To be based at Palm Oil Industrial Cluster (POIC) in Sabah, Malaysia, the new venture is scheduled to be completed in the second half of 2016.
Genting will own a 72% stake and Musim will hold the remaining stake in the new venture.
The refinery is expected to have an annual production capacity of 600,000 metric tons.
Genting Plantations chief executive Tan Sri Lim Kok Thay said: "This palm oil refinery will be part of the larger Genting Integrated Biorefinery Complex that Genting Plantations is setting up for the production of high value-added downstream products."
Musim Mas Group executive chairman Bachtiar Karim said: "The pooling of Musim Mas Group’s extensive experience in processing and marketing of refined palm oil products and Genting Plantations’s strong supply base will create synergy for the stakeholders."
Genting Integrated Biorefinery Complex intends to create high-performance palm oil derivatives at significantly lower production costs and capital investments than conventional petroleum-based processes.
