Six companies to invest RM300mil in Sarawak oil palm estates

KUCHING: Six plantation companies, including one from Peninsular Malaysia, are expected to invest over RM300mil to open up some 33,200ha of native customary rights (NCR) land in Sarawak for oil palm development.

The six Palmraya Plantation Sdn Bhd, Sarikei Oil Palm Plantation Sdn Bhd, Millionmore Sdn Bhd, Karisma Tradisi Sdn Bhd, Cita Global Agro Sdn Bhd and Dynamic Jutamas Sdn Bhd signed memorandums of understanding (MoUs) with the NCR landowners and the state-owned Land Custody and Development Authority (Pelita) to jointly develop the land in different parts of the state.

Sarawak Land Development Minister Tan Sri Dr James Masing witnessed the event here.

The plantation companies, which will each hold 60% equity in the joint ventures (JVs), will provide the capital for the plantation development. The NCR landowners co-own 30% and Pelita the remaining 10% in the JVs. Pelita is the project managing agent to protect the interests of the landowners.
Palmraya Plantation Sdn Bhd managing director Tiong Chiong Hee (left) exchanging documents with Pelita Holdings Sdn Bhd CEO Abdullah Chek Sahamat, witnessed by Sarawak Minister of Land Development Tan Sri Dr James Masing (centre), at the MoU signing in Kuching. - ZULAZHAR SHEBLEE/THE STAR

Peninsula-based Karisma Tradisi was allocated 15,377ha, the biggest among the six companies, in several areas in Marudi District in Miri Division.

Palmraya Plantation will develop 8,514ha in Selangau, Oya and Dalat districts in Sibu and Mukah Divisions.

Dynamic Jutamas was given 4,896ha in Lubuk Antu District in Sri Aman Division while Sarikei Oil Palm was allocated 2,665ha in Sarikei district.

Cita Global's project involves 929ha in Samarahan Division while Millionmore's project covers 815ha in Tatau District in Bintulu Division.

Pelita Holdings Sdn Bhd chief executive officer Abdullah Chek Sahamat said Pelita had been involved in the JV development of NCR land with private investors since 1996.

“Pelita has been tasked with the development of about 300,000ha NCR land. We have so far developed some 58,000ha into oil palm estates.

“We have brought in about RM600mil investment from private investors,” he added.

Abdullah, also Pelita general manager, said the authority was now managing 31 JV oil palm plantations, adding that some RM30mil had been paid out as dividends to the participating landowners over the years.

Pelita has helped to create a land bank of about 75,000ha. Sarawak has an estimated 1.5 million ha of NCR land, which is largely idle or under-utilised. Abdullah said three or four more similar MoUs were expected to be signed soon by other plantation firms and NCR landowners.

Dr Masing said the state government had approved nearly 330,000ha NCR land for oil palm development, adding that the development cost for one hectare was between RM10,000 and RM12,000, depending on the terrain.

Sarawak, according to Dr Masing, has almost one million hectares of oil palm plantation.