KUANTAN: The sale of land to foreign investors to develop industries that create jobs and increase state revenue is nothing new, says the menteri besar.
Datuk Seri Wan Rosdy Wan Ismail said it is a common practice in other states, too.
He was referring to questions that were raised over the sale of industrial land here by Pasdec Holdings Bhd to Petroluxe Refinery (M) Sdn Bhd.
The Pahang State Development Corporation is a major shareholder in Pasdec.
Wan Rosdy said the land in Gebeng was in fact leased for 99 years to Petroluxe, which plans to invest RM3 billion to develop an integrated oil refinery and petrochemical complex.
Petroluxe, he added, is a firm registered with the Companies Commission of Malaysia. Its majority shareholder is Unigrand Petroluxe Sdn Bhd.
"There are no issues of direct ownership by foreign companies. Petroluxe has received approval from the Investment, Trade and Industry Ministry and the Malaysian Investment Development Authority to set up a refinery here.
"I am aware of news reports which appear to create a perception of the land sale and purchase agreement between Pasdec Holdings Bhd and Petroluxe Refinery (M) Sdn Bhd.
"Pasdec develops landbank owned either independently or through joint ventures. Or the company sells land to a party that will develop it for specific projects... it is an ordinary course of business for Pasdec.
"The agreement signed by Pasdec and Petroluxe on Nov 13 involved a 99-year lease of land for industrial use.
"As an investor spending a large amount of money to set up a high-capacity plant on the land, Petroluxe requires an assurance it can use the refinery site for the long term.
"The agreement will see Pasdec having around two per cent equity in this joint-venture company, and the sale of the land will help Pasdec accelerate the construction of residential and commercial projects to allow more people in Pahang to own homes at reasonable prices," Wan Rosdy said in a statement today.
"The investment will have a positive impact on Pahang's economic growth, creating high-income jobs and boosting downstream economic sectors such as engineering and service ecosystems."
He said the people should not be taken in by the statement of a political leader on the matter.
"I have told the Pahang legal adviser to look into the statement and take legal action if there are any elements of defamation, incitement and creating a bad impression of the state government," Wan Rosdy said.
On Nov 13, Pasdec signed an agreement to sell the 23.96ha land at Harbour Park in Gebeng to Pertroluxe for RM73.5 million.