From gas to clothes: Sarawak eyes USD1 billion plant in Bintulu

Abang Johari (centre) receives souvenir from Mohamad Abu Bakar while Dr Sim (fourth right) and other officials look on during Sarawak Corporate Leadership Summit 2026 on Oct 1, 2026.

By Shikin Louis

KUCHING, Oct 1: Sarawak is looking to develop a USD1 billion (about RM4 billion) new gas-based industry in Bintulu that could turn the State’s natural gas into material used for clothing, says Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the proposed project involved HighChem Company Limited, Sakura Ferroalloys Sdn Bhd and Indorama Ventures Public Company Limited, with the companies looking to establish their operations in Bintulu.

“They are now looking to put their operations in Bintulu with a total investment of USD1 billion. And this is a new industry,” Abang Johari told reporters during a doorstop interview after delivering his keynote address at the Sarawak Corporate Leadership Summit 2026 held at Riverside Majestic Hotel here today.

He said the project was an example of how Sarawak could use its natural gas resources to develop new and more advanced industries instead of simply exporting the resource.

“I think Sarawak has the strength and also the ingredients for us to transform into advanced and new industries,” he said.

In his keynote address, Abang Johari said Sarawak could develop downstream activities from gas, including producing materials for clothing, while also exploring ways to recycle products derived from gas.

“We are talking to Japanese companies, Sakura and HighChem, together with Indorama, on producing clothing materials from gas.

“At the same time, we are looking at breaking down gas into polymeric forms and eventually recycling those products back into their original form,” he stated.

He said such new industries would require Sarawakians to be trained in specialised petrochemical fields.

“I hope our people will be trained in these petrochemical industries, and the salary is quite high,” he said.

The latest development builds on Sarawak’s earlier collaboration with Tokyo-based HighChem on technologies linked to polyester and low-carbon textile production.

On Dec 17, 2024, during his working visit to Japan, Abang Johari met HighChem in Tokyo, where discussions covered areas including the petrochemical industry.

During the same visit, HighChem proposed Sarawak as a location for large-scale pilot testing of its Paraxylene (PX) technology, which converts carbon dioxide into paraxylene, a material used in polyester production.

Then on Jan 13, 2025, Abang Johari said Sarawak was collaborating with HighChem to develop low-carbon textiles designed for astronauts, expressing hope that “Made in Sarawak” fabrics could eventually be used in space.

The PX technology had also been used to produce uniforms for Japan’s national team during the 2024 Summer Games, according to the earlier report.

The latest USD1 billion proposal therefore adds another piece to Sarawak’s longer-running effort to move its natural gas industry further downstream and develop higher-value products locally.

Among those present were Deputy Premier Datuk Amar Dr Sim Kui Hian and Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki. — DayakDaily