SD Plantation Spearheads Renewable Energy Endeavors In Malaysia’s Kerian Integrated Green Industrial Park

In a strategic move to capitalize on its extensive land holdings in Malaysia, Sime Darby Plantation Berhad (SD Plantation or the Group) is set to embark on a transformative journey towards sustainable revenue generation. The Group’s inaugural step involves its active participation in the proposed Kerian Integrated Green Industrial Park (KIGIP) located in Perak, Malaysia.

Collaborating with its major shareholder, Permodalan Nasional Berhad (PNB), SD Plantation eyes a partnership in this 1,000-acre development strategically situated within its Tali Ayer Estate in Perak. A joint proposal was presented to the Ministry of Investment, Trade & Industry (MITI) in February.

KIGIP, a brainchild aimed at attracting green electrical and electronics (E&E) investments, forms part of the 2024 National Budget’s agenda. Central to the plan is the establishment of 660 acres of solar farms, slated to serve as the primary green energy source for the area, with a focus on luring semiconductor and E&E investments, pivotal sectors in the global economy.

Driven by the Federal Government in collaboration with the State of Perak, KIGIP represents a strategic endeavor to foster sustainable industrial growth.

SD Plantation’s Group Managing Director, Datuk Mohamad Helmy Othman Basha, underscored the significance of participating in the KIGIP venture, marking a pivotal milestone in the Group’s expansion strategy. “Our proactive involvement in KIGIP aligns with our commitment to explore synergistic revenue streams,” said Datuk Mohamad Helmy, emphasizing the company’s robust positioning fueled by its landbank and financial strength.

Benefitting from seamless connectivity via the North-South Expressway, KIGIP is poised to attract potential tenants and investors, positioning it as an attractive investment destination. Spanning approximately 1,000 acres within SD Plantation’s Tali Ayer Estate, the industrial zone will comprise 67% industrial areas, with the remainder earmarked for commercial, residential, and green spaces. Future phases of development hinge on feasibility studies, due diligence, and regulatory approvals.

Mohamad Helmy emphasized the Group’s commitment to securing sustainable revenue streams through strategic collaborations. SD Plantation will own and operate the solar farms at KIGIP, aligning with its renewable energy strategy and net-zero emissions target by 2030.

With strategic land holdings across Malaysia, SD Plantation is actively engaged in discussions with state agencies to replicate KIGIP’s green energy model. Additionally, the Group explores partnerships for data center development, a sector with high energy demand.

Having leased land to third-party solar farms under government initiatives, SD Plantation is poised to play a significant role in Malaysia’s renewable energy landscape, reaffirming its commitment to sustainability and innovation.