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      11 January 2019  

Chief Minister: "Sabah has the capacity to increase the national dairy and beef supply"

Sook (Friday) - Chief Minister Datuk Seri Panglima Mohd. Shafie Apdal paid a visit to the Keningau Integrated Livestock Centre (KILC) project this morning. Upon his arrival, he was received by Sabah Economic Development and Investment Authority (SEDIA) Chief Executive Datuk Dr. Mohd Yaakub Johari, SEDIA Vice President Dr. Chong Vun Leong, along with the staff of SEDIA and KILC.

  Datuk Seri Panglima Mohd. Shafie Apdal (right, front) with SEDIA Chief Executive Datuk Dr. Mohd Yaakub (centre) during the walkabout of the Keningau Integrated Livestock Centre (KILC)

The Keningau Integrated Livestock Centre is a State Government initiative under the Sabah Development Corridor (SDC) to establish an integrated livestock production area, with the main objective of producing sufficient beef, mutton, fresh milk as well as dairy and meat products to meet domestic demand, with the long-term objective of exporting surplus produce, be it in the form of frozen meat, milk or processed products. SEDIA serves as the caretaker for KILC until a suitable special purpose vehicle (SPV), from the private sector or a government-linked company, is identified with approval by the State Government.

In his welcoming remarks, Datuk Dr. Yaakub informed the Chief Minister and everyone present that a feasibility study estimated that KILC could attract over RM700 million in private investment into the Sook interior area, and that thus far Keningau had experienced spillover economic gain which included job and business opportunities as well as increased local beef production. KILC had also attracted interest from several private investors, including the Brunei Investment Agency, several companies from West Malaysia, India, Sweden, Norway, and the United States.

In addressing the crowd in attendance, Datuk Seri Panglima Mohd Shafie said that there was no doubt in the suitability of the project's location, as Sabah has the capability to increase Malaysia's local beef production. He also assured that the State Government will identify the most suitable SPV for KILC, and that he believes that the state will be able to realise KILC's success through local efforts.

During his visit, the Chief Minister was briefed on current project development and status, and also conducted a walkabout of the project site. SEDIA runs the operations and management of KILC, ensuring that all requirements and needs are met in order to achieve the target quality and results. Having taken over operations from Sawit Kinabalu in 2014, SEDIA had managed to realise an increase in dairy milk production since January 2015. Milk production further increased with the addition of 200 New Zealand Holstein dairy breeds in January 2016. As at December 2018, the cow population was at 636 heads, of which 67.5 percent population are producing milk. Total milk production had reached 2.49 million litres, while the average milk production per cow reached over 15.9 litres daily, with KILC producing a daily total of around 6,826 litres. The project is currently the second largest milk production farm in Sabah, and is only operating at 65 percent of its existing capacity and 33 percent of its total design capacity.

The Sabah Development Corridor was launched on January 29, 2008 during the Ninth Malaysia Plan as one of Malaysia's five regional economic corridors, with the aim to accelerate the growth of Sabah's economy, promote regional balance and bridge the urban-rural divide, while ensuring sustainable management of state resources. This was followed by the establishment of SEDIA, through the adoption of Sabah Economic Development and Investment Authority Enactment 2009 on January 15, 2009. The Enactment was assented by the Tuan Yang Terutama Negeri Sabah on February 23, 2009, and gazetted on February 26, 2009. Through the enactment, SEDIA is vested with the necessary power to serve as a decision-making and execution institution that is tasked with realising the SDC vision and mission, by being the One-Stop Authority to plan, coordinate, promote and accelerate the development of SDC.

- Media SEDIA

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