December 3 2003 - SAWIT Kinabalu Bhd has projected a profit of RM150million this year, an increase of RM20 million compared to last year.

SKB chairman Datuk Musa Aman, who is also Sabah Chief Minister, said theimproved performance was largely due to the stable and good price of CrudePalm Oil (CPO).

A State-owned company, SKB is expected to continue to record an annualincrease in profit by at least 15 per cent in the next few years.

The company would be diversifying its business activities with emphasis ondownstream processing, he told a press conference after receiving a mockcheque for RM10 million from SKB as an installment of a loan it had takenfrom the State Government.

The mock cheque was presented to Musa by SKB acting managing directorSalim Mohammad, witnessed by its board member Datuk K Y Mustapha andFinancial Controller Mary Ku.

Musa said SKB will be spending RM90 million to set up a refinery andkernel crushing plant in Kunak and construction of several CPO mills instrategic areas in the State.

He also said that SKB was in process of opening up 3,000 ha of land inSungai Pin in Kinabatangan for the plantation of oil palm.

SKB would be developing more land for oil palm plantation to cash on thegood price of the commodity, he said.

On the company’s plan to expand its business to China through the settingup of palm oil refineries, Musa said it was still being looked into.

Musa, who is also State Finance Minister, hoped that other State-ownedagencies would emulate the efficient management demonstrated by the SKB inorder to reap improved profit.

He said besides the SKB, other State-owned agencies which had been makinggood returns are teh Sabah Energy Corp and the Sabah Credit Corp.