8/11/06 (The Star)  - KOTA KINABALU: The newly launched Lahad Datu Palm Oil Industrial Cluster (POIC) is expected to draw over RM1bil in investments in the next two years.

Optimism is growing that Lahad Datu may become the biggest biodiesel producing port in the world based on initial investor interest in purchasing land in the POIC. Eight of the nine companies that concluded their land purchases were at the signing ceremony held here on Monday.

“This is not only a commendable achievement by the POIC but is of great significance to the state. For the first time in Sabah’s history we will witness a large wave of foreign interest in developing Sabah’s downstream industry,” he added.

The nine companies, which have bought 140ha of the POIC land, include investors from Britain, Australia and South Korea.

Seven of the companies would be investing in biodiesel production, POIC Sabah Sdn Bhd chief executive officer Dr Pang Teck Wai said.

He said based on plans at the POIC area and licences granted by the federal government, the companies were expected to inject RM1bil to produce close to one million tonnes of biodiesel by end-2008. 

“There is a rush of investor interest in the POIC. This is testimony to the business potential in the sector. We have raw materials for feedstock. We have an excellent harbour and we are located near southern Philippines and Indonesia’s Kalimantan which are sources of future oil,” he said.