Kota Kinabalu: Improving investment environment and prudent management have combined for an optimistic outlook for state-owned Palm Oil Industrial Cluster (POIC) Sabah which was recently rebranded as a logistics hub, ports services, investment destination and palm oil downstream activities.
Based on the 2023 budget and business plan approved by the Board of Directors last December, POIC Sabah Sdn Bhd is projected to turn into a profit-making GLC in 2023.
It has started paying back its loan to the Sabah State government with the first repayment of RM 2 million.
Chairman of POIC Sabah Sdn Bhd (developer of POIC Lahad Datu) Yong Teck Lee and its Chief Executive Officer Datuk Fredian Gan here revealed this to the Chief Minister Datuk Seri Hajiji Haji Noor during a courtesy call on the latter here, Wednesday.
Hajiji, on behalf of the State government, received a mock cheque of RM2 million being part payment of a State loan towards the development and operations of the industrial park.
Fredian, who took over the reins of the company less than two years ago, said the maturing company and positive investment environment will be key to POIC Sabah fulfilling its various obligations.
He added that while he shared a view that government-linked corporations should be profit-oriented, POIC Sabah’s role in promoting industrialisation in Sabah requires longer gestation and capital input for requisite infrastructure.
POIC Lahad Datu has been expanded into logistics by leveraging on its integrated port facilities located in proximity to the resource-rich BIMP-EAGA territories.
This has attracted the interest of a major port group in China who sees POIC Lahad Datu as a gateway to a BIMP-EAGA with a market of 90 million people.
Northport Malaysia, based in Klang, Selangor also sees POIC Lahad Datu as a strategic port to the Southern Philippines and Kalimantan as well as the large market for halal products across BIMP-EAGA.
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