KOTA KINABALU: Sabah United Chinese Chambers of Commerce (SUCCC) will adopt a consultative approach in negotiations with Veetar Kinabalu Plantations Sdn Bhd to seek a more reasonable return on its agricultural and reforestation joint ventures (JVs).
SUCCC president Datuk Seri Panglima Gan Sau Wah said the united chambers have sent two representatives to meet with the Sabah Bumiputra Chamber of Commerce (SBCC) and Kadazandusun Chamber of Commerce and Industry (KCCI) on this matter.
He disclosed this when meeting with the Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCCI) management and supervisory committees, led by its president, Michael Lui Yen Sang, here yesterday.
In 1997, SUCCC, Sabah Bumiputra Chamber of Commerce (SBCC) and the Kadazandusun Chamber of Commerce and Industry (KCCI) formed a joint venture company known as Corak Nakhoda Sdn Bhd with share equity of SUCCC 40 percent, SBCC 30 percent and KCCI 30 percent. This led to a JV agreement dated May 12, 1998 to develop a 20,000 acres of agriculture land at Ulu Tongod in Kinabatangan which had been approved to Corak Nahkoda Sdn Bhd by the State Government of Sabah.
A second JV agreement dated May 12, 1998 was made in respect of a sustainable forest management licence approved to Anika Desiran Sdn Bhd by the State Government of Sabah. The Sustainable Forest Management Licence Agreement dated September 10, 1997, was entered between the Sabah State Government and Anika Desiran Sdn Bhd, with the shareholders of the company being SUCCC with 40 percent share, SBCC 30 percent and KCCI 30 percent. The State Government had approved 250,000 acres of land for this joint venture.
In both the joint ventures, the three chambers were to provide the land, while Veetar Kinabalu Plantations Sdn Bhd would provide the finance and management.
Based on its shareholding, SUCCC should have 8,000 acres of land for the agriculture project and 100,000 acres of land for the reforestation project. However, SUCCC only had preference shares in both JVs, and thus could not obtain a higher return like SBCC which held ordinary shares.
Under these circumstances, SUCCC formed a JV study group last year, headed by Gan, to approach SBCC and KCCI with the view to obtaining a better returns from Veetar Kinabalu Plantations Sdn Bhd.
Gan said SUCCC was currently in the process of negotiating with its JV partners to consider converting its preference shares to ordinary shares in order for the united chambers to obtain a higher and more reasonable returns.
Lui, in agreeing with the consultative approach taken by SUCCC, added that the legal route would be time consuming.
On another matter, Gan briefed KKCCCI members on the progress of the JV between SUCCC and the United Sabah Chinese Communities Association Kota Kinabalu to erect a 16-storey multi-purpose building in Karamunsing.
The building committee has held 45 meetings over the past 22 years on the development since the land was approved by the government 23 years ago.
When Gan took over as SUCCC president, he chaired the 46th building committee meeting to review the decisions made in previous meetings and made necessary amendments on the terms and conditions.
Negotiations with the developer has produced the following results:-
the parking lots allotted to SUCCC and the United Sabah Chinese Communities Association Kota Kinabalu will be increased from 100 to 200 each;
the ballroom on the seventh floor will come under the management of a company set up by the two associations.
The developer has also agreed to give both associations RM1 million cash each upon signing of the contract, and to bear the interior and architecture fees.
Gan expects that the car parks and ballroom would rake in several millions of ringgit in income for both the associations, which could be used to support education and assist the schools in Sabah.
Furthermore, Gan reiterated that he was not after fame or personal gain in becoming the SUCCC president, and nor is he against anyone.
“We must have the spirit to serve the SUCCC and the public. People asked me why wasn’t I worn out from flying here and there. I told them that’s because I am driven by a sense of responsibility,” he shared proudly.
Gan was the SUCCC president 37 years ago, and he is once again elected to the post last year.
He also urged all Chinese chambers in the State to fly aloft the Jalur Gemilang and Sabah state flags in respect of the National Day and Malaysia Day.
Also present at the meeting was SUCCC secretary-general Datuk Ling Tiong Chai.