KOTA KINABALU: Development of the oil and gas activities in Sipitang would create a lot of secondary industries that would greatly benefit the state.
Industrial Development Minister Datuk Raymond Tan Shu Kiah yesterday disclosed that among the highly promising fields are electronics and solar glass.
“These new industries will bloom once gas is made available in Sabah, such as the solar glass. It would create demand for electronic components and appliances that would encourage the setting up of a chain of electronics industry here,” said Tan.
He gave oil palm as an example where the players are asking how to introduce different kinds of electronics related to the industry.
“For instance, in terms of communications, not just the basic line but how we can communicate to produce machines to help the industry.
“And there are products related to other industries, such as the oil and gas itself, that needed to be produced in order to reduce the cost and dependency on labour. There are huge potentials for electronics in these areas too,” said Tan during a press conference after launching the Supply Chain Asia’s Sabah Round Table, here.
The event, which was attended by players of the major industries, was aimed at creating a platform for networking and collaboration among the different industries to enable them to maximize and tap available business potentials.
He is optimistic that the electronic sector will have a strong footing in the state, especially with the resources readily available here.
“Even the Performance Management and Delivery Unit (PEMANDU), which is the agency overseeing the implementation of the New Key Result Areas (NKRAs) and New Key Economic Areas (NKEAs) has identified the electronic sector as one of earners to be developed in Sabah,” he said.
Meanwhile, Supply Chain Asia founder and president Paul Lim also believed the potentials created in the electronic sector would attract industry players to make investments here.
“With solar glass to be produced in Sabah, there will be demand for electronic components needed for manufacturing solar glass panels. While the manufacturers have the panels available here, they will still need the electronic components, which are going to come mainly from Taiwan,” he said.
Lim believes that Sabah’s strategic location helps as the state is a transit base to go to Taipei.
“So you can imagine, with all the materials consolidating here, the manufacturers may decide that instead of flying in or shipping in the electronic components all the time, they should set up an entire base right here.
“It will become like a campus of one major producer for all of the components the manufacturers need. This is how Penang succeeded,” said Lim.
On the proposed Sipitang oil and gas complex, Tan explained that the specific vehicle, similarly to the Palm Oil Industrial Cluster and the Kota Kinabalu Industrial Park, has been formed to steer the implementation of the project.
The project is headed by Chief Minister Datuk Seri Musa Aman, dubbed as the Sipitang Oil and Gas Development Corporation, where they will make sure the hub is developed fast.
He said 4,000 acres of land had been identified in Sipitang and they were working with Petronas on how the gas would be channeled into the district.
“Apart from the pipe to Bintulu, there will be a pipe to send the gas to Sipitang in order to facilitate what we are going to develop there,” he said, adding they had also picked specific sites for the anchor industries that would come in, including Petronas which is investing RM3 billion for developing an urea plant within the hub.
The Petronas engineering team has begun work and they must complete the process in two years to be ready for utilisation of the gas coming from the Sabah Oil and Gas Terminal (SOGT) in Kimanis.
According to plan, Petronas should land treated gas from the SOGT in 2012 and by then, all the industries that needed to be located in Sipitang have to be there to utilize the gas, or otherwise it will all be sent to Bintulu.
Tan disclosed that the solar glass industry, which was initially planned to be developed in KKIP, was now shifting to Sipitang.
“We want to make use of the gas to be landed there from the SOGT,” said Tan.