Chinese firms explore Sabah investment opportunities
19 Aug 2024
The immense potential of Sabah’s palm oil downstream industry has recently attracted three Chinese enterprises for an on-site visit in Sabah.
Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said these Chinese companies are looking into the potential avenues for investment and collaboration in setting up operations in Sabah.
In a statement today, Chan noted that over the past two days, representatives from Grand Oil and Food, Welle Environmental Group and Freepoints Commodities have been in Sabah to gain a deeper understanding of the current state and future prospects of the palm oil downstream sector.
“Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors. It is encouraging to see these efforts bear fruit, as they have successfully generated significant interest and investment intent from Chinese companies in Sabah’s palm oil downstream industry. My ministry and I warmly welcome this development. In response, we have worked closely with various agencies to arrange their visit, ensuring they can fully appreciate the vast potential Sabah offers, thereby enhancing their confidence and commitment to investing here,” said Chan.
The Chinese delegation first visited Sandakan, where they toured the Sawit POIC Sandakan Industrial Park, guided by Sawit Kinabalu Group, to inspect the facilities and port infrastructure. Sandakan member of parliament Vivian Wong was present too.
“I extend my gratitude to Datuk Frankie Poon, chairman of the Sabah Development Berhad (SDB), and State Assemblyman for Tanjung Papat, for his proactive cooperation and coordination through the Sabah government-linked companies during this visit. This has strengthened foreign investors’ confidence in Sabah’s economy and fostered close collaborative relationships,” Chan added.
Following their visit to Sandakan, the Chinese delegation traveled to Kota Kinabalu to participate in a roundtable discussion led by the Ministry of Plantation and Commodities, involving both federal and state government agencies and the Chinese delegation.
“This meeting primarily focused on exploring the investment opportunities in Sabah, and providing insights on the various incentives and support measures available for foreign investors looking to establish operations here,” said Chan.
Additionally, the Chinese delegation expressed keen interest in Sabah’s palm oil downstream industry, particularly in value-added processing of Palm Kernel Cake (PKC), and the production of biomass energy and Sustainable Aviation Fuel (SAF) from Palm Oil Mill Effluent (POME) and pre-treat used cooking oil (UCO).
Chan highlighted that as Malaysia’s leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry. By focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.
The roundtable meeting was attended by various state-level agencies, including the Sabah’s Ministry of Industrial Development and Entrepreneurship (MIDE), the Malaysian Palm Oil Board (MPOB) Sabah Region, the Malaysian Investment Development Authority (MIDA) Sabah, the Sabah Economic Development and Investment Authority (SEDIA), POIC Lahad Datu, Sawit POIC Sandakan, the Sabah Environmental Protection Department, and Invest Sabah.
Source: Borneo Post
