Sabah Government Denies Rumors of Delay in Steel Production Plant Investment
Government Responds to Umno’s Claim
PETALING JAYA: The Sabah government has dismissed a claim made by an Umno official that a steel company, Esteel Enterprise Sabah Sdn Bhd, has delayed the implementation of a US$4.39 billion (RM19.6 billion) production plant in the Bornean state.
Refuting the Claim
The state industrial development ministry stated that such claims were baseless and did not reflect reality, as the first phase of Esteel’s investment was progressing according to plan. The ministry emphasized that the development plan for the environmentally friendly steel production plant had already been approved by the Sipitang district council, while an environmental impact assessment (EIA) report for the plant’s earthwork had received the environment department’s greenlight.
Development Progress
The ministry revealed that soil investigation for the site of Phase 1 of the plant had been completed, while soil investigation in the seabed for the development of a jetty was ongoing. The terms of reference for the full EIA had been completed and would be submitted to the environment department for approval. Additionally, the ministry announced that a factory manufacturing licence for Phase 1 of the project had already been approved by Putrajaya on January 24.
Contrary to Claims
Sabah Umno election director Jeffery Nor Mohamed claimed that Esteel had postponed the project due to a loss of confidence in the state administration, allegedly over instability and credibility issues. However, the Sabah industrial development ministry disputed this claim, stating that Esteel had informed the state government that construction of the plant was expected to commence in May. The ministry also highlighted that it continues to hold engagements with the firm’s top management to facilitate their investment in Sabah.
Proof of Commitment
The ministry cited the signing of a land lease agreement for Phases 2 and 3 at the Sipitang Oil and Gas Industrial Park on December 31 as proof of Esteel’s commitment to continue its investment in Sabah. This, according to the ministry, demonstrates the company’s confidence in Sabah’s stability and the state government’s support in realizing this high-impact investment.
Conclusion
The Sabah government is committed to ensuring the successful implementation of the steel production plant, which is expected to benefit the economy of Sabah and its people. The ministry will continue to work closely with Esteel to facilitate their investment and ensure the timely completion of the project.
Frequently Asked Questions
- What is the status of the steel production plant project?
- The project is progressing according to plan, with the first phase expected to commence construction in May.
- What is the reason for the delay in the project?
- There is no delay; the project is on track, and Esteel has informed the state government that construction will commence in May.
- What is the Sabah government’s stance on the project?
- The Sabah government is committed to ensuring the successful implementation of the project, which will benefit the economy of Sabah and its people.