Palm Oil Industrial Cluster (POIC): www.poic.com.my
|Infrastructure and Utilities
EPP 2 : POIC (LAHAD DATU AND SANDAKAN PROJECT)
|The Oil Palm Industries||The Oil Palm Plantations|
|The Palm||The Oil|
|Investments in the Palm Oil
Industrial Cluster (POIC) in Lahad Datu has hit RM4.5 billion.
As of July, 2012, 41 companies had invested in the Phase One and Phase Two of the industrial area, covering 459.71 acres.
These investors were involved in the industries of :
2) palm oil and
3) palm kernel milling,
4) logistics and godowns,
5) property development,
6) manufacturing of fertilizers as well as
7) supporting services, Tan said in reply to a question from Jimmy Wong (DAP-Sri Tanjung) during the question and answer session at the Sabah State Assembly here yesterday.
The response from both domestic and foreign investors towards the POIC industrial area had been highly encouraging.
On the progress of the site development, from the investments of the 41 companies, 11 units of factories or godowns had already been completed to an estimated investment amount of RM550 million. These had successfully created 323 employment opportunities. Most of these jobs had been taken up by the locals from Sabah including from Lahad Datu.
10 investors were in the process of constructing their project sites while another five were in the planning stages.
Once the 41 companies are fully operational, a total of 2,238 job opportunities are expected to be created. Meanwhile, the construction of the dry bulk terminal facility, which had been designed to accommodate four vessels at any one time, was still ongoing and was expected to be completed in December, 2012
Since 1980s, the Malaysian palm
oil industry’s stronghold has been in upstream activities, where
domestic fresh fruit bunch (FFB) production achieved higher yields
or production per acre compared with other producers globally.
Mewah Group Invests RM150 Million On Palm Oil Refinery In POIC Lahad Datu
An agreement on the purchase of 19.86 acres of land at POIC Lahad Datu was signed in Singapore 3rd August 2010 between POIC Sabah Sdn Bhd and Mewah Oils Sdn Bhd.
Mewah Group, a Singapore company with refineries in Malaysia, is investing RM150 million to set up a 900,000 metric tons per year palm oil refinery at the palm oil industrial cluster in Lahad Datu (POIC Lahad Datu). The refinery will be the biggest in Sabah and create about 200 jobs.
Under the Mewah banner are established Singapore-based companies
such as :
Mewah manufacturing units in Malaysia include :
Mewah group's turnover is around US$2 billion and its
existing refineries (in Peninsular Malaysia) have a
combined output of 2.5 million metric tons per year.
Sabah is Malaysia's biggest
palm oil with 10 palm oil refineries.
DXN Oleochemicals Sdn Bhd
The company's project in POIC Lahad Datu is an expansion from its Kuantan (Pahang) project under DXN Biofuels Sdn Bhd. This Kuantan project has an initial capacity of 200,000 metric tones per annum and is expected to start operation in October 2007. It will be expanded to double its annual production in the following year.
At POIC Lahad Datu, DXN Oleochemicals Sdn Bhd's plan is to put up two biodiesel plants with annual capacity of 400,000 MT and 500,000 MT respectively. The first-phase production is estimated to be 200,000 MT per year.
DXN Oleochemicals' projects in POIC Lahad Datu is estimated to cost USD127 million. Combined with its Kuantan facilities, the DXN Group expects to be one of the largest biodiesel producers in the Asian region in the next four years with an annual capacity of 800,000MT.
DXN expects to exports its biodiesel to Germany and the United States. Plans are afoot to acquire land in Germany to build a tank farm to store and distribute Malaysian-made biodiesel.
DXN Biofuels Sdn. Bhd and DXN Oleochemicals Sdn. Bhd are the
subsidiaries of DXN Holdings Bhd principal activities in production
and trading of methyl ester (biodiesel).
is a new clean burning fuel produced from renewable resources, e.g.
Biodiesel contains no petroleum but blended at any level with
petroleum diesel to create biodiesel blend. It can be used in
compression-ignition diesel engines which require no modifications.
Biodiesel is simple to use, biodegradable, nontoxic and essentially
free of sulfur.
1) methyl esters (the chemical name for biodiesel)
2) glycerin (a valuable by-product usually sold to be used in
soaps and other products).
|Malaysian Palm Oil
MPOC promotes the market expansion of Malaysian palm oil and its products by enhancing the image of palm oil and creating better acceptance of palm oil through awareness of various technological and economic advantages (techno-economic advantages) and environmental sustainability.
Malaysian Palm Oil Council (MPOC) Official Website is http://www.mpoc.org.my/
Malaysian Palm Oil Board
Malaysian Palm Oil Board Official Website is http://www.mpob.gov.my/
DXN buying POIC (Palm Oil Industrial Cluster) land for biodiesel venture
DXN said on Nov 6 2006 that its unit DXN Oleochemicals Sdn Bhd the land from POIC Sabah Sdn Bhd. for building a biodiesel plant and processing of oleo chemical products and refinery.
DXN Holdings Bhd expected the venture to contribute positively to the financial performance of DXN Group once it commences the operation activities.
DXN Oleochemicals Sdn
|KOTA KINABALU, March 10 (Bernama) -- Sabah and Indonesia's
Kalimantan provinces should be packaged as one investment
destination, says State Industrial Development Minister Datuk
Sabah and Kalimantan can work together to leverage on their prominence in world palm oil production, and a secretariat to handle enquiries has been proposed, he said.
A statement released by the ministry here today said in order to make it happen, a joint secretariat would be desirable for government officials and business groups on both sides of the Borneo border to develop an investment data base, and encourage interaction and collaboration.
It said the view was shared by Indonesian Consul-General in Sabah, Soepeno Sahid, who had met Raymond and officials from POIC Sabah Sdn Bhd at the Indonesian Consulate here recently.
"We can also try to tap our neighbour Brunei's financial resources to make oil palm a truly BIMP-EAGA business," Tan said in his briefing on investment opportunities in Sabah, with special focus on the oil palm sector.
He said that Borneo, including Sarawak, will become increasingly important globally because much of the world's future palm oil supply will be of Borneo origin.
Indonesia is the biggest palm oil producer in the world, accounting for 45 per cent of global production.
Malaysia is a close second with 44 per cent. Increasingly, Indonesia's new oil palm plantations will be in the Kalimantan provinces of East, West, South and Central Kalimantan.
These provinces are expected in the next decade to have some five million hectares of oil palm.
Malaysia had about 4.5 million ha of oil palm in 2008, of which 1.3 million were in Sabah, which is Malaysia's top palm oil-producing state.
Tan said the palm oil industrial cluster in Lahad Datu (POIC Lahad Datu) was conceptualised with an intention to source vegetable oils (palm oil and coconut oil) in the BIMP-EAGA territories for value-adding at Lahad Datu.
The key rationale is the existence of a natural deep-water harbour of over 20 metres than can accommodate ocean-going tankers and container-carriers of over 100,000 dead weight tons.
Most harbours in the BIMP-EAGA region are not deep enough for larger capacity vessels which provide for economy of scale and savings on shipping cost.
Meanwhile, Sahid said the oil palm sector can become the common denominator for Sabah and Kalimantan to work to fulfill the objectives of BIMP-EAGA as a sub-region of growth in Asean.
He invited Sabah government officials and businessmen to visit the Kalimantan provinces to explore the development of bilateral investment.
Monday March 22, 2010
Research on oil palm biomass to be ready next march
TAWAU: The comprehensive research on viable renewable energy, using oil palm biomass and palm oil mill effluent, currently being undertaken by the Malaysian Palm Oil Board, will be ready in a month, Plantation, Industries and Commodities Minister Tan Sri Bernard Dompok said.
"The research is on-going. We will have the findings within a month. The research covers all aspects including economic viability, problems faced by parties involved and the actual number of oil palm mills which can geneate biomass-based energy.
"I can truly say this is one industry which has a huge potential to generate 1,335 megawatts of energy if all the palm oil biomass produced in the country is maximised to the fullest," Dompok told reporters after officiating a conference of the East Malaysia Planters Association here on Monday.
The conference themed, "Sustainable Growth For People, Planet and Profit" is organised by EMPA and sponsored by Sabah Softwoods Sdn Bhd.
He said despite the industry's vast potential, exorbitant start-up cost and capital outlay could pose challenges.
"One major issue to overcome will be the distant location of palm oil mills from Tenaga Nasional (TNB) and Sabah Electricity Sdn Bhd (SESB)'s transmission line grids.
"Besides, the tariff offered by power purchasers in this country is 21 sen for per kw/hour, which is too low, while the industry needs to fetch between 29 sen and 30 sen for per kw/hour to remain profitable," Dompok added.
He said MPOB's research would also address this problem and the findings would be handed over to the government for further action as the issue of palm oil biomass renewable energy also involved other ministeries.
Dompok said palm oil mills nearer to TNB or SESB's transmission grid can take off first while mills located far away may take longer to take off.
"It has to be carried out in stages. We might need two phases to implement the activities," said Dompok, adding that the use of palm oil biomass as reneweable energy can solve the government's problem of ensuring adequate electricity supply in the country and Sabah.
"I wish to emphasise here that this is not the sole solution to the power supply problem in Sabah but it will complement the government's effort to overcome the shortage.
"What's more important is we will be able to clear palm oil estates (of the empty fruit bunches), and give a clean image to the industry.
Earlier, Dompok urged all 417 mills in the country to pursue the use of biomass and palm oil mill effluent in the production of renewal energy and organic fertiliser.
He said the goverment had allocated RM1.5 billion under the Green Technology Fund which can be utilised by mills to produce bio-energy.
"This fund provides loans with a two per cent subsidy from the government for producers and users of green technology. In addition, the government provides a 60 per cent guarantee on the loan," he added. - Bernama
The first oil palm plantation in Malaysia was set up in 1917. Since then the palm oil industry has grown to become the largest producer and exporter of palm oil in the world, accounting for 52 percent of world production and 64 percent of world exports in 1997.
The Malaysian oil palm industry is sustaining
its performance in 2003 after staging a significant recovery in 2002 despite a
weak global economy. Palm oil & palm oil-based products is Malaysia's
second Largest export revenue, with a total value of RM20.8 billion
(US$5.47 billion) during the first nine months of 2003, accounting for 7.6 per
cent of total exports of RM271.5 billion.
Palm Oil Research Institute of Malaysia (PORIM).
Scientific and managerial aspects contributing to the success of the crop include the significant genetic improvements and production of high quality planting materials, the development and application of finely-tuned agronomic practices, the appropriate scale and efficient organisation of oil palm plantations and the continuous Research and Devalopment and good infra-structural support provided in country.
PORIM - Palm Oil Research Institute Malaysia (PORIM), established by law in 1979, is funded mainly from a research tax from palm oil millers, which brings in 70 million ringitts every year. The Malaysian Board of PORIM includes representatives from the palm oil industry and the government, is advised on the research programmes of the institute by a Programme Advisory Committee formed by experts in their own fields.
POIC Palm Oil
Graph of production of biodiesel from Oil Palm Tree
Malaysian Palm Oil Biodiesel Export Market:
Malaysian Government plans to invest RM120 million in three joint-venture biodiesel plants, through the Malaysian Palm Oil Board (MPOB). The plants will produce 180,000 tones of biodiesel every year.
The Malaysian Industrial Development Authority (MIDA) has approved nine biodiesel plant licenses, mostly in Peninsular Malaysia. The investors included those from Italy and Singapore.
German train operator, Prignitzer Eisenbahn (PE) Arriva AG is working with MPOB on the use of oil palm biodiesel to run trains in Germany. About 35 tones of Malaysian palm biodiesel have been shipped to the German company. According to reports, the trial run in September 2005 had been promising and Prignitzer had ordered 100 tones more palm biodiesel from Malaysia.
Malaysia is the largest producer of palm oil in the world. Palm oil is also cheaper as raw material for biodiesel and is the most abundantly produced vegetable oil in the world.
biodiesel will be future source of alternative energy
Future transport mode will be biodiesel vehicles
Diesel and biodiesel are cheaper, providing 30% more mileage per liter compared with gasoline. Diesel and biodiesel cannot be replaced, based on current technologies, as many heavy-duty vehicles like trucks, buses and tractors require the “pulling power/ torque” to haul such heavy loads and petrol/ ethanol cannot provide such power as cheap as diesel/biodiesel.
Ultra low sulphur diesels (ULSD) is more environmentally friendly than petrol and works better blended with biodiesel.
Currently biodiesel and ULSD blend are the most favored fuel in Europe. Today, over 70% of new vehicles registered in Europe are diesel powered.
The key to success in biodiesel industry is technology and quality. Malaysia has the first integrated biodiesel plant in the world able to produce biodiesel and phytonutrients from crude palm oil.
Malaysian Government has announced it will accord the pioneer status or high technology status to biodiesel companies, which provides a 70% and 100% tax waiver for five years.
To compete globally, Malaysian biodiesel need to produce high quality cost-competitive products. To have cost competitiveness a producer must achieve economies of scale in operations and this can only be achieved with a large market.
The Malaysian Envo oil is not the equivalent of the internationally accepted biodiesel (methyl ester). Envo oil is a blend of 95% fossil diesel and 5% palm oil
Many markets like South Korea, the United States and European Union (EU) do not allow the use of direct vegetable oil into diesel engines. For instance, the EU standard on biodiesel (EN 14214) requires a minimum content of 96.5% methyl ester and no more than 0.2% triglycerides.
Malaysia is strategically located in the heart of Southeast Asia with a population of 24 million and a per capita GDP of RM14.500 (USD3,800). Kuala Lumpur is the capital of Malaysia and doubles as the financial and business capital with an estimated population of 1.8 million.
Malaysia ranked among the world's top 20 trading nations and is one of the fastest growing economies in the world and also a leading exporter of manufactured goods. It is blessed with an abundance of natural endowments such as petroleum and natural gas, timber, minerals and marine resources.
Malaysia is the world's largest producer and exporter of palm oil. This commodity is playing an increasingly important role in the country's revenue (RM20 billion in 2004) second only to petroleum (RM21 billion).
|SABAH forms one of the thirteen (13) states that make up Malaysia. It covers a
land area of 73,997 sq km. Sabah. Rich natural resources (petroleum, gas,
timber, minerals, fisheries), fertile land and a small population (2.5 million
in 2000) make Sabah a land of plentiful investment opportunities.
Strategically located in the heart of the BIMP-EAGA (Brunei, Indonesia, Malaysia, Philippines East Asean Growth Area). Sabah lies in the centre of one of Asia's largest regional grouping, spanning territories of four ASEAN countries measuring an estimated 1.54 million sq km and home to 60 million people.
As the biggest producer of palm oil in Malaysia, the investment potentials in the sector are being given focused attention through the palm oil industrial cluster concept and the creation of the POIC Sabah Sdn. Bhd., the company to spearhead the realization of the concept as the State Government of Sabah seeks to further diversify its revenue base.
Palm oil industrial clusters are also envisaged for the Sandakan and Kimanis areas where substantial oil palm plantations thrive. The creation of the clusters and the investments in oil palm-related industries are expected to strengthen Sabah's economic foundation and also Malaysia's position as the foremost producer of palm oil in the world.
|The first of three proposed palm oil industrial clusters is located in Lahad
Datu, in southeastern Sabah. Lahad Datu is ideal for following reasons:
Located within the heart of Sabah's palm oil belt
Apart from being developed for the growth of a wide range of palm oil
downstream industries, the POIC in Lahad Datu will also serve as a centre where
investment in upstream activities will flourish.
|A Hub of Endless Opportunities
The POIC at Lahad Datu will be developed in two phases. Phase 1, due for commissioning in 2006, covers 500 acres meant for bulking and oil-based industries. Phase 2, covering 500 acres for oil palm biomass and food based industries will start development in 2007.
• Pulp & Paper
• Fiber Composite Plastic Component
• Block Board
• Palm santan powder
• Margarine / Spreads
• Bread Spreads
• Non Dairy Ice-Cream
• Ice-Cream Powder
• Palm-Based Tempura Oil
• Cooking Oil
• Salad Dressing
• Trans Free Vanaspati
• Chocolate Paste
|Nutraceutical / Phytonutrients
• Tocotrienols (Vitamin E)
• Carotenes (Vitamin A)
• Phytosterol (Sterol)
• Coenzyme Q
• Personal care products
• Soap and Shampoo
• Cosmetic and Personal Care Products
|Biofuel & Power Supply Industries
• Palm Diesel / Biodiesel
|Main Incentives for Manufacturing Companies
• Pioneer status : will enjoy a 100% tax exemption on their statutory income during their 5 year exemption period.
• Investment Tax Allowances : will enjoy an allowance of 100% on the qualifying capital expenditure incurred within a period of five years.
• Enhance incentives for the utilization of Oil Palm Biomass : Biomass companies that utilize oil palm biomass to produce value-added products such as particle board. MDF. plywood, pulp and paper are eligible:
• Renewable energy : Pioneer status with a tax exemption of 100% of the statutory income for a period of 10 year; or
• Investment tax allowances : 100% on qualifying capital expenditure incurred within 5 years. Allowance can be used to setoff against 100% of the statutory income in each year of assessment.
Incentives for the Agriculture Sector
|Incentives for Environmental Protection
- Incentives for the storage, treatment and disposal of toxic and hazardous Waste.
- Incentives for energy conservation
- Incentives for waste recycling activities
- Incentives for the use of renewable energy resources
- Accelerated capital allowance
Incentives for Research and Development
- Contract R&D Company
- R & D Company
- In-house research
- Double deduction for R&D
- Incentives for researchers to commercialize research findings
Incentives for Training
- Investment tax allowance
- Special industrial building allowance
- Tax exemption on education equipment
- Tax equipment on royalty payments
|Incentives for Shipping and Transportation Industry
- Tax exemption for shipping operators
- Exemption from import duty and sales tax and prime movers and trailers
Others General Incentives
- Industrial building allowance
- Infrastructure allowance
- Tariff related incentives
- Incentives for export
- Training Incentives
- Incentives for Acquiring Proprietary Rights
- Incentives for Use of Information Technology
- Incentives for the Use of Environmental Protection Equipment
- Donations for Environmental Protection
- Incentives for Employees' Accommodation
- Incentives for Employees' Child Care Facilities
Export Promotion Activities
Grants to assist Small and Medium Enterprises (SMEs) under activities for the development of export markets. Eligible activities are :-
- Participation in trade missions, specialized selling missions and international trade fairs;
- Participation in Malaysia Trade Centre overseas;
- Preparation of promotional items;
- Promotion of brands overseas;
- Designing and improving packaging of products; and
- Participation in overseas international tenders.
Type of Grants
- Business Planning and Development
- Product and Process Improvement
- Productivity and Quality Improvement and Certification
- RosettaNet Standard Implementation
- Enhancing Product Packaging Design and Labeling Capabilities of SMEs
- Development and Promotion of Ha/a/ Product
- Skills Upgrading
| INDEX : New Oil Palm | March 03, 2014 11:21:24 AM