KUALA LUMPUR - THE Malaysian government is set to award a rare banking licence to China's largest bank as part of a major push to attract investments from the world's third-largest economy.

The official go-ahead for the Industrial and Commercial Bank of China (ICBC) to start operations, which will include four branches, is expected to be announced during Chinese President Hu Jintao's two-day state visit to Kuala Lumpur next week, financial executives and government officials familiar with the situation told The Straits Times.

'We hope to get the approvals ready for the visit. There will be other economic initiatives, which will include invitations to Chinese companies to participate in infrastructure ventures and take strategic stakes in Malaysian companies and projects,' a senior Malaysian government official said.

ljlopez@sph.com.sg

Read the full story in Wednesday's edition of The Straits Times.