KOTA KINABALU, July 29 — Sabah Industrial Development and Entrepreneurship Minister Phoong Jin Zhe has successfully concluded his inaugural visit to South Korea, where he engaged in a series of tightly scheduled meetings and inspections for six days.
This fruitful visit managed to attract potential investments amounting to approximately RM3.4 billion, according to a statement from Phoong yesterday.
The investments are aimed at establishing the electric vehicle (EV) and battery industry chain in Sabah, envisioning the establishment of high-impact industries, creating quality employment opportunities, and paving the way for Sabah’s industrialization and leapfrogging strategy.
Accompanied by a delegation comprising officials from various government departments, Phoong led the team, including Datuk Thomas Logijin, the Permanent Secretary of the Ministry of Industrial Development and Entrepreneurship; Lawrence Guandi Kimkuan, the CEO of Kota Kinabalu Industrial Park; Datuk Fredian Gan, CEO of POIC Lahad Datu; Ir Ts Mohd Yaakob Hj Jaafar, CEO of Sabah Electricity Sdn Bhd (SESB); representatives from Energy Commission of Sabah (ECoS), Sabah Energy Corporation (SEC), Sipitang Oil and Gas Development Corporation (SOGDC); as well as Henry Shim, Special Task Officer to the minister, and George Wong, Deputy Chairman of Invest Sabah Berhad (ISB).
The key focus of Phoong’s visit to South Korea was centreed around enhancing the value chain of high-impact industries, particularly when the globe is shifting towards the electric vehicle and battery revolution.
He expressed his aspiration for Sabah to secure a significant role in this landscape, thereby giving rise to genuine high-impact industries and fulfilling his vision of providing the youth with promising job opportunities in Sabah SK Group’s expanding investment in Sabah
Phoong conveyed positive news following the conclusion of his visit to South Korea.
SK Group, South Korea’s second-largest conglomerate, has agreed to expand its investment in Sabah. This comes after SK Nexilis has invested RM4.2 billion to construct the world’s largest copper foil manufacturing plant in Sabah.
Following discussions with Phoong, SK Group has committed to an additional investment of RM300 million. This additional investment will be utilised to optimize copper raw materials with modern technology, thereby increasing copper foil production.
This strategic move aims to further develop the battery industry chain and stimulate the growth of the electric vehicle industry in Sabah. Phoong also revealed that the copper foil manufacturing plant, located in Kota Kinabalu Industrial Park, is set to commence production by the end of this year.
Remarkably, SK Nexilis has already completed its first product inspection in Sabah, laying the foundation for full-scale production.
Upon arriving in South Korea, Phoong’s first visit was to the SK Nexilis copper foil factory in the city of Jeongeup-si, where he was personally received by SK Nexilis President, Yi Jae Hong.
This factory’s successful replication at Kota Kinabalu Industrial Park will mark SK Nexilis’ first overseas investment.
Furthermore, the copper foil plant in Sabah will showcase the latest and most advanced manufacturing technology, creating 500 high-quality, well-paying, and technologically advanced job opportunities in Sabah.
Phoong emphasized that while copper foil is an indispensable component in electric vehicle batteries, it represents only one part of the electric vehicle industry ecosystem.
He is actively engaging in discussions with SK Group to encourage further investment, with the aim of establishing a high-paying electric vehicle industry chain in Sabah.
The minister shared that the electric vehicle industry is poised to become the next automotive revolution. Conventional automobiles will gradually be replaced by electric vehicles, encompassing not only ordinary household vehicles but also commercial vehicles, buses, and industrial machinery. The potential and significance of this industry are unparalleled.
Nonetheless, Phoong acknowledged that Sabah has only just begun its journey towards industrialization and that much more solid groundwork is needed.
He stressed the importance of not being overambitious and instead focusing on actively improving local conditions, particularly addressing the issue of inadequate infrastructure, which remains a significant challenge and a top priority.
Upon his return to Sabah, he immediately convened internal meetings to coordinate investment requirements and actively address related issues, with the goal of realizing the investment projects by 2026 according to the investors’ deployment plans.
Continuing his engagements, the minister met with senior executives from BK Energy and G-Philos in Seoul, engaging in investment discussions with both parties. The companies have expressed their interest in initiating the first hydrogen energy project in Sabah.
In the future, there will be substantial demand for green energy in South Korea and other developed nations, with green hydrogen energy representing considerable potential for future industries. Recently, the Prime Minister has announced that Sarawak will be developing three more hydrogen plants and Phoong has expressed his hope that this project could also be realized in Sabah.
Phoong and his delegation also visited Busan Port, where they met with representatives from the Busan Port Authority and senior executives from Dongnam Circulator Centre. They discussed the company’s plan to invest RM40 million in establishing a logistics hub at the POIC Lahad Datu. Dongnam Circulator Centre has already completed the lease agreement with POIC Lahad Datu. Now, the focus is on actively following through with all the necessary procedures to ensure the swift implementation of this investment.
During his time in Busan, Phoong also delivered an investment promotion speech to representatives from about 30 companies. His proactive efforts in introducing Sabah to potential investors garnered positive responses and feedback. He extended an invitation to representatives of business associations to visit Sabah for further exploration, assuring them of his warm hospitality.
Before concluding his visit in South Korea, Phoong paid a courtesy visit to the Malaysian Ambassador to South Korea, Datuk Lim Juay Jin.
Apart from expressing gratitude for the ambassador’s assistance during his trip, he also earnestly requested the ambassador’s continued support in attracting more investors to Sabah.
Phoong also proposed the idea of organising an annual business forum in South Korea with a focus on attracting investors to invest in Sabah.
The minister has also mentioned that over the past decades, Sabah’s attempts at industrialization have not achieved the desired success. He believes that without industrialization, Sabah’s economic development cannot prosper, and its people cannot thrive. He quoted China’s experiences over the past 40 years of reform and opening up.
Hence, Phoong reiterated his dedication towards attracting investments, as he aims to lay a solid foundation for Sabah’s industrialization. This, in turn, would create more job opportunities, enabling the youth to pursue their dreams without leaving their hometowns.
According to records from SK Nexilis and SBH Kibing, over a hundred young individuals have already returned from other places to work in Sabah, yet there is still a significant shortage of workers, with a gap of up to 1,000 positions. Phoong warmly welcomed anyone interested in learning more to visit him at his state assemblyman office in Foh Sang, Luyang.
He further highlighted that both factories have also initiated several occasions of sending Sabahan technical staff to China and South Korea for training and learning new technologies. This is precisely what Sabah needs.
As of now, SK Nexilis has sent more than 100 Sabahans to South Korea for training.
Phoong emphasized that attracting foreign investments primarily aims at achieving “technology transfer,” training local young individuals in high-tech skills, and empowering the next generation to create advanced industries. This approach aligns with China’s experiences in reform and opening up, where the country has now independently mastered better and higher technologies.
In conclusion, Phoong expressed that the achievements of this visit to South Korea are fruitful, and he extended his appreciation to all civil servants and the officers who have supported him throughout the journey. He reassured that he would continue to exert every effort and not give up easily, and diligently serve the people of Sabah to bring positive change to Sabah. — Borneo Post Online
