Spin-offs from FDI in hydrogen industry to benefit local companies, community
21 Nov 2023
Local companies and communities are expected to benefit from the economic spin-offs of foreign direct investment (FDI) in the hydrogen industry, said Datuk Dr Hazland Abang Hipni.
The Deputy Energy and Environmental Sustainability Minister said there are currently two hydrogen projects being undertaken by Sarawak Economic Development Corporate (SEDC) at the Petchem Industrial Park in Bintulu.
“Local companies and communities will benefit from the jobs and business opportunities from the economic spin-off created to support the projects and expansion of the supply chain, both downstream and upstream activities,” Dr Hazland said today when responding to a question during the second day of State Legislative Assembly (DUN) sitting.
The projects include a partnership with a consortium of companies from South Korea with a proposed investment of RM11.3 billion, where the joint development agreement was signed on Oct 16.
Another partnership was established with Japanese investors with a proposed investment of RM8.5 billion, where the joint development agreement was signed on Oct 25.
Dr Hazland said a partnership was also formed with Petronas Technology Ventures Sdn Bhd with FDI worth RM30 million and domestic direct investment of RM100 million.
“Ministry of International Trade, Industry and Investment (Datuk Amar Awang Tengah Ali Hasan) is discussing with an Australian investor on its proposed hydrogen project worth RM5.6 billion (US$1.2 billion) in Samalaju Industrial Park,” he added.
Dr Hazland said four frameworks need to be prepared before the government undertakes any green investment or related projects, which covers the legal, technical, finance and taxation, and human resources frameworks.
Separately, he said the state government intends to intensify the installation of floating solar and offshore wind energy to further greenify the state energy grid, which will see investments from local and international partners.
Other investments include the Carbon, Capture, Utilisation and Storage (CCUS) initiative, biotechnology, and the microalgae cultivation project at Sejingkat power plant.
He pointed out the factors driving FDI in Sarawak are a stable government, business-friendly investment policies, efficient government machinery, availability of natural and renewable resources, young talent workforce, and availability of land for development purpose.
Source: Bernama
