Sabah GLCs Join Forces to Build Desalination Plant at Sandakan Industrial Park

22 September 2025

KOTA KINABALU: In a major step towards securing sustainable water supply and driving industrial growth, Sawit Palm Oil Industrial Cluster Sdn. Bhd. (SPOIC), a subsidiary of Sawit Kinabalu Group, has signed a joint venture with Jetama Sdn. Bhd. (JSB) to develop a state-of-the-art seawater desalination plant at the Sawit Kinabalu Sandakan Industrial Park (SK SIP).

The ceremony, held at the Sawit Kinabalu Group headquarters in Menara Kinabalu, was witnessed by Chief Minister Datuk Seri Panglima Hajiji Noor with State Secretary Datuk Seri Panglima Sr. Haji Safar Untong and Sawit Kinabalu Deputy Chairman, Datuk Rubin Balang.

The agreement was signed by Sawit Kinabalu Group Managing Director and Chief Executive Officer, Datuk Victor Ationg, and Jetama Sdn. Bhd. Chairman, Datuk Yusof Mannan. Jetama CEO, Datuk Ahmad Naim Uddang, and Sawit Kinabalu Deputy CEO, Datin Stella Ambrose, acted as company witnesses.

This strategic collaboration strengthens the role of both government-linked companies (GLCs) in advancing integrated industrial infrastructure development in Sandakan. Covering an area of 1,010 acres, SK SIP has been designed as a comprehensive industrial park equipped with essential facilities to diversify Sabah’s economy, attract strategic investments and stimulate downstream industrial growth.

To ensure a stable water supply, the desalination plant will utilise Reverse Osmosis (RO) technology to process seawater into treated industrial-grade water. The facility will serve as a key component in supporting both industrial growth and the local community.

In a joint statement, Victor said the project would act as a catalyst for Sabah’s socio-economic development by creating job opportunities, boosting downstream industries and ensuring a sustainable water supply for the industrial area.

“This partnership reflects the continued commitment of both GLCs to supporting the state’s development agenda while enhancing investor confidence in Sabah,” he said.