Genting Plantations Berhad and Musim Mas Group have partnered to establish a palm oil refinery in Lahad Datu, Sabah, with a 28% stake acquired by Musim Mas and an investment of approximately RM300 million.

Information on the Target

Genting Plantations Berhad, a significant entity in the palm oil industry, has announced a collaboration with Musim Mas Group to establish a new palm oil refinery within the Palm Oil Industrial Cluster (POIC) in Lahad Datu, Sabah. Musim Mas Group will acquire a 28% stake in Alfa Raya Development Sdn Bhd, the joint venture established for this project, while Genting Plantations retains a 72% interest.

The planned palm oil refinery is set to be a component of the Genting Integrated Biorefinery Complex, which aims to produce high value-added downstream products aligned with sustainable practices. Genting Plantations’ Chief Executive, Tan Sri Lim Kok Thay, expressed optimism about the collaboration, highlighting the advantages it could bring to both companies and their stakeholders.

Industry Overview in Malaysia

The palm oil industry is a critical sector for Malaysia, being one of the world's largest producers and exporters of palm oil. With extensive plantations across the country, Malaysian palm oil serves as a vital economic resource