Published on: Friday, January 25, 2008 |
Kota Kinabalu: Foreign funds will contribute significantly to the RM9 billion in investment that is expected to be drawn to the palm oil industrial cluster in Lahad Datu (POIC Lahad Datu) during the 18-year Sabah Development Corridor (SDC) initiative.
"I think more than half (of the RM9 billion) of the FDI (foreign direct investment) we can get," said Sabah's Industrial Development Minister Datuk Dr Ewon Ebin.
He said the POIC Lahad Datu, one of the high impact projects under the SDC, would be playing a pivotal role in promoting downstream palm oil processing industries and acting as catalyst to further expand the State's oil palm sector.
Ewon said invitations had been extended to local and foreign investors to participate in the cluster's oil palm-related ventures such as biodiesel, oleo-chemical, refineries and bulking installations.
The oil palm growth area was expected to generate more than 8,000 jobs during the SDC implementation period from 2008 to 2025, he said.
The SDC is the brainchild of Prime Minister Datuk Seri Abdullah Ahmad Badawi and is intended to accelerate development in the State.
Abdullah will launch the initiative at the Sepanggar Container Port here on Jan 29.
The SDC will cover every corner of the state to ensure that everyone in the State gets to enjoy the benefits it brings.
Currently, there are 17 companies, which bring in investment of about RM1.78 billion, operating in the POIC Lahad Datu. These include biodiesel and fertiliser-based outfits.
Ewon said 20 biodiesel licences had been approved but so far only two biodiesel companies had started operations.
The "slowdown" in implementation of the other biodiesel plants was largely due to the high price of crude palm oil, according to him.
Two biodiesel companies, SPC Biodiesel and Global Biodiesel, which started their operations in the cluster last year, currently have a combined capacity of 300,000 tonnes annually.
Ewon said apart from the locals, the current investors in the cluster included those from South Korea, China, Australia, England and India.
Seoul-based Eco Frontier Co, one of the world's leading proponents in renewable energy production, has committed to invest up to RM350 million to build a combined heat and power plant at POIC Lahad Datu to produce electricity and steam by using oil palm biomass such as empty fruit bunches.
Several potential Japanese investors had also expressed interest in the POIC Lahad Datu and among their proposals was the setting up of a bio-energy plant, Ewon said.
He also said a total of RM1 billion would be needed for continuing development of the POIC Lahad Datu in the next 18 years.- Bernama
