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The Sabah State Government set up POIC Lahad Datu in 2005 to spearhead the development of palm oil downstream processing to add value to its 1.4 million hectares of oil palm plantations, to create jobs and business opportunities. Apart from palm oil, POIC Lahad Datu is also set up to attract investments in port & logistics, oil & gas and related small and medium enterprises.

Aside from investments directly linked to palm oil, POIC Lahad Datu also offers business opportunities in a wide range of supporting industries needed for a sector which contributes RM4 billion in state revenue per annum and employs 130,000.

POIC Lahad Datu is incorporated within the Sabah Development Corridor concept which aims to propel the state to developed status by 2025. To-date, 1,600 acres in POIC Lahad Datu have been developed with infrastructure and utilities. The industrial park is planned to cover more than 4,000 acres.

POIC Lahad Datu is envisaged to be not only a catalyst for the development of Sabah, but also the resource-rich BIMP-EAGA (Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) which supplies the world market with palm oil, cocoa, rubber, timber and minerals, including coal and petroleum.

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POIC News & Events

Conferences & Exhibitions

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 BioMalaysia & BioEconomy Asia Pacific 2014 [19-21 Nov 2014, KLCC]

The BioMalaysia & BioEconomy Asia Pacific 2014 will be held on 19-21 Nov 2014 at Kuala Lumpur Convention Centre


 Seminar on Oil Palm Mechanisation PalmMech 2014 [24-26 November 2014, Bandar Baru Bangi]

PalmMech 2014, organsied by the Malaysian Palm Oil Board, will be held on the 24-26 November 2014 at the MOPB Head office, Bandar Baru Bangi, Selangor

Industry Highlights

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 Mechanical and Physical Properties of Oil Palm Trunk Core Particleboard Bonded with Different UF Resins
Source: Journal of Oil Palm Research. Vol.26, June 2014

Rapid price increases and reduction in the supply of rubberwood has forced the particleboard manufacturers to look for new alternative raw materials.


 Zero Discharge Treatment Technology of Palm Oil Mill Effluent
Source: Journal of Oil Palm Research. Vol. 25, December 2013

Palm oil processing operation is invariably accompanied by palm oil mill effluent (POME) considered to be an environmental pollutant.


 Investigation of Palm Fatty acid Distillate Oil as an Alternative to Petrochemical-Based Lubricants
Source: Journal of Oil Palm Research. Vol.26, March 2014

The development and application of new sources of lubricant/hydraulic oils for industrial use are rapidly increasing.


 Economic Feasibility Study on Establishing an Oil Palm Biogas Plant in Malaysia
Source: Oil Palm Industry Economic Journal. Vol.13(1), March 2013

The processing of oil palm fresh fruit bunch (FFB) primarily for palm oil results in the production of large amount of wastes.


 National Biomass Strategy 2020: New Wealth Creation for Malaysia
Source: Agensi Inovasi Malaysia. Version 2.0, 2013

Malaysia currently generates about 12 percent of GNI from the agriculture sector. In the process of creating this value, a significant amount of biomass is generated every year across a variety of crops, including but not limited to palm oil, rubber and rice. Within agriculture, by far the largest contributor to GNI is the palm oil sector, contributing about 8 percent or over RM 80 billion. The palm oil sector correspondingly generates the largest amount of biomass, estimated at 83 million dry tonnes in 2012. This is expected to increase to about 100 million dry tonnes by 2020, primarily driven by increases in yield. This is why the National Biomass Strategy 2020 had thus far focused on oil palm biomass. We are currently in the process of also extending the scope to include all types of biomass from sources such as rubber, wood and rice husk.


 Innovative approach to move up biomass value chain

The National Biomass Strategy 2020 (NBS) introduced in 2010 puts the spotlight on the readily available raw material in Malaysia and highlights opportunities to convert this into higher value output beyond its current use as fertiliser, and instead for wood products and as a source of energy.


 Specialty Oleochemicals from Palm Oil Via Enzymatic Syntheses
Source: Journal of Palm Oil Research. Vol. 25(1), April 2013

Southeast Asian countries have dominated the export trade of palm oil, as Malaysia and Indonesia exported over 35 million tonnes of oil palm in 2010 (MPOB, 2011). The Malaysian palm oil industry has flourished with a favourable growth in export demand due to the limited supply of world oils and fats. The high demand due to depleting world stock levels results in higher prices of oils and fats as well as palm oil products


 Mission Restarts Biodiesel Output
Source: Argus Biofuel. Issue No. 62, 9 May 2008

Australian listed biodiesel producer Mission Biofuels Limited is restarting production of palm methyl ester (PME) at its Malaysian plant

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