MIDA Celebrates RM7B Methanol Complex Launch, Enhancing Bintulu’s Petrochemical Hub

The Malaysian Investment Development Authority (MIDA) extends its congratulations to Sarawak Petchem Sdn. Bhd. on the launch of its advanced Methanol Complex in Tanjung Kidurong, Bintulu, Sarawak. This major development, boasting an annual production capacity of 1,750,000 metric tonnes, establishes Sarawak Petchem as Malaysia’s second-largest methanol producer, following PETRONAS Chemical.

The commissioning of Sarawak Petchem’s methanol plant has positioned Malaysia as a leading methanol producer in the Asia-Pacific region. The increased availability of methanol, particularly in Sarawak, is anticipated to attract additional investments and boost the production of related downstream products. Methanol serves as a vital raw material for producing chemicals like acetic acid and formaldehyde, which are crucial for industries such as adhesives, solvents, and foams.

YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade, and Industry (MITI), praised the company, stating, “The launch of Sarawak Petchem’s RM7 billion methanol complex in Sarawak marks a significant milestone in positioning Malaysia as a top methanol producer in the Asia Pacific region. This development will enhance Malaysia’s chemical industry capabilities in line with the Chemical Industry Roadmap (CIR) 2030, while also fostering job creation and boosting the economy by generating opportunities for surrounding industries and SMEs.”

Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, Chief Executive Officer of the Malaysian Investment Development Authority (MIDA), remarked, “Sarawak Petchem’s milestone achievement highlights Malaysia’s appeal as a prime location for substantial, high-impact investments. As we advance with the New Industrial Master Plan (NIMP) 2030 and the Chemical Industry Roadmap (CIR) 2030, our focus is on driving high-value additions and expanding into higher value-added products to boost our economy. We are confident that this project will spur further growth and investment in the region. MIDA is committed to providing ongoing support to Sarawak Petchem as it strives to become a leading player in the global petrochemical industry.”

Tan Sri Datuk Amar (Dr) Haji Abdul Aziz Husain, Chairman of Sarawak Petchem, stated, “This project has acted as a catalyst for further economic development in the region, driving job creation, supporting sustainable growth, and strategically positioning Sarawak as a significant player in the global petrochemical industry.”

He added, “The establishment of Sarawak Petchem has also created opportunities for Sarawak to develop and attract a skilled workforce. Indeed, several Sarawakians have returned to the region to contribute to this project.”

This project is a key component of the Sarawak State Government’s initiative to position Bintulu as a major petrochemical hub in the region. The plant will need a range of skilled personnel, including engineers, technicians, operators, and specialists, to manage its operations. Additionally, it will generate secondary opportunities related to services and maintenance.

Malaysia boasts a robust petrochemical industry with over 100 companies producing a wide array of chemical products. In recent decades, foreign investment in the country has surged, thanks to its access to oil and gas resources, extensive infrastructure, strong services sector, and strategic location serving key markets in Asia and the Middle East. While Malaysia’s current petrochemical production focuses on olefins, polymers, and aromatics, there are ambitious plans to expand into more advanced specialty chemicals beyond basic commodities.