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A C K N O W L E D G E M E N T

Praise to almighty A L L A H , the most gracious, most merciful and most benevolent for giving me the strength, and patience in completing this proposal paper. It would be impossible for me to have courage and time to complete this paper without the grace and help of A L L A H S.W.T.

We are greatly indebted to Prof. Madya Mat Yasin Bin Jamil whose excellence in supervision and devotion to research has inspired my work. Without his untiring assistance, direction, encouragement, comments, suggestions, continuous guidance, support, ideas and constructive criticism throughout this study, this proposal could not be well prepared. He provided a continual source of intellectual stimulation and motivation that will extend beyond this study. It has been an honorable experience working with him.

Not to forget to my beloved families that always give support especially in term of financial requirement. Special thanks to all full time Mara University of Technology students for their commitment in providing a valuable information and data. This project would not have been completed without the unending support and tolerance by my parents. Very special thanks for them for their understanding.

Special thanks to my previous organization, Sawit Kinabalu for shared their valuable experiences, time and commitment. Without their constant support and patience, my dissertation would have been a difficult journey.

Last but not least, our greatest appreciation gives to everyone involved directly and indirectly in this study for his or her contribution and invaluable encouragement they have placed on us. Without everyone's continued support, this research would not be as finish here.

Thank you.

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T A B L E O F CONTENTS

T I T L E P A G E P A G E

T I T L E P A G E i D E C L A R A T I O N O F O R I G I N A L W O R K ii

L E T T E R OF S U B M I S S I O N ii A C K N O W L E D G E M E N T i \ L I S T O F T A B L E S v L I S T O F F I G U R E S v:

L I S T O F A B B R E V I A T I O N S v:

A B S T R A C T i>

C H A P T E R 1

1.0 I N T R O D U C T I O N

1.1 I N T R O D U C T I O N 1 1.2 B A C K G R O U N D O F S T U D Y 3

1.3 P R O B L E M S T A T E M E N T 4 1.4 R E S E A R C H O B J E C T I V E 5 1.5 R E S E A R C H Q U E S T I O N 5 1.6 S C O P E O F S T U D Y 6 1.7 D E F I N I T I O N O F T E R M S 7

1.7.1 Investor 7

1.7.2 Palm Oil Industrial Cluster 7

1.7.3 Private Company 7

C H A P T E R 2

2.0 L I T E R A T U R E R E V I E W

2.1.1 Palm Oil Industrial Cluster (POIC) Sandakan X

2.1.2 Infrastructures X

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2.1.3 How to Attract Investors 9 2.1.4 Competitor

2.1.4.1 Palm Oil Industrial Cluster Sabah 10 2.1.4.2 Indonesia Provides $21.7M to Build Palm Oil

Industry Cluster 11 2.1.5 Cabotage Policy Issues

2.1.5.1 Foreign Ships May Be Allowed To Carry

Conventional Cargo 12 2.1.5.2 Overcome Higher Prices of Goods In Sabah 13

2.1.5.3 S'wakians Also Against The Cabotage Policy 13

2.1.5.4 Shipping Costs Rile Sabah 14 2.1.5.5 Current Cabotage Policy O f Sawit Kinabalu 14

2.1.6 Sabah to Become Centre of Downstream Industry

Using Oil Palm Waste 15 2.1.7 Malaysia's Oil Palm Sector to Contribute US$59 Billion

T o G N I b y 2 0 2 0 16 2.1.8 Sabah Gets Japanese Offer 17

2.1.9 Environmental Conservation of Malaysian States Econ

Devt 18 2.1.10 World's Biggest Palm-Based Biodiesel Plant 19

2.1.11 Update on U S Biodiesel Production 19 2.1.12 More Nation Discover: Biodiesel Is Too Expensive 20

2.1.13 Reaping Biodiesel's Potential 21 2.1.14 United Kingdom Firm Bio Energy to Invest RM200M

in Sabah 22 2.1.15 The Transition From Low-Valued Repetitive

Manufacture Sites To Technology Hubs: The Influence

Of Globally Operating Companies 23 2.1.16 Sabah Identifies 5 Growth Sectors 23 2.1.17 Move to Promote Port Klang Paying Off 24

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A B S T R A C T

Palm oil is one of the main major producers in Asia right now. The palm oil industry in Sabah is the world largest producer in Malaysia. The government had seen how valuable these industries as all the people in every country are using palm oil as a daily life style. For example, cooking oil, detergent, pharmaceutical product and even in food industry. A s for right now, palm oil has been using into Biomass and Biodiesel, whereby Biomass is a substitute product that can replace gas and meanwhile Biodiesel is a substitute product to replace fuel in the future. They are using palm oil to generate Biomass and Biodiesel because our world somehow will run out of gas and fuel. The abundant of raw material had become an advantage for them to make experiment through it and utilize it.

Palm Oil Industrial Cluster (POIC) in Sandakan is the new project for Sawit Kinabalu that involves in downstream activities. Downstream activities is a transformation of the raw material into end product such as soap, cooking oil, and also detergent. The objectives of this study are to identify the effectiveness of Sawit Kinabalu promotion through POIC. Thus it's bringing out the level of expectation of potential investor about POIC through recommendation. The data was collected in specific time and place where all the companies that are related to palm oil industries gather for 3 day in Palmex event. The data were analyzed using several method of analysis in order to achieve a quality of data and information.

Keywords: palm oil, promotion, investors, palm oil industrial cluster

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