SD Guthrie, Selangor govt explore massive 5,000-acre development on Carey Island

KUALA LUMPUR (Feb 27): SD Guthrie Bhd (KL:SDG) and the Selangor state government have entered a strategic partnership to explore a massive integrated development on Carey Island that is set to be a "critical component" of the Carey Island Port—the planned third terminal for Port Klang.

A memorandum of understanding (MOU) was inked between the plantation giant and Menteri Besar Selangor (Inc) (MBI Selangor) to explore the strategic collaboration, according to a joint statement from the two parties on Thursday. The MOU sets the framework for feasibility studies to develop master planning for a minimum 2,500 acres of land, with the potential to expand up to 5,000 acres.

The proposed development will sit within the Carey Island Special Economic Zone. "This will also reinforce the positioning of the SEZ as a catalytic economic hub, enabling the generation of high-value economic activities on Carey Island while supporting the broader growth agenda for Southern Selangor," the parties said.

The move comes after Prime Minister Datuk Seri Anwar Ibrahim in December 2025 issued a directive for all involved agencies to accelerate progress on the Carey Island terminal. He had said that the project, a major expansion of Port Klang's capacity, had long been delayed for years and should not be postponed any longer.

Selangor Menteri Besar Datuk Seri Amirudin Shari said the partnership underscores the state government’s determination to unlock the strategic potential of Carey Island.

The venture is a strategic opportunity for the group to participate in Selangor’s next phase of economic growth, said SD Guthrie group managing director Mohd Haris Mohd Arshad.

The collaboration is also a continuation of SD Guthrie’s diversification into its new industrial development segment, to move beyond its core plantation business, and to unlock long-term value from its strategic land bank.

SD Guthrie owns over 28,600 acres or about 80% of the island, including two palm oil estates, palm oil mills and a biodiesel plant on it. 

Shares in SD Guthrie ended four sen or 0.68% lower at RM5.82 on Thursday, valuing the group at RM40.25 billion.

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