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Sime Darby Expands Into Green Industrial Parks, Renewable Energy Market

KUALA LUMPUR: Sime Darby Plantation Bhd (SD Plantation) plans to expand its offering by participating in the proposed Kerian Integrated Green Industrial Park (KIGIP), an initiative driven by the federal government in close collaboration with the Perak state government.

SD Plantation Group Managing Director Datuk Mohamad Helmy Othman Basha said it intends to collaborate with its largest shareholder Permodalan Nasional Bhd (PNB) in this 1,000-acre (404.68 ha) development, strategically located in SD Plantation’s Tali Ayer Estate in Perak.

“A joint proposal was submitted to the Ministry of Investment, Trade and Industry (MITI) in February,” he said.

SD Plantation said it plans to capitalise on its vast landbank in Malaysia to create a lucrative and sustainable revenue stream.

KIGIP, conceptualised to attract green electrical and electronics (E&E) investments into the country, was announced by the government in Budget 2024.

“The plan also involves the establishment of 660 acres (267.09ha) of solar farms as the principal green energy source for the area, designed to attract semiconductors and E&E investments, 2 of the fastest growing sectors in the global economy,” he said.

He added that the decision to actively participate in the KIGIP development is an important milestone for the company as it ventures into the natural adjacency of plantation companies.

KIGIP would have easy access to the North-South Expressway providing essential connectivity with major logistics hubs such as airports and sea ports, making it attractive for potential tenants and investors.

The main industrial zone would cover 404.69ha in what is currently SD Plantation’s Tali Ayer Estate in Kerian.

Conceptually, about 67% of the main zone would comprise industrial areas while the balance of the development will house other infrastructure such as commercial and residential facilities, as well as utilities, amenities and large green spaces.

Future phases of the development would progress upon completion of its first phase.

“By collaborating in such projects, instead of just signing off our land, we aim to secure more sustainable revenue streams for our shareholders,” Helmy said.

The group also hold strategic landbanks in various states and active discussions are currently ongoing with several state agencies to develop the land into industrial parks.

The intention is to replicate KIGIP’s green energy model where feasible.

He said the group is also exploring the opportunities to develop data centres – which typically consume large amounts of energy – with its partners.


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