Business

Published: Thursday February 16, 2012 MYT 12:18:00 PM
Updated: Thursday February 16, 2012 MYT 2:12:42 PM

POIC Lahad Datu's success indicates state and fed govt on right track


SANDAKAN: The Palm Oil Industrial Cluster (POIC) in Lahad Datu, which opened six years ago, has attracted RM3 billion in investments so far from both foreign and local investors.

For Sabah's Industrial Development Minister, Datuk Raymond Tan Shu Kiah, the investments are an indication that the state government, assisted by the federal government, have set upon the right track with their efforts to develop the area.

A total of 30 foreign investors including from Europe, Singapore, South Korea and Japan as well as investors from Kuala Lumpur have made their investments there. The investors from Kuala Lumpur include those involved in biodiesel and fertilizers based operations.

The Lahad Datu POIC is a government effort to promote the downstream activities in the oil palm industry while adding value, creating job opportunities and enabling the transfer of technology in the industry, Tan said.

A total of 600 hectares have already been developed under the concept of sell and rent to investors to open up their factories.

With the high potential indicated, the state government opened up another 1,200-hectare area of land for the development of POIC at Teluk Darvel, he told Bernama here.

Tan said the POIC was a new approach for the industry in the state which in the past had seen its income dependent mainly on the sales of its natural resources such as oil palm, timber, rubber, and cocoa to overseas markets.

The process of producing products from its natural resources had been also done out of the country, he said.

He said the state government had come to realise this and have now taken the move to produce the goods within the state as this will increase the value of the commodities involved.

It was amid this that the government took the initiative to set up the Lahad Datu POIC in 2006 to encourage crude palm oil based downstream activities, he said.

The district of Lahad Datu was chosen for the POIC as it was among the districts in the east coast of Sabah with the largest oil palm plantations besides the Sandakan and Tawau districts.

"The CPO produced and processed by several palm oil mills around the region could be sent directly to the downstream activity based factories located at the POIC," he said.

The availability of a deepwater port in Lahad Datu was also a major factor for the choice of the area for the POIC as it provided easy access for big ships to the port for the transportation and loading of CPO.

The government had given attention for the development of the infrastructure and facilities to attract more foreign investors to POIC Lahad Datu, he said.

Tan said the federal government had also provided the support and allocation for the development of POIC Lahad Datu in line with its transformation concept under the New Economic Model.

Apart from the allocation given to the development of POIC Lahad Datu, a visit by Prime Minister Datuk Seri Najib Tun Razak to the area this Friday, February 17, is also a reflection of the commitment from the federal government to the progress of POIC Lahad Datu.

The federal government is committed to developing the area as model for the development of palm oil based downstream activities in the country, he said.

There are currently five POIC in the country with two in Sabah, namely one in Lahad Datu and another in Sandakan, and another three in Peninsular Malaysia.

"The POIC in Lahad Datu has seen the most success and has received the largest amount of investments, Tan said.

According to plans, Petronas will be also building a liquified natural gas storage terminal in Lahad Datu for the provision of gas to power plants being planned in the area.

The Sabah Oil and Gas Terminal and a power plant are expected to built at a cost of RM2.2 billion with their completion due in 2015. - BERNAMA

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