SD Plantation Expands Green Parks & Renewable Energy

Sime Darby Plantation Berhad (SD Plantation or the Group) is leveraging its extensive land holdings in Malaysia to establish a profitable and sustainable revenue stream. The Group’s initial move in this direction involves its participation in the proposed Kerian Integrated Green Industrial Park (KIGIP) in Perak, Malaysia.

In collaboration with its major shareholder, Permodalan Nasional Berhad (PNB), SD Plantation aims to develop this 1,000-acre project situated within its Tali Ayer Estate in Perak. A joint proposal was submitted to the Ministry of Investment, Trade & Industry (MITI) in February.

KIGIP, envisioned to attract investments in green electrical and electronics (E&E) sectors, was introduced in the 2024 National Budget by the Government. The plan includes setting up 660 acres of solar farms to serve as the primary green energy source for the area, with the goal of attracting investments in semiconductors and E&E industries, known for their rapid growth globally.

The initiative is a collaborative effort between the Federal Government and the State of Perak.

Datuk Mohamad Helmy Othman Basha, Group Managing Director of SD Plantation, expressed the significance of participating in KIGIP, marking a crucial step as the company expands beyond traditional plantation activities. He emphasized the establishment of strategic partnerships to develop land resources effectively, thereby creating a sustainable revenue stream. The company’s robust land bank and financial strength position it favorably for this endeavor.

KIGIP’s strategic location with easy access to the North-South Expressway enhances its appeal to potential tenants and investors by facilitating connectivity with major logistics hubs. The industrial zone within KIGIP, occupying approximately 1,000 acres of SD Plantation’s Tali Ayer Estate, will predominantly consist of industrial areas, complemented by commercial and residential facilities, utilities, amenities, and green spaces. Subsequent phases of development will follow upon completion of the initial phase, subject to feasibility studies, due diligence, and regulatory approvals.

Mohamad Helmy highlighted the Group’s commitment to securing sustainable revenue streams for its shareholders through collaborative projects like KIGIP, rather than simply divesting land assets. SD Plantation will own and operate the solar farms within KIGIP, aligning with its strategic focus on renewable energy as a key revenue driver and part of its net-zero strategy to reduce carbon emissions.

The Group’s strategic land holdings across Malaysia present opportunities for similar developments, with ongoing discussions with state agencies to explore industrial park projects. Additionally, SD Plantation is exploring partnerships to develop data centers, recognizing their energy-intensive nature.

Previously, the Group leased its land to third-party solar farms under the Government’s Large Scale Solar (LSS) schemes, securing a significant portion of the quota under LSS4. Furthermore, through the Corporate Green Power Programme, a substantial portion of the quota was utilized for the Group’s own energy needs.

By embracing sustainable development initiatives like KIGIP and prioritizing renewable energy, SD Plantation is poised to create long-term value for its stakeholders while contributing to Malaysia’s green economy agenda.

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