KUCHING: Investments for the Palm Oil Industrial Cluster (POIC) Tanjung Manis is expected to come in at about RM270 million from new private investment within the next four years, Sarawak Timber Industry Development Corporation (STIDC) said.
This comes as POIC Tanjung Manis will start operating the RM70 million bulking facilities with an operational capacity of 64,000 metric tonnes in Phase 1. Additional investments worth about RM200 million is being integrated in Phase 2 for setting up refinery plant and other related processing activities.
This POIC will facilitate local millers to export their crude palm oil through Tanjung Manis. It is being supported by a port well equipped that is operated by STIDC’s wholly owned subsidiary company, Tanjung Manis Integrated Port (TMIP).
POIC Tanjung Manis is also strategically located to not only serve millers in Central region of Sarawak but also millers from neighbouring Kalimantan, Indonesia. There are already 33 crude palm oil mills operating in the Central region of Sarawak and supported by oil palm plantation of about 400,000 hectares. The industry benefits in term of shorter delivery distances covered to Tanjung Manis.
STIDC is now also looking at possibilities of other investors to come in for the downstream sector. Once the refinery is there, it will spur in more downstream processing activities.
Funded by the Ministry of Plantation Industries and Commodities (MPIC), the total budget allocated for the development of POIC under the 10th Malaysia Plan had amounted to RM135.7 million. Continuous support from both the Federal and State government agencies will spur more economic activities in POIC Tanjung Manis.
Apart from palm oil based industry, Tanjung Manis is also being promoted as location for other industries like ship building, timber processing, agriculture and aquaculture under the flagship project of Halal Hub Tanjung Manis Economic area or T-MEGA.
On to POIC Tanjung Manis’ bulking facilities, it is being built under the under a joint venture (JV) company between STIDC’s investment arm Pusaka Capital Group and KTS Group of Companies.
The total capacity of bulking facilities that has been put up in POIC Tanjung Manis has a maximum capacity of 64,000 metric tonnes, with a capacity of 32,000 metric tonnes ready for use.
In the later part, STIFC said they will have refinery and oleochemicals in future for the valued added products on oil palm base.
Since the development of Tanjung Manis in 1990, the state government has spent about RM3 billion on this development. A total budget of RM240 million has been approved by the government for infrastructure development at Tanjung Manis and is to be implemented in the next four years.
Meanwhile, total private sector investment in Tanjung Manis received as of today amounted to RM1.7 billion. The committed investment from private sector for housing amounted to RM98 million along with RM30 million for bitumen, which is to be implemented in the next four years.
Another key project in the area is the Tanjung Manis Halal Hub. With hopes to be fully implemented in the next 10 to 15 years, the project cost is estimated to be at RM8.58 billion. This is the largest Halal Hub growth area in Malaysia.
The hub is also expected to generate RM5 billion in contribution to gross national income (GNI) and create employment opportunities for 17,000 people.
Currently, STIDC is hoping for more potential investments in areas such as agriculture, aquaculture, shipbuilding, swiftlets, fishery-related industry, food processing and many others.