Kulim plans 2 property projects in Johor

JOHOR BARU: Kulim (M) Bhd will be making a comeback to the property industry as plans to develop some 8,000ha of its oil palm plantations are in the pipeline.

Chairman Datuk Kamaruzzaman Abu Kassim said the company was planning a mixed development at its Ladang Siang near Desaru and Ladang Sungai Papan near Tanjung Belungkor oil palm plantations here.

“We plan to tap into the property industry as we foresee demand for the two strategic areas, which are within a 30km radius of the developing Petroliam Nasional Bhd’s Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang.

“We are currently at the preliminary stages as we are drafting a master plan, which will see a mixed development of residential, commercial and industrial (components) and a certain percentage for conservation,” he said.

Kamaruzzaman said this at a press conference after the company’s AGM here yesterday.

Kulim, which is a subsidiary of Johor Corp, is largely plantation-based and it has been expanding into the oil and gas (O&G) sector.

“We hope to start development on the 8,000ha land within the next two or three years to complement the development of Rapid,” he added.

Meanwhile, managing director Ahamad Mohamad said the company had acquired some 104 million barrels of oil from concession fields in Sumatra, Indonesia.

“We are now waiting for the green light from the Indonesian authorities to approve the oil to be used for commercial production,” he said, adding that the company hoped to start production by year-end.

Apart from O&G, Ahamad said the company was still in its prime phase in the plantation sector, with over 241ha of land acquired for plantation purposes in Indonesia.

“We are confident of seeing an increase in production in the next few years,” he added.