‘Baseless claims Kibing deal one-sided’

KOTA KINABALU (Dec 9): The criticisms that the Kibing Group’s deal is one sided may cast a negative light on investors committed to Sabah’s economic progress.

Chan Loong Wei, Political Secretary to the Minister of Industrial Development and Entrepreneurship Sabah, stressed the need to distinguish between legitimate criticism and baseless accusations that could harm Sabah’s reputation as an investment-friendly destination.

“Genuine investors play a vital role in our state’s development, and their contributions should be acknowledged and supported,” he affirmed.

“The Sabah government welcomes constructive dialogue and collaboration with all stakeholders to ensure that our development projects align with the aspirations of our people,” he added in a statement on Saturday.

Expressing disappointment to Warisan Supreme Council member Chen Ket Chuin’s remarks about the RM3 billion deal which he claimed was one sided, Chan said the minister, Phoong Jin Zhe, recognizing the importance of constructive engagement in addressing concerns related to investment projects, had personally invited State assemblymen to visit the manufacturer and gain firsthand insights.

“I extend an invitation to Chen as well; if he is genuinely concerned, he can see for himself and even get clarification directly from the investor,” he said.

Confident that Chen’s remarks do not represent Warisan’s stance as a whole, Chan cited commendations for the minister from Warisan’s Tunku assemblyman Assaffal P. Alian during the recent State Assembly sitting.

“I had expected better from Chen, especially considering his role as a practicing lawyer. It’s disappointing that he failed to get basic facts right; the sand mining plant is located in Sikuati, Kudat, not on Balambangan Island.

“Furthermore, the minister has unequivocally addressed the concerns raised by the Opposition Leader, Datuk Seri Shafie Apdal, during the State Assembly. The minister clarified how Kibing’s investment plays a pivotal role as a pioneer in paving Sabah’s way towards industrialization,” replied Chan.

Highlighting the positive impact of Kibing’s investment, creating over 180 job opportunities for locals in Kudat and 1,200 jobs in KKIP, Chan underscored its contribution to Sabah’s industrialization and economic recovery.

He also shared that the Ministry of Industrial Development and Entrepreneurship under the leadership of Phoong is committed to facilitating Kibing’s investment expansion into polysilicon manufacturing in Sabah.
“A solar panel is made up of solar glass, Ethylene Vinyl Acetate (EVA) or Polyolefin Elastomer (POE), and polysilicon.

“Kibing’s expansion is a strategic move aiming to enhance the industrial chain and potentially lead to Sabah having a complete solar panel industry chain in the future,” he said.

Chan urged Warisan and Chen to cease politicking and called for unity for Sabah and Sabahan’s interests.
“All parties under the Unity government should come together and focus on recovering Sabah’s economy for the people; let us cease the politics and focus on the people,” he said.

Chen has claimed that the Kibing deal is not a good one for Sabah.

He said the current state government, especially Phoong, had admitted during the last Sabah State Legislative Assembly that there is no photovoltaic solar panel manufactured in Kota Kinabalu Industrial Park (KKIP).

“The State government should now realize that Kibing deal is not a good deal for Sabah especially when it only involves a glass production factory, instead of a photovoltaic solar panel manufacturing factory.

“Worse, there is no revenue sharing in the export of glass produced in KKIP to China. By having a silica mining project in Kudat to produce good quality of glass, Sabah gets nothing except mining jobs with RM1,500 a month plus three meals,” he said in a statement on Saturday.

“If Warisan is back in power, we have to bring the matter back to the negotiating table and ask for a better deal for Sabah. For instance, why can’t we ask for 25% revenue from Kibing group like how the deal between SMJ Sdn Bhd having 25% equity stake in Petronas’s Chemicals Fertiliser Sabah Sdn Bhd in the plant which is producing ammonia and urea in Sipitang,” said Chen.

He added another request could be made to require Kibing group to build a 100-megawatt power plant for Sabah with solar energy to make up for the electricity supplied to the glass factory in KKIP by Sabah Electricity Sdn Bhd (SESB) at cheaper rate.

Not only that, Kibing Group should pay for “restoration cost” or compensation to Kudat or in particular, Balambagang Island.

According to Chen, by having a silica mining factory in the island to take away more than 400,000 mt of silicon sand a year will annihilate the island which is a primary attraction in the biggest marine park in Malaysia, better known as the Tun Mustapha Marine Park, he said.

“We can have tourists from all around the world, especially China. Also, it is a Priority Conservation Area (PCA) under the Coral Triangle.

The door to talk to China is wide open.

“China’s Consul-General, Dr Huang Shi Fang recently revealed that Sabah has not taken any special loans offered under the BIMP EAG-China Cooperation (BECC). The special loan provider is China Development Bank and the amount is USD 5 billion.

“With the help of the special loans, Indonesia has stainless steel production capacity of three million tonnes per year, Brunei has a crude oil refining capacity of eight million tonnes per year and Sarawak has a Kidurong Power Station with a capacity of 2,413MW,” he said.

While Sabah is facing infrastructure deficit, he said the State government is not even looking into the development fund make available by China.

With the offer from China, in particular the Road and Belt Initiative, he said Sabah government should act proactively to get the financial assistance so badly needed to address supply of clean water and electricity in Sabah.

“Since huge amount of silicon sand can be taken away from Kudat and deliver to KKIP to produce glass for Kibing group, Sabah government should propose to China, a rail road from Kudat to Kota Kinabalu.

“China is best known for construction of rail roads in the world. Quad pro quo. This will demonstrate the State government’s proclamation of ‘Sabah First Policy’ is real and not a political gimmick,” he said.