Kota Kinabalu: Sabah Electricity Sdn Bhd (SESB) signed a Memorandum of Understanding (MoU), Monday, with SK Nexilis for the supply of electricity to SK Nexilis Copper Foil Manufacturing Plant based in the Kota Kinabalu Industrial Park (KKIP).
SESB Chairman Datuk Seri Wilfred Madius Tangau said under the MoU, which is an electricity supply agreement, a special tariff will be given to SK Nexilis with the aim of attracting foreign investments to Sabah.
“Through this MoU, special privileges will be given to SK Nexilis as SESB’s largest industrial power consumer (LPC) when its plant is fully operational later,” he said during the signing ceremony, here.
The estimated consumption is 70MW with an estimated sales of 45,360MWh per month.
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The SK Nexilis plant’s power supply was already commissioned in March.
“This project has been identified as one of the high-impact projects with the scope of providing two switch rooms and related works at PMU Kayu Madang and stretching the 132kV underground cable to accommodate the load demand from the SK Nexilis factory.
“Among the works carried out by SESB is supplying, delivering, completing the installation, testing and commissioning of electrical equipment.
“To reduce the cost of this project, SESB has taken the initiative by identifying the nearest injection point, which is the supply of energy through the Kayu Madang 132kV PMU to the SK Nexilis factory with a contract value of RM33.7 million,” he said.
This project, he said, has been implemented on a fast-track basis within six months – conventionally, it would be 18 months.
“The project started on June 23 last year and was fully completed on February 22 this year. Commissioning works were carried out on March 3 this year.
“With the completion of this project, the ability and effectiveness of power distribution to SK Nexilis will be guaranteed and able to meet the needs of the manufacturing plant to operate more productively and further help in the economic generation of the State.”
To this end, he said, SESB is committed to functioning as an enabler for the economic growth of Sabah.
State Industrial Development and Entrepreneurship Minister Phoong Jin Zhe said the SK Nexilis factory is expected to be completed by the end of next year.
“It will provide employment opportunities for local Sabahans. Of the 400 job opportunities created, locals will fill 80 per cent.
“With a total investment of RM4.2 billion, this is the largest investment signed and officially established in Sabah,” he said.
Phoong said Sabah recorded foreign investment amounting to RM9.9 billion based on the Malaysian Investment Development Authority’s (Mida) report for the January-September 2022 period, thus placing Sabah as the third largest recipient of foreign investments in Malaysia.
“Among the sectors chosen by foreign investors are oil and gas, energy, agriculture, fisheries, tourism, manufacturing and others.”
He said Sabah recorded an investment of RM11.5 billion in various economic sectors in 2022.
It involves 89 projects and will generate 4,566 job opportunities, and of the total investment, as much as RM9.2 billion is foreign direct investment (FDI), while RM2.3 billion is domestic direct investment.
The manufacturing sector was the largest contributor of RM8.4 billion or 72.9 per cent, while the primary sector contributed RM1.6 billion and the service sector contributed RM1.5 billion.
SESB Chief Executive Officer Mohd Yaakob Jaafar, SESB Secretary Zunaida Osman, SK Nexilis Malaysia Chief Executive Officer Shin Dong Hwan and SK Nexilis Malaysia Director Kim Jasun signed the agreement.
Witnessing the ceremony were Phoong, Madius and Permanent Secretary to the Industrial Development and Entrepreneurship Ministry Datuk Thomas Logijin.
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