Sabah rep slams minister's explanation of RM31bil steel project delay
Sabah assemblyman Calvin Chong said the state government should reveal all agreements with Esteel Enterprise Sabah Sdn Bhd as the public have a right to know the full details of such a major project. (Bernama pic)
PETALING JAYA : A Warisan assemblyman has slammed Sabah industrial development minister Phoong Jin Zhe's explanation of the delays in the RM31 billion Esteel Enterprise steel project, calling it 'misleading and irresponsible'.
Elopura assemblyman Calvin Chong also asked how such a major project could be announced in November 2022 without confirmed approvals, especially given the federal moratorium on manufacturing licences for the steel industry at the time.
'Phoong's statement that the project timeline was based on assumptions is baffling and irresponsible,' he said in a statement today.
'Does Phoong truly understand the scale and implications of a RM31 billion investment? This is not just the largest in Sabah's history. It is the largest in Malaysia since independence.'
Chong called on the state government to disclose all agreements and terms involving Esteel Enterprise, saying the public deserved full transparency on a project of such scale.
'I support the investment if it can be verified in terms of implementation and financial capability. But all agreements between the government and the investors must be made public in a fair and transparent manner,' he said.
He also questioned the delay in implementation, noting that the manufacturing licence was only approved in January 2025, more than two years after the project was announced.
'What happened to the thousands of job opportunities promised in November 2022?' he asked.
On Monday, Phoong said the delay in the RM31 billion steel project was due to setbacks in obtaining the necessary approvals and securing a supply of natural gas.
He said the initial projection for Esteel Enterprise's factory to begin operations in the fourth quarter of this year was based on the assumption that approvals would be obtained without delay.
However, he said Putrajaya's two-year moratorium on manufacturing licences for steel-related industries created complications, with special approval only granted on Jan 24, 2025.
Phoong also said the project cost was revised upward from RM20 billion to RM31 billion after the company factored in the cost of building the plant, jetty, and related facilities.
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