Khazanah, Raffles plan Johor varsity

05 March 2010 , By Business Times

Khazanah Nasional Bhd, the government's investment arm, and Singapore's Raffles Education Corp Ltd (REC) plan to invest RM200 million to set up a university in Johor.

Raffles University Iskandar will be located in the Iskandar Malaysia special economic zone, a long-term development designed to boost the country's economy.

"REC, as the key shareholder in this venture, is seeking approval from Malaysia's Higher Education Ministry as we need to register our programmes and courses," said REC chairman and chief executive officer Chew Hua Seng.

He was speaking to reporters from Malaysia, Singapore and China at a press conference after a tour around the company's Oriental University City, a 3.31 million sq m self-contained campus in Langfang, Hebei Province in China.

REC and Khazanah will make their investments over five years after they win the necessary approvals.

Although the shareholding structure of the Johor university has not been finalised, REC will have the controlling stake.

Also present was Khazanah Nasional executive director Ben Chan.

He expressed confidence that REC would contribute to Malaysia's education system by offering industry-oriented programmes.

REC, which is listed on the Singapore stock exchange, specialises in vocational and design studies, especially in aviation mechanics and information technology.

"We're delighted to partner REC to jointly explore the viability of replicating Oriental University City business model in Iskandar," he said.

In China, Khazanah has invested about RM150 million for a 10 per cent stake in Oriental University City, REC's flagship education centre.

Located within an hour's drive from Beijing, the Oriental University City provides education services to 36,000 students through 16 colleges.

"Our investment in Oriental University City represents an extension to our China and education strategy," said Chan.

Khazanah plans to ask for a board seat on Oriental University City Ltd.

Raffles University Iskandar will be developed in three phases and it will eventually have about 5,000 students.