CMS, Naim and BDA sign JV for township and other property development in Samalaju

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Friday, 17 December 2010, Kuching –  Similajau Industries Sdn Bhd (Similajau Industries), a wholly-owned subsidiary of Cahya Mata Sarawak Sdn Bhd (CMS), Naim Cendera Sdn Bhd, a wholly-owned subsidiary of Naim Holdings Berhad (Naim) and Bintulu Development Authority (BDA) signed a joint venture agreement today to undertake the development of the new Samalaju township and other property development works in Samalaju.  Signing for Similajau Industries was its CEO, Mr Isaac Lugun, while for Naim was its Managing Director, Datuk Hasmi Hasnan and for BDA was its General Manager, Datu Haji Mohidin Haji Ishak.

A joint venture company, Samalaju Property Development Sdn Bhd, has been incorporated where Similajau Industries will have 51%, Naim 39% and BDA 10%.

The State Government has earmarked 5,200 acres of land immediately North of the Samalaju Industrial Park, about 60 km from Bintulu, for the new Samalaju township development.  And within the Samalaju Industrial Park at least 2,000 acres is being set aside for light industries and service centres.  The JV is also responsible to develop and manage temporary workers’ camp facilities for construction workers of industries locating to Samalaju.  With the combined hydro-electric power from Bakun and Murum at least five major global industries are expected to locate to Samalaju over the next five years.

The first industry that will locate to Samalaju is Tokuyama Corporation of Japan who will be constructing a poly-silicon plant.  They are expected to commence construction in February 2011 and scheduled the plant to be completed and operational within 24 months.  At the peak of the construction period there will be at least 4,000 construction workers and when operational the plant will have about 600 employees.

Datuk Syed Ahmad Alwee Alsree, the Group Executive Director of CMS and who is also the Chairman of Similajau Industries Sdn Bhd said that the team has been developing their plans for the temporary workers’ camp facilities over the last one year.  He added, “In view of the fact that the industries locating to Samalaju are global industries, the State Government has requested for the temporary workers’ camp facilities to be of international standard.  Therefore, we have worked with international camp operators to ensure that the facilities and the management thereof are of such standards.  In fact, work on the temporary workers’ camp has already started.”  He also said that the team has also commenced initial discussions with the State Government on the development of the new township and light industries and service centres within the Samalaju Industrial Park.

He pointed out that the green-field nature of the Samalaju development and the short lead-time are huge challenges but with the combined experience and resources of Naim, BDA and CMS, the JV will deliver.

Datu Haji Mohidin Haji Ishak, the General Manager of BDA, said that the experience that BDA had over the last 30 years in developing Bintulu town, Kidurong Industrial Area, Kidurong Housing Estate and Kemena Industrial Area will hold the JV in good stead.  He said, “The key is in the rigour and detail of the planning and our experience in the development of Bintulu, Kidurong and Kemena will be put to good use.”

Datu Haji Mohidin added that by 2020 the Samalaju township will have a population of at least 30,000 people.  Amenities including a school, clinic, fire-station, police station, commercial centre and a golf course will be built within the new township.

Senior Executive Director of Naim, Mr. Vincent Kueh said that Naim brings proven township development experience to the JV including the highly successful Permyjaya township development in Miri.