Investment Incentives

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• Investment Incentives
• - Fisheries
• Relevant Incentives
• Pioneer Status.
• Double deduction Incentives for Training.
• Double deduction for R D.
• Reinvestment Allowance.
• Infrastructure Allowance.
• Double Deduction on Expenses for Promotion of
  Export.
• Double deduction for Promotion of Exports.
• Double deduction on Export Credit Insurance.

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Investment Incentives In Fisheries Incentives
partial or full relief in the form of exemptions
in duty and sales tax for specified period. A
company operating in Sabah, Sarawak and state
located in the Eastern Corridor enjoys extra
allowances. Example Reinvestment Allowance
eligible for 60 allowance on capital expenditure
and set off against 70 of statutory income in
assessment yea (100 for companies located in
Sabah) Foreign equity is unlimited except for
Aquaculture (30 locally owned) and deep-sea
(100 locally owned)
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Investment Incentives In Fisheries Budget 2001
investment in food production enjoys 100 tax
exemption on its statutory income. -10 years tax
deduction for investor company investing in a
subsidiary company in food production. Budget
2002 Reinvestment in existing company enjoys
100 tax exemption for 8 years.
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• Opportunities Potentials
• Escalating demand for seafood product
• Established regional and international
  markets.
• Competitive quality of marine and aquaculture
  products.
• Private sector resilience.
• Established technology availability in capture,
  culture and processing.
• Consumer preference.

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Prospect of Investment Vast and divers land and
water 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
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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-stream
processing of fish. Industrial pack, convenience
and ready to cook products.
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• Potential Resources For further Development In
  Sabah Fisheries
• Potential Resources For Marine Resources (mt)
•  Demersal
• Coastal 67,000
• Deep-sea 8,000
• Pelagic
• Coastal 7,000
• Deep-sea 14,000
• Tuna 19,500

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• Policies On Deep-sea Fishing
• Readily resources.
• A promoted sector for fisheries investment.
• Permit to charter/lease foreign vessels and
  skilled crew to accelerate technology transfer.
• Encourage joint-ventures.

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• Potential Resources For Aquaculture Development
  In Sabah
• Resources (ha)
• Open sea areas 19,390
• Bay/Lagoon 102,413
• Coastal Lands 8,050
• Inland Areas 51,178

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Investment In Prawn Farming Suitable Areas
Tawau 3,845 ha Kuala 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
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• Marine Finfish Culture In Open-Sea Cage
• Investment cost / ha RM 3 million
• Returns
• Estimated annual production/ha 240 tons
• Estimated annual sales RM2.4 million
• Returns on investment 15
• Payback period 7.5 years

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• Brackish water Fish Culture In Cages In Coastal
  Areas
• Investment cost / ha RM 1.5 million
• Returns
• Estimated annual production/ha 60 tons
• Estimated annual sales RM600,000
• Returns on investment 35
• Payback period 3.5 years

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• Hatchery/ Nursery Industries
• Vital to support aquaculture development.
• Local fish fry production still not sufficient
  (lt30).
• Main species selected high value marine fish.
• Potential for export markets.

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• Freshwater Fish Farming In Ponds
• Investment cost / ha RM 50,000
• Returns
• Estimated annual production/ha 5 tons
• Estimated annual sales RM100,000
• Returns on investment 20-25
• Payback period 5 years

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• Freshwater Fish Farming In Cages
• Investment cost / ha RM 1 million
• Returns
• Estimated annual production/ha 50 tons
• Estimated annual sales RM200,000
• Returns on investment 30-35
• Payback period 3.5 years

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• 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 are capable.
• 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.

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• Starting A Business In Sabah
• Basic Cost
• Fees to the Registrar of Companies
• ( RM 1,000 for capital RM500,000(US 131,000)
• RM 1 million(US263,000)
• Rental fees for Office space- RM24.00 (US7.00)
• 1 sq. meter
• Selling price for Industrial land-
• RM12.00 (US3.00) per ft2
• Selling price for Ready built factory- RM41.00
  (US 10.00) per ft2 floor area.
• Electricity Rates
• Commercial tariffs RM0.32 cents (US 0.8 cents)
  per kWh
• Water Rates
• Commercial RM0.90 cents (US0.24 cents) per m 3

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• Starting A Business In Sabah
• Basic Cost
• Fuel Costs
• Petrol RM1.16 (US0.31 cents) per litre.
• Diesel RM0.61 (US0.16 vents) per litre.
• Monthly telephone rental RM30.00 (US7.90)
• Transportation cost
• Container Rates for
• twenty-footer within 96 km from port zone RM 0.7
  cents (1.8 UScents) per metric ton per km.
• Exceeding 96 km RM0.12 cents (3.2 UScents) per
  metric ton per km.
• Ocean freight rates
• Port Klang to Korea (Pusan) 20-ft container
  US200 (exclusive of other charges)

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• Starting A Business In Sabah
• Basic Cost
• Ocean freight rates
• Port Klang to Korea (Pusan) 20-ft container
  US200 (exclusive of other charges)
• Air Cargo rates
• From Kuala Lumpur to
• Korea (Seoul) RM14.00 (US3.79 ) per kg
• Japan (Osaka) RM12.85 (US3.38 ) per kg
• UK (London) RM23.87 (US6.28 ) per kg
• Tax
• Company tax (resident and non-resident) 28
• Non-resident individuals 29

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• Starting A Business In Sabah
• Basic Cost
• Wage Rates vary according to state and level
  skill of employee. (Unskilled RM 442 minimum
  (US116), Supervisor RM1430 minimum(US376).
• Condition of Employment
• Salaries, Statutory contributions (EPF Act 1991),
  Social Security Organisations (SOCSO) and other
  Fringe Benefit.
• Employment pass RM 200 (US53) per year for
  expatriate in professional post.

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• Starting A Business In Sabah
• Basic Cost
• Golf Club Membership
• Corporate membership (one nominee)
• RM 18,000-RM100,000 (US4,737 26,316)
• Monthly Subscription RM 95 RM125 (US 25 33)
• Green Fees
• Weekdays RM80-RM120 (US21-32)
• Weekends RM120-RM220(US32-58)

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• Sabah State Departments Roles On Investment
• Dept. Of Industrial Development Research
  provide services and assistance to investors.
• State Centre of Investment Committee (SCOIC)
  assessment and process of commercial and
  industrial project proposals.
• SCOIC considers and approve investment
  proposals, facilitate and assist investors,
  review investment policies and provide investment
  guidelines.

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Department of Fisheries Investors Support
Establish Support Services

• a-help desk service/ one stop
  trade/investment/market enquiries.
• Coordinate Business Meeting.
• Receive and redirect trade and investment
  enquiries.

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Department of Fisheries Investors Support
http//www.fishdept.sabah.gov.my

• Business directory for commodity search and
  company lists.
• Support for newly developed investment project.
• Assistance in Investment Incentives.

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Conclusion
Public sector is determined and steadfast in
extending assistance and services. Investors and
Private sectors are to take the lead.
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Investment Opportunities in Fisheries Industry In
Sabah.
Rayner Datuk Stuel Galid Director, Department of
Fisheries, Sabah
Thank you.
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