Hajiji (centre) witnessing the exchange of document between Sawit Kinabalu group managing director Datuk Bacho Jansie (right) and Linaco group executive director Joe Ling Hwa Ean (left).
KOTA KINABALU: The Sabah government has signed a deal with Malaysia’s biggest coconut-based manufacturing company Linaco Group to build an RM200mil integrated processing factory.
The memorandum of understanding (MoU), which entailed the setting up of the factory in Langkon located in the state’s northern Kota Marudu district, was inked between Linaco and Sawit Kinabalu, the state’s investment arm in the palm oil industry.
The MoU signing ceremony was witnessed by Chief Minister Datuk Seri Hajiji Noor at Menara Kinabalu here on Thursday (March 30).
The MoU was the second of four key components of the deal signed by the Linaco Group with the state government on March 22, 2021, under the Sabah Maju Jaya development plan initiative for the setting up of an integrated coconut blueprint to boost socio-economic transformation in Sabah.
The first component was establishing the Coconut Excellence Centre which was launched by the Chief Minister in Paitan, Beluran last year.
The project’s Land Development Plan and Environmental Impact Assessment (EIA) Report had since received approval from the Agriculture Department and Sabah Environment Protection Department in November and December 2022, respectively.
Under the second component, a 30ha plot of land had been identified by Sawit Kinabalu, for the setting up of the factory to be fully operational in five years.
Langkon was strategically placed for the factory due to its central location, access to workers and proximity to Kota Kinabalu Port.
The factory, expected to employ more than 2,000 workers from the surrounding communities of Kota Marudu, Kota Belud, Kudat and Pitas, would need 700 to 800 tonnes of coconuts per day, providing local coconut farmers and medium to large-scale planters a thriving and sustainable market.
Linaco would also work closely with the Sabah government to provide smallholder farmers with a financial safety net by continuing to buy their harvests at a minimum floor price even during the lowest dips in the cyclical chart.
The two other key components of the integrated coconut blueprint are the establishment of a Smallholder Farmers Scheme and the participation of Medium to Large Scale Planters.
Signing on behalf of the Linaco Group was group executive director Joe Ling Hwa Ean while group managing director Datuk Bacho Jansie signed for Sawit Kinabalu.
Also present were Sawit Kinabalu Deputy Chairman Datuk Rubin Balang, board members and Linaco senior officers.
