SPEECH BY THE RIGHT HONORABLE DATUK SERI MUSA HAJI AMAN SABAH CHIEF MINISTER CUM MINISTER OF FINANCE AT THE CEREMONY ON THE SIGNING OF JOINT-VENTURE AGREEMENT BETWEEN K.K.I.P SDN BHD & SABAH CREDIT CORPORATION ON THE DEVELOPMENT OF RESIDENCE AT SALUT BAY, LE MERIDIEN HOTEL, KOTA KINABALU ON 2 NOVEMBER 2007

 

I wish to thank the Managements of Sabah Credit Corporation and K.K.I.P Sdn Bhd for inviting me to witness the signing of a Joint Venture Agreement, which marks the formation of a Company to undertake the development of a residential project within the Kota Kinabalu Industrial Park.

 

I am pleased to note that two separate government agencies under two different state ministries have taken such an initiative which is a good example of synergic consolidation of resources and expertise aimed at producing the desired result.

 

Since its inception in 1994, KKIP has worked hard on projecting an image of one that is environmentally friendly and livable industrial township, integrating development of industrial, commercial, residential, properties with training and research institutions, schools and public administration centers, recreation, leisure and tourism areas and other amenities.

 

To date, KKIP has successfully developed more than 1,910 acres of the allocated land for the various purposes, registering 124 operating establishments including 112 factories, 4 utility companies, 8 institutions of trainings, research and development worth more than RM 805 millions providing employment for more than 4,000 people.

 

I was informed that there are 77 units of factories, shops and institutions with a total investment value of RM280 million under the various stages of construction. Many are due for completion by the end of the year adding another 800 to 1,000 jobs to the existing number.

 

In this respect, the government is pleased to note that KKIP has created many investment opportunities for the local SMEs, and of course SME is recognized as an important vehicle for the creation of job and wealth.

 

Nevertheless, the important complementary and consummating feature of a township project i.e. residential development is still lacking. There are altogether 30 residential schemes planned in KKIP of which 3 have been implemented; 2 for the resettlement of the people affected by the projects and one for the workers at KKIP. Indeed the government is happy to see that in this project the existing villagers are being assimilated in the development. I was given to understand that this fourth scheme (V-19 phase 3) is targeted for people working and living in and around KKIP.

 

In the case of SCC and KKIP Sdn Bhd, the joint venture, I am told, entails the development of a residential scheme on a 21.02 acres plot of land surrounded by natural features that enjoys the panoramic view of the beautiful Salut Bay into 230 units of mixed ranging houses from terraced to bungalows with provisions for swimming pools, landscaped gardens and a day care center, including features such as jetty and boardwalks to compliment the existing natural features. In additional to this, the said residential scheme will also contribute towards the development of an integrated, self contained township, hence fulfilling the needs of a growing community within the KKIP.

 

I am happy to note that the objective and purpose of KKIP are gradually being fulfilled. The project started with the development of the industrial sector from a green field site as engine of growth to enhance the economy of the state by adding value to our produce and the creation of jobs and investment opportunities for the local SMEs. Following that the market for the housing and commercial sectors are generated internally. The completion of the industrial, residential, commercial, institution and recreation components will eventually turn the park into an industrial township.

 

The role of GLCs and government agencies is very important in fulfilling not just the economic agenda of the State but also its social agenda or its corporate social responsibility. In the context of Sabah, GLCs have a strong role to play in helping the State Government carry out its agenda for further development.

 

In this regard, I am pleased to note that both K.K.I.P Sdn Bhd and Sabah Credit Corporation have also indirectly contributed to social progress through the development of human capital. This is evident in the number of training institutions set up within the Kota Kinabalu Industrial Park which to date is capable of churning out more than 10,000 trainees yearly.

 

As Chief Executive of the State of Sabah, I wish to once again congratulate SCC and KKIP S/B for successfully playing their expected roles in the development of the state. I am hopeful other GLCs and government agencies would emulate a similar initiative in forming strategic alliances and smart partnerships to realize optimal benefits for the stakeholders and their reasons for being.

 

Thank you