Phoong (centre), Chan (right) and Yusof at POIC Lahad Datu.
KOTA KINABALU (April 26): Industrial Development and Entrepreneurship Minister Phoong Jin Zhe will work closely with Deputy Minister of Plantation and Commodities Datuk Chan Foong Hin to jointly promote the downstream palm oil industry development in Sabah.
Phoong has put forward several proposals to the federal government, including providing additional incentives for investors.
He emphasized that POIC Lahad Datu still faces some challenges in attracting investments, including high startup costs, the need to upgrade public utility facilities, and perceptions of safety levels on Sabah’s east coast region.
He added that besides providing additional incentives for investors, another crucial step is for the federal government to discuss and review the travel ban imposed on the east coast with the ambassadors of Japan and other Western countries.
Phoong stated that incentives and the travel ban are among the important issues he hopes to draw attention to so that POIC Lahad Datu can transform into an attractive and favorable investment destination.
The minister expressed these views during a visit to POIC Lahad Datu on Friday, accompanied by Chan，Deputy Minister of Science, Technology and Innovation Dato Yusof Apdal，Sandakan Member of Parliament Vivien 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 locals from Sabah.
“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 stated that although POIC Lahad Datu has container terminals, dry bulk and liquid bulk terminals, and 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.
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.
On March 16, 2023, the Federal Ministry of Finance issued approval for the establishment of the Free Trade Zone (FTZ) at the POIC Lahad Datu industrial site, and on March 11, 2024, it received principle approval from the Federal Ministry of Finance, which was converted into a free zone.
Phoong said that 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 authorized to implement Sabah’s latest biomass policy, he said that 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.
He believes that this initiative will be an important starting point for the development of Sabah’s biomass industry. Phoong emphasized 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 emphasized that the Sabah government is committed to establishing solid and dynamic relationships with all stakeholders and industry participants of POIC Lahad Datu to implement the free zone and biomass industry development of POIC Lahad Datu in an efficient, orderly, and structured manner.
He stated that achieving this goal requires close and continuous cooperation between the state and federal governments.
He believes 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.