BPMB PAVES WAY FOR CROSS-BORDER TRADE WITH RM374 MILLION FINANCING FOR PERLIS INLAND PORT
Monday, 15 January 2024, Kuala Lumpur - Bank Pembangunan Malaysia Berhad (Bank Pembangunan) today announced the approval of Tawarruq Asset Financing Facilities amounting to RM373.54 million to Inland Port Perlis Sdn Bhd (IPPSB).
This dedicated financing, spanning up to 20 years, is allocated for the Engineering, Procurement, Construction, and Commissioning costs of the integrated inland port facility, Perlis Inland Port, situated in the Chuping Valley Industrial Area, Perlis.
Occupying 500 acres of land, Perlis Inland Port represents a strategic initiative to streamline Malaysia-Thailand cross-border trade, alleviating capacity constraints of the existing Padang Besar Container Terminal. Upon completion, it will function as the sole cross-border freight rail and road point between Malaysia and Thailand via Perlis.
Roni Abdulwahab, Group Chief Executive Officer of Bank Pembangunan said, “This project is part of our dedication to catalyse positive change and progress, in line with our purpose of delivering impact capital for national development. Perlis Inland Port is a Public Private Partnership under the 12th Malaysia Plan and the National Transportation Plan 2030, to achieve the government’s MADANI aspirations. It also complements the New Industrial Master Plan 2030.
Our approach goes beyond financial considerations; it is about holistic impact. We use the MIND framework - Measuring Impact on National Development to ensure our investments contribute not only to economic growth but also to the well-being of the communities we serve.”
Dato’ Shabaruddin Ibrahim, Group Executive Chairman of Mutiara Perlis Sdn. Bhd. said, "This financing from BPMB is a crucial step towards achieving the Perlis Inland Port project. It underscores our commitment to contributing significantly to the economic growth and prosperity of Perlis State in particular, and to National’s economy in general. We are proud and grateful to be the driving force behind this transformative project, which aligns perfectly with our vision for sustainable development and progress”.
The Perlis Inland Port, deeply rooted in an underserved rural area, is positioned to yield substantial spill-over effects for economic growth, with a particular focus on benefiting low-income groups through job creation. Upon completion, the project is expected to generate 520 direct and 3,500 indirect employment opportunities, with over 80% of these positions designated for the local community.
The project is planned to unfold in three phases, with Phase 1 anticipated to commence operations in the first quarter of 2025. Upon the successful completion of all three phases, Perlis Inland Port will boast state-of-the-art infrastructure capable of accommodating up to 2 million Twenty-foot Equivalent Units (TEU) per annum. This development aims to drive economic growth, stimulate business activities, and position Malaysia as a global trade hub.
ABOUT BANK PEMBANGUNAN MALAYSIA BERHAD
Bank Pembangunan Malaysia Berhad (BPMB) was incorporated on 28 November 1973 as a development financial institution. This year BPMB celebrates its 50th anniversary of delivering impact capital for national development.
Owned by Minister of Finance (Incorporated), BPMB has been accorded the highest rating of ‘AAA’ by both RAM Rating Services Berhad and Malaysia Rating Corporation Berhad. It is -regulated and supervised by Bank Negara Malaysia under the Development Financial Institution Act 2002.
With a Group Total Assets value of RM27.0 billion (as at 31 December 2022), the BPMB Group is well positioned to meet the financing and business development needs of Malaysian businesses.
ABOUT INLAND PORT PERLIS SDN BHD
Inland Port Perlis Sdn Bhd (IPPSB) is a wholly owned subsidiary of Mutiara Perlis Sdn Bhd, a JVCO between Mutiara Infra Sdn Bhd & Menteri Besar Inc. Perlis, which was incorporated in 2017. It is mandated to develop Perlis Inland Port spearheading cross border trade and to increase Malaysia’s logistic competitiveness utilising Malaysian Double Track Rail Infrastructure.