Minister on overcoming the POIC challenges
Published on: Monday, April 29, 2024
Phoong with Chan, Vivian and Fredian.
Kota Kinabalu: Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe has put forward several proposals to the Federal Government, including providing additional incentives for investors, to promote downstream palm oil development in Sabah.
He emphasised that POIC Lahad Datu still faces some challenges in attracting investments due to high start-up costs, the need to upgrade public utility facilities and perceptions of safety levels on Sabah’s East Coast region.
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Phoong said this during his visit to POIC Lahad Datu, accompanied by Federal Deputy Plantation and Commodities Minister Datuk Chan Foong Hin, Federal Deputy Science, Technology and Innovation Minister, Datuk Yusof Apdal, Sandakan Member of Parliament Vivian Wong Shir Yee and Palm Oil Industrial Cluster (POIC) Sabah Sdn Bhd Chief Executive Officer, Datuk Fredian Gan.
“POIC Lahad Datu has successfully attracted RM4 billion in investments and created 4,217 job opportunities, with the majority of workers being Sabahans.
“This effort not only benefits investment in Sabah but also stimulates economic growth in Lahad Datu District and the entire East Coast of Sabah, including the service, industrial, agricultural and construction sectors,” said Phoong
He said although POIC Lahad Datu has container terminals, dry bulk and liquid bulk terminals as well as other facilities to meet the needs of investors and users in various industries, it will continue to develop and improve infrastructure based on the needs of manufacturers and investors.
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He added that this enables investors to conduct business more smoothly and further establishes POIC Lahad Datu as a primary choice for domestic and international investors.
To achieve its goals and role, POIC Lahad Datu is committed to continuing to promote economic development through the industrial sector with the support of the Sabah and Federal Governments.
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On March 16, 2023, the Federal Finance Ministry issued approval for the establishment of a Free Trade Zone (FTZ) at the POIC Lahad Datu industrial site, and on March 11, 2024, it received principle approval from the same Ministry, which was converted into establishing a Free Zone (FZ).
Phoong said in addition to efforts to develop the free zone, another initiative of POIC Lahad Datu is to promote the development of the biomass industry.
Referring to POIC being authorised to implement Sabah’s latest biomass policy, he said Sabah’s biomass policy is different, but it complements the national biomass policy.
He believes that this initiative is an important step to ensure that Sabah can control the supply of raw materials for the biomass industry development, empowering the industry to build Sabah’s downstream industry.
To implement Sabah’s biomass policy, POIC Lahad Datu will establish biomass collection centres which will play a crucial role in systematically and centrally collecting biomass materials throughout Sabah.
Believing that this initiative will be an important starting point for the development of Sabah’s biomass industry, Phoong emphasised that currently, the policy is still in its early stages of implementation, and the agency will closely communicate and cooperate with industry stakeholders to ensure that the policy ultimately benefits the future development of the industry, rather than negatively impacting it.
He also emphasised that the State Government is committed to establishing solid and dynamic relationships with all stakeholders and industry participants of POIC Lahad Datu to implement the industrial park’s free zone and biomass industry development in an efficient, orderly, and structured manner.
Achieving this goal requires close and continuous cooperation between the State and Federal Governments, he said, believing that through this approach, POIC Lahad Datu can achieve its goals of accelerating economic growth and industrial development, especially on the East Coast and throughout Sabah.
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