KOTA KINABALU: The federal government should allocate funds to accelerate the establishment of a free-trade zone in Lahad Datu's Palm Oil Industrial Cluster (POIC) to boost economic growth in Sabah's east coast region.
The Sabah Housing and Real Estate Developers Association (Shareda) said the state government and POIC should capitalise on the opportunity following the relocation of Indonesia's future capital city, Nusantara, to Borneo.
Shareda president Datuk Chua Soon Ping said the move was timely and strategic to encourage trade in the region.
"As Indonesia's future capital city, Nusantara, will be built in Borneo, the trade in this region will potentially move into an active economy zone.
"Indonesia has a population of 300 million and Nusantara will be the centre of the greater Indonesia.
"It is located free outside the 'ring of fire', and with plenty of reserve of raw minerals such as copper, gold, nickel, coal, timber and palm oil.
"Nusantara could become the next Dubai, whose growth has generated many economic spillovers and spin-offs for the United Arab Emirates and Qatar.
"Qatar will also host the next World Cup in December 2022.
"Like Dubai's growth is for the Middle East, Nusantara is for the Far East, a key economy driver in the region."
Chua said Sabah would benefit from the impacts of the relocation of Indonesia's capital city to Borneo, alongside Sarawak and Brunei.
"A POIC in Lahad Datu with a deep-sea port will be a strategic facility and open opportunity for transshipments to East Kalimantan and beyond," he said.
Yesterday, during the launch of POIC Port and operationalisation of bulking facilities at POIC Lahad Datu, Sabah Chief Minister Datuk Seri Hajiji Noor announced that the state government had commissioned a feasibility study on a proposed free zone at POIC Lahad Datu.
The study also included a proposed international airport in Lahad Datu as the east coast district is poised to become the catalyst for economic development.