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Daily Express
08-07-2025
- Business
- Daily Express
Esteel's investment increased to RM31 billion: Phoong
Published on: Tuesday, July 08, 2025 Published on: Tue, Jul 08, 2025 By: Hayati Dzulkifli Text Size: Phoong said RM19.6 billion was for all three phases, but this adjustment happened due to changes in the technical design and scope of work, estimation of costs that could only be finalised after more detailed technical studies were completed. Kota Kinabalu: The total investment value of a multi-billion green steel manufacturing plant by Esteel Enterprise Sdn Bhd in Sipitang Oil and Gas Industrial Park (Sogip) has gone up to RM31 billion from its initial RM19.6 billion following detailed technical assessments and scope enhancements, said State Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe 'Regarding the total investment value, it is true that initially when the investors came in, they registered their interest and at that time projected a total capital expenditure (capex) of RM19.6 billion. 'But following further discussions, a lot of refinements were made, and with the updated specifications that were reviewed, the total assessed investment was revised to RM31 billion, as announced recently. 'So this figure comes from the latest review and submissions by the company, which covers a phased investment including the construction of the plant, jetty facilities, and various other supporting infrastructure,' he said when replying to a supplementary question of Kapayan Assemblywoman Datuk Jannie Lasimbang during question time at the State Legislative Assembly sitting. Jannie had sought clarification on the reasons behind the significant jump from RM19.6 billion in 2022 to RM31 billion recently. Previously, Phoong said RM19.6 billion was for all three phases, but this adjustment happened due to changes in the technical design and scope of work, estimation of costs that could only be finalised after more detailed technical studies were completed. This is reviewed from time to time, he added, 'This is a common practice. So initially the projected cost might have looked like one figure, but over the past three years, costs and scope have evolved, and technology has also advanced. 'Other several factors also took into account like currency exchange rates, rising construction material prices, and the growing costs of new technologies,' he said. Earlier, Phoong said Esteel had ramped up its investment and operational capacity in Sabah, signalling strong confidence in the state's economic prospects with several major milestones achieved in recent months. He said this confidence was evidenced by the signing of the Land Lease Agreement for the development of Phase 2 and Phase 3 at the Sipitang Oil and Gas Industrial Park (SOGIP) on December 31, 2024. He added the move was accompanied by a RM35 million deposit as an initial step to facilitate the investment's implementation. Following the issuance of the Manufacturing License (FML) at the end of January this year, Phoong said Esteel had taken proactive measures and systematically took follow-up actions to secure execution of its investment at Sogip, Sipitang. 'In February, Esteel signed a Natural Gas Supply Agreement with Sabah Energy Corporation (SEC) and Petronas. 'This plays a critical role in guaranteeing a stable and sufficient supply of natural gas and energy for the company's green steel manufacturing plant at Sogip. 'This step further strengthens the assurance of essential utility needs required for the success of this high-impact investment project,' he said. Phoong said this when replying to Jannie on the latest development and status of the Esteel project up to the first quarter of this year. 'After completing the redesign process to accommodate the expanded scale of operations, Esteel focused fully in March and April 2025 on conducting a transparent and competitive bidding process to select a contractor for the construction of a private jetty. 'As a result of this effort, Esteel signed the Phase 1 Jetty Construction Contract with China Communications Construction Company (CCCC) on May 30, 2025 — the same date as the official launch ceremony for the company's Phase 1 Investment Project, which was officiated by the Prime Minister. 'This milestone serves as a critical benchmark driving the implementation of supporting infrastructure necessary to realize this strategic high-impact investment,' he said. * 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
Daily Express
18-06-2025
- Business
- Daily Express
450 youths in Sipitang hope to land oil and gas jobs
Published on: Wednesday, June 18, 2025 Published on: Wed, Jun 18, 2025 Text Size: Dr Yusof with the young attendees. Kota Kinabalu: The State Government's commitment to prioritise local employment at the Sipitang Oil and Gas Industrial Park (Sogip) has been realised, with many Sipitang youths now working at the Sabah Ammonia Urea (Samur) Petronas Chemical Fertilisers Sabah. Sipitang Assemblyman Datuk Dr Yusof Yacob said the initiative, discussed years ago with Petronas and Sogip operators, ensures job opportunities for locals, whether through vendors, subcontractors, or direct employment. Advertisement 'The recent Sogip Open Day, organised by Petronas and other companies, interviewed 450 youths. We urge swift hiring decisions to absorb them into the workforce,' said Dr Yusof at the event's launch. He was joined by Sipitang MP Datuk Matbali Musah, Petronas officials and local leaders. With six companies set to operate in Sogip, including Petroventure, Gibson, Esteel and Sogip Port, total investments are projected at RM72 billion across 4,065 hectares. The construction phase alone will require 3,500 workers, potentially surging to tens of thousands once all plants are operational. The Samur alone will employ 500 permanent staff, with additional roles in maintenance, landscaping and pipeline upkeep. Dr Yusof noted that the influx of workers and their families could boost Sipitang's population to 25,000, spurring demand for housing, vehicle services, food supplies and retail. 'Locals must equip themselves with industry-relevant skills and explore downstream sectors like logistics, food services and childcare,' he added. The Sogip project aligns with the Sabah Maju Jaya development plan and is expected to drive Sipitang's economic growth for decades. * 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
16-06-2025
- Business
- Malaysiakini
Warisan rep demands proof of RM31b Esteel investment in Sabah
Sri Tanjong assemblyperson Justin Wong demanded that the Sabah state government provide clear evidence to support claims of a RM31 billion investment by Chinese firm Esteel Enterprise in the Sipitang Oil and Gas Industrial Park (Sogip). Wong (above), who is from the opposition party Warisan, said Sabah's Industrial Development and Entrepreneurship Minister Phoong Jin Zhe should stop making statements about the potential of the project unless he can prove its legitimacy.
Malaysiakini
16-06-2025
- Business
- Malaysiakini
Warisan rep demands proof of RM31b Esteel investment in Sabah
Sri Tanjong assemblyperson Justin Wong demanded that the Sabah state government provide clear evidence to support claims of a RM31 billion investment by Chinese firm Esteel Enterprise in the Sipitang Oil and Gas Industrial Park (Sogip). Wong (above), who is from the opposition party Warisan, said Sabah's Industrial Development and Entrepreneurship Minister Phoong Jin Zhe should stop making statements about the potential of the project unless he can prove its legitimacy.
Free Malaysia Today
02-06-2025
- 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.
