9/9/2010 — BERNAMA
The East Coast Economic Region Development Council (ECERDC) and Xiamen Zhong Seng Oil & Grains Co Ltd have signed a memorandum of understanding (MOU) to undertake palm oil downstream production activities in the East Coast Economic Region (ECER).
Under the MOU, ECERDC will act as facilitator to ensure a smooth and successful implementation of projects undertaken by Xiamen Zhong Seng in ECER Malaysia.
ECERDC is entrusted to develop ECER Malaysia while Xiamen Zhong Seng is one of the major edible vegetable oil manufacturers in China.
The MOU was signed by ECERDC chief executive officer, Datuk Jebasingam Issace John, and Xiamen Zhong Seng’s chairman, Huang Wen Chuan.
Also present was ECERDC council member, Tan Sri Lee Shin Cheng.
Jebasingam said the collaboration was a significant step in the development of the Palm Oil Industrial Cluster (POIC) in ECER Malaysia.
He said the POIC aimed to accelerate the development of palm oil industry in the region.
“The cluster, located in Kuantan, takes advantage of its proximity to Malaysia’s major palm oil producing areas, petrochemical feedstock and easy accessibility to palm oil mills that produce sufficient feedstock for the downstream activities,” he said.
Jebasingam said POIC was also part of the larger Kuantan port city development, that allowed it to benefit from the available support services in logistics and transportation, as well as bulking and distribution facilities.
“The cluster includes facilities for both upstream and downstream industries.
“The upstream industries include the plantation industry, milling and bulk transport of milled products, while the downstream involves the development for the oleochemical industry to cater to the food- and non-food-based manufacturing activities,” he said.
He said special incentives and tax breaks would be offered to encourage investments in the cluster.
“The firms will also have an opportunity to tap the region’s halal trade,” he said.
Malaysia is the second largest palm oil producer in the world, with 15.82 million tonnes last year.
ECERDC, Xiamen Zhong Seng Sign Collaboration Pact
9/9/2010 — BERNAMA