TAN Chong Motor Holdings Bhd plans to invest some RM600 million over the next three decades in Sabah to establish an automotive assembly plant at the Kota Kinabalu Industrial Park.

The idea was floated five years ago during the Barisan Nasional government era, but was put off due to unresolved land issues with the industrial park.

Tan Chong Motor chief financial officer Daniel Ho Wai Ming said the firm now hoped it could work with the new Warisan-led government to bring the concept into reality.

Ho said the state government was giving its full support to realise its promise to resolve the land issue in a month’s time.

“We have taken stock of other locations to set up the plant.

“The reason why we chose Sabah was its strategic location, its access to Brunei, Indonesia, Malaysia, and Philippines – the East Asia Growth Area (BIMP-Eaga).

“When we make plans to build a plant, we also look into whether we would be able to export our vehicles to nearby regions. BIMP-Eaga holds huge potential for us,” he said in Kota Kinabalu, today.

Ho was among the group of Tan Chong Motor group delegates who paid a courtesy call to Sabah Chief Minister Shafie Apdal.

Ho said the investment would include constructing a plant to assemble buses, pick-up trucks, and lorries, acquisition of a 100-acre piece of land, and operations.

“Once completed, the plant will be able to generate around 1,000 jobs, plus more employment opportunities through its vendors, technical partners, parts suppliers, and logistics,” he said.   

Ho said the long-term project will involve localising all its vendors and suppliers to allow the plant to operate without a hitch.

For manpower, he said Tan Chong has already set up a skills training centre in Sandakan, but added there would be further technical transfers and training to meet the plant’s operational needs later.

Ho said Tan Chong is also looking to establish a green energy plant that converts waste into electricity at the same industrial park.  

According to him, the company has launched a study on the project.

“This is still under discussion, but the state government has already expressed its willingness to assist us with supplying waste from the Kayu Madang landfill in Telipok,” he said.

The landfill is facing space constraints due to overwhelming amounts of rubbish discarded by the population in Kota Belud, Penampang, Kota Kinabalu, Tuaran, and Papar.

Tan Chong Motors Holdings Bhd holds various portfolios ranging from car sales and services, tourism, and others, and has been around in Sabah for about 30 years. – September 13, 2018.