KOTA KINABALU: Malaysia’s intention to become a regional hub for shipbuilding and repair has sweetened related investment opportunities in Sabah, especially in its east coast.
“This ties up nicely with our intention to use Sabah’s east coast, centred around the POIC Lahad Datu industrial park, to be the regional logistics hub for the Brunei, Indonesia, Malaysia and Philippines-East ASEAN Growth Area (BIMP-EAGA) region, developing maritime connectivity between the EAGA territories to promote investment and trade,” said Datuk Fredian Gan, the Chief Executive Officer of state-owned POIC Sabah Sdn Bhd, the developer of POIC Lahad Datu.
During tabling the Budget 2023 last Friday, Prime Minister cum Finance Minister Datuk Seri Anwar Ibrahim announced that under the initiative companies investing in shipbuilding and repairs will be entitled to, among others benefits, five-year tax incentive.
Although EAGA territories have economies largely influenced by a maritime environment, ship building, repairs and related industries remain under developed.
Buoyed by global interests in the myriad of resources in EAGA and that the POIC ports in Lahad Datu has a natural deep harbour with draft up to 25 metres, POIC Sabah is looking to position itself to be a gateway to BIMP-EAGA.
Also on POIC Sabah’s drawing board are a proposed maritime academy in anticipation of growing manpower needs as its logistics hub vision becomes a reality, and a marine transportation hub to connect goods and trade between the EAGA territories.
POIC Lahad Datu has arguably the most competitive port in EAGA with dedicated terminals for container, liquid and bulk cargo. The terminals are located in the vicinity of a matured industrial park with more than RM3.5 billion worth of investments, and expansive industrial and shore side land for port and industrial investments.
‘This new initiative also syncs with Indonesia’s plan to build a new national capital in East Kalimantan, which is our neighbour, where it was announced recently that prospecting for oil and gas in seas off the province has just been authorised by the Indonesian government,” said Gan.
Meanwhile, the budget announcement to incentivise shipbuilding and repair was also hailed by Sabah businessman Tan Sri T C Goh.
Speaking on behalf of the Federation of Sabah and Labuan Hokkien Association, Goh welcomed the move as well as the enlarged budget for Sabah at RM6.5 billion.
He called for expediting the completion of the Pan Borneo Highway as well as the Sabah-Sarawak link road, alluding to the importance of hinterland connection to overall logistics efficiency.
Goh is also a member of the Sabah Economic Advisory Council (SEAC).
