KUALA LUMPUR: London Metropolitan Holdings (London Metro) of the United Kingdom is considering venturing into a large-scale project in Malaysia as it looks to expand beyond Europe to Southeast Asia.
People with knowledge of the matter said London Metro was looking for a suitable site of more than 40ha in Johor Baru to undertake a major infrastructure project.
If it materialises, the company could spend about US$650 million on the project, including building a university.
London Metropolitan Holdings Sdn Bhd was set up recently to pave the way for the investment in Malaysia.
The sources said the company was considering investing in Malaysia, Indonesia, Thailand, Vietnam or the Philippines.
"London Metro has received investment offers from Indonesia, Thailand, Vietnam and the Philippines, but it is considering Malaysia due to its proximity to Singapore. However, this is subject to a feasibility study," a source told Business Times.
London Metro develops infrastructure in sectors including education, data sourcing, back office operations, warehousing, transport and real estate.
According to the source, the company has, for the last three decades, focused on the UK and European Union, and it now wants to expand into Southeast Asia on a large scale.
Company founder Dr Colin Bond and several board members are said to have attended the Wealth and Asset Summit in Johor Baru earlier this month to learn more about the Malaysian investment market.
The summit's organising committee chairman, Samuel Tan, confirmed this but did not reveal details about the company's plans in Malaysia.
Tan said Prime Minister Datuk Seri Anwar Ibrahim's recent announcement to establish a Special Economic Zone (SEZ) in Johor Baru had piqued the interest of the international market.
He said the SEZ, along with other catalytic developments such as the Johor Baru-Singapore rapid transit system, the electrified double-tracking project and the Iskandar bus rapid transit, had made Johor the focus of many local and international investors.
"This will speed up the realisation of the previously announced Hong Kong-Shenzhen model where the best of Singapore and Johor are harnessed. Already, we are receiving many inquiries from investors keen to be a part of this changing investment landscape in Johor," Tan told Business Times.
Global economic growth is expected to slow to 2.7 per cent next year from three per cent this year.
However, Malaysia's economy is expected to grow four per cent this year and rise to 4.8 per cent next year."Indeed, there are pockets of opportunities in Malaysia.
There are specific growth clusters in different states.
We should identify them and encourage more investments in these clusters.
"He said Johor was known for its food, petroleum, chemical, electrical and electronics processing, logistics, education, medical, financial, tourism and information technology clusters."Together, as stakeholders in the nation, we can and will ensure that Malaysia continues to grow," he added.
The Wealth and Asset Summit saw the collaboration of World Trade Network, Malaysia International Chamber of Commerce and Industry (Micci Southern) and KGV International Property Consultants.
About 350 people attended the event.