KOTA KINABALU, Sept 10: The Lahad Datu district on Sabah's east coastwill be turned into a palm oil industrial cluster to cater to downstreamprocessing of value added products from the commodity.
Chief Minister Datuk Musa Aman said the State Cabinet decided today thatLahad Datu would be suitable to develop the cluster as there weresufficient oil palm plantations and an existing deep sea harbour fortransportation.
"It is time for us to go into the downstream processing of palm oil. Atthe moment we only have refineries to process oil palm. We must go formore value added downstream products. It will also help create more jobopportunities," he said.
Large plantations in Lahad Datu, such as Felda, were keen on the move,Musa told reporters after chairing the State Cabinet meeting at WismaInnoprise, in Likas.
Musa also announced that land prices at the Kota Kinabalu Industrial Parkhave been reduced from RM12 per square foot to RM8 per square foot toattract more investors.
At least 40 hectares would be up for sale by the end of the year.
However, rates would not be reviewed for those who previously bought theland, he said.