SD Plantation group managing director Helmy Othman Basha said it intends to collaborate with its largest shareholder Permodalan Nasional Bhd (PNB) in this 1,000-acre (404.68 hectares) development, strategically located in SD Plantation’s Tali Ayer Estate in Perak.
“A joint proposal was submitted to the investment, trade and industry ministry (Miti) in February,” he said in a statement.
SD Plantation said it plans to capitalise on its vast landbank in Malaysia to create a lucrative and sustainable revenue stream.
“KIGIP, which was conceptualised to attract green electrical and electronics (E&E) investments into the country, was announced by the government in Budget 2024.
“The plan also involves the establishment of 660 acres (267.09 hectares) of solar farms as the principal green energy source for the area, designed to attract semiconductors and E&E investments, two of the fastest growing sectors in the global economy,” SD Plantation said.
Helmy added that the decision to actively participate in the KIGIP development is an important milestone for the company as it ventures into the natural adjacency of plantation companies.
“KIGIP would have easy access to the North-South Expressway providing essential connectivity with major logistics hubs such as airports and sea ports, making it attractive for potential tenants and investors.
“The main industrial zone would cover 404.68 hectares in what is currently SD Plantation’s Tali Ayer Estate in Kerian,” he said.
Conceptually, he said about 67% of the main zone would comprise industrial areas, while the balance of the development will house other infrastructure such as commercial and residential facilities, as well as utilities, amenities and large green spaces.
Future phases of the development would progress upon completion of its first phase.
He said the group prefers to collaborate on such projects instead of just signing off its land, aiming to secure more sustainable revenue streams for its shareholders.
“The group also holds strategic landbanks in various states and active discussions are currently ongoing with several state agencies to develop the land into industrial parks.
“The intention is to replicate KIGIP’s green energy model where feasible,” he said.
Helmy said the group is also exploring the opportunities to develop data centres, which typically consume large amounts of energy, with partners.
At 1.30pm, SD Plantation’s share price was up by 6 sen or 1.35% at RM4.49, giving the group a market capitalisation of RM31.05 billion.