MIDA: Sarawak Petchem’s RM7b complex to reinforce country’s status as top methanol producer in APAC
23 Jul 2024
The establishment of Sarawak Petchem Sdn Bhd’s RM7 billion methanol complex is a defining milestone in helping establish Malaysia as a leading methanol producer in the Asia-Pacific (Apac) region, says Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
“This will not only advance Malaysia’s capabilities in the chemical industry, as envisaged by the Chemical Industry Roadmap (CIR) 2030, but also drive job creation and stimulate our economy by providing opportunities to surrounding industries, as well as small and medium-sized enterprises (SMEs),” he said in a statement issued by the Malaysian Investment Development Authority (Mida) on Tuesday.
Mida said Sarawak Petchem’s methanol complex, which was launched in Tanjung Kidurong, Bintulu, is expected to drive further investments and stimulate the production of other downstream products.
The agency said this significant project, with an annual production capacity of 1.75 million tonnes, solidifies the company’s position as Malaysia’s second-largest methanol producer, after Petronas Chemicals Group Bhd (KL:PCHEM).
Methanol is a critical raw material for the production of chemicals such as acetic acid and formaldehyde, which are essential in industries including adhesives, solvents, and foams.
Mida chief executive officer Sikh Shamsul Ibrahim Sikh Abdul Majid described the milestone achievement by Sarawak Petchem as a testament to Malaysia’s attractiveness as a destination for large-scale, high-impact investments.
“All of this is a prelude. As we move forward with the New Industrial Master Plan (NIMP) 2030 and CIR 2030, we are committed to driving high-value addition and diversifying into higher value-added products that will propel our economy forward,” he said.
While expressing confidence that the project will encourage further growth and investment in the region, Sikh Shamsul Ibrahim gave assurance that Mida will continue rendering the necessary facilitation to Sarawak Petchem in the company’s journey to become a leading entity in the global petrochemical industry.
Sarawak Petchem chairman Tan Sri Dr Abdul Aziz Husain said the project would catalyse more economic development in the region, driving job creation, fostering sustainable growth, and strategically positioning Sarawak as a key player in the global petrochemical industry.
“The establishment of Sarawak Petchem has also provided a platform for Sarawak to develop and attract a skilled workforce to come and work in Sarawak,” he said, adding that, in fact, some Sarawakians have returned to work with Sarawak Petchem, to complete this project.
According to Mida, the methanol complex is part of the Sarawak state government’s efforts to establish Bintulu as a petrochemical hub in the region.
It said that the plant will require skilled personnel, predominantly engineers, technicians, operators and specialists, to oversee its operations, and there will also be secondary opportunities stemming from the plant’s operation, including services and maintenance.
Mida noted that Malaysia hosts a significant petrochemical industry, comprising over 100 companies that manufacture a diverse range of chemical products.
It said foreign investments in the country have increased in recent decades, driven by its access to oil and gas resources, extensive infrastructure, a strong services sector, and a strategically advantageous geographic location that serves important markets in Asia and the Middle East.
“Malaysia’s petrochemical production currently focuses on olefins, polymers, and aromatics, with ambitious plans to advance into more sophisticated speciality chemicals beyond basic commodities,” the agency added.
Source: Bernama
