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Free Malaysia Today
17 hours ago
- Business
- Free Malaysia Today
Phoong's aide dares Warisan rep to raise steel project delay in state assembly
Sabah industrial development minister Phoong Jin Zhe previously 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. (Facebook pic) PETALING JAYA : An aide to Sabah industrial development minister Phoong Jin Zhe has challenged Elopura assemblyman Calvin Chong to raise his concerns on the delayed RM31 billion Esteel Enterprise steel project in the state assembly. Chan Loong Wei said the upcoming state assembly is the right platform for the Warisan rep to voice out any issues he has with the project as an elected representative. 'If he is genuinely curious or wishes to seek accountability, I challenge him to raise this matter in the upcoming state assembly sitting,' he said in a statement. Chan, who is Phoong's political secretary, said Esteel Enterprise is a company that is owned by a credible Singaporean businessman, who also owned a Top 100 Private Company in China in 2023. 'They (Esteel) have real credentials and real capital. In fact, their acquisition of Southern Steel Bhd in Penang in October 2024 was widely reported in Sin Chew Daily and other business media,' he added. He said that Phoong remains committed to driving inclusive economic growth, creating decent-paying jobs for Sabah youths and turning the state into a competitive, investor-friendly region. Earlier today, Chong slammed Phoong's explanation of the delays in the Esteel Enterprise steel project, calling it 'misleading and irresponsible'. He 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. Chong called for the state government to disclose all agreements and terms involving Esteel Enterprise, saying the public deserved full transparency on a project of such scale. 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. 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.
Free Malaysia Today
20 hours ago
- Business
- Free Malaysia Today
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.
Daily Express
2 days ago
- Business
- Daily Express
Phoong explains delay in RM31 billion Esteel project
Published on: Wednesday, June 04, 2025 Published on: Wed, Jun 04, 2025 Text Size: Phoong maintained that the company and its financial capacity were vetted by the Malaysian Investment Development Authority, as required for the approval of its manufacturing licence. Kota Kinabalu: State Industrial Development Minister Datuk Phoong Jin Zhe (pic) has sought to explain the delay in a RM31 billion steel investment project, saying this was caused by setbacks in securing the relevant approvals and natural gas supply. He said the initial projection to have Esteel Enterprise Sabah Sdn Bhd's factory begin operations in the fourth quarter of this year was based on the assumption that the approvals could be obtained without delay. However, he said, 'some obstructions' surfaced with Putrajaya's implementation of a two-year moratorium on approving manufacturing licences for steel-related industries. Phoong said this was acknowledged by Prime Minister Datuk Seri Anwar Ibrahim when he launched the project, which was first announced in November 2022, at the Sipitang Oil and Gas Industrial Park (Sogip). 'The special approval was only obtained on Jan 24, 2025, which affected the project's original timeframe,' he said in a statement. Phoong said technical assessments and negotiations with various stakeholders for the supply of natural gas to the factory had also pushed back the project's implementation. He was responding to Warisan's Elopura Assemblyman Calvin Chong, who had urged the State Government to come clean about the delay in the Esteel investment. Chong said the land lease agreement between Sogip and Esteel, signed in November 2022, stated that the first phase of the project would begin in the fourth quarter of 2023 and was expected to be completed within two years. The former DAP man also questioned the authenticity of the investment, claiming it was hard to find information on Esteel online, and also raised questions on the increased investment amount from RM20 billion to RM31 billion. Phoong maintained that the company and its financial capacity were vetted by the Malaysian Investment Development Authority, as required for the approval of its manufacturing licence. 'The latest amount of RM31 billion is a result of the company's latest review and calculation, which includes the construction of the plant, jetty and other related facilities. 'Value adjustments are common among phased development projects,' he said. The first phase of Esteel's investment in Sabah, estimated to be worth some RM6.4 billion, was officiated by Anwar at the Sabah International Convention Centre on May 30. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malaysiakini
2 days ago
- Business
- Malaysiakini
Steel project row heats up as minister's aide hammers Warisan rep
An aide to Sabah Industrial Development and Entrepreneurship Minister Phoong Jin Zhe has condemned Warisan assemblyperson Calvin Chong for 'repeatedly launching irresponsible attacks' over the Esteel Enterprise Sabah Sdn Bhd project. Chan Long Wei said the strategic and transformational RM31 billion investment is set to reshape Sabah's industrial landscape and create thousands of job opportunities for our local talents.
Malaysiakini
2 days ago
- Business
- Malaysiakini
Warisan to GRS: RM31bil steel project based on assumptions?
Warisan assemblyperson Calvin Chong questioned how the project schedule for the RM31 billion Esteel Enterprise Sabah Sdn Bhd steel manufacturing plant was made based on assumptions. In a statement yesterday, he accused Sabah Industrial Development and Entrepreneurship Minister Phoong Jin Zhe of misleading the public. 'Phoong said the original schedule for the Esteel Enterprise project, with a total investment of RM31 billion, was...
