Masiung defends RM1.2 billion Tongod cement plant venture

Daily Express

28-04-2025

Published on: Monday, April 28, 2025
Published on: Mon, Apr 28, 2025
By: Jonathan Nicholas Text Size: Speaking at his Hari Raya Open House on Sunday, Masiung was also questioned about supposed illegal logging, investor pullout and environmental risks associated with the plant. Kota Kinabalu: Kuamut Assemblyman Datuk Masiung Banah has dismissed opposition allegations surrounding the RM1.2 billion Tongod Cement Plant project, including that it is merely a cover to clear the forest for its valuable timber. Speaking at his Hari Raya Open House on Sunday, Masiung was also questioned about supposed illegal logging, investor pullout and environmental risks associated with the plant. On accusations that the project involves illegal timber harvesting, the Parti Gagasan Rakyat Sabah Vice President said the limestone extraction site is not a forested area. 'There is no logging taking place. The quarry spans 200 acres, not thousands as claimed. The project has undergone thorough environmental assessments, including an Environmental Impact Assessment (EIA), to ensure compliance with regulations. 'There are no investors pulling out. The project is proceeding as planned site clearing has already begun following the approval of the EIA,' he said. The plant in Kampung Kayawoi is expected to address the shortage faced by developers in Sabah once it is operational, said the Borneo Cement Sabah Chairman. He said there have been situations where developers and contractors had to queue and place orders up to two weeks in advance to secure supplies. He said the Sabah Energy Commission has agreed to supply the plant 40 percent of the electricity needed from Nabawan, while the investor has agreed to build a 26-kilometre access road to the site. He said Tongod deserves its own industrial boom after Sandakan and Keningau. He said the plant could source water from a nearby stream and a 26-km road is being constructed to support transportation needs. 'The plant is expected to produce 5,000 tons of cement per day, addressing Sabah's ongoing cement supply shortage an initiative the Chief Minister Datuk Seri Hajiji Noor. 'Local sourcing of raw materials would allow the plant to reduce cement prices by up to RM2 per pack. 'The project is subject to strict monitoring by federal agencies, including the use of green technology. 'We are committed to following all environmental protocols to minimise any potential harm,' he said. The opposition had criticised the project, saying nobody would build a billion-ringgit plus project deep in the forest which would require spending several hundred million ringgit more on road and other infrastructure and yet sell at the current market cement price of RM23 per bag. Masiung said the project, which is being developed in one of the poorest areas in Sabah, is expected to create up to 1,000 jobs. He said the plant would contribute to long-term economic growth by improving local infrastructure and reducing dependency on imports. 'The plant will not only provide jobs but also improve roads, electricity, and water supply in the region. Addressing concerns about the lack of infrastructure in rural areas, he pointed out that previous resource extraction in the region or even agricultural efforts to elevate the people from poverty had not led to sustainable development. 'This project aims to address that gap. This is an opportunity to create meaningful development and we are committed to ensuring the benefits are shared with the local communities,' he said. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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