KOTA KINABALU: The biggest single investment ever in Sabah – RM13 billion – is expected to come to POIC Lahad Datu.
This is the essence of the term sheet signed between state-owned POIC Sabah Sdn Bhd, the developer of POIC Lahad Datu, and Burel Industries Sdn Bhd.
Chief Minister Datuk Seri Panglima Haji Mohd Shafie Haji Apdal witnessed the signing at the Sabah Administrative Centre here on Wednesday and hailed the potentially game-changing investment that will put Sabah on the world map of petrochemical products.
The Chief Minister stressed on Sabah’s need for foreign investments to strengthen and broaden its economy, and is drawing on the global networking strength of the Ministry of International Trade and Industry, the Malaysian External trade Development Corporation and Malaysian Investment Development Authority.
He also revealed a state government plan to harness the expertise and resources of about 30 public-listed companies based in Sabah or have substantial investments in Sabah.
“We consider them potential partners for our development progress,” he told the gathering that included Deputy Chief Minister Datuk Seri Wilfred Madius Tangau.
Burel Industries is a partnership of Swiss, Saudi, Chinese and Malaysian interests. The plan is to set up a petrochemical plant at POIC Lahad Datu to process naphtha, a petroleum by product, into a variety of petrochemical products for the world market.
The investment envisages about two million tonnes of the petrochemical products which will be shipped overseas via about 70,000 containers a year as well as some products through POIC’s liquid bulk jetty.
POIC Lahad Datu has a container terminal as well as terminals for liquid and bulk cargo which have been in operation since 2013.
Burel Industries has secured a long term supply of naphtha from a Saudi source.
Datuk Dr Pang Teck Wai, the chief executive officer of POIC Sabah Sdn Bhd, signed for the government-linked company, while Burel Industries was represented by its chairman Mr Per Brandtzag.
Madius, who is also Minister of Trade and Industry, meanwhile said his ministry has set up a number of special task forces which seek to redefine the state’s industrialisation priorities with a hope to hasten its development.
In his welcoming address, Madius also revealed that Burel Industries has obtained Malaysian government approval for its project.
It has also signed a 20-year supply agreement for naphtha, as well as having secured several tranches of funding needed for the Lahad Datu investment.
The investment will have a significant impact on POIC Lahad Datu which, by anchoring on its comprehensive port infrastructure and strategic geographical location, is hoping to develop Sabah’s east coast into a regional and international logistics, shipping and industrial hub.