Phoong
KOTA KINABALU (Feb 21): The Sabah State Government has strongly denied claims that Esteel Enterprise Sabah Sdn Bhd (Esteel) has postponed its investment due to a lack of confidence in the administration.
Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe issued a press statement today, firmly refuting these claims.
“The rumors suggesting that Esteel has delayed its investment due to a loss of confidence in the current state government are baseless and do not reflect the actual progress of the project,” he stated.
The statement clarified that phase one of Esteel’s investment in Sabah is proceeding as planned, with key developments as follows:
. The Development Plan (DP) for the construction of the green steel manufacturing plant has been approved by the Sipitang District Council.
– The Environmental Impact Assessment (EIA) report for earthworks has been approved by the Environmental Protection Department (JPAS).
– Soil investigation work at the phase one plant construction site has been completed.
– A Full Mission Shiphandling Simulation (FMSS), a critical component of the Marine Traffic Risk Assessment (MTRA) for the jetty development, has been conducted.
– Offshore soil investigation for jetty construction is currently in progress.
– The Terms of Reference (TOR) for the Environmental Impact Assessment (EIA) have been finalized for submission to the Department of Environment for approval.
Phoong also highlighted that the Federal Ministry of Investment, Trade and Industry (MITI) granted the Federal Manufacturing License (FML) for Esteel’s phase one investment on January 24, 2025.
“This approval demonstrates the unwavering commitment and support of the Federal Government in strengthening Sabah’s manufacturing sector. It not only creates new opportunities for industrial development but also enhances Sabah’s competitiveness as a prime investment destination in Malaysia,” he said.
Phoong added the Sabah State Government remains dedicated to ensuring the success of this investment, particularly in addressing Esteel’s key requirements, such as natural gas supply. This commitment is evident through the upcoming agreement document exchange ceremony for the supply of natural gas between Petronas, Sabah Energy Corporation (SEC) and Esteel, scheduled for February 28, 2025.
According to Esteel’s latest updates shared with the Ministry, site preparation and subsequent construction of the plant are expected to commence in May 2025. Therefore, any claims that the company has delayed its investment due to a lack of confidence in the state government are entirely false.
“I, along with the Ministry and Sabah Oil & Gas Development Corporation (SOGDC), have been in constant engagement with Esteel’s top management to coordinate and facilitate their investment in Sabah,” Phoong stated.
“This ongoing effort has yielded positive results, as Esteel continues to reaffirm its commitment to Sabah. As proof, the company signed the land lease agreement for its phase two and phase three investments in the Sipitang Oil and Gas Industrial Park (SOGIP) on December 31, 2024. This underscores the investor’s confidence in the stability and support of the State Government in realizing this high-impact investment.
“MIDE remains committed to ensuring the timely operation of this plant for the economic benefit of Sabah and the well-being of its people,” he added.
Phoong’s statement was issued in response to allegations made by Sabah Umno Election Director Jeffery Nor Mohamed, who claimed that this historic investment had turned into Sabah’s “biggest failure” due to the lack of visible progress.
Jeffery further described the project as a “white elephant,” alleging that Esteel had postponed its plans because of waning confidence in the state government.
The post Sabah denies Esteel investment postponed appeared first on Borneo Post Online.