Investment

Opportunities at

POIC Lahad Datu

Bilson Kurus, Ph.D

POIC Sabah Sdn Bhd

International Joint Workshop on New Trends

In Nano-Bio Technology

28th November 2013, Hotel Le Meridien,

Kota Kinabalu, Sabah

• Wholly owned company of Sabah

State Government

• Established in January 2005 as the

first comprehensively developed

palm oil industrial cluster in the

world

• Catalyst in spearheading the State

industrialization efforts

• Provide basic and specialised

infrastructure

• Bridge between private and public

sectors in realising industrial

potentials

• Palm oil downstream industry to continue

as the core sector

• Two major new development directions:

Oil & Gas, Regional Logistics

• Other developments: Industrializing other

resources based sectors (eg. aquaculture,

foods, timber), clustering support sectors,

Free Trade Zone, Tender Port

Source: Yearbook of Statistics Sabah 2011

Sabah Malaysia

Plantation Area

(Million Hectares) 1.44 (28.4 %)*

5.08

Palm Oil Mills

(No.)

124 (28.9%)

(Capacity : 4.2 Mil.MT/Hr.) 429

Refineries

(No.)

14 (27%)

(Capacity : 7.4 Mil.MT) 52

Palm Kernel Crusher

(No.)

14 (30.4 %)

(Capacity : 2.3 Mil.MT) 46

Crude Palm Oil Production

(Million Tonnes) 5.54 (31.1%) 18.79

Crude Palm Kernel Oil

Production (Million Tonnes) 0.56 (26 %) 2.16

Source: Malaysian Palm Oil Board (MPOB) website, www.mpob.gov.my, 2012

(POIC Standard Briefing Notes, November 2013)

* Percentage of National Total

For Sabah, the palm oil downstream sector offers a significant new source

of revenue and a ready vehicle to further expand its economic development and prosperity.

Lahad Datu

Copyright © POIC, 2013

NATIONAL BIOMASS STRATEGY 2020 25 million tonnes of biomass can be mobilized nationally

The East Coast of Sabah collectively accounts for

the largest amount of economically viable oil

palm biomass

Within this confluence, Lahad

Datu and Sandakan offers the greatest

potential

Kota Kinabalu .

Medan

Dumai Bitung

Land area: 1.6 mil sq km

Population: 60 million

Strategic geographical location

~ close to South East Asia market

Proximity to source of raw

materials from other regions

Strategic shipping route

~ ideal for tran-shipment hub

Copyright © POIC, 2012

NO INFRASTRUCTURE PLANNED DEVELOPMENT STATUS

COMPLETION

1. Land Banks

(3,700 acres)

Phase 1 & 2: 1,150 acres

Phase 3a: 347 acres

Completed

In Progress

2. Road Dual Carriageway

50 metres wide

Completed

3. Water 3 Million Gallons (11.35million

litres) in Permastore Tanks.

Completed

4 Electricity Double Circuit Underground

cabling system.

Electricity supply up to a total of

50MW.

Completed

5. Telecommunication Underground cable Completed

6. Natural Gas Supply

RGT (Earthwork)

100 mmscfd In Progress

NO INFRASTRUCTURE PLANNED DEVELOPMENT STATUS

COMPLETION

7. Piperacks Provided by POIC to connect to investors’ lots

within Phase 1 to the liquid jetty.

Completed

8. Interchange Located within liquid terminal with boiler and

compress air facility

Pipeline are provided from interchange to berth

Completed

9. Port Facilities Liquid Terminal

20M draft : 500M from shoreline,2 berths

10M to 12M draft :60M – 70M from shoreline ,5

loading platforms, 600M berthing length

Dry Bulk Terminal

14M draft :2 outer berths to accommodate

vessels up to 30,000DWT

12M draft :2 inner berths to accommodate

vessels up to 10,000DWT

Proposed Container Terminal

Phase 3

15M draft

400M Length

Can accommodate vessel up to 65,000DWT

Completed

Completed

In progress

TYPE OF INDUSTRIES NO. OF ENQUIRIES

Biodiesel 49

Storage/Warehousing &Logistics 36

Fertilizer 23

Palm Oil Refinery 23

Biomass - Pulp & Paper (2) / Bio Composite Panels (1) / Plywood (1) /

Briquettes (2) / Medium Density Boards (1) / Pulp (2) / Manufacturing

Palm Pellet/Fiber (8)/ Bio Oil (3)

20

Palm Kernel Crusher / Expeller 7

Oleochemical 6

Bulking Facilities 7

Small Renewable Energy Power Program (SREP) / IPP / Power Plant 8

Food Based (3) / Phyto-nutrients (1) 4

Downstream Processing of Palm Oil / Palm Kernel / Upstream Palm

Kernel Oil Extraction Plant 2

Animal Food-Based Products 3

Support Industries (Spent Bleach Earth, Petroleum Supplier, Packaging

Plant, Treatment Plant, Recycle of Decanter Cake), Machineries Supplier,

Wood Vinegar, Activated Carbon, Iron & Steel , Commercial & Industry

Development, Cement Plant, Research, Polyurethane products, Building

Materials & Trading etc., Oil Storage Terminal, LNG Regasification

83

Source: POIC Standard Briefing Notes, November 2013

No. Acreage

Allocated

Purchase/Lease

Price (RM/mil)

Employment

Created

(Estimate)

Investment

Value

(RM/mil)

(Estimate)

Concluded

Sales 41 477.09 249.17 2,318 2,155.60

Lease

Agreement 3 20.22 1.27 81 217.00

Sales in

Progress 6 118.57 47.17 608 2,122.00

Total 50 615.88 297.61 3,007 4,501.60

Source: POIC Standard Briefing Notes, November 2013

• Raw materials: Lots of palm oil and palm biomass. Currently very limited value adding.

• Strategic project location: Centre of palm oil belt, deep & sheltered harbour (20m draft), 2 km from town centre.

• Market access: Strategic geographical location - proximity to South East Asia market.

• Strategic Partners: Proximity to plentiful supply resources and strategically located at the confluence of shipping lines with easy access to global markets.

• Infrastructure supports: Competitive infrastructure support & speed of completion.

• Technology driven: Commercialization of

Malaysia’s R&D technologies in palm oil and palm biomass.

• Appropriate Policies: Refinery, fertilizer, oleochemical, renewable energy biomass, oil & gas industry, port and logistic industry and commodities being the sought-after thematic focus.

• Relaxation of licensing criteria: E.g. approval

of refinery license – to locate as many as possible in order to form a cluster strategy.

• Large Industrial land for development: Areas

of 4,000 acres for future expansion and able to meet industrial needs .

• Logistics: Natural deep sea port, ideal for

activities, availability of port facilities – Liquid terminal (20m draft), dry bulk terminal (14 m draft), future container terminal(17 m draft)

• Government incentives: Pioneer status, investment tax allowance and other additional incentives.

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Source: POIC Standard Briefing Notes, November 2013

Source: POIC Standard Briefing Notes, November 2013

Source: POIC Standard Briefing Notes, November 2013

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All Rights Reserved