Investment Opportunities in Fisheries Industry in Sabah.

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Investment Opportunities in Fisheries Industry in
Sabah.
Department of Fisheries, Sabah
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Objective
To provide overview on prospects and potentials
for investment in Sabahs Fisheries sector.
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Presentation Outline

1. Introduction to Sabah.
2. Overview of Sabahs Fisheries Industry.
3. Government Policies and Support.
4. Prospect Investment Opportunities.
5. Fiscal and Tax Incentives.

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General Information About Sabah
Situated at the northern tip of the island of
Borneo. Second largest state in Malaysia. Area
73,620 sq km. Coastline 1440 km. Climate
Tropical. Population 2.6 million (11 of
Malaysias population). Language Bahasa
Malaysia, English Chinese.
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General Information About Sabah
Main exports palm oil, cocoa beans, veneer,
plywood, sawn-timber and fishery products.) Main
imports processed petroleum products,
fertilisers, rice, sugar, machinery and products
of iron and steel. Gross Domestic Product (1999)
RM 9.1 billion (Fisheries Sector contributed
2.4) External Trade year 2000 Export Value
RM 13.2 billion. Import Value RM 11.3
billion,
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Sabahs Agriculture Sector
Estimated 2 million ha. (30 of land) is suitable
for agriculture. 1.2 million developed
cultivated. The Government is promoting Sabah to
be one of the nations major food production
centre. Main agriculture crops are palm oil,
rubber, cocoa, coconut and paddy. Livestock
eggs, chicken, beef and duck.
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SABAH STATE ADMINISTRATIVE STRUCTURE
Head Of State
Public Service Commission
State Cabinet
State Legislative
State Secretary
Chief Ministers Department
Ministry of Finance
Ministry Of Industrial Development
Ministry Of Resource Development and Information
Technology
Ministry Of Infrastructure Development
Ministry Of Local Government
Ministry Of Development Of Youth, Culture and
Sports
Ministry Of Agriculture and Food Industry
Ministry Of Tourism, Envi., Science Tech.
Development
Ministry Of Rural and Entrepreneur Development
Ministry Of Community Development and Consumer
Affair
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DEPARTMENT AND AGENCIES UNDER THE MINISTRY OF
AGRICULTURE AND FOOD INDUSTRY  
Ministry of Agriculture and Food Industry
 Agriculture Department
 Fisheries Department
Drainage and Irrigation Department
Veterinary and Animal Services Department
  Fishermen Cooperative
Rural Development Corporation
Sabah Rubber Fund Board
  Usaha Maju Foundation
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Industry Overview Potential to be a major
contributor towards achieving national food
production goals. Net exporter of
fish. Production to cater for local consumption
and exports.
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Industry Overview Fish Important source of
animal protein (consumption close to 40kg per
capita). Status traditional small-scale
fisheries commercial production has increased in
the last 6 years. Fishermen 22,000 Annual
Production 210,000 tonne value RM 800
million State is self-sufficient in fresh,
chilled and frozen fish. Fisheries Sector has 3
main sub-sectors - Marine capture
fisheries Marine aquaculture Inland Fisheries
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Industry Overview Total fish production ( year
2000) 211,000 mt, estimated value RM860
million. 77 commercial gears 23 traditional
gears Marine fish 202,000 mt (RM730 million)
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Marine Capture Fisheries Overall main
contributor. Potential yield 252,000 tons
where 60 coastal resources 40 deep sea Year
2000 production 211,000 metric tons. Valued at
RM867 millions) Fish 175,000 mt (RM520
mil.) Prawn - 11,500 mt (145 mil.) Crab 4,500
mt (RM 15 mil.) Molluscs 11,400 mt (RM 44
mil.) Others 159 mt ( 1.2 mil.)
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Marine Aquaculture A nascent industry,small-holde
rs operations. In the last 5 years, operations
has become more commercially-oriented. Main
culturefish and prawns in ponds, fish cage
culture, seaweed,oysters and mussels. Production
(2000) 7,000 mt value RM 75 million
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• Marine Aquaculture
• Prawn Industry
• Important contributor.
• 3000 hectares, 1500 ponds.
• Number of operators 128
• Main species cultured Tiger Prawn
• (Penaeus monodon)
• Production 2063 m.t. (2000),
• value at RM 60 million.
• Hatcheries 15 (Mostly di Tawau)

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Freshwater Aquaculture Number of Ponds (2000)
16,5001490 hectaresNumber of Farmers 5500
Main Species Nile bream (Tilapia), Patin
(Pangassius), Marble Head Goby, Chinese Carps,
Giant Gouramy, Javanese Carp, Ornamental
Fishes.Production in 2000 was 5,200 mt value
RM60 million
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• Industry Overview
• Fishery Total Trade and Balance for Sabah (1998
  2000)
• (Value in RM Million)
•  

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• Industry Overview
• 2000 export statistics
• Processed prawns RM238 million
• Squid, cuttlefish and octopus RM20 million
• Dry/processed seaweed RM10 million.
• Lobsters RM5 million.

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Prawn Fisheries Important contributor to marine
fisheries in terms of value.Year 2000 exports
8126 tonne with value of RM238 million (more than
50 of the total value of fisheries exports
(RM383 mil). No. of Prawn-Processing Factories
17. Exports markets Japan (51), USA, Hong Kong,
Italy, Singapore and Spain. exports of Shrimp -
fresh n shell, chilled or frozen.
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• Industry Overview
• Exports of Processed Prawn, 1998 2000, Sabah.
• (Value in Million)

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• Policies and Support
• Government Policy on Investment very keen to
  promote and facilitate investors.
• Formulation of 3rd National Agriculture
  Policyand 2nd Sabah Agriculture Policy.
• Strategic National and state policy are
• Increase food production.
• Commercialisation of agro-based industry.
• Promotion of sustainable and globally
  competitive agriculture.
• Increase in exports and investment.

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Policies and Support Fisheries identified as
potential candidate for investment. Established
procedures/guidelines for investors. Business
and investors friendly approach. Incentives to
increase investment and food production
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• Policies and Support
• State Policy for Fisheries Industries Investment
  and Development are-
• Maximize Production.
• Adoption of Efficient Technologies.
• Promotion of JVs (Joint Ventures).
• Large-Scale Aquaculture Production.
• Investment are encourage in -
• Prawn culture.
• Seed Production (marine fish).
• Seaweed Cultivation.
• Down stream Processing.
• Large-scale fish production.
• Support Facilities

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• Investment In Sabahs Fisheries Sector
• Strategic location in proximity to the ASEAN
  countries, China, Japan and the BIMP-EAGA region
  provide trade and investment opportunities.
• Government is receptive and supportive of FDIs
  (Foreign Direct Investment) in finance,
  technology, marketing and distribution network.
• Economically, Socially and politically stable
  state. Attractive incentives are available,
  friendly and safe destination to invest in.

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Investment Incentives Public Sector providing
advisory, technical assistance, financial and
investment incentives. Funding for local
investors is available through Fund For Food (3F
Fund). Tax reduction and incentives for
investments in selected food production/processing
. Promoted product in fisheries sector are
spawning, breeding and culturing of aquatic
products, off-shore fishing, processing of
aquaculture feed and aquatic products.