Company News

Malaysians skeptical over Kuokuang project

Taiwanese company Kuokuang Petrochemical Technology has expressed plans to invest RM36 billion to build a refinery, naphtha cracker and other plants at the site.

Before the agreement gets signed, Kuokuang must first complete a feasibility assessment and submit the report to the Economic Affairs Ministry for approval. The firm has also said that it would adhere to local laws and environmental requirements.

Kuokuang has been searching for suitable locations abroad ever since Taiwan made a consensus to focus on high quality product development and to relocate mass production of petrochemical intermediaries to sites abroad.

"Both Malaysia and Indonesia have been considered, but Malaysia is nearer to Taiwan (and has) lower transportation costs. Hence Malaysia is the preferred choice," said the firm.

Last April, the project was rejected by Taiwan President Ma Ying-Jeou, after residents and environmentalists raised concerns that the complex would consume too much water and generate high levels of pollution in the ecologically sensitive area, which is also the habitat of the critically endangered Taiwan pink dolphins.

Petronas's RAPID Pengerang project was recently launched. With an investment of RM60 billion, it will have the capacity to refine 300,000 barrels of imported crude oil and would offer 4,000 permanent jobs.