A RM200 million Integrated Coconut Processing Factory will be built in Langkon, Kota Marudu, following the signing of a Memorandum of Understanding (MoU) between Linaco Group and Sawit Kinabalu at Menara Kinabalu, Kota Kinabalu, on Mar 30.Witnessed by Chief Minister Datuk Seri Hajiji Noor, it is the second of four key components of the deal signed by the Linaco Group with the State Government on March 22, 2021, under the Hala Tuju Sabah Maju Jaya initiative for the setting up of an Integrated Coconut Blueprint to catalyse socio-economic transformation in Sabah.
The first component was establishing the Coconut Excellence Centre which was launched by the Chief Minister in Paitan, Beluran, last year. The project’s Land Development Plan and Environmental Impact Assessment (EIA) Report had since received approval from the Department of Agriculture and Sabah Environment Protection Department in November and December 2022, respectively.
Under the second component, a 30-hectare site was identified by Sawit Kinabalu for setting up the factory to be fully operational in five years. Langkon is strategically placed for the factory due to its central location, access to workers and proximity to Kota Kinabalu Port.
The factory, expected to employ more than 2,000 workers from the surrounding communities of Kota Marudu, Kota Belud, Kudat and Pitas, would need 700 to 800 tonnes of coconuts per day, providing local coconut farmers and medium to large-scale planters a thriving and sustainable market.
Linaco would also work closely with the State Government to provide smallholder farmers with a financial safety net by continuing to buy their harvests at a minimum floor price even during the lowest dips in the cyclical chart.
The two other key components of the Integrated Coconut Blueprint are the establishment of a Smallholder Farmers Scheme and the participation of Medium to Large Scale Planters.
Signing on behalf of the Linaco Group is Group Executive Director Joe Ling Hwa Ean while Datuk Bacho Jansie, Group Managing Director signed for Sawit Kinabalu.
Also present were Sawit Kinabalu Deputy Chairman Datuk Rubin Balang, board members and Linaco senior officers.
