KUALA LUMPUR - Malaysia's PRG Holdings on Thursday signed a collaboration agreement with China's Jiangsu Provincial Construction Group's Malaysian unit, which will pave the way for a potential 5 billion ringgit ($1.18 billion) construction project.

In a statement, PRG said its subsidiary Premier JPC has entered into a collaboration agreement with Jiangsu Provincial Construction Malaysia (JPC), to venture into highway, bridge, port, housing development, as well as project investment and financing projects in Malaysia and internationally.

The collaboration will also include the potential 5-billion -ringgit construction project to be developed by PRG and the subsidiaries of Syarikat Perumahan Negara, a housing development company under the Ministry of Finance in Malaysia.

Lua Choon Hann, PRG Group managing director, said during the signing ceremony that the partnership is another cross-border collaboration by a Malaysian company with its counterpart from China, which is in line with Malaysian government's aspiration for more participation in the China-proposed Belt and Road Initiative.

"We value the skill and knowledge transfer from JPC's extensive experience in more than 10,000 construction projects. Moving forward, PRG will provide its knowledge of the domestic market to make this cooperation a success," he said.

Earlier in July, both parties signed a strategic cooperation agreement to regulate the rights and obligations as a shareholder in the joint venture entity, Premier JPC. The percentage of shareholding by PRG in Premier JPC will be 51 percent while the remaining 49 percent will be held by JPC.