Phoong being briefed by SK Nexilis management on the coppet foil manufacturing process and technology.
KOTA KINABALU: Industrial Development and Entrepreneurship Minister Phoong Jin Zhe described his inaugural six-day visit to South Korea as very fruitful, attracting potential investments amounting to approximately RM3.4 billion.
The investments are related to 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 industrialisation and leapfrogging strategy.
Phoong said the key focus of his visit to South Korea was centred 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.
During his visit to South Korea’s second-largest conglomerate SK Group headquarters, he was informed that the Group has agreed to expand its investment in Sabah.
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 optimise 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,” said the Minister in a statement Friday.
Phoong was personally received and hosted by SK Nexilis President Yi Jae Hong during his visit to SK Nexilis factory.
Phoong also revealed that the copper foil manufacturing plant, located in Kota Kinabalu Industrial Park (KKIP) here is set to commence production by the end of this year.
Remarkably, he said 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 and hosted by the company.
The factory’s successful replication at KKIP 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 emphasised 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.
He shared that the electric vehicle industry is poised to become the next automotive revolution, especially in an era when the world is committed to achieving net zero. “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,” he said.
Phoong paid a courtesy call on Malaysian Ambassador to South Korea, Datuk Lim Juay Jin.
Phoong acknowledged that Sabah has only just begun its journey towards industrialisation 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 realising the investment projects by 2026 according to the investors’ deployment plans.
While in South Korea, Phoong also 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,” he said.
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 realised 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 Center.
They discussed the company’s plan to invest RM40 million in establishing a logistics hub at the POIC Lahad Datu.
Dongnam Circulator Center 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 approximately 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 to 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 Lim’s continued support in attracting more investors to Sabah.
The Minister also proposed the idea of organising an annual business forum in South Korea with a focus on attracting investors to invest in Sabah.
Phoong also mentioned that over the past decades, Sabah’s attempts at industrialisation have not achieved the desired success and he believes that without industrialisation, Sabah’s economic development cannot prosper and its people cannot thrive.
Quoting China’s experiences over the past 40 years of reform and opening up, Phoong reiterated his dedication towards attracting investments, as he aims to lay a solid foundation for Sabah’s industrialisation. 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 100 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 Assemblyman’s 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 also 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.
Phoong said his inaugural visit to South Korea has been fruitful and he extended his appreciation to all civil servants and the officers who have supported him throughout the journey.
He also reassured he would continue to exert every effort and not give up easily, and diligently serve the people of Sabah to bring positive change to the State.
When asked, Phoong said the rest of the investments could not be revealed due to confidentiality and confirmation.
During his South Korea visit, Phoong was accompanied by representatives from various State Government ministries and agencies including his Ministry’s Permanent Secretary Thomas Logijin, KKIP CEO Lawrence Guandi Kimkuan, POIC Lahad Datu CEO Datuk Fredian Gan, Sabah Electricity Sdn Bhd (SESB) CEO Ir. Ts. Mohd Yaakob Hj Jaafar, representatives from the 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).
