Sabah set to get USD 3.1 bil investment via SSP
KOTA KINABALU, Malaysia
The Sabah government is set to receive a RM13 billion investment, its biggest single investment so far, via SSP to the Palm Oil Industry Cluster (POIC) in Lahad Datu.
The plan is to set up a petrochemical plant at POIC Lahad Datu to process naptha, a petroleum by-product, into a variety of petrochemical products for the world market.
This is the essence of the term sheet signed on March 6 between state-owned POIC Sabah Sdn Bhd, the developer of POIC Lahad Datu, and Burel Industries Sdn Bhd.
POIC Sabah was represented by its chief executive officer (CEO) Datuk Pang Teck Wai and Burel Industries by its executive chairman Per N. Brandtzag, with the ceremony witnessed by Chief Minister Datuk Seri Mohd Shafie Apdal.
Also present were Deputy Chief Minister cum state Trade and Industries Minister Datuk Wilfred Madius Tangau and Sabah State Secretary Datuk Seri Hashim Paijan.
Speaking at the event, Mohd Shafie said this was indeed good news for Sabah as it was potentially a game-changing investment that would put the state on the world map of petrochemical products.
Sabah needs foreign investment to diversify and strengthen its economy as well as create highly skilled jobs along with new business opportunities for fellow Sabahans, he added.
Mohd Shafie said Burel Industries made the right choice investing in Sabah, pointing out that the state has abundant resources as well as a strategic location while the state government will do its best to ensure the investment is realised.
MOU Signing Ceremony with CMC as EPCC & Equity Partner at MIDA Kuala Lumpur – Feb 2018.
Dr Mashhoor Al Madoodi, Al Rawda chairman and Mr Per Brandzagt of Burel Industries Dubai after the signing of the Heads of Terms in Dubai in Nov 2018.
Share Holders signing ceremony in KL Jan 30th 2019 witnessed by MIDA & Ministry of Entrepreneurship. Picture from Left Guna Mahalingam, ( CEO of Strategic Swiss Partners) Mr Per Brandtzag Chairman Burel Industries, Mr Siva ( Executive Director MIDA ) Dr . Mashhoor Ali Almadoodi (Chairman of AL Rawda Group) Dr Rosli Azad ( Special Officer Ministry of Entrepreneurship )
Indeed, the most and largest sustainable and successful industrial plants in Sabah have been the palm oil refineries and palm oil mills.
“Chemicals, whether from fossil source or oil palm, will continue to be the single largest and most important industrial sector in Sabah… Burel adds to that industrial importance,” said Shafie.
The investment will see about two million tonnes of petrochemical products, which will be shipped overseas via about 70,000 containers a year with some products going through POIC’s liquid bulk jetty.
It is also expected to create 3,500 job opportunities while the plant is under construction, and 1,500 jobs after its completion.
Meanwhile, Madius in his speech revealed that Burel Industries via SSP has obtained the Malaysian government’s approval for its project, and as well as securing 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,” he added.
State Secretary Datuk Seri Hashim Paijan; Strategic Swiss Partners AG, CEO & Founder Guna Mahalingam; SSP Global (Energy) Solution, President Datuk Benjamin Reynauld; Rawda Group – Saudi Arabia Chairman Dr Mashhoor Ali Al-Madodi; and CMC Vice President Kang Hubiao, among others, were also present.
Burel Industries is a partnership between Strategic Swiss Partners (Exclusive Financial Advisor), the Rawda Group - Saudi Arabia, CMC Chinese Government and POIC Lahad Datu – Sabah Government.
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- The Star