Bolkiah: Investors not bothered by security issues, travel advisories
Published on: Friday, April 22, 2016
Kota Kinabalu: Security issues and unfavourable travel advisories do not have direct and indirect impact on the confidence of the existing and potential investors in Sabah."Investors are more concerned about other things such as facilities and raw materials. In POIC, we received a total of RM1.7b in investment despite the Lahad Datu intrusion and a series of kidnapping in the area," said Industrial Development Assistant Minister Datuk Bolkiah Ismail.He said this when replying to Kuala Penyu Assemblyman Limus Jury during the question and answer session at the State Assembly sitting here, Thursday.ADVERTISEMENT Bolkiah said investors come here because of Sabah's viability and affordability of its feedstock, its superior location in the middle of busy shipping routes, land viability, infrastructure, utilities including water and electricity, amenities, residential and great geo-political situation."The political stability we enjoy under the leadership of Chief Minister Datuk Seri Musa Aman attracts them to be more confident to invest in the State."We also have skilled labour. We provide training centres to produce skilled labour and this is an attraction to them. Other than that, we also give them incentives such as tax reliefs.ADVERTISEMENT "But more importantly, they come here because they want to forge joint-ventures with our government through its agencies and GLCs. So, no, security is not why they come or do not come," he said.Bolkiah said despite the economic uncertainties, Sabah is still capable of attracting foreign investors to invest in the State.
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According to an official statistics from the Malaysian Investment Development Authority (MIDA), approved foreign direct investment for Sabah's industrial sector in 2015 stood at RM257.3m.The manufacturing sector had become foreign investors' main focus with food industry generating an investment value of RM9.9m, followed by timber industry which raked in RM5m, paper and printing industry RM3.3m and the machinery and equipment industry became the biggest puller, recording RM239.1m in foreign investment value."Main foreign investment source came from Australia with investment value of RM239.1m, followed by South Korea at RM14.9m and the United Kingdom with RM3.3m," he said.Other than these, there are also other foreign investors from Poland, Holland, Indonesia, China and the United States who are showing serious interest in exploring and considering the advantage and potential of Sabah as their investment destination, especially in industrial parks such as KKIP, POIC Lahad Datu and SOGIP.Among the industries they are looking at include oil and gas processing, downstream processing of palm oil and palm oil-based biomass processing to produce products of high value-added for the international market."It is estimated that these projects will generate an investment value of RM2.95b. The ministry is currently following up the talks with the investors to convince them to invest in Sabah in the near future," he said.Stay up-to-date by following Daily Express’s Telegram channel.
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Meanwhile, Bolkiah added that the ministry is looking at possibilities to develop new industrial parks in Sabah.Once the Pan Borneo Highway is completed, he said, it is not impossible that more districts would be included in the ministry's plan to help spur the local economies.