KUCHING: Sarawak is looking into the oleochemical industry to drive the palm oil industry further.
An oleochemical is any chemical that has been derived from fats and oil. It is widely used in home and personal care industries, including as raw material or as an intermediary for the pharmaceutical, rubber, plastic, paint and lubricant industries.
Deputy Chief Minister Datuk Amar Awang Tengah Ali Hasan said Sarawak had planted 1.5 million hectares of oil palm and thus there was a need for the oleochemical industry to be set up in the state.
“All these (oleochemical industry) have so many functions. And it is high time for us to look into this (industry),” he told reporters when met after the launch of the Sarawak Investment and Business Summit themed “Sarawak — Gearing Up for Future Growth and Shared Prosperity” at Hilton Hotel here yesterday.
He revealed that there were already some companies interested in setting up oleochemical businesses in the state.
“We are inviting investors, both domestic and foreign, because we have all these resources and our palm oil industry is growing,” he stressed.
Awang Tengah, who is also International Trade and Industry, Industrial Terminal and Entrepreneur Development Minister, said the plan however was it still at an early stage.
“But we are really hoping for this (oleochemical industry) to be set up in Sarawak.”
Earlier in his speech, the Second Urban Development and Resources Minister said he was optimistic that Sarawak, with the new policy from the state government, would become a regional petrochemical hub.
“The Chief Minister (Datuk Patinggi Abang Johari Tun Openg) had recently announced that for any new finding of gas resources in Sarawak, 40 to 50 per cent must be retained as feedstock for value-added downstream activities in the state,” he said.
He further explained that Sarawak held 54 per cent of natural gas reserves and 29 per cent of national oil reserves, and most were exported as crude oil or liquefied natural gas.
“But such approach is not suitable in the long run. We should go for value-added downstream activities,” he pointed out.
He said it was important that both the government and private sectors work closely together in bringing greater development.
“The government’s function is always to facilitate. But the private sectors play a bigger role to develop be it in any sector or industries of the state.”
The one-day annual summit, organised by Kingsley Strategic Institute for Asia Pacific (KSI), was to promote dialogue and sharing of ideas from both the state and federal governments, business communities and civil society on sustainable and inclusive development.
Also in attendance were KSI president Tan Sri Michael Yeoh and Sarawak Business Federation president Datuk Abang Abdul Karim Tun Openg.
