POIC Sabah focus on downstream to assist SMEs

Labuan: The Palm Oil Industry Cluster (POIC) Sabah's strategies will focus on promoting downstream activities to assist Small Medium Enterprises (SMEs). 

Its Chief Executive Officer, Datuk Dr Pang Teck Wai, said there are a lot of opportunities for downstream industries through diversification into the food, phytonutrient, oleochemical, biomass and biofuel sectors, among others. 

"These opportunities must be grabbed by the SMEs in view of the huge market," he added. The palm oil industry is at present capital intensive, technology driven, has a specific gestation period, and is cyclical in nature. 

Hence, the involvement in it has mainly been from the big players. 

However, more opportunities should be opened up for the SMEs, as the focus shifts towards downstream development. 

Pang said there is a need for strong promotions to encourage investments in the related industries and enhancing links between them, while moving products up the value chain. He emphasised the importance of improving links with other downstream manufacturing activities to attract end users. 

"The need to upgrade the capabilities of existing support industries must also be a focus. This is particularly so in developing more SMEs that can provide support and ancillary services to the upstream as well as downstream activities," he said. 

Pang said support industries and investment opportunities in the POIC includes plantations which support fertiliser management, crop integration and inter-cropping, pest and fungus control, planting materials, tissue culture, germinated seed preparation and breeding. 

The POIC's goal is to promote the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.

It does this by providing the necessary infrastructure and facilities to oversee the positive development of this sector. 

Established in 2005, the POIC is located near Lahad Datu in south eastern Sabah and covers about 2023.4 hectares (5,000 acres). 

Pang said more than 40 big players are currently operating in the POIC. 

"We hope to be able to rise to the Government's call to attain the status of a newly industrialised nation. 

We hope to also complement the Sabah Government's efforts in making the State a fully industrialised economy, with palm oil as the oasis of development," he added. 

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