RM2.5b project: Now YB says Sedia wrong again

Kota Kinabalu: The location of the proposed RM2.5 billion tourism-based integrated development project is not in Semporna but Tawau, said Sri Tanjong Assemblyman, Chan Foong Hin.Clarifying the clarification by Sabah Economic Development and Investment Authority (Sedia) on Tuesday, he said it was neither in Sipadan nor Semporna but alongside the Kalumpang River, Balung, which is in Tawau.

Nonetheless, Chan welcomed the proposed project, which is expected to leverage Tawau's tourism industry to a higher pedestal.

Chan who had once raised the issue of withdrawal of the Sabah Forestry Department's support for the management of the 1,000 hectares of mangrove forest by Sipadan Mangrove Resort (SMR), had also confirmed with the resort operator that the issue has been resolved.

"So let's move on to develop Tawau as tourism hub." Chan said.

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Tawau has the best potential to be developed as a tourism hub, he said, adding that the strategic location of SMR has caught the eye of Diving Best, a China company involved in diving activities, which wants to invest RM2.5 billion to further expand and develop it as the new gateway to Sipadan Island.

It was in fact an expansion of the existing SMR, an Entry Point Project (EPP) listed under the Regional Cities and Corridors programme with an estimated investment value of RM491 million, and set to generate RM114.9 million in Gross National Income (GNI) in 2020.

Diving Best is known for running the Sanya Diving Training Centre in Sanya Cinty of Hainan Province. The collaboration between Diving Best and SMR is the result of successfully matching the China investors with a local business partner after their first meeting with Sedia.

The location of the proposed project was decided on private land belonging to SMR, with a land size of 280 acres and was chosen for its close proximity to Sipadan Island, 35 minutes by speedboat.

The proposed project envisages development into five zones, namely residential area, commercial development, high-end resort, diving school and administrative centre. The estimated RM2.5 billion project is expected to welcome one million tourists annually while providing 4,000 jobs.

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"From an initial local investment of RM491 million (SMR) and now expanded to a RM2.5 billion China investment project, I hope the local authorities can upgrade the infrastructures of Tawau in line with the proposed development and reduce any unnecessary red tape to ensure the smooth implementation of the project which can bring economical betterment to the district.

"Besides, Esscom's establishment is vital to ensure security of the tourism zone," he said.

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