22/07/2010 (Bernama), Qingdao - The Sabah Development Corridor (SDC) aims to make the state a leading agri-resource production region in Asia, Sabah Deputy Chief Minister Tan Sri Joseph Pairin Kitingan said Thursday.

"Agriculture produce and products will also catalyse the development downstream and upstream industries which also help developing the manufacturing sectors in the state," he said at the Qingdao-Sabah State Trade and Investment Seminar here.

Pairin and five ministers and assistant ministers from Sabah were in the 60-member delegation led by Malaysia-China Business Council (MCBC) co-chairman Tun Musa Hitam who came to Jinan, Shandong province, to attend the 7th Annual MCBC Joint Council Meeting with their Chinese counterparts from Monday.

In conjunction with the meeting, two business forums and seminars were held in Jinan and the port city of Qingdao to attract Chinese investments in the SDC.

Pairin said the SDC's agriculture sector strategy was to focus on increasing overall food self-sufficiency, planting high-value crops for export and increasing exports of high-value agricultural produce and products.

Under agriculture development, the state government would leverage Sabah's biodiversity and agricultural resources to promote high value-add downstream manufacturing activities in palm oil, pharmaceutical and biotech industries, he said.

"Palm oil will remain as the key commercial crop. However, new crops such as jatropha and kenaf will be promoted," Pairin said.

"Apart from enhancing the lead in palm oil industry, the government will introduce measure to increase food balance of trade via food crops, livestock, fisheries and aquaculture, and encourage high value crops for export to North Asia such as cut flowers and orchids, herbal and specialty natural products," he said.

Pairin said the anchor projects included the Palm Oil Industrial Cluster, Sabah Agro-Industrial Precinct, National Marine Aquaculture Centre, Keningau Integrated Livestock Centre, Seafood Terminal, Permanent Food Production Parks and fish landing sites.

Under the SDC plan, Sabah will be the location of choice for resource-based manufacturing by 2025, whereby world-class companies will be attracted to anchor and accelerate the growth of downstream activities, leveraging on natural resources such as palm oil, oil and gas, minerals and timber as feedstock.

Major developments in the SDC will be distributed among three sub-regions.

An industrial zone will be established in the Western Sub-Region which also offers investment opportunities in real estate, logistic services and manufacturing, especially in wood- and agro-based industries.

The Central Sub-Region will be Sabah's agriculture hinterland and food production belt, where local communities will be assisted to participate in the agriculture sector through the agropolitan development programme, initially involving livestock, rubber and palm oil within the Northern Agro-Forestry Zone and livestock breeding and food crops in the Interior Agropolitan Zone.

The Eastern Sub-Region is home to much of Sabah's rich biodiversity and oil palm plantations.

The Palm Oil Industrial Cluster project in Sandakan and Lahad Datu will draw palm oil downstream activities into the region.

The Integrated Agro-Food Commercial Zone in Tawau will be home to major cocoa plantations, livestock industry and horticulture development.