Malaysia's MITI supports POIC Lahad Datu as BIMP-EAGA special economic zone

Malaysia's Ministry of Investment, Trade and Industry (MITI) has expressed support for developing the Palm Oil Industrial Cluster (POIC) in Lahad Datu, Sabah, into a special economic zone. The proposal, introduced by Penampang MP Datuk Ewon Benedick, aims to position Sabah as the ‘Eastern Gateway to Malaysia’ under the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) initiative.

Minister Datuk Seri Johari Abdul Ghani noted that the development of POIC Lahad Datu should have been prioritized earlier, comparing its potential to the Johor-Singapore Special Economic Zone. The site offers strategic advantages, including available land, sufficient port depth, and existing logistics and storage infrastructure.

The zone is expected to attract investments in manufacturing, commodity processing, and downstream industries. Specifically, it could strengthen the palm oil value chain, including refining, oleochemicals, and kernel crushing. Sabah and Sarawak together produce approximately nine million metric tonnes of crude palm oil, representing about 45 percent of Malaysia's total national production.