KOTA KINABALU: A RM200 million Integrated Coconut Processing Factory will be
built in Langkon, Kota Marudu following the signing of a Memorandum of Understanding (MoU) between the Linaco Group and Sawit Kinabalu at Menara Kinabalu today.
The MoU signing ceremony was witnessed by Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor. The MoU is the second of four key components of the deal signed by the Linaco Group with the State Government on Mar 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 land has been identified by Sawit Kinabalu, for the setting up of 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 KK Port.
The factory, expected to employ more than 2,000 workers from the surrounding communities of Kota Marudu, Kota Belud, Kudat and Pitas, will 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 will 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, Mr. 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. -pr/BNN
