Sabah, Jilin sign five agreements worth RM800 mln

KOTA KINABALU (Aug 21): Sabah and Jilin have signed five agreements, worth a total of about RM800 million and creating 4,000 new jobs in the state.

The signing ceremony was witnessed by Sabah State Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe and Jilin Province Deputy Governor Liang Renzhe in Jilin, China yesterday, according to a statement from Sabah China Chamber of Commerce (SCCC).

Out of these five agreements, SCCC President Datuk Frankie Liew and Deputy President Brett Chua signed two agreements on behalf of the chamber. The export trade volume from these agreements is expected to maintain an annual growth rate of 15 per cent.

The investment projects covered by these collaborations include:
FAW Sabah Truck Manufacturing Plant Project: RM200 million, creating 500 jobs.
Musang King Durian Frozen Processing Plant and Cold Storage Project in Sabah: RM150 million, creating 800 jobs.
Bird’s Nest Processing Plant Project in Sabah: RM50 million, creating 800 jobs.
Health Food Processing Plant Project in Sabah: RM150 million, creating 800 jobs.
Seed Research and Production Base Project in collaboration with Desa Group: RM50 million, creating 200 jobs.

Meanwhile speaking at an investment exchange meeting between the Sabah government and Jilin Changchun municipal government and enterprises in Changchun, Jilin Province, Liew stated that with the encouragement and support of the Sabah state government, various industries in Sabah, especially those who are proactive in promoting trade and investment between Sabah and China, have established a dedicated business association.

This association aims to directly connect with government bodies and enterprises from various provinces and cities in China.

It has a clear goal, precise positioning, and can better represent and safeguard the bilateral interests of Sabah and China, promoting the implementation of various business trade investments, information exchange, mutual assistance, and connectivity on a self-driven basis.

“China is vast with rich resources and a brilliant civilization. While many have heard of Malaysia and know that China and Malaysia have been close allies for 50 years, many do not fully understand our small Southeast Asian nation. They assume that since Kuala Lumpur is the capital of Malaysia, anything that needs to be done in Malaysia should go through the authorities in Kuala Lumpur. Due to this, valuable information between China and Sabah often fails to be immediately and fully communicated to both parties, leading to missed opportunities and occasions where investment and cooperation projects are not maximized or optimized.

“Actually, Malaysia is a federal state consisting of Peninsular Malaysia, Sabah and Sarawak. The Sabah government has a high degree of autonomy, and many important powers, including land, natural resources and immigration, are directly approved by the Sabah government. A few years ago, the new governments of Malaysia and Sabah were working towards restoring the agenda of treating ‘Malaya, Sabah, and Sarawak’ as equal partners. Under this trend, in around 2019, with the encouragement and support of the Sabah government, we called on various industries in Sabah, especially elites and representatives interested in promoting trade and investment between Sabah and China, to establish a dedicated business association to connect with the provincial and municipal governments and enterprises of China. The association has a clear goal and precise positioning, and can better represent and safeguard the bilateral interests of Sabah and China, promoting the implementation of various business trade investments, information exchange, mutual assistance, and connectivity on a self-driven basis,” said Liew.

He pointed out that the objectives of the association are to:
Promote economic trade and other business exchanges, cooperation and development between Sabah and the People’s Republic of China;
Provide members with information on bilateral economic trade and other business activities between Sabah and the People’s Republic of China;
Provide platforms for the exchange of information related to commerce, finance, and trade, including organizing exhibitions, forums, training activities, or providing investment guides, to establish and develop business cooperation;
Jointly protect the legitimate rights and interests of members and provide advice on problem-solving when necessary;
Promote a healthy business culture and shape a prosperous, harmonious and progressive society.

The association’s core members come from various fields in Sabah, including real estate, plantations, aquaculture, livestock farming, agriculture, tourism, hospitality, timber, building materials, creative design, media, education, e-commerce and cultural industries.

“Our advantage lies in our multilingual and multicultural background, the relatively mature education level of our people, and our good interactions and diplomatic relations with ASEAN and Western countries. Sabah is located at the gateway to a market of nearly two billion people in China and ASEAN.”

Sabah is an economy primarily driven by small and medium-sized enterprises, focusing on the service industry, tourism, oil palm plantations, and the oil and gas mining sector. In recent years, under the vigorous promotion of the new government, especially Chief Minister Datuk Seri Hajiji Noor and our minister Datuk Phoong Jin Zhe, Sabah has begun to rapidly industrialize, attracting large investments and technology from countries like China and South Korea, making us optimistic and full of expectations for future development.

“In addition, Sabah has significant development potential in agriculture, fisheries, the food industry, new energy, and infrastructure. We are also a major global producer of bird’s nests, including durian, and have abundant herbal resources. With our year-round summer climate, ample rainfall, mild weather, and absence of major natural disasters, I believe we have many areas of synergy and complementary advantages,” said Liew.

He mentioned that they had earlier received several delegations from various regions of China, especially government leaders and business magnates from Jilin Province, who all expressed a desire for more cooperation opportunities in the future.

“We look forward to maintaining close contact and continuing to work together to promote Sabah-Jilin investment and trade cooperation and exchange. Especially in the current context of protectionism and trade wars from Western countries, where the path to global free trade is becoming increasingly narrow, it is crucial for Malaysia, Sabah, and China to establish closer relationships. By leveraging both sides’ diplomatic and trade networks and supply chains, we can strengthen our economic and food security,” he said.

Other guests in attendance included Jilin Provincial Government Deputy Secretary-General Su Heng, Jilin Provincial Foreign Affairs Office Deputy Director Zhao Shuxin, Jilin Provincial Department of Commerce Deputy Director Zhang Guigang, Jilin Provincial Department of Culture and Tourism Deputy Director Tian Yunpeng, and Jilin Functional Food Association President Jin Lihua.