Positions Sarawak as Global Player in Methanol Market
Nearly five (5) years after its ground-breaking ceremony, the Sarawak Methanol Complex has been officially launched, signalling Sarawak’s entry into the petrochemical industry and establishing its place as a major player in the global methanol market.
Sarawak Petchem Sdn Bhd owns and manages the RM7 billion state-of-the-art complex that is capable of producing 1.75 million metric tons of methanol per year. It also features innovative technologies such as a large-scale modular construction concept and the jetty wave screen technology – the first of its kind in Malaysia.
During the launch on 22 July 2024, the Premier of Sarawak YAB Datuk Patinggi Tan Sri (Dr) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg noted that the complex was one of six (6) “catalytic projects” that would boost Sarawak’s economy by strengthening both the manufacturing sector and its value chains.
This aligns with Sarawak’s Post COVID-19 Development Strategy 2030 of prioritising the sector, specifically its high-value downstream area, as “a major growth engine in transforming Sarawak into a competitive economy.”
“This Sarawak Methanol Complex represents another major investment in Sarawak. It serves as a catalyst for more economic development in this region, driving job creation, fostering sustainable growth and social inclusivity.
“The economic ripple effect will be felt across various sectors, from local businesses and enterprises to larger supply chains, fostering economic resilience and prosperity in-line with our aspiration to achieve a high Gross National Income (GNI) per capita,” he added.
The methanol plant is also one of numerous multi-billion-dollar flagship projects in Bintulu carried out in positioning Sarawak as a regional green energy hub, which is expected to drive rapid economic growth that will in turn generate opportunities for more lucrative businesses.
This calls for an urgent need to bridge the shortage of skilled workforces to fulfil the requirement of highly skilled jobs as Sarawak continuous to progress rapidly in the next five to ten years.
Many of these jobs, according to the Premier, tend to be from areas of science, technology, engineering and mathematics (STEM) – and they will undoubtedly be crucial in propelling the growth of Sarawak’s economy.
“Education and human capital development are critical components in increasing workers efficiency and help our economy to move up the value chain. On this note, I would like to call upon our talents abroad to come back and actively engage in this ‘nation-building’ endeavour,” he said.
Methanol is a crucial raw ingredient in producing chemicals like acetic acid and formaldehyde that are necessary for industries such as adhesives, solvents and foams.
With the commissioning of Sarawak Methanol Complex, Malaysia has become the top methanol producer in the Asia Pacific region. The Malaysian Investment Development Authority (MIDA) anticipates that the presence of methanol in the country, especially in Sarawak, will encourage more investments and promote the manufacturing of other downstream products, further bolstering its petrochemical industry.
“Malaysia hosts a significant petrochemical industry comprising over 100 companies that manufacture a diverse range of chemical products.
“Foreign investments in the country has increased in recent decades, driven by its access to oil and gas resources, extensive infrastructure, a strong services sector, and a strategically advantageous geographic location that serves important markets in Asia and the Middle East.
“Malaysia’s petrochemical production currently focuses on olefins, polymers, and aromatics, with ambitious plans to advance into more sophisticated specialty chemicals beyond basic commodities,” MIDA elaborates in a statement congratulating the launch of Sarawak Methanol Complex.
References:
BERNAMA. (2024, July 22). Sarawak enters global methanol market with launch of RM7 bil methanol complex. MIDA | Malaysian Investment Development Authority. https://www.mida.gov.my/mida-news/sarawak-enters-global-methanol-market-with-launch-of-rm7-bil-methanol-complex/
Ground Breaking Ceremony for Sarawak Petchem Methanol Project 18 Sep 2019. (2019, September 18). Official Website Office of the Premier of Sarawak. https://premier.sarawak.gov.my/web/subpage/speeches_view/65
Malaysian Investment Development Authority. (2024, July 23). MIDA Congratulates Launch Of Sarawak Petchem’s Rm7 Billion Methanol Complex, Catalysing Bintulu’s Rise As A Petrochemical Hub. MIDA | Malaysian Investment Development Authority. https://www.mida.gov.my/media-release/mida-congratulates-launch-of-sarawak-petchems-rm7-billion-methanol-complex-catalysing-bintulus-rise-as-a-petrochemical-hub/
TVS. (2024, July 22). [SIARAN LANGSUNG] Perasmian Sarawak Methanol Complex Petchem 2024 | TVS. [Video]. YouTube. https://www.youtube.com/watch?v=lHHNe6WvzY8
