Warisan rep demands proof of RM31b Esteel investment in Sabah

Summary

• Warisan assemblyperson Justin Wong demands proof of the RM31 billion investment by China-based Esteel Enterprise in the Sipitang Oil and Gas Industrial Park (Sogip).

• He also urges the Sabah government to provide confirmation from the Chinese government and Bank Negara Malaysia to verify the existence and legitimacy of the funds.

Sri Tanjong assemblyperson Justin Wong demanded that the Sabah state government provide clear evidence to support claims of a RM31 billion investment by Chinese firm Esteel Enterprise in the Sipitang Oil and Gas Industrial Park (Sogip).

Wong (above), who is from the opposition party Warisan, said Sabah’s Industrial Development and Entrepreneurship Minister Phoong Jin Zhe should stop making statements about the potential of the project unless he can prove its legitimacy.

“If the investment is as real, solid, and promising as claimed, then please provide proof of Esteel Enterprise’s RM31 billion in funding for the project so this matter can be confirmed beyond doubt,” he said in a statement today.

On Friday (June 13), Warisan assemblyperson Calvin Chong lodged a police report over the alleged failure to implement the investment.

Chong said that he, along with Wong, had found no visible construction activity at the site earmarked for the project during a visit on June 10, 2025, despite the initiative’s first phase being scheduled for completion in a few months’ time.

The Elopura assemblyperson also pointed out that while the investment value by Esteel Enterprise was earlier said to be “nearly RM20 billion”, the figure has now “suddenly” risen to RM31 billion, despite a supposed lack of progress from the company since 2022.

‘Was it verified by Bank Negara?’

In his statement, Wong also called for documentation from Bank Negara Malaysia (BNM) verifying the declaration and registration of the RM31 billion investment, stating it was inconceivable for such a large amount to be transferred into the country without scrutiny from the central bank.

“It is impossible for RM31 billion to be brought into Sabah without going through a BNM review.

“I believe the RM31 billion transaction is the largest transaction in the history of investment in Malaysia,” he said.

However, Wong said the basic conditions for implementing any investment project, especially one of such a scale, include verification of funding sources and government endorsements.

Failing this, Wong said he would be forced to seek clarification directly from the Chinese embassy in Malaysia and BNM to determine the project’s legitimacy.

He further urged Phoong to convene a special sitting of the Sabah state legislative assembly to debate the mega investment project’s alleged failure, adding that the opposition plans to refer the matter to the Public Accounts Committee.

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