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Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Esteel project delayed by licence approvals, says Sabah minister
Sabah industrial development minister Phoong Jin Zhe said the company and its financial capacity were vetted by the Malaysian Investment Development Authority. (Facebook pic) PETALING JAYA : Sabah's industrial development minister, Phoong Jin Zhe, 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 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 today. 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.
Free Malaysia Today
5 days ago
- Business
- Free Malaysia Today
Esteel's RM31bil project a vote of confidence in Sabah's future, says Hajiji
Chief minister Hajiji Noor said Sabah is committed to creating a stable and investor-friendly environment to drive economic growth. (Bernama pic) PETALING JAYA : Sabah chief minister Hajiji Noor has hailed the RM31 billion three-phased project by Esteel Enterprise Sabah Sdn Bhd as a major milestone for the state's economic development. He said it would generate jobs, foster innovation, and support local businesses. Speaking at the launch of the project's Phase 1 at the Sabah International Convention Centre yesterday, Hajiji thanked Prime Minister Anwar Ibrahim and Singapore-based Green Esteel Group for backing Sabah's industrial ambitions. 'This project is not merely a financial commitment, but it is a vote of your confidence in our vision and in our capacity to foster growth and development,' he said in his speech. Hajiji added that the steel manufacturing plant, located in the Sipitang Oil and Gas Industrial Park (Sogip), is expected to create a wide range of 'ripple effects' in sectors such as green technology and local entrepreneurship. He stressed that job creation must benefit Sabahans first and urged industry players to prioritise the training and upskilling of the local workforce. 'I want all industry players to invest in the training and development of our local workforce and to comply with this fundamental requirement as a core principle of our commitment to local development,' he said. Hajiji also credited more than a dozen federal and state agencies for their role in fast-tracking approvals for the Esteel project and assured the group that their 'trust is well-placed'. 'Together, we have the potential to achieve remarkable outcomes, leading the way for growth and development,' he said. Hajiji reaffirmed that Sabah will maintain its investor-friendly stance, noting that the state has implemented policies to attract more investors. 'We are committed to creating a conducive environment that nurtures investments and fosters collaboration,' he said, adding that besides Sogip, the Kota Kinabalu Industrial Park has seen increased tenancy over the past four years. Due to high investor demand, Hajiji said the state government had approved three new industrial parks in Kota Belud, Beaufort, and Kudat under its Blue Economy initiative.
Daily Express
22-04-2025
- Business
- Daily Express
Tamu Desa strategic for local entrepreneurs amid Sogip boom
Published on: Tuesday, April 22, 2025 Published on: Tue, Apr 22, 2025 Text Size: Ewon officiating the Tamu Desa Kampung Pelakat. Yusof is third from right. SIPITANG: Sindumin Assemblyman Datuk Dr Yusof Yacob has reaffirmed his commitment to grassroots economic development through the establishment of the Tamu Desa Kampung Pelakat, which he initiated as a strategic platform for local entrepreneurs to tap into rising market demand in Sipitang. 'This is more than just a weekly market—it's a game-changer for Sipitang,' said Dr Yusof during the launch and Hari Raya celebration. 'With the Sipitang Oil and Gas Industrial Park bringing in six major factories this year, the influx of 10,000 workers and their families—estimated at 25,000 people—will create unprecedented demand for local goods and services.' Yusof, who is also Chairman of Qhazanah Sabah Berhad, highlighted that existing employers in Sogip, including Petrochemical Fertiliser and upcoming players like ZLNG, Petroventure, Gibson, and Esteel—with a total projected investment exceeding RM30 billion—represent a significant opportunity for local economic spill over. 'We are already seeing a rise in the sale of home-grown products like seafood crackers, chips, and fruits. This is the right time for our entrepreneurs to scale up,' he said. Tamu Desa Kampung Pelakat adds to a growing network of community markets in the district, following those in Pekan Sipitang (Thursday), Mesapol (Friday), and Sindumin (Saturday), reinforcing Yusof's broader vision of creating inclusive economic corridors across rural Sabah. Looking ahead, he has proposed the opening of another Tamu Desa at Kampung Mendulong, a strategic junction between Jalan Tenom and Meligan/Mendulong, to expand access for more rural entrepreneurs. Launched by Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick, the Tamu Desa Kampung Pelakat is poised to serve as a vital entrepreneurship hub, offering local farmers and fishermen a dedicated space to market their agricultural and marine products every Sunday. Ewon announced that savings from the Tamu Desa 2024 initiative would be used to upgrade existing village markets, aligning with suggestions made by local leaders like Yusof. * 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. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
