Malaysia
Established in 2005 by the Sabah State Government, the Palm Oil Industrial Cluster (POIC) Lahad Datu aims to enhance the value of its 1.55 million hectares of oil palm plantations. The objective is to stimulate downstream processing, generate employment, and create business opportunities. Beyond palm oil, the project seeks investments in diverse sectors, including port and logistics, biomass, biorefineries, oil and gas, and related small and medium enterprises (SMEs).
POIC Lahad Datu extends beyond palm oil-related investments, providing a platform for businesses in various supporting industries. With the palm oil sector contributing approximately RM4 billion in State revenue annually and employing 130,000 individuals, POIC presents extensive business opportunities within the sector and its ancillary services.
Integration with Sabah Development Corridor
Situated within the Sabah Development Corridor, POIC aligns with the state’s goal to achieve developed status by 2025. Over 2,000 acres have been developed with infrastructure and utilities, forming an integrated industrial complex spanning more than 4,400 acres. The industrial park caters to light, medium, and heavy industries, promoting economic growth and regional development.
POIC Lahad Datu boasts port facilities in the Lombok-Makassar Straits. The port includes a Container Terminal, Dry Bulk Terminal, Liquid Bulk Terminal, and a Barge Berth. This infrastructure supports efficient trade operations, making it a strategic hub in the BIMP-EAGA region, known for exporting palm oil, cocoa, rubber, timber, coal, and petroleum globally.
Regional Impact and Future Developments at POIC Lahad Datu
Strategically located near Lahad Datu town and existing ports, POIC plays a pivotal role in Sabah’s development and the resource-rich BIMP-EAGA region. As the largest palm oil producer in Malaysia and third globally, Sabah’s significance is further enhanced by the potential introduction of rail infrastructure. The envisioned rail system aims to boost investment potentials, particularly for transporting bulk cargo like palm oil and biomass, contributing to the overall development vision of Sabah.
In conclusion, POIC Lahad Datu serves as a catalyst for economic growth, providing diverse investment opportunities, fostering regional development, and contributing to the transformation of Lahad Datu into a strategic port city. The proposed rail infrastructure and the approval of POIC as a Free Trade Zone (FTZ) further underscore its potential as a key player in Sabah’s industrial landscape. As the region continues to evolve, POIC Lahad Datu remains at the forefront of attracting investments and facilitating sustainable development.
Additional Details for POIC Lahad Datu
- Land tenure: Leasehold – 99 years
- Developer: POIC Sabah Sdn Bhd
- Key industrial sectors: Food & Beverages Biomass & Agriculture
- Seaport: 0.5 km to terminal
- Ready built factories: General warehouse, Bulk Cargo warehouse, Biomass Warehouse