Sabah receives fifth highest investment in Malaysia
30 Nov 2023
The Industrial Development and Entrepreneurship Ministry and other relevant agencies’ effort to coordinate and to ease investment in Sabah has bore fruit.
Its minister, Datuk Phoong Jin Zhe, said during the second quarter of this year, Sabah received RM9 billion in investment covering the main sectors of manufacturing and services.
“This investment value has made Sabah the fifth highest in Malaysia to receive investment in the period. The RM9 billion is larger than the total (investments) for the year 2021 which was RM8.6 billion,” he said.
He added that this was a positive trend and Sabah was becoming a favoured destination for international and local investors.
Phoong also said that the manufacturing sector had recorded RM1.3 billion investment from January to June, this year.
He also said that most of the investments are from domestic investors which shows that domestic investors are keen to invest in Sabah.
“My ministry is confident this investment will continue to increase by the end of this year,” he said in his winding speech for his ministry at the State Legislative Assembly sitting on Wednesday.
Phoong also mentioned the proactive commitment and coordination of the ministry and the relevant agencies through the State Manufacturing Investment Taskforce is translated by the state’s success in attracting foreign and domestic investors.
He also disclosed that the first shipment of copper foil weighing 102 tonnes and estimated amount of RM5.5 million were exported to the United States of America (USA) on 23 Oct 2023 by SK Nexilis Malaysia.
“This means the Sabah manufactured copper foil has been successfully exported to the USA,” he said.
He added that when the company becomes fully operational next year, it will increase its copper foil production to 57,000 tonnes per annum with product value estimated at RM2.8 billion.
He said that this will allow the manufacturing sector in Sabah to contribute to the Sabah Gross Domestic Product (GDP) and increase the state’s export value.
He added that with the company’s full capacity of 57,000 tonnes, it will make the copper foil factory in Sabah to become the biggest copper foil manufacturer in the world.
Phoong also said that his trade mission to South Korea recently had increased the confidence of SK Nexilis Malaysia Sdn Bhd to increase and expand their investment in Sabah.
“This is clearly seen when the investor through its subsidiary company, Curix Sdn Bhd, has agreed to invest in a copper granulation factory at KKIP with an estimated investment value of RM300 million. This investment has supported the operation of SK Nexilis Malaysia Sdn Bhd at KKIP and is expected to create 70 jobs and various economic benefits,” he said.
At the same time, the Kibing Group Company’s solar glass manufacturing factory at KKIP launched by the Chief Minister on 31 October 2023 will carry out the first production in the first quarter of next year.
The operation of this factory will also increase the contribution of the manufacturing sector in
Sabah’s GDP and subsequently increase the export value of Sabah, he said.
“My ministry also welcomes the proposals from Senallang (Datuk Seri Panglima Shafie Apdal) and Moyog (Datuk Darell Leiking) so that the investment from the Kibing Group in Sabah does not stop at producing solar glass but for the company to expand its investment covering the manufacturing of the complete solar panel (PV Solar),” he said.
He informed the August House that Kibing Group company has plans to expand its investment in the manufacturing of the complete solar panels in Sabah.
“This matter can be seen following the latest investment proposal submitted by the Kibing Group company to invest in a polysilicon manufacturing company which is among the main components in the making of solar panels.
“The estimated investment value for the polysilicon manufacturing factory is USD1.16 billion (RM5.42 billion) in two investment phases with 3,000 jobs created under the investment,” he said.
Phoong also said that currently, his ministry is coordinating investment to ensure it can be realised and turn Sabah into the main producer of the complete solar panel in the region.
“This year, Sabah has received investment from Syarikat Borneo Cement (Sabah) Sdn Bhd for the development of an integrated clinker and cement factory in Tongod with an estimated investment value of RM2 billion, through two phases of investment. This factory is expected to produce 1.75 million tonnes of cement per annum,” he said.
He said that with the current cement demand in Sabah of 1.4 million tonnes per annum, this factory is expected to not only meet the building industry current demand and export to neighbouring countries.
“At the same time, the integrated clinker and cement factory will reduce the dependence on raw cement materials from overseas. Hence, this investment is expected to create 1,000 job opportunities and raise the socio economy of the Tongod district and its neighbouring districts.”
Phoong also said that the investments received have created jobs and helped reduced the brain drain in Sabah.
“Among the conditions and guidelines for approval by the Federal Manufacturing License (FML) which are set by the Malaysia Investment Development Authority (MIDA) are for 80 percent of the full-time jobs at the investor companies must be filled by Malaysians,” he said.
“In addition to that, the State Government has set that 80 percent of the 80 percent minimum requirements for the full-time workforce must be offered to the people of Sabah,” he said.
He said that following the realisation of the investments, a few Sabahan youths who were working in West Malaysia and abroad had returned home to work in Sabah.
“I share these success stories from the sharing session and my meeting with a few Sabah youth who have been offered to work at SK Nexilis Malaysia Sdn Bhd and the Kibing Group on 1 August 2023 where they expressed their happiness and gratitude to return to Sabah with good salaries and at the same time, are able to look after their parents,” he said.
Source: Borneo Post
