Image credit: The Star
KOTA KINABALU (Apr 23): The State Government wants Invest Sabah to be included in the Federal Government’s international investment missions.
Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe said he had asked Malaysian Investment Development Authority (MIDA) to include Invest Sabah.
He said this when replying to Moyog assemblyman Datuk Darell Leiking’s suggestion that the State Government utilizes Invest Sabah as the catalyst for investment procurement in Sabah instead of MIDA and SEDIA.
Phoong when winding up for his ministry on Tuesday, told the State Assembly that the Kibing Group has produced and exported its first shipment of solar glass made in Sabah, totaling 672 metric tons to Cambodia with an estimated product value of RM1.43 million on April 21, 2024.
The production of solar glass is expected to increase to 876,000 metric tons annually starting from May 2024, with an estimated product value of RM1.86 billion when the factory is fully operational.
This will simultaneously enhance the manufacturing sector’s contribution to Sabah’s Gross Domestic Product (GDP), in addition to the state’s export value, he said.
“My ministry is coordinating the investment proposal of Kibing Group, which will increase the production capacity of its solar glass factory at KKIP through the addition of a third production line. This investment expansion will further increase the company’s investment with an estimated additional value of RM700 million, thereby creating 600 job opportunities,” he added.
Phoong also said that the Industrial Development and Entrepreneurship Ministry will strive to attract more investments in downstream industries so that the raw materials or minerals in this state can be further value-added, thereby developing the existing comprehensive industrial ecosystem.
Replying to Senallang assemblyman Datuk Seri Shafie Apdal’s concerns about the incentives provided to investors investing in Sabah, Phoong said various incentives are provided to investors in the state by the Federal Government through MIDA based on established eligibility criteria.
Among the main incentives that qualified investors can receive include income tax exemptions, investment tax allowances, grants and exemptions from import duties and sales tax for raw materials, machinery and related equipment.
The State Government, he said, has also provided incentives by offering competitive land rental costs in industrial parks to investors, which are among the main attractions besides the incentives offered by the Federal Government.
The State Government, Phoong said, aims to develop the manufacturing sector in all districts in Sabah, and the Bugaya constituency is no exception.
“Based on preliminary research by my ministry, suitable industries for development in the area include downstream industries based on marine products and oil palm. My ministry will continue to strive to attract investments to the area through investment promotion programs that will be implemented and remains committed to coordinating and facilitating if there are investment proposals in the area,” he disclosed.
In response to the question raised by nominated assemblyman Datuk Raimie Unggi regarding the extent of cooperation between the State Government and the Ministry of Investment, Trade and Industry Malaysia (MITI) through MIDA, Phoong said his ministry consistently collaborates closely with MITI and MIDA to facilitate and coordinate investment proposals in the state.
MIDA and Invest Sabah Berhad are members of the State Manufacturing Investment Taskforce established by my ministry to coordinate investment proposals in Sabah, he said adding, “the strategic cooperation between my ministry and MIDA not only encompasses investment coordination but also helps promote Sabah as an investment destination through MIDA’s branches overseas.
Recognizing the effectiveness of marketing programs for Sabah’s SME products in local supermarkets and their positive impact on Sabah’s SME entrepreneurs, the collaborative marketing program with Bataras Supermarkets and Petronas Dagangan Berhad will continue this year, said Phoong.
The collaborative sales revenue with Bataras Supermarkets in 2023 amounted to RM3.64 million, and with Petronas Mesra Shops (RM2.46 million).
“This year, my ministry will also collaborate with Kojasa Mart under the supervision of Qhazanah Sdn Bhd to provide opportunities for SME entrepreneurs to market their products at all Kojasa Mart outlets. This program not only helps Sabah’s SME products penetrate the local market but also contributes to economic growth and generates income for entrepreneurs,” he pointed out.
In line with the new direction under the Unity Government today, the ministry will further enhance its cooperation network with the Ministry of Entrepreneur Development and Cooperatives (MEDAC) in implementing high-impact programs that are in line with the needs of entrepreneurs and current requirements in entrepreneurial development in Sabah.
Therefore, the ministry will collaborate with SME Corporation Malaysia (SME Corp), one of the agencies under MEDAC, to establish an SME Hub. The purpose of establishing this SME Hub is to channel various information related to grants, recommended programs, training provided, as well as initiatives and advisory services provided by the State and Federal Governments.
“In addition to SME Corp, my ministry will also collaborate with PERNAS to implement the Sabah Entrepreneur Empowerment Program (PUSH). The objective of this program is to cultivate early-stage SME entrepreneurs towards transforming their businesses and growing into registered franchisors in Malaysia. This program will produce 40 SME entrepreneurs with potential for development through the franchising business system and will run for eight months,” Phoong said.
Source: https://www.theborneopost.com/2024/04/23/include-invest-sabah-in-investment-missions-phoong/