Warisan claims Kibing deal does not benefit Sabah
Published on: Monday, December 11, 2023
Chen said if Warisan were back in power, the matter would be brought back to the negotiating table so that Sabah can secure a better deal.
Kota Kinabalu: Parti Warisan (Warisan) Supreme Council Member Chen Ket Chuin @ KC claims the Kibing Group’s glass manufacturing deal is “one-sided and does not benefit Sabah”.
He said State Industrial Development and Entrepreneurship Minister Datuk Ginger Phoong Jin Zhe told the last State Legislative Assembly sitting, that no photovoltaic solar panel manufactured in KKIP Sabah.
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“Kibing is not a good deal for Sabah, especially when it only involves a glass production factory, instead of a photovoltaic solar panel manufacturing factory.
“Worse, there is no revenue sharing in the export of glass produced in KKIP to China. By having a silica mining project in Kudat to produce good quality of glass, Sabah gets nothing except mining jobs with RM1,500 a month plus three meals,” he said in a statement.
Chen said if Warisan were back in power, the matter would be brought back to the negotiating table so that Sabah can secure a better deal.
He questioned why the Government could not ask for 25 per cent revenue from Kibing group, akin to SMJ Sdn Bhd having a 25 per cent equity stake in Petronas’ Chemicals Fertiliser Sabah Sdn Bhd (PCFSSB), involving a plant producing ammonia and urea in Sipitang.
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“Another request could be made to require Kibing group to build a 100 megawatt power plant for Sabah with solar energy to make up for the electricity supplied to the glass factory in KKIP by SESB at cheaper rate.
“Not only that, Kibing Group from China should pay for ‘restoration cost’ or compensation to Kudat or in particular, Balambagan Island.
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“Having a silica mining factory in the island taking away more than 400,000 mt of silicon sand a year will annihilate the island which is a primary attraction in the biggest marine park in Malaysia, better known as the ‘Tun Mustapha Marine Park’.
“We can have tourists from all around the world, especially China. Also, it is a Priority Conservation Area (PCA) under the Coral Triangle,” he said.
Chen said the State Government should also use the special loans offered under the BIMP EAGA-China Cooperation (BECC).
“The special loan provider is China Development Bank and the amount is USD 5 Billion,” he said, adding that Chinese Consul-General in Kota Kinabalu Dr Huang Shi Fang recently revealed that Sabah projects had not taken the loan last year,
“With the help of the special loans, Indonesia has stainless steel production capacity of 3 million tonnes per year, Brunei has a crude oil refining capacity of 8 million tonnes per year and Sarawak has a Kidurong Power Station with a capacity of 2,413MW.
“While Sabah is facing infrastructure deficit, the State government is not even looking into the development fund made available by China,” said Chen.
He said with China’s offer, particularly the Road and Belt Initiative, the State government should act proactively to get the financial assistance badly needed to address supply of clean water and electricity in Sabah.
“Since huge amount of silicon sand can be taken away from Kudat and deliver to KKIP to produce glass for Kibing group, Sabah government should propose to China, a rail road from Kudat to Kota Kinabalu.
“China is best known for construction of rail roads in the world. Quid pro quo. This will demonstrate the State government’s proclamation of ‘Sabah First Policy’ is real and not a political gimmick,” he said.
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