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THE GRS-BN State Government marked the first anniversary of the Hala Tuju Sabah Maju Jaya (SMJ) development plan 1.0 (2021-2025) with RM19.8 billion deals between Sabah Oil & Gas Development Corporation Sdn Bhd (SOGDC) and various investors.

SOGDC manages the Sabah Oil and Gas Industrial Park (Sogip) in Sipitang.

Chief Minister Datuk Seri Hajiji Haji Noor witnessed the signing of two sublease agreements and four memoranda of understanding (MoUs) at the Sabah International Convention Centre (SICC), Kota Kinabalu on March 29.

The first sublease agreement was between SOGDC and Petroventure Energy Sdn Bhd (PESB) for the development of a petroleum oil storage and refinery worth RM6 billion. PESB, a local company incorporated in Malaysia with paid-up capital of RM10 million, plans to build, own, manage and operate the petroleum oil storage and refinery plant to be built in Sogip. The second sublease agreement was between SOGDC and PMB, a public limited company since 2003 and listed on the Bursa main board for the development of its second silicon metal plant in Sogip with estimated investment value of RM2b.   This is part of the expansion plan for this company which is involved in manufacturing and/or distributing silicon metal products, access equipment and other aluminium related products and distribution of construction materials.

This latest development which will make Sabah one of the world’s main producers of silicon smelting would offer over 1,000 job opportunities apart from helping to boost the economy and contribute to the state’s development. As for the MoUs, the first was signed between SOGDC and SCIG, the biggest government owned investment group and comprehensive construction company in Shanxi Province, China, for the development of a green diesel plant with an investment value of RM4b. SCIG and SOGDC plan to collaborate with MPOB and ICC to use their technical expertise for the purpose of preparing a feasibility project which in turn would become a proposal project to be submitted by parties under the Shanxi-SOGDC MoU. MPOB is a corporate body set up under the Malaysian Palm Oil Board Act 1998 (Act 582) with the objectives, among others, to promote and develop the palm oil industry in Malaysia, while ICC is a high technology research and development (R&D) institute which has merged with China Academy of Science (CAS) and it is doing basic and applied research especially in the field of energy and environment, advanced materials and green chemistry. The second MoU is for the proposed development of a hydrogen-ammonia plant with an investment value of RM2b in Sogip. It was signed between SOGDC and a South Korean-based company SR. SR, which was established in Korea in 2011, is an investment and proprietary infrastructure consultant company for its clients in Korea/Southeast Asia and Middle East. Together with its local partner, EMOG/Cakara would assist SR and SOGDC to coordinate the development of a sustainable development project in hydrogen (ammonia) economic sector between foreign investor, Sogip and Federal government agencies namely Petronas, EPU, Mida, Might NanoMalaysia and so on. EMOG will act as the main coordinator for government relations and public-private sharing. Joint Cooperation Agreement (JCA) has been signed between SOGDC and SR on March 9, 2022, where SR has agreed to gather their resources and expertise for the proposed sustainable development project in the hydrogen (ammonia) economic sector in Sogip. The third MoU is on supplies of gas from Indonesia and a regasification facility in Sogip with an investment value of RM5 billion. This MoU was sealed between SOGDC and SISMA Energy, which plans to provide long-term and guaranteed natural gas supplies to Sabah for the existing domestic petrochemical market including the generation plant and for export market at a more competitive price. SISMA Energy also plans to develop a regasification terminal, liquefied natural gas (LNG) storage and terminal plant with the capacity of four million tonnes per annum (MPTA). Globaltec Formation Berhad (GFB) is a limited public company since 2012, listed in the Bursa Malaysia Securities Berhad main board. In 2012, GFB ventured into the oil and gas exploration and extraction activities and services business focusing on non-conventional oil and gas wells. GFB plans to supply natural gas to SISMA Energy for the domestic market, especially investors in Sogip. The fourth MOU was between SOGDC and ADSI Engineering (ADSIE) which plans to develop an independent 200 megawatt (MW) gas-powered power plant in Sogip with an investment value of RM800 million.

ADSIE, which specialises in engineering, scheduled development of work pack, acquisition, structure as well as pipe fabrication, electric installation and instrumentation, pre-commissioning and commissioning, intends to develop the independent power plant in Sogip based on private funding initiative (PFI). The event also saw the signing of a Joint Venture Agreement (JVA) between the State Government and BorneoMed Sdn Bhd for the development of Sabah Integrated Herbal Plantation (SIHP) with a value of RM1.2 billion per annum upon full development and 400 job opportunities.   Sabah recorded RM4.86 billion worth of investments in the manufacturing sector last year, the first year of the Hala Tuju SMJ development plan’s implementation, based on Mida (Malaysian Investment Development Authority) records. Apart from that, an MoU was also sealed between the Special Tasks Minister’s Office with National Higher Education Fund (PTPTN) because the State Government will implement the Bantuan Ihsan Tabung Pendidikan Negeri (Bistari) through PTPTN by offering RM100 in National Education Savings Scheme (SSPN) to 50,000 young Sabahans born from 2022. A Sabah Maju Jaya Showcase, exhibition involving state and federal agencies, and a Career Gig –SMJ 2022 were also held at the same venue as part of the activities.