KUALA LUMPUR (Feb 2): Paragon Globe Bhd has signed a memorandum of understanding (MOU) with Solarvest Holdings Bhd to jointly develop a solar-ready factory and green industrial township in Johor Bahru.

"The purpose of this MOU is to bind the parties to the preparation and provision of the integrated renewable energy solutions for the project," said Paragon in a bourse filing.

The property developer said the project, located on 141 acres of industrial land in Desa Cemerlang, will upon completion be expected to yield 12.5 megawatt peak (MWp) in renewable energy capacity, making it one of Johor’s greenest and most energy efficient industrial townships.

To be financed by Solarvest through its Powervest financing programme, the project empowers Paragon to integrate renewable energy solutions into its township with zero initial capital outlay, the two companies added in a joint statement.

“We are keen for the project to attract additional foreign direct investment (FDI) into the state, which in 2022, saw a total of RM70.6 billion in FDI — the most of all the states,”  Paragon chairman Datuk Seri Edwin Tan Pei Seng said in a statement.  

Solarvest executive director and group chief executive director Davis Chong Chun Shiong said Johor is aiming to reach RM260 billion gross domestic product by 2030, with renewable energy and electric vehicles being two of its key focuses.

"The key initiatives like the Kuala Lumpur-Singapore high-speed rail and the Johor-Singapore special economic zone will draw investments for the region’s infrastructure development, thereby creating a positive spillover to the renewable energy industry," added Chong.

Paragon's share price closed down 0.5 sen or 2.27% to 21.5 sen on Friday, bringing the group a market capitalisation of RM161 million. Solarvest settled up one sen or 0.7% at RM1.44, valuing the solar-photovoltaic specialist at RM963 million.