Bank Islam funds Oil Palm cultivation in Kelantan

KOTA BAHARU, Nov 6 (Bernama) -- Bank Islam Malaysia Bhd (BIMB) is funding, to the tune of RM30 million, a Kelantan government-linked company's venture to develop a 3,200ha oil palm plantation at Lubok Bungor in Jeli.Menteri Besar Datuk Nik Abdul Aziz Nik Mat said Tuesday he hoped that this will enable Syarikat Ladang Sungai Terah Sdn Berhad (SLST), a subsidiary of the Kelantan State Economic Development Corporation, to expand more vigorously into agriculture."I hope the first phase of the people's plantation concept being undertaken by both parties will generate benefits to more people in Kelantan," he said at the 10-year loan facility signing ceremony here.Managing director Datuk Zukri Samat and loan division head Nor Azam M. Taib signed for BIMB while SLST was represented by director Mohamad Alwi bin Ya and general manager Zazali Japar. Also present was SLST chairman Datuk Omar Mohamad.Zukri said as the pioneer in Islamic banking in the country, BIMB aspires to increase its contribution towards the development of Kelantan in line with the East Coast Economic Region (ECER) masterplan recently launched by Prime Minister Datuk Seri Abdullah Ahmad Badawi."Among the factors behind BIMB's focus on the plantation sector are the escalating price of the commodity in the world markets and the diminishing supply in these markets," he added.