Johor expects RM60 bln additional investments for third phase of PIPC
28 Nov 2023
The Johor state government is expecting RM60 billion in additional investments covering various projects at the Pengerang Integrated Petroleum Complex (PIPC) in Pengerang, Kota Tinggi, involving the third phase of the development.
State Investment, Trade and Consumer Affairs Committee chairman Lee Ting Han said that the third phase of the PIPC development will cover the years 2026 to 2031, in line with the PIPC Master Plan.
He said seven various projects in the pipeline are expected to be realised during the development of the third phase of PIPC, including the construction of solar farms, bio-refineries and facilities producing nitrile-related products.
“These projects are still at the feasibility study stage. It is still early. Those projects are likely (to be realised) in the 2026 to 2031 phase because, like chemical and petrochemical projects, they involve massive capital expenditure.
“Once they (investors) decide to invest, they will be there for the long term. Therefore, the typical feasibility study would take two to three years or maybe more. So, these companies have been very cautious,” he told reporters on the sidelines of the Johor state assembly here today.
Lee added that the PIPC, which is currently in the middle of the second phase (2020-2025), has received a committed investment of almost RM140 billion, which is 90 per cent of the target set in the master plan.
“A total of 7,400 job opportunities have been created in the Pengerang area during the middle phase and for the third phase, we hope to add another 10,000 job opportunities,” he said.
Earlier, Lee (BN-Paloh), when replying to an oral question from Aznan Tamin (BN-Tanjung Surat), said that in Budget 2024, which was approved by the Dewan Rakyat yesterday, the federal government announced that the development of the PIPC will continue to be supported through the provision of special tax incentives or investment tax allowances.
He said the initiatives are in line with the New Industrial Master Plan (NIMP) 2030 and Chemical Industry Roadmap 2030, in which the chemical and petrochemical sector is one of the prioritised industries.
Aznan had asked what the government’s incentives were to ensure that the Pengerang area remains strategic and becomes the main choice of foreign investors.
Through Budget 2024, the federal government announced that the PIPC, which is a 9,269-hectare downstream oil and gas and petrochemical industry area in Pengerang, will be made a hub to further develop the chemical and petrochemical industry.
Source: Bernama
