SICC expected to catalyse Sabah’s economic growth

KOTA KINABALU: The Sabah International Convention Centre (SICC) under construction here will catalyse Sabah’s economic growth and play a key role in high-impact tourism.

The project, owned by state-owned Yayasan Sabah Group (YSG), is being built on a 15-acre reclaimed site adjacent to the soon-to-be relocated Kota Kinabalu Port.

The convention centre, the first of its kind in terms of scale in Sabah, is one of the strategic projects to enhance YSG’s impact on Sabah’s development, its director Datuk Sapawi Ahmad said yesterday.

He was speaking during a 3-in-1 event here witnessed by Chief Minister cum Yayasan Sabah Chairman Datuk Musa Haji Aman. The event saw the signing of a multi-party memorandum of understanding, a Loan Syndication Mandate and the presentation of dividends to YSG.

Under the MOU, YSG’s wholly-owned subsidiary Innoprise Corporation Sdn Bhd will collaborate with WH Vector Sdn Bhd and Koperasi Agrotek Malaysia Berhad in the development of the Papar Smart City project. Koperasi Agrotek will act as consultant and developer for this project.

The loan syndication will see state-owned Sabah Development Bank and AmInvestment Bank Berhad leading a syndicated loan to finance the completion of SICC which, when completed, will be the biggest in Borneo.

SICC is envisaged to be the main driver to attract MICE (meetings, incentives, conference and exhibition) visitors. The adjacent Kota Kinabalu Convention City (KKCC) built by renowned Mah Sing Group, will have three hotels and high-end shopping, office and residential components to complement SICC. KKCC has a gross development value of RM1.4 billion. It is connected to SICC via a covered sky bridge.

Aside from KKCC, SICC will also be complemented the proposed world class cruise terminal and marina. According to state government figures, these facilities are expected to generate RM735 million in revenue from domestic tourists, RM2.3 billion from international tourists and an additional RM3.15 billion from MICE.

In the presentation of dividends, nine YSG subsidiary companies paid a combined RM44.6 million in dividends to YSG. The companies are Tanjung Aru Hotel Sdn Bhd, Benta Wawasan Sdn Bhd, NRG Consortium (Sabah) Sdn Bhd, Sabah Softwoods Berhad, Norsechem (Sabah) Sdn Bhd, Borneo Nature Tour, Innoprise Jungle Lodge, Sabah Foundation Bioscape Sdn Bhd and YSG Landscape Services Sdn Bhd.

YSG, set up not long after Sabah attained independence in 1963 and backed by rich timber concessions, is aimed at uplifting the standard of living of Malaysians in Sabah. It has an extensive business portfolio from shipping tom plantation to tourism.

“When completed, the SICC is poised to be an engine for the economic growth of the state, particularly in relation to high-impact tourism said,” said Sapawi.

Meanwhile, in applauding the financial achievements of the YSG-owned companies, Sapawi stressed on the ability of these companies to pay dividends testify to their abiding with their respective Key Performance Index (KPI).

“KPI should be maintained and enhanced to a higher level in ensuring that the subsidiaries continue to be relevant not only to the YSG but also to the people,” said Sapawi. “Indeed, the dividend will help YSG to actively continue to carry out its social programmes in improving the people’s quality of life.”

 

Source : New Sabah Times