Malaysian oil and gas company Petronas plans to build a $US20 billion factory complex to produce chemicals and refine crude oil.
It will be located in the southern state of Johor, bordering Singapore.
Petronas says the location is close to deepwater ports, international shipping lanes and areas of high energy demand.
The project will include a crude oil refinery, a naphtha cracker and a complex that produces petrochemicals and polymers. It is expected to be commissioned by the end of 2016.
The BBC reports the refinery will have a processing capacity of 300,000 barrels per day for the production of petroleum products such as gasoline, jet fuel, diesel and fuel oil.