Sabah plans to set up biomass collection centre to woo investors
08 Aug 2023
The Sabah government is actively drafting a biomass policy in order to establish a biomass collection centre in the state.
Sabah Industrial Development and Entrepreneurship Minister Phoong Jin Zhe said the aim of the collection centre was to ensure a consistent and continuous supply of biomass raw materials (feedstock) in the state.
It is hoped that the creation of the centre will attract investors to this industry, said Phoong when replying to Elopura assemblyman Calvin Chong Ket Kiun who asked about the matter during the question and answer session at the State Legislative Assembly sitting.
He said a government-linked company would also be appointed to manage the biomass centre.
In addition to the policy, Phoong said they also planned to create an enactment so that the regulatory authority of the biomass industry be placed under the state government.
Moreover, he said based on his ministry’s research, palm oil biomass was not subject to the regulation of any state or federal government.
Phoong said they had also discussed the development of the downstream palm oil industry in Sabah with Deputy Prime Minister II and Plantation and Commodities Minister Datuk Seri Fadillah Yusof.
Accordingly, he said they would continue to meet with stakeholders to ensure that this downstream industry in Sabah proceeded to expand.
To a question from Sindumin assemblyman Datuk Dr Yusof Yacob on the state government plans to open new areas for industrial areas since the Kota Kinabalu Industrial Park (KKIP) is running out of space, Phoong said the state government was aware of the situation.
He stated that Chief Minister Datuk Seri Hajiji Noor had decided, during a Cabinet meeting, to develop an industrial park in Kimanis, Kota Marudu and Kota Belud.
This decision was made in light of the fact that KKIP and the Sipitang Oil and Gas Industrial Park (SOGIP) are nearly full of investors who have already committed.
In addition, he said the Cabinet had also agreed that the industrial park in Tawau also needed to be planned to ensure the availability of land for investors in the long term.
He said that his ministry planned to create a new industrial park with modern infrastructure, facilities and a convenient transport network for investors. The industrial park will follow the “plug and play” concept.
“Currently, my ministry is exploring a suitable approach for developing an industrial park, including establishing a free zone to attract both foreign and domestic investors,” said Phoong.