The key activities for business development in the biofuel sector at POIC Lahad

Datu are outlined as follows:

• Promotional activities. To intensify promotional activities especially in the bio­fuel sector. The strengths and advantages of POIC Lahad Datu in particular the geographic location (Fig. 2.5) and its deep sea port (Fig. 2.6) are the key attrac­tions for promotion.

• Sourcing of raw materials. Offer of two options in sourcing of raw materials. The first option leaves the investors to look for their source of raw materials and POIC Lahad Datu can assist. The second option is to secure the raw materials through POIC Lahad Datu. Past experience shows that in the case of EFB, the supply is not an issue but the lack of effective demand remains the missing link. This means that investors who are able to start now should be able to secure long­term supply of raw materials.

• Client services. Services rendered to POIC investors include sharing of informa­tion related to the palm oil industries among others and facilitating application of licenses and other documents, industrial linkage, and networking.

• Infrastructural investment. POIC Lahad Datu offers option in participating in infrastructural investment to facilitate the takeoff and operation of the industries investing at POIC Lahad Datu. For example, the planned establishment of an EFB collection center at POIC Lahad Datu is aimed at collecting large quantities of raw or processed (shredded and pressed) EFB from different palm oil mills for further processing into various biomass products by the respective investors. The concept of EFB collection center is to alleviate the logistic problems. In this area, POIC is open to a JV arrangement to operate and manage the facility.

• Research and development. R&D-related activities include information sourc­ing and data collection of oil palm and palm-oil-related statistics, market and techno-economy, technology development, trades, supply and demand of raw materials, and land and sea logistics. POIC Lahad Datu also participates in the R&D projects organized by member partners of Oil Palm Biomass Centre (OPBC)[1] on specific technical, logistics, or social aspects related to the

development of biomass industries towards the production of high-value biofuels and bio-based chemicals. POIC is also in collaboration with a company in China to develop a mechanical oil palm harvester.

2.2 Conclusion

POIC Lahad Datu was established for speeding up the value-adding oil palm downstream industries as the growth engine to accelerate the economic development in the State of Sabah. Since its establishment, POIC Lahad Datu has made significant progress in physical and business development and the formation of industrial clus­ters as programmed for. However, there are challenges ahead to expand its business development in not only the palm oil-based industries but also the palm-based biomass industries with special emphasis given to the latter on biofuels and bio-based chemicals as the new avenues for investment supported under the National Biomass Strategy 2020. It is hope that the innovative approaches as instituted in the strategies for business development could accelerate the investment development to a greater height to meet the expectation.