Sabah’s Minister of Industrial Development and Entrepreneurship, Datuk Phoong Jin Zhe, has rejected claims that investors behind the RM1.1 billion clinker and cement plant in Tongod have withdrawn from the project.
Phoong said all companies involved in the joint venture remain committed, and preparatory groundwork at the site has already begun.
“There is no truth to the allegation that investors have pulled out. The project is moving ahead as planned,” he said, referring to Borneo Cement (Sabah) Sdn Bhd—a collaboration between state-owned SEDCO and Sri Alam Setia Sdn Bhd.
Phoong said during the winding up speech of his ministry during the ongoing state legislative assembly in Kota Kinabalu on Wednesday.
The minister also addressed concerns surrounding the location of the plant, which sits within a former logging concession area. He clarified that the 81-hectare site in Pinangah, Tongod, had previously been used for timber stumping operations by Indah Serimas Sdn Bhd under Rakyat Berjaya Sdn Bhd.
According to the Sabah Forestry Department, no new logging has taken place at the site since the end of 2023. However, old timber stock remains on-site and is currently in the process of being removed, pending settlement of logging taxes.
“This is not a case of new forest clearing. The timber at the site is part of a previously approved concession, and no fresh felling is taking place,” Phoong said.
He added that the cement project—designed to operate on a mine-mouth concept—was strategically sited to capitalise on the area’s natural reserves of limestone, shale, and clay, which are essential for clinker production.
The factory is expected to generate 1,000 jobs and supply both domestic and export markets, while reducing cement costs in Sabah. – April 16, 2025
What Else Phoong Announced in His Winding-Up Speech
RM2.47 Billion
Sabah’s total manufacturing investment in 2024, up 63.6% from the year before.
RM6.46 Billion
Total realised and committed investments across sectors. Eight companies have started operations.
5,000 Jobs
From Kibing Group’s new RM7.2 billion solar glass factory in Kimanis.
2,795 Jobs
To be created by Esteel Sabah’s RM6 billion steel plant in Sipitang’s SOGIP.
3,500 Jobs
Expected from TS Asia’s RM9.2 billion oil terminal and refinery in Lahad Datu.
3 New Industrial Parks
Kota Belud, Kudat, and Beaufort are next in line with plug-and-play infrastructure.
80/80 Policy
80% of all industrial jobs must go to Malaysians, and 80% of those to Sabahans.
Silica Sand Controls
No exports allowed without state/federal approval. New tax discourages raw material outflow.
Going Global
SK Nexilis exports copper foil for EV batteries. Kibing exports solar glass to five countries.
