Kota Kinabalu: The State Industrial Development and Entrepreneurship Ministry has embarked on various endeavours which include adopting a leapfrogging strategy to accelerate the development of Sabah’s industrial and entrepreneurial sector.
Its Minister Phoong Jin Zhe said a leapfrogging strategy is crucial to position Sabah as an industrial state, by targeting high-impact and green technology industries, among others, which is expected to create more high-income and high-skilled job opportunities.
He said more than 2,500 job opportunities have been created through the investment on a copper foil manufacturing facility by South Korea’s SK Nexilis (M) Sdn Bhd and a solar glass manufacturing factory by China’s Kibing Group.
“Both facilities which are being developed at the Kota Kinabalu Industrial Park (KKIP) will start operating in the fourth quarter of this year.
“Additionally, the Ministry has coordinated with the two investors to send over 135 local engineers to South Korea and China for skills training and gaining high-tech knowledge,” he said when presenting his 100-day report card in his office at Wisma Kewangan, here, Wednesday.
Phoong, who is Luyang Assemblyman, helmed the Ministry on Jan 11.
He assured that he would hold continuous meetings with SK Nexilis and Kibing Group to ensure the success of the projects, adding he encouraged both investors to ensure that 80 per cent of employment opportunities are given to Sabahans.
On infrastructure needs in industrial parks, Phoong said the Cabinet has approved the KKIP road project to avoid congestion, while a task force has been established to study, plan and attract investors to develop a rail system in KKIP and Kota Kinabalu.
Other developments include the declaration of the Lahad Datu POIC as a Free Trade Zone (FTZ), which has been approved in principle by the Finance Ministry in March.
“A FTZ development is a necessary catalyst for growth in Sabah’s industrial sector. The Lahad Datu POIC is expected to attract more investments and create more job opportunities through the FTZ,” he said.
Phoong has also upheld the principles of professionalism and transparency through practising the Government to Government (G2G) and Go To Genuine Investor (G2GI) policies to attract more genuine investments and decrease the middlemen culture.
Additionally, he said, the Ministry alongside the Sabah Economic Advisory Council (Seac) has taken the initiative to explore potential economic cooperation with the Jilin provincial government in China and made a visit there in February 2023.
“It is estimated that a total of 31 members of the Jilin provincial government delegation consisting of government and industry officials will make a return visit to Sabah on April 12 to 14 to discuss further cooperation in various economic sectors, including the industrial sector.
“Apart from Jilin Province, China, I have also responded to an invitation to visit the Malaysia-China Industrial Park in Kuantan (MCKIP), a project between the Guangxi, China Government and Pahang Government,” he said.
He said the collaboration creates point-to-point trade and investments which are mutually beneficial for both governments, adding he has discussed with China officials to explore the potential of creating a similar industrial park in Sabah.
Phoong said the Ministry is ever committed to entrepreneur development and has rebranded the Ministry by adding the word “Entrepreneurship” to its name.
“The rebranding is important and parallel with the Entrepreneur Development and Cooperatives Ministry (Kuskop) under Datuk Ewon Benedick’s leadership.
“My Ministry has also successfully obtained a bigger mandate and allocation in managing entrepreneurial affairs, which is in line with the Deputy Prime Minister’s recent announcement,” he said.
He added it was in line with his aspiration to develop Sabah’s entrepreneurship, of which 98 per cent comprises small and medium industries (SME) focusing only on the local market.
“Only two per cent is exported to Peninsular Malaysia and the international market. This trade deficit is one of the factors that contribute to Sabahans’ higher living costs compared to those living in the peninsula,” he said.
As such, to reduce dependency on imported products, Phoong said his Ministry and the Industrial Development and Research Department (DIDR) have established seven SME Product Centres.
They are at Wisma Tun Fuad Stephens, Beaufort, Ranau, Papar, Tuaran, Oceanus Supermarket and Kota Marudu, while three more will soon be established in Lahad Datu, Tawau and Penampang.
Phoong added that an SME Product Centre has also been established in the peninsula, dubbed as “Authentic Sabah Mart”, located in GM Klang Wholesale City, Selangor.
He said the Ministry has also taken the initiative to increase allocations for several entrepreneurship programmes such as the SME-UP programme from RM10 million to RM15 million.
“I am also establishing a Rebranding, Design and Packaging Scheme, and will introduce the Sabah Authentic Hologram.
“I have also established an
entrepreneurship fund, the Sabah Entrepreneurship Aspiration Fund (SEAF), of which RM1 million has been approved. I am also waiting for Kuskop’s approval for a matching grant of another RM1 million to help entrepreneurial programmes and activities.
“The purpose of this special fund is for entrepreneurs to carry out upscaling programmes, pitching competitions and also to help establish exporting abilities,” he said.
Phoong has also drawn up a paper to establish the Sabah Entrepreneurs and Small Traders Development Council, which will involve agencies and stakeholders, to coordinate the effectiveness of entrepreneurship-related programmes.
Other plans include creating a One-stop Centre with Kuskop, to help entrepreneurs receive information on entrepreneurship programmes.
In another development, Phoong has also endeavoured for the sales tax of RM200 per tonne of scrap metal exported out of Sabah to be replaced with a 10 per cent sales tax instead, following complaints from the Scrap Iron Metal Association.
“The Cabinet also authorised DIDR to register all scrap metal collectors who have weighing equipment and grant State Government Approval (SGA) licences to ease monitoring,” he said.
In addition, Phoong said his Ministry would also launch the ninth Sabah Industry Excellence Award (AKIS) in recognition of Sabah companies that excel in product production and service delivery.
Meanwhile, Phoong said he would embark on a working visit to China to hold follow-up discussions with the Kibing Group and E-steel as well as China investors who have expressed interest to invest in Sabah to strengthen bilateral economic ties.
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