KOTA KINABALU: The State Government will maximise the use of technology andinnovation to improve productivity, competitiveness and development of the palm oil
sector.
Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor said growing progress in the palm
oil sector and improvement of infrastructures as well as government incentives provided
excellent business opportunities for industry players to venture into the downstream
sector.
Sabah has nine palm oil refineries with a processing capacity of 7.48 million tonnes per
year while two biodiesel factories are operating to produce 300,000 tonnes of biofuel per
year, he said.
Speaking at the Sabah Transfer of Technology (TOT) Exhibition and Seminar at Sabah
International Convention Centre (SICC) here today, Hajiji said the State Government has
developed two strategic locations namely the Lahad Datu and Sandakan Palm Oil
Industrial Cluster (POIC).
The POIC was set up as an integrated hub providing investment opportunities in the
downstream sector and port to support the export and import activities of palm oil.
Construction of the Pan Borneo Highway connecting Sabah, Sarawak, Brunei and
Kalimantan, Indonesia would also help enhance connectivity and transportation efficiency
including for oil palm products, he said, adding that the Indonesian capital’s move to
Eastern Kalimantan would create economic spillovers to Sabah.
For this reason, he said the State Government allocated RM65.97 million to the Industrial
Development Ministry including the Department of Industrial Development and Research
to empower the state’s industrial sector development.
During the 12th Malaysian Plan (12MP), a total of RM116.67 million was approved for the
Industrial Development Ministry to cater to the development needs in the Kota Kinabalu
Industrial Park, Lahad Datu POIC and the Sipitang Oil & Gas Industrial Park (SOGIP).
The Chief Minister noted that the collaboration between the Ministry with the Malaysia
Palm Oil Board (MPOB) in organising the TOT Sabah 2022 provided room for entrepreneurs and investors to venture into commercialisation in the palm oil downstream
sector.
The technology offered by MPOB ranges from food product formulation to oleochemical
and biomass products as well as green energy produced by refineries.
“I am confident that the involvement of local companies in the technology
commercialisation of the palm oil industry will generate revenue and contribute to the
development of the entire industry,” he said.
Hajiji pointed out that the development of an oleochemical factory has huge potential as
far as the downstream sector development is concerned since there is none in existence
in Sabah and Sarawak.
Apart from virtually not having any competitors in Sabah, investors in the oleochemical
sector could also be rest assured of a consistent supply of raw material in the form of
palm oil, which is more environmental-friendly and at competitive cost compared to other
raw materials, especially petrochemical.
He was also heartened to note two Sabah-based companies have partnered with MPOB
to produce value-added oil palm-based products.
The joint venture between MPOB and Sabah Softwoods Hybrid Fertiliser Sdn Bhd had
resulted in the production of GanoEF bio fertiliser to control Ganoderma disease in oil
palm.
The other was the joint venture between MPOB and the Sabah Sustainable Oil Palm
Planters Cooperative Consortium to commercialise the technology of oil palm-based
cleaning products, the first in Sabah.
“It opens up opportunity in the development of oleochemical through the production of
basic elements for cleaning and personal care products as well as industrial for the local
and export markets,” he said.
Hajiji said the State Government’s door is always open to domestic and foreign investors,
as well as those interested in building a win-win partnership between the public and
private sectors, particularly in the commercialisation of oil palm-related technology.-pr/BNN
