Investment Opportunities in Fisheries Industry in Sabah, Malaysia ( part 2 )

8/7/2019 Investment Opportunities in Fisheries Industry in Sabah, Malaysia ( part 2 )

http://slidepdf.com/reader/full/investment-opportunities-in-fisheries-industry-in-sabah-malaysia-part-2 1/27



Investment Incentives InFisheries

Incentives ; partial or full relief in the form of exemptions in duty and sales tax for specifiedperiod.

A company operating in Sabah, Sarawak and

state located in the Eastern Corridor enjoysextra allowances.

Example : Reinvestment Allowance eligible for 60%allowance on capital expenditure and set off against70% of statutory income in assessment yea (100%for companies located in Sabah)

Foreign equity is unlimited except forAquaculture (30% locally owned) and deep-sea(100% locally owned)





Opportunities & Potentials

Escalating demand for seafood product

Established regional and internationalmarkets.

Competitive quality of marine andaquaculture products.

Private sector resilience.

Established technology availability incapture, culture and processing.

Consumer preference.



Prospect of Investment

Vast and divers land andwater resources.

Resources Potential:

Marine fisheries 252,000 mt.100,000 mt deep sea/pelagic resources.

Cage culture area; 2800 ha

Seaweed Culture; 100,000 ha

Coastal shrimp ; 150,000 ha



Investment Opportunities

Ventures in large scale aquaculture.

Aquaculture: seaweed, cage culture and prawn.

Supply of fisheries inputs: services, fish fry,equipment and feed.

Deep-sea fishing.

More high-value added, down-streamprocessing of fish.

Industrial pack, convenience andready to cook products.



Potential Resources Forfurther Development In

Sabah Fisheries

Potential Resources For MarineResources (mt)

Demersal

Coastal 67,000

Deep-sea 8,000

Pelagic

Coastal 7,000

Deep-sea 14,000Tuna 19,500





Potential Resources ForAquaculture Development In

Sabah

Resources (ha):

Open sea areas 19,390

Bay/Lagoon 102,413

Coastal Lands 8,050

Inland Areas 51,178



Investment In Prawn Farming

Suitable Areas:

Tawau 3,845 haKuala Penyu/Beaufort 18,200 ha

Pitas 3,683 ha

Sandakan/Lahad Datu 13,950 ha

Kinabatangan 11,500 ha

Investment cost / ha : RM 80,000

Returns:

Estimated annual production/ha 6 tons

Estimated annual sales RM150,000

Returns on investment 40-50%Payback period ~ 2.5 years





Brackish water Fish CultureIn Cages In Coastal Areas

Investment cost / ha : RM 1.5 million

Returns:

Estimated annual production/ha : 60tons


Returns on investment 35%

Payback period ~ 3.5 years



Hatchery/ Nursery Industries

Vital to support aquaculturedevelopment.

Local fish fry production still notsufficient (<30%).

Main species: selected high valuemarine fish.

Potential for export markets.



Freshwater Fish Farming InPonds

Investment cost / ha : RM 50,000

Returns:

Estimated annual production/ha 5 tonsEstimated annual sales RM100,000

Returns on investment 20-25%

Payback period 5 years



Freshwater Fish Farming InCages

Investment cost / ha : RM 1 million

Returns:

Estimated annual production/ha 50tons


Returns on investment 30-35%

Payback period 3.5 years



Guidelines On Foreign Investment

Investment in manufacturing sector is encourage on a joint-venture between Malaysians and foreign investors.

Foreign investors can hold 100% equity in manufacturing;except for specific industry where Malaysians SMIs arecapable.

Protection Of Foreign Investment.IGAs (Investment Guarantee Agreements) :

Protection for foreign investors (adequate compensation,settlement of investment disputes, free transfer of profits,capital, etc.)

First Point Of Contact:Malaysian Industrial Development Authority (MIDA, a

Coordinating Centre On Investment.





Starting A Business In Sabah

Basic Cost:

Fuel Costs:Petrol ² RM1.16 (US$0.31 cents) per litre.

Diesel ² RM0.61 (US$0.16 vents) per litre.

Monthly telephone rental ² RM30.00(US$7.90)

Transportation cost:

Container Rates for ;

twenty-footer within 96 km from port zoneRM 0.7 cents (1.8 UScents) per metric tonper km.

Exceeding 96 km RM0.12 cents (3.2UScents) per metric ton per km.

Ocean freight rates;

Port Klang to Korea (Pusan) 20-ft containerUS$200 (exclusive of other charges)





Starting A Business In Sabah

Basic Cost:

Wage Rates; vary according to state andlevel skill of employee. (Unskilled RM 442minimum (US$116), Supervisor RM1430minimum(US$376).

Condition of Employment;

Salaries, Statutory contributions (EPF Act1991), Social Security Organisations(SOCSO) and other Fringe Benefit.

Employment pass RM 200 (US$53) per yearfor expatriate in professional post.





Sabah State Departments RolesOn Investment

Dept. Of Industrial Development &Research provide services and assistanceto investors.

State Centre of Investment Committee(SCOIC) ; assessment and process of commercial and industrial projectproposals.

SCOIC ; considers and approve investment

proposals, facilitate and assist investors,review investment policies and provideinvestment guidelines.





Department of Fisheries·Investors Support

Business directory for commoditysearch and company lists.

Support for newly developedinvestment project.

Assistance in Investment

Incentives.

http://www.fishdept.sabah.gov.my



Conclusion

Public sector is determined and

steadfast in extending assistance and services.

Investors and Private sectors are to take the lead.





Documents

Investment Opportunities in Fisheries Industry in Sabah, Malaysia ( part 2 )