INDUSTRIALISING SABAH THROUGH …bioborneo2015.sedia.com.my/images/papers/P45...“INDUSTRIALISING...
Transcript of INDUSTRIALISING SABAH THROUGH …bioborneo2015.sedia.com.my/images/papers/P45...“INDUSTRIALISING...
20 & 21 April 2015 Monday & Tuesday
The Magellan Sutera, Sutera Harbour Resort, Kota Kinabalu
Datuk Dr. Pang Teck Wai & Dr. Lee Ming Tong
“INDUSTRIALISING SABAH THROUGH BIOECONOMY”
Introduction
Sabah Economic Development Agenda
Bio-resources in Sabah for Economic Development
POIC Lahad Datu: Industrialisation for Bio-Based
Economy Development
Concluding Remarks
PRESENTATION OUTLINE
INTRODUCTION
Bio-based economy potential in Sabah
How to realise the bio-based economy in Sabah
SABAH ECONOMIC DEVELOPMENT STATUS (2014)
Economic Activities GDP Value
(RM’ Million) Percentage %
Agriculture 9,411 20.6
Mining & Quarrying 9,345 20.4
Manufacturing 3,605 7.9
Construction 1,107 2.4
Service 22,134 48.3
Import Duties 184 0.4
Total 45,791 100.0
Source: Department of Statistics Malaysia, Sabah (2014)
SABAH INDUSTRIAL DEVELOPMENT 2015 & 2035
• Industrialising Sabah, a key development agenda of State government
• No economy can be developed by-passing industrialisaton
Sabah
Malaysia
0%
5%
10%
15%
20%
25%
30%
35%
40%
2015 2035
GD
P
< 10%
25%
35%
SABAH, MALAYSIA: RICH IN BIORESOURCES
• Vast Land Area (73,620 km2)
(Agriculture/Forestry)
• Long Coastline (1,743 km)
(Aquaculture)
Development of Bioeconomy
through Industrial Biotechnology
Abundant Bio-feedstock
LAND USE IN SABAH (2014)
Land Use (000’ ha) %
National Forests & State Land 4,196 57.0
Plantation Forest 239 3.2
Oil Palm Plantations 1,522 21.7
Rubber Holdings 110 1.5
Rice Fields 38 0.5
Coconut Farms 17 0.2
Cocoa Holdings 5 0.1
Other Crops 27 0.4
Other Land Uses 1208 16.4
Total 7,362 100.0
Source: Department of Statistics Malaysia, Sabah (2014)
OIL PALM INDUSTRY IN SABAH, MALAYSIA (2014)
Sabah Malaysia
Oil Palm Planted Area
(Million Ha) 1.51 (28 %)* 5.39
Palm Oil Mill
(No.) 127 (28.9%) 439
Palm Oil Refineries
(No.) 12 (22.2%) 54
Palm Kernel Crushers
(No.) 13 (29.5%) 44
Oleochemical Plants 0 (0%) 17
Crude Palm Oil Production
(Million Tonnes) 6.05 (30.8%) 19.67
Crude Palm Kernel Oil
Production (Mil. Tonnes) 0.627 (27.5%) 2.28
Potential palm-based biomass
(Million Dry Tonnes) 28 (35%) 80
* Figure in parenthesis denote % national total
Source: Malaysian Palm Oil Board (MPOB) Website, 2015 Statistics
Palm Oil Tree
Crude Palm Oil Palm Kernel Oil
Milling Process
Trunks
Fronds
Fresh Fruit
Bunches
Biomass
Mesocarp Fiber
(MF)
Palm Kernel
Shells (PKS) Empty Fruit
Bunches (EFB)
Palm Oil Mill
Effluent
(POME)
BASIC RAW MATERIALS FROM OIL PALM TREE
OIL PALM BIOMASS RESOURCES IN SABAH
Biomass Type
Oil Palm Fronds
Oil Palm Trunks
Empty Fruit Brunches
Mesocarp Fibres
Palm Kernel Shells
Palm Oil Mill Effluent
Mil. Dry Tonnes/Year
13.8 – 17.3
4.2 – 5.3
3.0 – 2.5
2.1 – 2.6
1.2 – 1.5
0.6 – 0.8
TOTAL : 24.9 – 30.0
VALUE ADDING OPPORTUNITIES IN PALM-BASED
BIOMASS DOWNSTREAM INDUSTRIES
Feedstocks Currently
Underutilised
Oil Palm Fronds
16.4 million dry tonnes
Oil Palm Trunks
4.5 million dry tonnes
Empty Fruit
Bunches
Downstream Opportunities
Bio-Pellets Bio-Ethanol Bio-Based
Chemicals
Bio-Fuels
Wood Plastic
Composite Plywood Furniture from Oil Palm Lumber
Pulp & paper MDF Particle Board / Molded
Particle Board Finished Paper
Products
Animal Feed from Oil Palm Fronds Fibre Compost/fertilizer
Current Focus at
POIC Lahad
Datu:
• Bio-refinery
• Bio-fuels
• Bio-chemicals
• Bio-pellets
2.3 million dry tonnes
Products Currently Exported Downstream Opportunities
Cooking Oil
Shortening
Margarine
Vanaspati
Confectionary
Bakery Fats
Ice cream
Cocoa butter
alternatives
Specialty fats
Noodles
Confectionary fats
Coffee Whitener/
Creamer
Filled Milk
PHYTONUTRIENTS
Carotenes
Tocols (Vitamin E)
Co-enzyme Q10
Squalene
Phytostrols
Lecithin
• Crude Palm Oil
• Refined Palm Oil
• Palm Olein
• Palm Stearin
• Refined Palm
Kernel Oil
• Crude Palm
Kernel Oil
• Palm Kernel Olein
• Palm Kernel
Stearing
OLEO-CHEMICALS
Methyl Ester
Personal Care
Products
Cosmetics
Plastics
Textile Processing
Metal Processing
Lubricants
Emulsifiers
Soap
Degreasing
Compound
Protective
Coatings
Explosives
VALUE ADDING OPPORTUNITIES IN PALM-BASED
BIOMASS DOWNSTREAM INDUSTRIES
BIO-REFINERY
Bio-chemicals
(petroleum
substitutes)
FOODS PHYTONUTRIENTS OLEO-CHEMICALS BIO-REFINERY
VALUE ADDITION TO PALM-BASED BIOMASS PRODUCTS
0 500 1000 1500 2000 2500 3000 3500 4000
fertilizer
Animal feed
Bio-energy
Pellets
Wood products
Bio-ethanol
Bio-chemicals
Value (RM/tonne dry biomass)
Source: Agensi Inovasi Malaysia (AIM), 2013.
VALUE ADDITION TO PALM OIL INDUSTRY
RM / MT
500
2,300
3,500 – 5,000
5,000 – 8,000
11,000 – 15,000
Source : Malaysian Biotechnology Corporation 2014
Feedstock source
Total quantity
(Mil. tonnes per
year)
Max unit value
(RM/tonne per
year)
Total value
(RM billion per
year)
Palm-based
biomass 30 3,400 102 billion
Palm oil 6.5 15,000 97.5 billion
POTENTIAL IMPACT OF PALM BASED BIOCHEMICAL
INDUSTRIES INVESTMENT ON SABAH ECONOMY
• At 1% contribution to investment share
FDI = RM2 billion per year: sufficient to effect industrial shift
Sabah’s economy
• Total coastal length in Sabah: 1,743 km (longest in Malaysia)
• Lahad Datu marine fishing area: 3,700 sq. km.
• Abundant natural fishing reefs
• Existing fishing villages and aquaculture investors
• Proposed location of National Aquaculture
• Key Strategic Partners : Biotech Corporation Malaysia &
COASTAL BIORESOURCES IN SABAH
Fisheries Department Sabah
POIC LAHAD DATU: STRATEGIC LOCATED WITH INSTALLED INFRASTRUCTURE TO
ACCELERATE THE AQUACULTURE INDUSTRIAL DEVELOPMENT IN LAHAD DATU
Background:
• Set-up in January 2005 under POIC Sabah Sdn Bhd.
• Wholly owned by Sabah Government of Sabah under the purview of Ministry of
Industrial Development (MID).
• As the first comprehensive developed (infrastructure) palm oil industrial cluster in
the world.
• Project development : 4,400 acres of integrated Industrial complex designed to
cater for light, medium and heavy industries.
Objectives:
• To value add to palm oil and palm biomass.
• Development of related and other industries.
• Creating job and investment opportunities.
POIC LAHAD DATU, SABAH
Availability of raw materials:
At the vicinity of :
• 1.51 million hectares oil palm
plantations
• 124 crude palm oil mills
• 14 palm oil refineries
Easy access to :
• 6.05 million tonnes of Crude Palm Oil
• 28 million dry tonnes of palm-based
biomass for downstream activities
POIC LAHAD DATU: LOCATED AT THE CENTRE OF OIL PALM
GROWING BELT IN SABAH
Deep & sheltered harbour ~ depth up to over 20-metres
20,000 acres of land bank along the coast line
PHASE 1
PHASE 2
PHASE 3
NATURAL DEEP SEA PORT & LARGE INDUSTRIAL LAND BANK
PORT & INDUSTRIAL INFRASTRUCTURE AT POIC LAHAD DATU
Liquid Bulk Terminal
Dry Bulk Terminal
Container Terminal Ready by 2017
Bulking Facilities
Piperacks
Interchange
Electricity
Water
BIO-
TECHNOLOGY
CLUSTER
AQUA/AGRO
INDUSTRIAL
CLUSTER
PORT &
LOGISTICS
CLUSTER
HALAL
CLUSTER
SMI
CLUSTER
BIO
REFINERY
FINANCIAL INSTITUTIONS
LAND DEVELOPERS
BULKERS
TECHNOLOGY PROVIDERS
TRANSPORTATION COMPANIES
MACHINERY EQUIPMENT COMPANIES
REAL ESTATE COMPANIES
WAREHOUSES
RESEARCH INSTITUTES
GOVERNMENT & RELATED AGENCIES
ENERGY SUPPLIERS
HALAL PRODUCT MANUFACTURERS
PACKAGING
PORT HANDLERS
/OPERATORS
OIL PALM
PLANTATIONS
OLEO-
CHEMICALS
INDUSTRY
BIOFUELS
INDUSTRY
PALM OIL
REFINERIES
BIOPELLET
INDUSTRY
FERTILIZERS
EDUCATIONAL INSTITUTIONS
CPO
MILLS
FOOD
BASED
INDUSTRY NUTRA-
CEUTICAL
INDUSTRY
Oil Palm Industrial Cluster,
Aquaculture Industrial
Cluster and Other Clusters
OIL PALM
INDUSTRIAL
CLUSTER
BUILDING MATERIALS &
CONSTRUCTION
HOTEL & HOSPITALITY
OIL & GAS
CLUSTER
POIC LAHAD DATU INDUSTRIALISING SABAH THROUGH
INDUSTRIAL CLUSTERING CONCEPT
AQUACULTURE INDUSTRIAL CLUSTER
AQUACULTURE
PRODUCTION
INDUSTRY
FISH
CULTURE
SEA
CUCUMBER
CULTURE
SEAWEED
CULTURE
CRUSTACEANS
CULTURE
MOLLUSCA
CULTURE
OTHER
AQUA-
CULTURE
AQUA-BASED
HEALTH
PRODUCT
INDUSTRY
AQUA-BASED
COSMETIC
PRODUCT
INDUSTRY
PROCESSED
SEAFOOD
INDUSTRY
FRESH
SEAFOOD
INDUSTRY
AQUA BROOD STOCKS AND HATCHERIES
AQUA FEED SUPPLIERS
AQUA FACILITIES AND EQUIPMENT SUPPLIERS
WATER TREATMENT, SUPPLY & SERVICES
AQUA-HEALTH TREATMENTS,
SUPPLY &SERVICES
R&D INSTITUTION
AQUACULTURE TECHNOLOGY
PROVIDERS
PROCESSING FACILITIES
FINANCIAL INSTITUTIONS
COLD STORAGE & PACKAGING
TRANSPORTATION COMPANIES
GOVERNMENT & RELATED AGENCIES
POIC LAHAD DATU: STRATEGY TO DEVELOP BIO-BASED
ECONOMY IN SABAH
BIO-BASED ECONOMY
Oil Palm Cluster Halal Cluster Biotechnology Cluster
Palm Oil Palm Biomass Oil Palm Based
• Foods
• Phytonutrients
• Oleo-chemicals
• Biorefininery
• Fertilisers
• Animal Feeds
• Bio-energy
• Wood Products
• Bio-ethanol
• Bio-chemical
• Foods
• Phytonutrients
• Aquaculture
• Fish
• Others
POIC LAHAD DATU: LAND DEVELOPMENT
MASTERPLAN
Phase 2 Phase 3A
Bio-refinery
Needs:
• Basic infrastructural development
• E.g. of Specialty infrastructure: canning, cold
storage, packing, processing, handling facilities
POLICY SUPPORT: LEAP FROG THE
BIO-BASED ECONOMY
• Sabah is rich in land (oil palm) and sea bio-resources for bio-based economy development amounting to as high as several hundred billion Ringgit Malaysia per year.
• POIC Lahad Datu’s industrialization model is tailored made to realise the bio-based economy development in Sabah.
• Developing bio-based economy is a necessary condition towards transforming Sabah into developed economy.
• FDI is critical in developing Sabah’s bio-based economy.
• Appropriate policy support to accelerate the potential of bio-based economy development in Sabah.
CONCLUDING REMARKS
www.poic.com.my