Strengthen SAIP as incubation hub for agro-industrial and biotech players: Phoong

8 April 2025

KOTA KINABALU: Strengthen the Sabah Agro-Industrial Park (SAIP) as a key incubation hub for local agro-industrial and biotechnology players.

Minister of Industrial Development and Entrepreneurship Datuk Phoong Jin Zhe said this during his first official visit to the park.

He emphasised the urgency of transforming the 17-year-old facility into a launchpad for Sabah-based entrepreneurs and SMEs.

Recently appointed as the Chairman of SAIP, he underscored the need to prioritise local talent and businesses rather than focusing solely on attracting external investment.

“Sabah’s wealth must not only come from natural resources, but also from our ability to process, innovate, and export. SAIP must evolve into a breeding ground for Sabah’s next generation of agropreneurs and biotech innovators,” he said.

“Through incubation, training, and access to industrial-grade facilities, we aim to empower local players to take the lead in this transformation.”

During the visit, Phoong toured SAIP’s extensive infrastructure, which includes production lines, herb processing units, a research and development laboratory, a skincare formulation lab, smart greenhouse systems, post-harvest processing units, mushroom cultivation facilities, and SME incubation lots.

Although equipped with advanced facilities, he noted with concern that many of SAIP’s assets have remained underutilised for years.

“It’s truly heartbreaking to see so many incredible machines and facilities sitting idle for nearly a decade,” he remarked.

“I’m committed to going the extra mile to ensure these assets are revived, fully utilised, and transformed into engines of growth for our local industries.”

To unlock the park’s untapped potential, Phoong has initiated a strategic restructuring of SAIP’s operations, focusing on three core areas: enabling affordable access for local entrepreneurs, activating dormant facilities for SME use, and fostering strategic collaborations with research institutions and private investors.

He revealed that several potential investors have already initiated discussions with him and SAIP’s management, signalling growing confidence in the park’s prospects.

Phoong reiterated that SAIP must serve as more than just an industrial park—it should become a centre for talent development, business incubation, and innovation in agro-processing and biotechnology.

“We want SAIP to be the launchpad where Sabahans innovate, manufacture, and bring value-added products to both domestic and international markets,” he stressed.

He also highlighted the importance of fostering an ecosystem of mentorship, research, and entrepreneurship within SAIP to elevate Sabah’s competitiveness in agro-based industries.

“With the right ecosystem in place, I believe SAIP can play a catalytic role in transitioning the state’s economy from raw resource extraction to high-value exports,” he added.

During the event, Phoong was accompanied by SEDCO Chairman Datuk Rubin Balang, MIDE Permanent Secretary Datuk Thomas Logijin, SEDCO Group General Manager Datuk James Wong, SAIP General Manager Annef Osyairi, and members of SAIP’s board of directors.