KOTA KINABALU: Sabah's palm oil downstream industry recently attracted three Chinese enterprises for an on-site visit in the state, said Datuk Chan Foong Hin.

The deputy plantation and commodities minister said these companies were looking into potential avenues for investment and collaboration in setting up operations in Sabah.

The Chinese delegation had expressed keen interest in Sabah's palm oil downstream industry, particularly in value-added processing of palm kernel cake (PKC), and the production of biomass energy and sustainable aviation fuel (SAF) from palm oil mill effluent (POME) and pretreated used cooking oil (UCO).

Chan said, as Malaysia's leading palm oil-producing state, it is time for Sabah to boost the development of its downstream industry.

He said by focusing on the production of high-value-added palm oil products, Sabah can generate substantial economic benefits.

"Earlier this year, I made several visits to China to promote collaboration opportunities between Malaysia and China in the plantation and commodities sectors.

"It is encouraging to see these efforts bear fruit, as they have successfully generated significant interest and investment intent from Chinese companies in Sabah's palm oil downstream industry.

"My ministry and I warmly welcome this development. In response, we have worked closely with various agencies to arrange their visit, ensuring they can fully appreciate the vast potential Sabah offers, thereby enhancing their confidence and commitment to investing here," he said in a statement.

Chan, who is also the Kota Kinabalu member of parliament, added that the Chinese delegation toured the Sawit POIC Sandakan Industrial Park and participated in a roundtable discussion with both federal and state government agencies.

"This meeting primarily focused on exploring the investment opportunities in Sabah, and providing insights on the various incentives and support measures available for foreign investors looking to establish operations here," said Chan.

https://www.nst.com.my/news/nation/2024/08/1093795/palm-oil-downstream-industry-china-attracting-chinese-investors