A VERBAL clash erupted in the Sabah State Assembly today after Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe accused Elopura assemblyman Calvin Chong of politicising the RM31 billion Esteel investment project while failing to raise the matter through proper legislative channels.
Phoong, responding to a question from Kapayan assemblywoman Jannie Lasimbang on the status of the project, said he found it “puzzling and disappointing” that Chong had chosen to make it public and file a police report instead of submitting a formal query in the House.
“Thank you to Kapayan for submitting this question because it is important … It concerns the image of investment in our state,” Phoong said during the question-and-answer session in Kota Kinabalu on Monday.
“But I am puzzled and disappointed. Why politicise investment? Elopura has been making noise outside, even lodging a police report. Yet, he didn’t dare to submit a question in this House,” he said.
The Esteel project refers to a green steel manufacturing and processing facility being developed by Esteel Enterprise Sabah Sdn Bhd at the Sipitang Oil and Gas Industrial Park (SOGIP).
Valued at RM31 billion, it is touted as one of the largest industrial investments in Sabah’s history and is seen as a key component of the state’s long-term strategy to build a green and high-tech manufacturing hub in the region.
Phoong’s criticism came even after Assembly Speaker Datuk Kadzim Yahya had earlier instructed him to respond to any additional questions in writing.
He had earlier responded to two additional questions with one being from Senallang Assemblyman Datuk Seri Mohd Shafie Apdal (Warisan).
He went on to assert that Chong had not submitted a single oral or written question for the session, saying, “Let the record show that Yang Berhormat Elopura has never submitted a question, orally or in writing, in this august House.”
Chong immediately stood up in protest, visibly agitated and red-faced, demanding to know what wrongdoing he had committed.
“What have I done wrong?” he asked repeatedly, switching between English and Hakka.
“I’m raising the people’s concerns. Why am I being accused for that?”
Despite repeated calls from the Speaker to take his seat, Chong persisted, prompting a shouting match for about two minutes between the two lawmakers.
At one point, both men addressed each other in English, with Chong asking, “Brother, what is my fault?” and Phoong replying that the question had already been answered in the assembly.
“I am a wakil rakyat. I have the right to ask. I issued a media statement — isn’t that okay?” Chong said.
Last month, Chong filed a police report in Sandakan over what he described as the failure to implement the Esteel project, following a joint site visit on June 10 with fellow Warisan assemblyman Justin Wong of Sri Tanjong.
According to the report, they found no visible signs of construction activity at the project site.
Chong did not specify what law may have been violated but claimed there was possible misrepresentation of the project’s progress that warranted public accountability.
Esteel has not issued any public response to the allegation.
Lasimbang, who had submitted the original question in the assembly, remained silent during the exchange.
However, Shafie Apdal later stood up to request that Chong be allowed to pose a supplementary question, arguing that since he had been publicly criticised, he should be given the right to reply.
“This is not a matter of questioning the rules. But since the member was criticised, shouldn’t he be given the opportunity to clarify?”
Speaker Kadzim, however, remained firm, insisting the session move forward and that procedures be respected.
Under current assembly rules, only the member who submits a question is permitted to ask supplementary questions, unless the Speaker allows otherwise.
Earlier in his reply, Phoong said the Esteel project is progressing as scheduled, with land-clearing and site preparation now underway at SOGIP.
He said the investor is confident that visible transformation of the site would be apparent by July or August, reflecting ongoing physical works and the company’s commitment to the project.
According to Phoong, Esteel had expanded its investment plans by signing additional land lease agreements for Phase 2 and Phase 3 in December 2024 and paid a RM35 million deposit to confirm its commitment.
The company received its manufacturing licence in January 2025 and subsequently signed a natural gas supply agreement with Sabah Energy Corporation and Petronas in February to secure long-term energy needs.
He also said the company had obtained local authority approvals for its development and earthwork plans, received environmental clearance from the Environment Protection Department, and in May signed a construction contract for the Phase 1 jetty with China Communications Construction Company (CCCC).
The contract signing coincided with the project’s official groundbreaking, officiated by the Prime Minister. – July 7, 2025
