Chan holds dialogue with Sabah China Chamber of Commerce

KOTA KINABALU (Oct 1): Deputy Plantation Industries and Commodities Minister Datuk Chan Foong Hin held a two-hour discussion with the Sabah China Chamber of Commerce (SCCC) on Monday.

He provided a detailed analysis of the current development and prospects of six key products under his ministry and shared suggestions and opinions on issues related to Chinese investment in Sabah.

The dialogue at the SCCC conference room in Kolombong was on the invitation of SCCC President Datuk Frankie Liew.

Chan encouraged the SCCC to focus primarily on import and export trade when promoting Chinese investment in Sabah’s plantation and primary industries.

Regarding investment in plantation projects, he emphasized the need to apply for land from the state government or collaborate with government-linked companies.

He also reminded everyone to carefully consider whether the relevant plantation products meet market demand and comply with international standards, mainly set by Western countries and China, as well as the risks and factors related to economic benefits.

Chan pointed out that the ministry is focusing on key projects involving palm oil, rubber, timber, cocoa, pepper, and kenaf. He mentioned that the federal government encourages investors to explore more profitable downstream industries in palm oil production.

“In terms of downstream industries, we encourage businesses and investors not to solely focus on refining edible oil but also to explore more lucrative sectors such as health products and functional foods.”

Chan highlighted that palm kernel cake is rich in vitamin E, which can be extracted into antioxidant health products. He added that there is currently a plan in Sandakan to research the production of weight loss products from palm kernel cake. The diversification and high value-added downstream industries represent the future prospects of the palm oil industry in Sabah.

In addition, Chan believes that pepper cultivation is an underestimated field. He noted that Malaysia’s pepper exports are increasing annually and revealed that many well-known food producers, such as Kangshifu (Master Kong), insist on using pepper from Sarawak in their braised beef noodles. Moreover, products like pepper massage oil and pepper perfume have successfully carved out niche markets, offering further potential for development in the future.

Liew said that the dialogue with the deputy minister gave a wealth of valuable information. He looks forward to the rapid advancement of the plantation and primary industries in Malaysia, especially in Sabah.

He pointed out that although China has primarily focused on resource-related industries such as minerals in Sabah, the SCCC believes that the plantation and primary industries also represent an important sector that aligns with China’s demand for large-scale operations.

He thanked the Federal Ministry of Plantation Industries and Commodities for providing the latest, most practical information, including the available projects and methods that welcome Chinese investment and participation.

“We hope to establish a cooperative relationship with the Federal Ministry of Plantation Industries and Commodities, similar to our relationship with the Sabah investment authority. We aim to ensure that any activities or information are promptly shared and both parties work together to promote Sabah’s investment and trade development,” he said.

Liew also revealed that after years of engagement with the Chinese government, it became evident that solely relying on Sabah’s market and resources does not offer substantial appeal to Chinese companies.

However, when they learned that Sabah is the hub for ASEAN countries and serves as the golden gateway to the vast population market of ASEAN, the perception of Chinese investors changed significantly.

“This is why we are not only focused on China but are also actively fostering relationships and cooperation with ASEAN countries such as the Philippines, Indonesia and Brunei.”

He further disclosed that the SCCC received almost weekly visits from delegations from China, sometimes even three or four different groups from various provinces and cities in a single week. These delegations include both government officials and private enterprise groups, and Sabah has become one of the most important stops for Chinese delegations, second only to Kuala Lumpur.

“We are also grateful to the government departments for entrusting us as their partner, allowing us access to more information and resources, and enabling us to serve as a bridge for communication and referrals between various parties,” he added.

Present at the exchange session were SCCC Deputy President Brett Chua, Vice Presidents Datuk Kevin Lim JP, Datuk Jonathan Koh JP, Vice President and Secretary General Ir. Ts. KJ Tan, JP, Assistant Secretary Chea Hoong Tak, Director of Public Relations Datuk Simon Teoh, and committee members Joanis Yee, Stella Chong, Edward Tee, Kapitan Foo, Young Entrepreneurs deputy chairman Desmond Hsiu and Women Entrepreneurs Committee member Chong Ying Fung.