Asia

Malaysia says Saudi Aramco will invest $7 billion in oil hub

Associated Press
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Saudi King Salman, left, listens to Malaysian Prime Minister Najib Razak during the MOU signing ceremony in Putrajaya, Malaysia, Monday, Feb. 27, 2017. Salman arrived in Malaysia on Sunday to kick off a multi-nation tour aimed at boosting economic ties with Asia. (AP Photo/Vincent Thian) (The Associated Press)

Saudi King Salman, center left, walks with Malaysian Prime Minister Najib Razak following the MOU signing ceremony in Putrajaya, Malaysia, Monday, Feb. 27, 2017. Salman arrived in Malaysia on Sunday to kick off a multi-nation tour aimed at boosting economic ties with Asia. (AP Photo/Vincent Thian) (The Associated Press)

Saudi King Salman, left, sits together with Malaysian Prime Minister Najib Razak during the MOU signing ceremony in Putrajaya, Malaysia, Monday, Feb. 27, 2017. Salman arrived in Malaysia on Sunday to kick off a multi-nation tour aimed at boosting economic ties with Asia. (AP Photo/Vincent Thian) (The Associated Press)

Malaysian Prime Minister Najib Razak says oil major Saudi Aramco will invest $7 billion in a mammoth oil processing hub in Malaysia, making it the single largest investor in the Southeast Asian country.

The announcement Monday came on the second day of a visit by Saudi King Salman, who is on a multi-nation tour to boost economic ties with Asia.

Najib said Aramco and Malaysia's national oil company Petronas will sign the agreement on Tuesday. The $27 billion deal, known as the Refinery and Petrochemical Integrated Development Project, is being developed in Malaysia's southern Johor state bordering Singapore and is due to come online in 2019.

Najib said after meeting with the king that Aramco's investment is a "strong vote of confidence" in Malaysia's economy.