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The Star
07-07-2025
- Business
- The Star
'Ask formally instead of making noise outside': Row erupts in Sabah assembly over mega project
KOTA KINABALU: A Sabah opposition assemblyman lapsed into Hakka during a heated argument with state Industrial Development and Entrepreneurship minister Datuk Phoong Jin Zhe during Monday's (July 7) legislative assembly sitting. Calvin Chong (Warisan-Elopura) repeatedly asked what he had done wrong after Phoong accused him of not submitting a formal question to the assembly but resorting to press statements and police reports. "Ngai cho coi lai hang (where did I do wrong)?" he asked several times. During their back-and-forth, Chong asked why he was wrong to question the matter as an assemblyman, while Phoon said a formal question should have been submitted instead of "making noise outside". The exchange was sparked during question time when Phoong was giving his reply on the Esteel investment development, as well as to queries about why the investment capital had increased. Chong had lodged a police report on the project last month, alleging failure in the implementation of a RM31bil steel manufacturing and processing project by Esteel Enterprise Sabah Sdn Bhd in the Sipitang Oil and Gas Industrial Park (Sogip). In his report filed in Sandakan, Chong claimed that his inspection of the site with fellow assemblyman Justin Wong (Warisan-Sri Tanjong) on June 10 found no visible construction activity. Speaker Datuk Seri Kadzim Yahya then asked both assemblymen to calm down, but was ignored until he ordered that they proceed to the next question. Earlier, in giving updates on the Esteel project to Datuk Jannie Lasimbang (PH-Kapayan), Phoong said its Federal Manufacturing Licence (FML) was received at the end of January. 'In February, Esteel sealed a natural gas supply agreement with the Sabah Energy Corporation and Petronas, conducted a contractor bidding tender process in March and April, and sealed the Phase 1 Jetty construction contract with a Chinese company on May 30,' he said. Other matters, such as approval for the green steel manufacturing construction development plan, environmental impact assessment (EIA) report approval and earthworks plan, among others, were subsequently completed, he added. Phoong also said that the physical development of the project would begin either this month or in August. Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) then asked how mega investors have the confidence to invest in multi-billion-ringgit projects in Sabah when stable infrastructure such as roads, water and electricity supply, as well as sufficient manpower, are lacking. He also asked why domestic investors were not given priority in these projects, with more opportunities seen to be given to foreign investors instead. Phoong said it is the state's policy to accept and welcome investors from abroad while also making sure that local investors have the same opportunity to be part of any projects as long as they are capable and qualified.
Daily Express
14-06-2025
- Business
- Daily Express
Warisan's action is damaging: Phoong
Published on: Saturday, June 14, 2025 Published on: Sat, Jun 14, 2025 By: Jonathan Nicholas Text Size: Phoong (left) criticised Chong's (right) approach, saying the matter should have been raised in the State Assembly or through official channels, not with the police. Kota Kinabalu: Sabah Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe condemned Elopura Assemblyman Calvin Chong's police report against the RM31 billion Esteel steel project in Sipitang, calling it 'bizarre' and damaging to investor confidence. Chong, from Parti Warisan, lodged the report on Friday after claiming there was no visible progress at the Sipitang Oil and Gas Industrial Park (SOGIP), following a visit with Sri Tanjong Assemblyman Justin Wong. Advertisement Phoong criticised Chong's approach, saying the matter should have been raised in the State Assembly or through official channels, not with the police. 'With that kind of attitude, it's no wonder why investors are hesitant to come to Sabah,' he said. He reaffirmed that the Esteel project is legitimate, vetted by federal agencies, and officially launched by Prime Minister Datuk Seri Anwar Ibrahim and Chief Minister Datuk Seri Hajiji Noor on May 30. Phoong added the project secured a Federal Manufacturing Licence in January, signed a gas supply deal with Sabah Energy and Petronas in February, and awarded a jetty construction contract to China Communications Construction Company (CCCC) in May. Esteel, he said, paid RM35 million in deposit and signed a sublease agreement with Sabah Oil and Gas Development Corporation and construction is expected to begin by July or August. He said delays were attributed to a federal moratorium on new steel licences due to global oversupply but Esteel was the only project granted an exemption which reflected strong federal confidence. He warned that Chong's actions could scare away genuine investors. 'If you question the project, come to the State Assembly. Ask me directly, I am prepared to answer. But making a police report implies that the government or investor is lying. That is serious and completely uncalled for. 'No other state would treat an investor this way. Actions like this could set back Sabah's hard-won investment gains. We should not politicise investment matters. No industrial state in the country goes around lodging police reports against investors. 'Even in states like Kedah or Selangor, political battles stay in the legislature. Dragging a legitimate investor's name into a police investigation is not only unfair, but dangerous. It creates uncertainty,' Phoong said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
