Its minister, Datuk Seri Johari Abdul Ghani, said the proposal to position Sabah as the “Eastern Gateway to Malaysia” had the potential to strengthen industrial development and attract investment through cooperation between the Federal Government and the Sabah government.
“I support the Honourable Member’s proposal because this should have been implemented a long time ago. POIC should have been developed earlier than the Johor-Singapore Special Economic Zone,” he said when winding up the debate on Ewon’s proposal in the Dewan Rakyat today.
Johari said POIC Lahad Datu, which spans more than 4,400 acres, had the potential to become a strategic industrial hub under the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) initiative.
He said the site had several advantages, including available land, port facilities with sufficient water depth, and potential for logistics and storage infrastructure.
The proposed development could also leverage Sabah’s and Sarawak’s palm oil industry value chain, covering processing, refining, oleochemicals and palm kernel crushing.
Johari said Sabah and Sarawak jointly produced nearly nine million metric tonnes of crude palm oil (CPO), accounting for about 45 per cent of Malaysia’s total production of approximately 20 million metric tonnes.
To advance the proposal, he suggested engaging consultants in collaboration with the Sabah government to prepare a comprehensive proposal and identify suitable industries for development within the special economic zone.
“After that, we can make a presentation. I will also support bringing this proposal to the Ministry of Finance and the Ministry of Economy. At MITI, we will examine the industries that should be developed,” he said.
He stressed that the target industries must be identified specifically and in detail to ensure the development delivers meaningful economic benefits to Sabah.
Meanwhile, Ewon expressed appreciation for MITI’s willingness to support the proposal and said he was confident the Sabah government would follow up on the recommendations.
He also invited Johari to visit POIC Lahad Datu as an initial step towards realising the proposed collaboration.
“I also extend an invitation on behalf of the Sabah government for the Honourable Minister to visit Sabah and tour POIC as an initial step in supporting the proposal we have placed on record in this House,” he said.
On Oct 13, during the debate on Budget 2027 in the Dewan Rakyat, Ewon proposed designating POIC Lahad Datu as a BIMP-EAGA special economic zone to position Sabah as the eastern gateway to Malaysia.
He said the Federal Government should work alongside the Sabah government to realise the initiative and strengthen the state’s industrial development.
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