The Malaysian government is building a CNY 3 billion (€407.7 million/$434 million) fishing base in the state of Kedah, backed by Chinese investment, reports The Straits Times.

The hope is the terminal -- which will be used as a base for China's tuna fishing boats operating in the Indian Ocean -- will turn the state into an international fish center in the next 10 years, according to Huang Hui-kang, China's ambassador to Malaysia.

During a visit to the site in Kuala Kedah fishing town, he said the project would bring world-class "aquaculture and fishery technology" to the industry in Malaysia.

The Kedah Integrated Fishery Terminal (Kift) is being planned by China's Lu Haifeng and the Kedah state government.

The development will involve an area of 2,340 hectares, of which 1,864 hectares will be used for the navigation of vessels.

Tuna caught in the Indian Ocean could be processed in Kedah and exported to China.

Lu Haifeng obtained a Malaysian license in mid-2015 to operate 20 tuna vessels, with each said to cost CNY 100 million (€13.6 million/$14.5 million).

Malaysian environmental groups oppose the giant project, saying reclamation works in the area would affect the livelihood of 2,000 coastal fishermen and kill fish-breeding grounds.

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