Qatar's sovereign wealth fund plans to spend half of the US$10 billion it expects to invest in Malaysia on a petrochemicals complex aimed at transforming the Southeast Asian nation into a global hub for the oil and gas trade.

The Pengerang Integrated Petroleum Complex in the southern state of Johor is expected to help Malaysia compete with neighbouring Singapore to become the region's top petrochemical hub.

"We are in discussions about this. We may invest up to US$5 billion in the next three to four years into petrochemical projects here (in Pengerang)," Qatar Holding LLC vice chairman Hussain Ali al-Abdulla told reporters in Kuala Lumpur on Tuesday.

"Qatar Holding's total investment exposure to Malaysia will eventually exceed US$10 billion in various sectors," he added.

Pengerang is expected to accumulate RM170 billion (US$55.84 billion) in investments by the time it begins operations in 2016. The complex includes the RM60 billion Petronas Refinery and Petrochemicals (RAPID) project by state-owned oil firm Petroliam Nasional Bhd.

Qatar Holding will spend RM2 billion (US$656.92 million) to build a luxury Harrods-brand hotel in the city center. The hotel is jointly developed by Jerantas Sdn Bhd, linked to Malaysia's sixth-richest man Syed Mokhtar Al-Bukhary.

Qatar Holding spent RM100 million last year to establish itself as a cornerstone investor in agricultural commodities firm Felda Global Ventures Holdings Bhd. -- Reuters