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  • Wartawan Nabalu News

Sabah's POIC Lahad Datu gets green light for Free Trade Zone status

21 March 2023

By Wartawan Nabalu News

KUALA LUMPUR: The Federal Finance Ministry has given its principal approval for the Palm Oil Industrial Cluster (POIC) Lahad Datu to be declared as a Free Trade Zone (FTZ), paving the way for more industrial development and investment opportunities in Sabah.

This was announced at a roundtable meeting between the Deputy Minister of International Trade and Industry (MITI) Liew Chin Tong and the Minister of Industrial Development and Entrepreneurship (MIDE) Sabah Phoong Jin Zhe at MIDA Central in Kuala Lumpur on Monday.

Phoong thanked Prime Minister Datuk Seri Anwar Ibrahim for approving the application and Chief Minister Datuk Seri Hajiji Noor for entrusting him with this important task.

“I would like to extend my gratitude towards the Prime Minister, Datuk Seri Anwar Ibrahim for approving the application and also to the Chief Minister, Datuk Seri Hajiji Noor for entrusting this important task to me.”

He said the FTZ status would bring positive impact to Sabah's industrial development, especially in the East Coast of Sabah, where POIC Lahad Datu is located.

POIC Lahad Datu is a state-owned industrial park that was set up in 2005 to spearhead the development of palm oil downstream processing and other related industries. It covers an area of 4,400 acres near Lahad Datu town, which is surrounded by 130 palm oil mills within a 150km radius.

POIC Lahad Datu also has a dry and liquid bulk terminal that can cater to vessels of up to 100,000 DWT, making it an emerging logistics hub along the Lombok-Makassar Straits.

Phoong said more information on the FTZ status would be released later.


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