure quick and smooth application,' said Tengku Zainal.
'Another major draw card is the incentives from the Malaysian Industrial Development Authority such as no sales and service tax or duty fees on goods produced and exported, full repatriation of profits and 100 per cent foreign equity,' he added.
Tengku Zainal is one of 10 directors appointed by the Transport Minister to serve one-year terms on the board of PKFZSB. PKFZSB comes under the purview of Port Klang Authority (PKA), which owns PKFZ.
'Of the 10 directors, two are alternate directors. Three of the directors are also from the private sector (namely Tengku Zainal, Federation of Malaysian Manufacturers of Selangor chairman James Alfred and Westports Malaysia Sdn Bhd executive chairman G Gnanalingam). We meet once a month. All of us are mandated to see the development and progress of the free zone. We have to pull our resources and ideas and consult with the management on how to promote PKFZ,' he said.
Tengku Zainal believed that PKFZ is on the right track.
'PKFZ is a national project. It will further enhance Port Klang as the main gateway to the country. We are in the process of generating employment, new business and earning foreign exchange for Malaysia.
'It just takes time to develop a new thing like this. Dubai also took nearly 10 years to develop the Jebel Ali Free Zone. We are only two years old,' he added.