Kota Kinabalu: The State Government must explain the status of a cement plant project in the interior of between Pinangah and Tongod, in terms of its viability and transparency.
This is in the wake of rumours that a company collaborating with the State government linked company has pulled out after the area had been logged, which aroused suspicions on whether the project was intended to be carried out.
Lamag Assemblyman Datuk Seri Bung Moktar Radin said the plant was planned deep in the forest, lacked basic infrastructure such as no proper roads, electricity and water.
He criticised the logic behind setting up a cement plant in such a remote area, when one in an industrial zone like Kota Kinabalu Industrial Park (KKIP) is struggling to remain competitive.
“I want a clear explanation from the State Government about this because the people deserve to know. Instead, I have been informed by the villagers that there’s logging happening in the area.
“Was the cement factory actually intended to be built?
“And why is it being built deep inside the forest when it is difficult to even reach there by car and may need a helicopter. We deserve answers,” said the Sabah Umno chief when debating the Head of State’s policy address.
Bung added that Sabah lacks the electricity capacity needed to support energy-intensive operations like cement production, pointing out that even the current domestic supply is barely sufficient. Without reliable power, he said, serious investors will continue to stay away.
“We can’t even meet existing demand. How do we expect to power a cement plant in the middle of the forest?” he said.
In May last year, Kuamut assemblyman Datuk Masiung Banah defended the decision when the plant’s remote location was last questioned, saying Tongod was strategically located near raw materials and had the potential to create jobs and spur local development.
The cement plant project broke ground in April 2024 and was promoted as part of Sabah’s industrialisation push. It was introduced as a collaboration between the Sabah Economic Development Corporation (SEDCO), Setia Alam Sdn Bhd, and China-based Sinoma Bhd.
Bung also drew attention of the House to the controversial issuance of a prospecting license to Syarikat Lincah Hebat Utama Sdn Bhd, with limited capital of RM100.
“The company was reportedly granted rights to explore 43,000 hectares, but later reduced to 17,000 hectares. However, records show the company has liabilities amounting to RM17,000 and debts of RM3,800 — raising questions about its financial capacity to undertake a large-scale mining operation.
“How does a company with just RM100 in capital and such financial strain be allowed to operate a mining prospecting licence when it is nearly bankrupt? That’s the issue.
“Will this be the government’s stance going forward – to award projects to unqualified companies which may lead to State losses?” said Bung.
He also criticised the state’s ongoing struggles with basic amenities, calling water, electricity, and road access “Sabah’s three chronic problems”.
“More than 60 years after independence, we still haven’t resolved these three chronic issues. We change governments, we change Chief Ministers, but the problems remain.
“The time has come to put an end to this. Sabah should be ahead and more developed that other states.
“This must be ingrained in the minds of all leaders. Whoever wins the next election – please ensure that Sabah rises out of these problems,” Bung said, calling for a comprehensive and lasting solution.
He urged future leaders to prioritise infrastructure and public services, emphasising that the people are not asking for luxuries.
“The people of Sabah just want clean water in their homes, proper roads, able to send their children to school, to the hospital and enjoy reliable and stable electricity,” he said.
Bung also questioned the recent Syukur assistance of RM300 per month that is given to selected families out of 33,000 eligible families.
“What about the rest of the families who are eligible to receive the monthly aid?” he said.
He was sceptical over a massive insurance scheme reportedly covering 3.5 million Malaysians in Sabah.
“Are we expecting 3.5 million people to die, get into accidents, or take their own lives?” he asked. “Who benefits from this — the people, or insurance companies and middlemen? I want to know and the people also want to know.”
He called on the State Government to act transparently and responsibly, ensuring that all initiatives truly serve public interest.
Kuamut Assemblyman Datuk Masiung Banah reminded Bung who was formerly State Works Minister under GRS – once supported by him – in fact told the assembly to be patient as the government had devised strategic plans to resolve Sabah’s long standing ‘three chronic problems’.
“At the time, you (Bung) asked us the elected reps to tell our grassroots to be patient because a short, medium, and long-term strategy was being prepared.
“I believe the current government is continuing those strategies. Do you agree?”asked Masiung to Bung Moktar.
In a sharp response, Bung countered that although he had submitted a comprehensive three-inch-thick proposal, it was ignored —prompting his decision to leave the GRS government.
Kemabong Assemblyman Datuk Rubin Balang questioned whether Bung’s proposal had been formally tabled in Cabinet meetings, which the latter replied that he did but claimed no action was taken.
On another issue, Bung questioned how many SMJ homes had been completed as against how many had been abandoned particularly in his Kinabatangan parliamentary seat.
“These SMJ houses don’t bring benefit if the process isn’t transparent,” he said, claiming those who aren’t eligible have received SMJ units while those truly in need are left out.
Bung Moktar agreed with a claim by a Nominated Assemblyman Datuk Suhaimi Nasir that SMJ homes and Syukur aid were only being distributed to GRS members.
“Many GRS leaders require membership forms for housing and aid applications. In our party, we don’t do that. We welcome anyone who wants to fight for the people — no membership form required,” he added.
He further asserted that such practices were not rumours but reality on the ground, citing 100 per cent happening in his Kinabatangan parliamentary consttuency as well as in Beluran and Libaran.
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