Kota Kinabalu: The State Ministry of Industrial Development and Entrepreneurship has denied a viral claim that Syarikat Esteel Enterprise Sabah Sdn Bhd’s (Esteel) investment in Sabah has been shelved.
Its Minister Datuk Phoong Jin Zhe said the allegation is unfounded and baseless.
Advertisement“The implementation of Phase 1 of the investment by Esteel in Sabah is proceeding according to plan with the following progress:
The Development Plan (DP) for the construction of this green steel manufacturing plant has been approved by the Sipitang District Council. The Environmental Impact Assessment (EIA) Report for the earthwork has been approved by the Department of Environmental Protection (JPAS). Soil investigation works for the Phase 1 factory construction site have been carried out. Implementation of Full Mission Shiphandling Simulation (FMSS) which is one of the components of Marine Traffic Risk Assessment (MTRA) for the jetty development has also been carried out. Soil investigation works in the sea area for the jetty development are underway. Terms of Reference for the Environmental Impact Assessment (EIA) Report have been completed for submission to the Department of Environment (DOE) for approval.
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“The Sabah State Government is very grateful to the Federal Government for the approval of this licence which has been requested for a long time. This decision reflects the Federal Government's continued commitment and support in strengthening and developing the manufacturing sector in Sabah,” Phoong said, Friday.
AdvertisementHe said the approval not only opens up new opportunities in industrial development, but also helps enhance Sabah's competitiveness as a major investment destination in Malaysia.
In addition, he said, the State Government remains committed to realising this investment, especially in meeting Esteel's key needs, including natural gas supply.
Advertisement (adsbygoogle = window.adsbygoogle || []).push({});He said this commitment was expressed through the Exchange of Agreement Documents for the supply of natural gas between Petronas, Sabah Energy Corporation (SEC) and Esteel, scheduled to take place on Feb. 28, 2025.
Based on the latest information provided by Esteel, Phoong said site preparation work and subsequent factory construction is expected to begin in May 2025.
Therefore, any allegations that the company is delaying investment due to a loss of confidence in the current State Government are completely untrue.
“I, together with the Ministry and Sabah Oil & Gas Development Corporation (SOGDC), have continuously engaged with Esteel's top management to coordinate and facilitate their investments in Sabah.
“These efforts have clearly borne fruit as Esteel continues to demonstrate its continued commitment to their investments in the state.
“As proof of Esteel's commitment to continue investing in Sabah, the Land Lease Agreement for Phase 2 and Phase 3 investments in the Sipitang Oil and Gas Industrial Park (SOGIP) was signed on Dec 31, 2024. This proves the investor company's confidence in the stability and support of the State Government in realising this high-impact investment,” Phoong said.
