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EIA for the Proposed Green Paper Industry Park Development on

Lot 441, Mukim Padang Meha, District of Kulim, Kedah Darul Aman.

CHAPTER
INTRODUCTION
1

1.1 Title of Project

This report reads as the Environmental Impact Assessment (EIA) for the Proposed
Green Paper Industry Park Development on Lot 441, Mukim Padang Meha,
District of Kulim, Kedah Darul Aman and is hereafter referred to as the proposed
Project Site. The total area of the Project Site is 300.00 acres (121.41 hectares)
which is owned and to be developed by XSD International Paper Sdn. Bhd. The
locality of the Project Site falls under the jurisdiction of Majlis Perbandaran Kulim
(MPKK).

1.1.1 Planning Submission

The Project is to be developed in three (3) Phases. Currently the planning submission
is only been carried out for the Phase 1 development. The Project title under the
Planning Submission is “PERMOHONAN KEBENARAN MERANCANG BAGI
CADANGAN MENDIRIKAN SEBUAH KILANG KERTAS (FASA 1) DAN
KOMPONENT SOKONGAN DI ATAS SEBAHAGIAN PT. 441, MUKIM PADANG
MEHA, DAERAH KULIM, KEDAH DARUL AMAN UNTUK: TETUAN XSD
INTERNATIONAL PAPER SDN. BHD. (1288890-H).

1.1.2 Previous Approved EIA Reports or Studies

There is one (1) EIA study was carried out previously for the Sime Darby Properties
Sdn. Bhd.
1. EIA for the Proposed Development on Bukit Selarong Industrial Park and
Commercial Centre on Lot 441 and Lot 1222, Mukim Padang Meha, District of
Kulim, Kedah Darul Aman has been studied and approved by DOE Kedah from
Department of Environmental (DOE) Kedah approval on 28 th January 2015 [ref:
AS:(B) K50/013/701/347 Jld02(16)].

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EIA for the Proposed Green Paper Industry Park Development on
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1.1.3 Project Details

1.1.3.1 Land Owner/Project Proponent

The land was an ex-Sime Darby-owned plantation land and is known as part of Bukit
Selarong Estate. However, it has been bought over by the XSD Paper International
Sdn. Bhd. for the purpose of the Green Paper Industry Park. Information on land
status and proposed development can be obtained from the XSD Paper International
Sdn. Bhd. at the following address:-

XSD International Paper Sdn. Bhd. (1288890-H)


No.3, Jalan Juru Sentral, Juru Sentral,
14000 Bukit Mertajam, Pulau Pinang, Malaysia
Tel: 012 297 9233 / 012 433 5781
Attn.: Mr. Lee Shenfeng / Mr. Edmond Kong / Mr. Khor KL

1.1.4 Registered EIA Consultant and Other Appointment of Project


Consultant

1.1.4.1 Environmental Consultant

Europasia Engineering Services Sdn. Bhd. (Co. No.: 239233-K) was appointed by
the Project Proponent to carry out an Environmental Impact Assessment (EIA) to be
submitted to the Department of Environment (DoE) as required. Any inquiries and
correspondences with regard to the report can be directed to:

EUROPASIA ENGINEERING SERVICES SDN. BHD. (239233-K)


No. 63A-2 & 65-2, Petaling Utama Avenue,
Jalan PJS1/50,Taman Petaling Utama,
46150 Petaling Jaya, Selangor Darul Ehsan.
Tel. : 03-7783 3639/40; Fax. : 03-7784 3200
Email Address: ees@europasia.com.my
Attn. : Ms. Geetha P. Kumaran (C0020)
(EIA Study Team Leader)

The report preparation team and EIA Consultant team leader’s declaration are as
outlined in the table given in the beginning of this report.

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EIA for the Proposed Green Paper Industry Park Development on
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1.1.4.2 Appointment of Accredited Analytical Laboratory

The analytical laboratory responsible for all sampling and analysis of water, air, noise
quality and vibration level parameters is carried out by a Department of Standards
accredited laboratory Spectrum Laboratories Sdn. Bhd. (SAMM No. 062). Any
inquiries and correspondences can be directed to:

SPECTRUM LABORATORIES SDN. BHD. (SAMM No.: 062)


Lot 14 Jalan Pendamar 27/90,
Seksyen 27 40000 Shah Alam,
Selangor Darul Ehsan
Tel.: 03-5192 8188 Fax: 03-5191 8188
Attn.: Mr. Casey Kan (Director)

1.1.4.3 Lead PMC (Project Management Consultant)

Project planning and plant design shall be coordinated by aLM Architect. Any
inquiries and correspondences with regard to the layout, plant design of the proposed
development can be directed to:

aLM Architect.
1-04-31, e-Gate, Lebuh Tunku Kudin 2,
11700 Gelugor, Penang.
Tel: 04-666 6870; Fax: 04-656 6871; Tel: 012 489 3331
Attn: Ar. Mei Chee Seong (Lead PMC/Partner)

1.1.4.4 Planning & Development Consultant

Planning submission shall be carried out by TAH Planning Consultant. Any inquiries
and correspondences with regard to the layout of the proposed development can be
directed to:
TAH Planning Consultant
42k-15-2, The Cantonment,
Jalan Cantonment,
10350 Georgetown, Penang.
Tel: 016-458 2484
Attn: TPR. Tan Ann Hui (Planner)

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1.1.4.5 Civil and Structural Engineer

The Civil and Structural Engineer appointed for the proposed Project is Jurucita
Projects Sdn. Bhd. Any inquiries and correspondences with regard to the civil and
structural design of the proposed Project can be directed to: -

Jurucita Projects Sdn. Bhd.


Wisma Cita,
11A, Jalan Perda Utara, Bandar Perda,
14000 Bukit Mertajam, Penang.
Tel: 04-548 3252; Fax: 04-540 0435
Attn: Ir. Ng Sin Chie (Director)

1.1.4.6 Surveyor

The surveyor appointed for the proposed development is SP Saujana Indah


Enterprise. Any inquiries and correspondences with regard to the land surveying can
be directed to:

SP Saujana Indah Enterprise


Tingkat 2,
Kompleks Seri Temin,
08000 Sungai Petani, Kedah.
Tel: 019-477 1786; Fax: 04-424 4429
Attn: Mr. Lee Siang Ling (Director)

and

The surveyor for river engineering survey (Sg. Karangan) appointed for the proposed
development is Syarikat Jurukur Konsultant. Any inquiries and correspondences
with regard to the river surveying can be directed to:

Syarikat Jurukur Konsultant


No. 2, Tingkat 1, Lorong Tunku Asaad
Jalan Asaad, 09000 Kulim
Kedah Darul Aman
Tel / Fax: 04-4912908/09
Attn: En. Aiman (Surveyor)

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1.1.4.7 Traffic Assessment Consultant

The traffic consultant appointed for the proposed development is RSI Consultant. Any
inquiries and correspondences with regard to the traffic management aspects of the
proposed development can be directed to :-

RSI Consultant
No. 21C, Jalan BK 5A/2,
Bandar Kinrara, 47100 Puchong,
Selangor Darul Ehsan.
Tel: 03 8076 3360; Fax: 03 8076 3370
Attn.: Ir. Rosli B. Idrus (Director)

1.1.4.8 Mechanical and Electrical Engineering Consultant

The Mechanical and Electrical consultant appointed for the proposed development is
Perunding P.L.A. Any inquiries and correspondences with regard to the mechanical
and electrical aspects of the proposed development can be directed to :

Perunding P.L.A
8-01, Wisma Pantai,
Jalan Wisma Pantai,
12200 Butterworth, Penang.
Tel: 04-333 7990; Fax: 04-331 7337
Attn: Ir. Paul Phor Chi Wei (Director)

1.1.5 Project Location

The proposed Project Site is located on ex-Sime Darby-owned plantation land and is
known as part of Bukit Selarong Estate, Mukim Padang Meha, District of Kulim, Kedah
Darul Aman (refer to Figure 1.1). The geographical location of the proposed Project
Site is at a latitude of 05º29’37.27”N to 05º28’46.22”N and a longitude of
100º36’26.97”E to 100º36’54.96”E. The key and location plans for the Proposed
Project are shown in Figure 1.2 while the lot demarcation plan with geographical
location is shown in Figure 1.3.

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EIA for the Proposed Green Paper Industry Park Development on
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Location of the proposed development is generally surrounded by existing industrial


park namely INOKOM-Sime Darby Motors, Padang Meha Industrial Park and Kulim Hi-
tech Park towards the southwestern direction of the Project Site. There are few major
towns surrounding the Project Site such as Kulim on the south and Bukit Mertajam on
the southwestern direction. The proposed Project is developed in line with the
surrounding areas i.e., INOKOM-Sime Darby Motors, Padang Meha Industrial Park and
Kulim Hi-tech Park which is another industrial area; which will benefit from the
proposed industrial development and is strategically located to connect to other
townships for logistic purposes.

1.1.5.1 Existing Accessibility to the Project Site

Getting onto the Project Site is relatively easy using Butterworth-Kulim-Baling


Highway (BKE) & Federal Route 4 (FR4) Jalan Kulim-Gerik and easy access to the
northwestern of the Project Site via earthen road of the Bukit Selarong Estate (Project
Site Lot PT 441) – refer to Figure 1.4.

1.1.5.2 Current Condition of the Project Site and Sensitive Receptor

Current Site Condition of the Project Site


The Project site is located within an oil palm estate. Current site condition consists of
mature and old oil palms. The Federal Route 4 (FR4) Jalan Kulim-Gerik is located at
the northern region of the Project Site whilst TNB pylon is located within the western
boundary of the Project Site. There is an Indian cemetery located at the southern
portion of the Project Site and have been relocated to the southwestern portion of the
Project Site. Current condition of the Project Site and surrounding is depicted in
Figure 1.5.

Immediate Surrounding of the Project Site


On a micro scale, the proposed project site is generally surrounded by existing
industrial park namely INOKOM-Sime Darby Motors, Padang Meha Industrial Park and
Kulim Hi-tech Park towards the southwestern direction of the Project Site. The Kg.
Padang Meha and Sg. Karangan are located at the eastern region of the Project Site
(refer to Figure 1.6) which are tabulated in Table 1.1.

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Table 1.1: Immediate Receptors within 500m Radius

Direction Residential Institutions / Others

Oil palm, rubber,


North -
FR4 – Jalan Kulim - Gerik

South - Oil palm

East Kg. Padang Meha Sg. Karangan, Paddy field

West - INOKOM

North-East Kg. Padang Meha Sg. Karangan, Paddy field

Oil palm, INOKOM


North-West -
FR4 – Jalan Kulim - Gerik
Oil palm, Sg. Karangan, Paddy
South-East -
field
South-
- Oil palm,
West

1.2 Project Proponent and Qualified Persons

The Project Proponent, XSD International Paper Sdn. Bhd. is a China white board base
industrial player from Fuyang, Hangzhou province and currently has registered as a
private organization for their first investment in the state of Kedah, Malaysia.
Europasia Engineering Services Sdn. Bhd. has been appointed as the environmental
consultant for this project. Europasia Engineering Services Sdn. Bhd. is a local
environmental consultancy registered with the Department of Environment (F00054).
The list of EIA Consultant Team/Qualified Persons has been outlined in the table given
in the beginning of this report.

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1.3 Legal Aspects

Generally, the scope of study involves the establishment of baseline data via literature
reviews and site survey, identification of impacts and proposal of pollution prevention
and mitigation measures in the preparation of the report. The scope of works
complements the guidelines and procedures specified by the Department of Environment
(DOE) as deliberated in the Environmental Impact Assessment Guidelines for the
Preparation of EIA’s, December 2016.

1.3.1 Prescribed activity is subject to section 34A, Environmental Quality


Act, 1974

The proposed Project is a Green Paper Industry Park development to produce high-
grade duplex white board which falls under the Second Schedule of the Environmental
Quality (Prescribed Activities) (Environmental Impact Assessment Order 2015) made
under sub-section 34A(1) of the Environmental Quality Act 1974 [Act 127] (DOE, 2015).
The Project will include two (2) biomass boilers (per phase) as it generates steam for the
production process.

Therefore, the project is captured under:


1. Second Schedule, Item 6: Industry.
(e) Pulp, or pulp and paper: Production capacity of 50 tonnes or more per day.
- The industry will be producing 700,000 tonnes/phase/year or 1,917.8
tonnes/day/phase. There shall be 3 phases.
2. Second Schedule Item 6: Industry.
(f) Recycle paper industry: Production capacity of 50 tonnes or more per day.
- The industry will be producing 700,000 tonnes/phase/year or 1,917.8
tonnes/day/phase. There shall be 3 phases.
3. Second Schedule, Item 14: Waste Treatment and Disposal.
(b) Solid waste: (i) Construction of thermal treatment plant
- There are two (2) biomass boilers at each phase.

In compliance with the above requirements, a Second Schedule of Environmental Impact


Assessment (EIA) has to be carried out by the Project Proponent prior to development to
assess any impact the development would have on the existing Project Site and its
surroundings. Subsequently, the Terms of Reference (TOR) has been submitted to the
Department of Environment (DOE) on 4th April 2019.

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This EIA is an essential tool in assessing the overall impact of the proposed Project on
the environment. The assessment would assist in ensuring the successful integration of
the proposed development with the existing environment and consequently resulting in a
development, which is environmentally sustainable. Thus, the brief introduction on the
proposed Project in this chapter would be expanded upon in the consecutive chapters
with the following objectives:

 Suitability of site for the proposed Project;


 Establish the existing environment which is important as baseline information for
monitoring the impacts to the environment;
 Outline the proposed development i.e., the components of the proposed Project;
 Identify the potential impacts (i.e. with reference to the DoE Guidelines) from the
proposed developments in terms of individual components or as a whole;
 Propose mitigation measures for the identified potential impacts to prevent or
minimize adverse and irreversible impacts;
 Outline an environmental management plan to address impacts which may arise from
the implementation of the proposed Project.

Table 1.2: Correspondences and Clearance by Relevant Authorities

No Item Approval Ref. Date Approving Reference


No./File No Authority

XSD INTERNATIONAL PAPER SDN. BHD.

1. Terms of JAS 600-2/13/6 Jld 2 27/6/2019 Ibu Pejabat Appendix 1


Reference (5) Jabatan
(TOR) Alam Sekitar
Endorsement Malaysia

2. Provisional MPKK.OSC 18/4/2019 Majlis Appendix 2


Approval 02/003/2019(51) Perbandaran
Kulim

1.3.2 Conformance of proposed project to government’s development


plans

1.3.2.1 National Physical Plan 3 (NPP 3)

In the NPP3 Core No. 1 (Action PD1.1A- Intensifying urban development in current
growth areas), the growth areas that have been identified are the conurbation area,
development promotion zone, and catalyst center. There are six (6) conurbation areas
i.e., four (4) in Peninsular Malaysia and two (2) in Sabah & Sarawak. There are also

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seventeen (17) development promotion zone (ZPP) i.e., twelve (12) in Peninsular
Malaysia and five (5) in Sabah & Labuan. On the other hand, there are forty eight (48)
catalyst center i.e., thirty seven (37) in Peninsular Malaysia and eleven in Sabah &
Labuan. Based on the Figure 1.7, the proposed industrial and commercial development
is located near to the catalyst center (i.e., Kulim). As for the catalyst center area, the
focus is to generate growth of the economic sector.

The proposed development compliments the National Physical Plan 3 (NPP3) which
adheres to the policies of Establishment of a Dynamic Town and Rural areas (PD) &
Formation of Inclusive & Liveable Communities (KI) below:

PD1.4A – Stimulating the growth of Main Industrial Cluster


Industrial development tends to be targeted at nearby town areas and ports. Location for
industrial development nearby town will encourage thus strengthen industrial cluster
growth from time to time.

There are many industrial cluster growth including food and beverages, clothing and
textile, paper and printing, chemical, rubber and plastics, fabrication of basic metals,
non-metallic mineral products, electrical and electronics (E&E) goods, machinery and
equipment, furniture, transport and other industries.

Development of industrial clusters, such as chemical industries, E&E, machinery and


equipment will be the main focus as these industries will contribute significantly to total
production value. Other industries including chemical, E&E, machinery and equipment
will contribute to the strengthening of industrial cluster by value added chain whilst
stimulating other supporting industries within the vicinity.

PD1.4C – Promoting Integration of New Industrial Planning


Planning of industrial areas should take into account research of new innovation
technologies including the world’s market demand. The modifications will change the
manufacturing patterns and operations of the manufacturing sector.

The development and planning of industrial areas should consider global trends and
potential implications that will change the patterns of the industrial development in
Malaysia. Therefore, equipped with infrastructures and utilities with upgrade facilities,
high technology and environmental friendly facilities provided at the new industrial area
to accommodate changes in the development patterns and transformations, such as-

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1. Transfer of complex manufacturing to rapid engineering and advanced


manufacturing techniques;
2. New innovation and technology;
3. Sustainable manufacturing and circular economy; and
4. Manufacturing process based on human-centric manufacturing.

1.3.4 Kedah Structure Plan (KSP) 2020

The objective of Negeri Kedah Structure Plan 2020 is to create physical development
towards glorifying the vision of Negeri Kedah and national Vision 2020. Kedah vision is in
line with the vision and objectives of Malaysia as a developed country by 2020. It
encompasses economic development, social progress (political, cultural and spiritual) and
physical development. To achieve the objectives, a few main sector development
strategies have been identified as below:
i) Regional Strategy
ii) Population and Human Resources Development Strategy
iii) Settlement Development Strategy and Development Corridor
iv) Industry Development Strategy
v) Tourism Development Strategy
vi) Transportation System Development Strategy
vii) Environmental Sensitive Area Strategy
viii) Agriculture Development Strategy

The proposed project site is located within the district of Kulim and has been proposed to
be developed into industrial development. Thus this proposed project site complements
with the Negeri Kedah Structure Plan where this area is allocated for industrial
development which adheres to the strategy above.

1.3.5 Local Plan of Majlis Perbandaran Kulim 2035

Based on the ‘Draft Local Plan Daerah Kulim 2035’, the proposed Project lies within Blok
Perancangan BP 2 – Kulim Utara and Blok Perancangan Kecil (BPK) 2.4B. The
Project site zoning is falls under Industry which its land use category allow medium to
heavy industry. Thus, the Proposed Project is compatible with the Draft Local Plan of
Majlis Daerah Kulim 2035. Plate 1.1 and Figure 1.8 illustrated where the Project Site is
located within the BP 2 and BPK 2.4B.

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Plate 1.1: Land use allow for BPK 2.4B

Project Site within the BPK 2.4B falls under Medium and Heavy Industry Zoning.

Activities/land uses allow for the Proposed Project Site under BPK 2.4B are B2-Heavy
Industry, B3-Medium and B4- Light Industry.

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1.3.5.1 Regional Plan (inter-state planning)

The proposed development is located within the state of Kedah and there is no inter-
state planning involved.

1.3.5.2 Guidelines on Environmental Essentials for Siting of Industries in Malaysia


(EESIM)

The project shall comprise of a heavy industry development (Green Paper Industry Park).
Thus, appropriate sized buffer zones (i.e., there is a residential area, i.e., Kg. Padang
Meha within its proximity of 300m as shown in Figure 1.6) shall be provided and
designated to abide by the requirements of the Department of Environment document
“Environmental Essentials for Siting of Industries in Malaysia (EESIM)”. This involves
setting primary and secondary buffer zone in order to meet overall buffer zone
requirements for heavy industry. The nearest house in Kg. Padang Meha, located
approximately 3m (existing Jalan Kg. Padang Meha) east from the Project Site boundary.
In doing so, the concern regarding potential disturbances to the neighbouring residential
areas during construction and future industrial operations should be studied. To comply
it, additional buffer (secondary) within the Proposed Project Site should be allocated.

1.3.5.3 Current Development Policy

In the Eleventh Malaysian Plan 2016-2020, the Government has defined six strategic
thrusts to help Malaysia stay ahead of the challenges and opportunities of the fast-
changing global and political landscape. These thrusts aim to comprehensively address
the end-to-end needs of the citizen and the nation. The six strategic thrusts defined as
per below:-

i. Enhancing inclusiveness towards an equitable society


ii. Improving wellbeing for all
iii. Accelerating human capital development for an advanced nation
iv. Pursuing green growth for sustainability and resilience
v. Strengthening infrastructure to support economic expansion
vi. Re-engineering economic growth for greater prosperity

Besides, the Government has also identified six game changers, which are innovative
approaches to accelerate Malaysia’s development that once successfully applied, will

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fundamentally change the trajectory of the country’s growth. The six game changers
listed as per below:-
i. Unlocking the potential of productivity
ii. Uplifting B40 households towards a middle-class society
iii. Enabling industry-led Technical and Vocational Education and Training
(TVET)
iv. Embarking on green growth
v. Translating innovation to wealth
vi. Investing in competitive cities

The Eleventh Plan not only marks the culmination of a 30-year journey towards Vision
2020; it also sets the stage for the next horizon of growth. Post-2020, the challenge will
be to raise the bar even higher on the country’s growth prospects along three
dimensions, namely economy, people, and environment.

The economy will be progressive, inclusive, and adaptable for the future, with highly
productive world class cities and thriving rural areas. All Malaysians will be able to
participate in and benefit from the country’s growth, and enjoy an elevated state of
wellbeing. Malaysians will be passionate stewards of the environment and no longer see
environmental protection as a trade-off to a strong economy, making Malaysia a truly
beautiful place to live for all.

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Figure 1.1: General Location of the Project Site

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Figure 1.2: Key and Location Plans of the Project Site

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Figure 1.3: Lot Demarcation of the Proposed Project Site

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Figure 1.4: Road Network Surrounding the Project Site

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Figure 1.5: Current Site Condition of the Project Site

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Figure 1.6: Immediate Surrounding of the Project Site

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Figure 1.7: The Location of Development Site, Conurbation, Development


Promotion Zone and Catalyst Center of Peninsular Malaysia

PROJECT SITE
XSD Paper

Source: Rancangan Fizikal Negara Ke-3, 2015

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Figure 1.8: Location of the Project Site within Draf Rancangan Tempatan Daerah Kulim 2035

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