Hong Kong based private equity (PE) firm Evergreen Offshore Inc will launch the Asia Pacific One Belt One Road (OBOR) Tourism Industry Fund in Malaysia, the first country in the region it has chosen to launch the sector-focussed vehicle.
Without disclosing the size and other details about the fund that will be launched this Friday, Evergreen said that it has chosen to debut this fund in Malaysia as the country is deemed an ideal investment destination for long term gain.
“The fund is managed by Ever Centurion Ltd, also based in Hong Kong. AFV Consultants Group Sdn Bhd is exclusive strategy partner in Malaysia involved in project assessment and due diligence process,” Evergreen said in a statement announcing the launch of the PE fund.
OBOR is a development strategy and framework proposed by Chinese leader Xi Jinping that focuses on connectivity and cooperation among countries primarily between the People’s Republic of China and the rest of Eurasia.
“Malaysia is strategically situated on the south belt. In addition to the Chinese government, many private sectors, including Evergreen, have come together and aspire to contribute to the success of the ambitious initiative by investing in relevant projects in the OBOR trade route,” the statement said.
Malaysia’s tourism industry is expected to grow to $62.56 billion (MYR262.2 billion), 15.8 per cent of GDP in 2025 from $14.56 (MYR61 billion) in 2015 last year.
Tourist arrivals to Malaysia increased by 3.7 per cent in the first half of this year while in the same period, tourist expenditure increased by 10.7 per cent. Further, China tourist arrivals had increased by 32.1 per cent. The growth also came largely from Singapore, Thailand, Indonesia and Brunei.